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DuPont 2Q profit rises
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July 28, 1999: 2:02 p.m. ET
Chemical maker beats expectations despite weak product prices
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NEW YORK (CNNfn) - DuPont Co., the nation's largest chemical producer, Wednesday reported a 6 percent increase in second-quarter operating earnings, exceeding analysts' expectations despite generally lower chemical prices.
DuPont said earnings excluding extraordinary items rose to $886 million, or 78 cents a diluted share, from $839 million, or 73 cents, in the year-earlier period. The results beat the consensus of analysts' estimates by a nickel, according to the research firm First Call Corp.
Strong sales at its pharmaceuticals unit, its agricultural and nutrition segment and its pigments and chemical fibers operations helped the Wilmington, Del.-based company post an operating profit gain in the quarter.
Net income -- including charges related to job cuts in DuPont's polyester business and a gain on disposal of a discontinued business -- fell to $917 million, or 80 cents a diluted share. In the year-ago quarter, income from discontinued operations partly offset by charges related to job cuts in the nylon business led to net income of $959 million, or 83 cents a share.
Revenue rose 9 percent to $7.23 billion.
DuPont Chief Executive Charles Holliday Jr.
Operating earnings for the pharmaceutical business rose 96 percent and climbed 25 percent for the coatings and polymers unit.
The gains were offset, in part, by weaker sales at the company's agricultural and polyester units.
"Although the polyester industry and U.S. agriculture markets remain weak, most of our other businesses began to see some volume improvement," DuPont CEO Charles Holliday Jr. said.
DuPont said acquisitions, including its $1.89 billion purchase of Hoechst AG's Herberts paints and coatings business in the first quarter, helped boost shipments and offset price declines for many of its products, helping the bottom line.
At the same time, the company benefited from stronger demand for nylon carpet fibers and said demand from Asia continued to rebound, it said. Profit was hurt by cheaper polyester imports into the U.S. and weak demand for apparel nylon.
For the first six months of 1999, DuPont posted net income of $1.58 billion, or $1.38 a share, down from $1.87 billion, or $1.62 a share, in the first six months of 1998. Revenue rose 3 percent to $13.54 billion.
DuPont shares rose 1-3/8 to 73-1/2 in Wednesday afternoon trading. 
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DuPont
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