DuPont Sees a Rough Second Quarter As U.S. and European Markets Weaken
Dow Jones Newswires
WILMINGTON, Del. -- DuPont Co. warned Wednesday that its second quarter is proving "at least as challenging" as its first, seeing further deterioration in U.S. markets and new softening in Europe.
DuPont's Net Income Tumbles 38%; Firm Sees No End of Slowdown Yet (April 25)
In April DuPont posted first quarter earnings of 54 cents a share, before items -- a 38% decline from the year-earlier quarter -- citing an economic downtown. Analyst surveyed by Thomson Financial/First Call expected the company to earn 63 cents a share for the second quarter.
The chemicals company said Wednesday that this quarter markets sensitive to discretionary spending -- such as electronics, automotive and commercial and residential remodeling markets -- are continuing to soften.
In North America, the company's commercial and residential carpet segments has faced second-quarter declines, while its architectural paint season is off to a "very slow start."
"As an upstream supplier, DuPont is increasingly affected by the global high-tech slowdown," the company said.
DuPont reiterated its earlier contention that the outlook is too uncertain to predict when an upturn will occur.
The company said focusing on business fundamentals and execution is the best way to deal with the current downturn and prepare for an upturn, when it occurs.
DuPont said it is taking advantage of reduced media rates to boost consumer advertising and is accelerating its investments in information technology at reduced unit costs.
In addition, it has rescheduled its manufacturing maintenance to take advantage of idle time. |
