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DuPont beats estimates
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July 26, 2000: 11:58 a.m. ET
Chemical maker earns 90 cents a share, warns costs to impact second half
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NEW YORK (CNNfn) - DuPont Co. reported Wednesday that second-quarter earnings rose 7 percent to top Wall Street forecasts, fueled by strong sales in its biggest business units.
The company also said it planned to expand a previously announced share buyback program to $2.5 billion beginning in the third-quarter.
"It's a great time to reinvest in our company," Charles Holliday Jr., DuPont's Chairman and Chief Executive said. "This action is yet another reflection of our commitment to enhance shareholder value."
The biggest U.S. chemical maker said earnings from continuing operations rose to $949 million, or 90 cents a diluted share, from $886 million, or 78 cents a share, a year earlier. Earnings tracker First Call had expected 88 cents a share.
 Wilmington, Del.-based DuPont (DD: Research, Estimates) said consolidated sales grew 13 percent to $7.9 billion while global segment sales rose 12 percent to $8.8 billion. Sales in the United States, excluding portfolio changes, increased 14 percent to $4.7 billion, while sales for the Asia Pacific region rose 26 percent to $1.2 billion. Earnings at DuPont's coatings and polymers segment jumped 19 percent to $190 million while the pigments and chemicals group rose 18 percent to $186 million.
DuPont also said it expects to hit its 17-20 percent earnings per share growth target for all of 2000, Holliday said. However, the chemicals manufacturer anticipates that raw material costs will remain at current high levels and would result in a negative EPS impact of 20 cent to 25 cents in the second half. DuPont also warned that volume growth may be below 6 percent in second half.
DuPont's shares were up 15/16 to 44-9/16 in morning trading Wednesday.
"Most of our businesses performed exceptionally well in spite of higher raw material costs and weak European currencies, with 11 of 18 strategic business units delivering double digit earnings growth," Holliday said. 
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Dupont
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