DuPont‘s (DD – Analyst Report) second-quarter 2015 revenues and earnings missed expectations as weakness in its agriculture business coupled with currency headwinds weighed on its results for the quarter.
DuPont logged adjusted earnings of $1.18 per share in the reported quarter versus $1.17 per share registered a year ago. It fell short of the Zacks Consensus Estimate of $1.19. The results include a 17 cents per share impact from unfavorable currency swings.
Adjusted earnings exclude one-time items including charges associated with the separation of the company's performance chemicals business and restructuring actions.
Including one-time items, DuPont registered earnings of $1.03 per share in the quarter, a roughly 10% fall from $1.15 per share a year ago. Profit slid 12% year over year to $940 million. Lower earnings from the agriculture business affected the bottom line.
DuPont posted net sales of $8,595 million for the quarter, a roughly 11% year over year decline. Revenues were hammered by headwinds from a stronger dollar and lower sales in the agriculture franchise. Declines were witnessed across all segments in the quarter. Sales also trailed the Zacks Consensus Estimate of $9,283 million.
DuPont reduced its earnings guidance for the full year citing weakness in the agricultural markets and also lowered its dividend. The Delaware-based company's shares tumbled nearly 7% in early trading.
EI Du Pont De Nemours and Company – Earnings Surprise | FindTheBest
Segment Review
Agriculture: Revenues fell 11% year over year to around $3.2 billion in the reported quarter. Segment earnings declined as better productivity and higher pricing were more than offset by unfavorable currency impact and lower volumes from reduction in global corn planted area, lower soybean sales and reduced crop protection volumes.
Electronics & Communications: Sales went down around 13% to $534 million in the quarter. Operating earnings for the segment rose on productivity improvements.
Industrial Biosciences: Sales slipped 9% to $288 million. Earnings fell as higher bioactives demand was offset by currency impact and lower pricing.
Nutrition & Health: Sales fell 11% to $826 million. Operating earnings fell as increased productivity was more than offset by negative currency impact.
Performance Chemicals: Sales went down 11% to around $1.5 billion. Operating earnings went down on lower pricing for titanium dioxide and currency impact.
Performance Materials: Sales tumbled roughly 14% to around $1.4 billion. Operating earnings rose on higher ethylene volumes, improved mix and productivity gains.
Safety & Protection: Sales fell 10% to $925 million. Operating earnings declined on as unfavorable currency impact, lower demand for Nomex thermal resistant fiber and portfolio changes more than offset productivity improvements and increased volumes in medical packaging and protective garments.
Financials
DuPont exited the quarter with cash and cash equivalents of roughly $4.7 billion, up around 12% year over year. Total borrowings and capital lease obligations rose nearly 8% year over year to around $12.7 billion.
