January 31, 2014
DuPont''s Q4 2013 net income doubles
Driven by strong seed and insecticide sales, lower taxes and cost controls, DuPont Co. has doubled its fourth-quarter net income, and plans to buy back US$5 billion of its shares to boost shareholder returns.
DuPont''s adjusted earningsexceed Wall Street expectations, even though revenue fell short. Its shares slipped 1% to close at US$59.57 as the broader markets ticked up slightly. The stock is still up 24% in the past 12 months.
The company''s agriculture business usually posts a fourth-quarter seasonal loss, but this time benefited from earlier than expected seed sales in Brazil and North America and strong demand for insecticides in Latin America. Profit in the company''s electronics segment jumped on stronger demand for Solamet paste and Tedlar films in photovoltaics used for solar electricity, executives said.
DuPont also pointed to better profitability in its safety and protection business. Higher pricing and stronger demand for nutritional items such as probiotics boosted earnings in that division.
DuPont earned US$185 million, or US$0.20 per share, double the US$92 million, or US$0.09 per share, that it reported for the final months of 2012. Sales rose 6% to US$7.75 billion from US$7.33 billion last year, slightly below the US$7.8 billion analysts expected. Volumes rose in all regions, including double-digit gains in Asia and Latin American markets.Such developmentoffset lower local selling prices and foreign exchange fluctuations.
For the full year, DuPont earned US$4.8 billion, or US$5.19 per share, on sales of about US$35.7 billion, compared with 2012 net income of about US$2.8 billion, or US$2.91 per share, on sales of about US$34.8 billion.
Looking ahead, the company forecast full-year 2014 operating earnings of US$4.20 to US$4.45 per share whileanalysts expect US$4.33 per share. In addition,a US$5 billion share repurchase programme replaces an existing one. DuPont expects to repurchase US$2 billion of the shares in 2014.