DuPont Q2 profit rises 65% on cost cutting, higher sales

24 July 2002 14:38  [Source: ICIS news]

HOUSTON (CNI)--Global chemical giant DuPont said Wednesday its second quarter net income before one time charges surged 65% to $711m (Euro718m) on restructuring, increased sales and a recovering global economy.

For the period ended 30 June, the Wilmington, Delaware-based company posted earnings/share (eps) of 71 cents, up from 41 cents in the year ago period.

Segment sales rose 1% to $7.4bn.

DuPont chairman and chief executive officer Charles Holliday said the company benefited from steps taken over the past year "to position ourselves for sustainable growth."

He added: "Our businesses and their customers are experiencing positive momentum in many of the markets they serve. The improvements in our businesses are broad-based and are creating a positive environment for DuPont to meet its growth goals and to increase value for our shareholders."

The company said it took $345m in one time restructuring charges including facilities shutdown and early extinguishment of debt.

DuPont said it expects the global economic recovery to continue "but at a more modest pace" than in the first half, which benefited in part from inventory restocking.

Said DuPont: "North America and Asia should continue to lead the way with a somewhat slower recovery expected in Europe. Economic conditions in South America remain uncertain."

The company said it expects third quarter eps to be about double those of third quarter 2001 on an underlying basis.

DuPont anticipates fourth quarter underlying eps to be about triple those of fourth quarter 2001.

By: Mike Sheridan
+1 713 525 2653

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