09 December 2011 21:36 [Source: ICIS news]
Correction: In the ICIS story headlined "US DuPont stock plunges 3% on weaker '12 guidance" dated 9 December, please read the headline as "…on weaker '11"…" instead of "…on weaker '12"…".
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HOUSTON (ICIS)--Stock for US-based major DuPont closed 3% lower on Friday after the company lowered its earnings guidance for this year.
DuPont's stock fell to $45.04, down by $1.48. DuPont was by far the worst performer among the companies followed by ICIS, since nearly every company rose.
The Dow Jones US Chemicals Index rose by 0.5%, and fellow US-based major Dow chemical rose by 1%.
US-based butadiene producer TPC Group rose the most, by 9%.
Among the larger companies, US-based acetyls producer Celanese rose by 2%. US-based soda-ash and specialty chemicals producer FMC also rose by 2%.
Losers include fertilizer producers, which fell following an agriculture report showing rising stocks for grains and oilseeds.
Overall, the Dow Jones Industrial Average closed at 12,184, up nearly 187 points or 1.6%.
The increase in the overall market came after EU leaders received backing from nearly all of its member states to sign a treaty addressing the region's debt crisis.
DuPont's stock fell after it lowered its full-year 2011 earnings per share outlook to $3.87-$3.95 amid slower growth and uncertainties in global markets.
The revised outlook compares with DuPont’s previous guidance from October of full-year 2011 earnings per share of $3.97-4.05 (€2.98-3.04).
DuPont CEO Ellen Kullman said the company is seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty.
“This uncertainty is contributing to ongoing conservative cash management in some supply chains," she added.
The earnings revision reflects destocking across polymers and certain industrial supply chains that have accelerated during the fourth quarter, the company said.
Demand for consumer electronics has further softened, while housing and construction markets remain weak, it said.
Other markets remain as expected. For example, markets for DuPont's agriculture and food businesses continue to be strong, including solid volume growth during the current Latin America summer season.
Additional reporting by Stefan Baumgarten
($1 = €0.75)
For more on DuPont visit ICIS company intelligence
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