DuPont Expects Flat Quarter, Heavy Pension Costs for 2003
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WILMINGTON, Delaware -- DuPont Co. forecast a weak first quarter after posting a steep drop in net income, and warned of the heavy impact of pension costs on its bottom line this year.
The chemicals company said Tuesday it earned $350 million, or 35 cents a share, in the fourth quarter, compared with a year-earlier net of $3.92 billion, or $3.82 a share, which included a gain of $3.82 billion from the sale of DuPont Pharmaceuticals to Bristol-Myers Squibb Co.
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Stripping out items deemed special by the company but considered part of ordinary operations under generally accepted accounting principles, DuPont earned 34 cents a share in the fourth quarter, compared with earnings of 12 cents a share a year earlier. The latest result beat a consensus analyst forecast of 32 cents a share, compiled by Thomson First Call.
Revenues in the quarter grew 8.7% to $5.68 billion from $5.23 billion a year earlier.
The company said it benefited from a lower full-year effective tax rate, higher sales volumes and lower raw-material costs in the quarter.
DuPont expects first-quarter earnings will be roughly flat with the 55 cents a share it earned the previous year. Analysts had estimated net of 64 cents a share for the current quarter, according to First Call.
The company also expects pension and other retirement costs to reduce 2003 earnings by between 34 cents and 39 cents a share.
For all of 2002, DuPont swung to a net loss of $1.1 billion, or $1.12 a share, compared with net profit of $4.34 billion, or $4.16 a share, in 2001. Results for 2002 included a $2.94 billion charge for the cumulative effect of an accounting change for goodwill amortization, the company said. Net sales slipped 2.9% to $24 billion from $24.73 billion in 2001.
Updated January 28, 2003 2:46 p.m. EST |
