JP Morgan lifts DuPont profit estimate

23 July 2008 14:53  [Source: ICIS news]

TORONTO (ICIS news)--JP Morgan has raised its 2008 and 2009 earnings per share (EPS) estimates for DuPont to reflect the company’s better-than-expected second-quarter results and strength in its agricultural business, it said on Wednesday.

 

JP Morgan raised its 2008 EPS estimate for DuPont to $3.60, from $3.55, and it raised its 2009 EPS estimate to $4.05, from $4.00 (€2.52) previously.

 

DuPont’s second-quarter EPS from operations of $1.11 was up 7 cents from the 2007 second quarter and beat analysts’ expectation, JP Morgan said.

 

The company achieved the improvement despite sharply rising raw material costs, poor domestic auto and housing markets, a near-recession in the US and slowing growth in Europe, the analysts said.

 

An important driver was DuPont’s agricultural business which increased profits 18% on 23% sales growth, they said.

 

The company lost no US market share in domestic corn seed, gained in soybeans and introduced innovative crop chemicals, JP Morgan said in its analysis.

 

“DuPont’s agricultural operation is closing the gap with Monsanto,” it added.

 

To discuss issues facing the chemical industry go to ICIS connect

 

($1 = €0.63)

By: Stefan Baumgarten
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly