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DuPont 1Q profit higher
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April 25, 2000: 10:02 a.m. ET
Chemical maker tops estimates as record sales offset higher costs
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NEW YORK (CNNfn) - DuPont Inc., the biggest U.S. chemical manufacturer, Tuesday unveiled higher first-quarter profit from operations that exceeded Wall Street's forecasts, as record sales of its chemical products offset higher costs for raw materials and unfavorable exchange rates.
The Wilmington, Del.-based company earned $898 million, or 85 cents a diluted share in the first quarter, up from $749 million, or 66 cents a share, in the year-earlier quarter. Including a one-time charge of $95 million, or 9 cents a share, the company earned $803 million, or 76 cents a share. Analysts polled by First Call Corp. had expected profit of 74 cents a share. DuPont earned 58 cents a share in the year-earlier quarter.
Demand for paints, titanium-dioxide white pigments and other materials helped boost overall sales during the quarter -- particularly in Asia where rebounding economic activity helped spur demand for DuPont's products. Sales in the Asia Pacific Region increased roughly 33 percent.
Total sales rose to a record $7.6 billion, up 21 percent from a year earlier. Part  of the sales gains stemmed from acquisitions. In October, DuPont completed its $7.7 billion purchase of the 80 percent of Pioneer Hi-Bred International Inc. it didn't already own. A decline in the value of the euro relative to the dollar offset some of its sales gains when it converted the proceeds back into the U.S. currency, the company said.
Overall, acquisitions and benefits from lower pension costs added about $200 million to first-quarter net income. At the same time, significantly higher costs for raw materials and a stronger dollar together lowered earnings by roughly $110 million, DuPont said.
"In the face of a business environment that includes higher raw material costs, higher interest rates and negative currency impacts, we are intensely focused on execution," said Chad Holliday, DuPont's chief executive. "We remain committed to delivery of strong double-digit earnings per share growth in 2000."
DuPont (DD: Research, Estimates) shares rose 5/16 to 56-5/16. DuPont is one of the 30 companies that comprise the Dow Jones industrial average. 
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DuPont
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