DuPont finds economic weakness spreading
(Adds details, stock info)
NEW YORK, May 23 (Reuters) - DuPont Co. <DD.N> is finding
growing weakness in its key markets as the second quarter
progresses, Chief Operating Officer Richard Goodmanson said on
Wednesday.
"The U.S. manufacturing sector has been in recession since
late last year, and we have been very clear that we entered the
second quarter of 2001 expecting an environment at least as
challenging as in the first quarter," Goodmanson told industry
analysts.
Goodmanson pointed out that in the first quarter the big
chemical and pharmaceutical companies had a 36 percent drop in
earnings per share on a 9 percent sales decline. "Thus far in
the second quarter, we have seen further negative developments
in markets that are sensitive to discretionary spending, such
as electronics, automotive, and commercial and residential
remodeling markets," he said.
For the first time in this downturn, Goodmanson said,
demand in Europe has softened.
U.S. auto manufacturing is down double digits, and the
remodeling slowdown has reduced North American demand for
carpet and paint, he continued.
DuPont is also focusing on controlling costs and enhancing
productivity, Goodmanson, said. The company is increasing
consumer advertising, because of reduced media rates,
accelerating some of its investments in information technology
at reduced costs, and rescheduling manufacturing maintenance to
take advantage of idle time.
Shares of DuPont fell $1.92, or 3.9 percent, to $47.39 in
New York Stock Exchange trading on Wednesday.
((--Jim Brumm, New York Equity News at 646 223-6091 or
nyc.equities.newsroom@reuters.com))
REUTERS
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