By Victoria Stilwell
DuPont Co. (DD) reaffirmed its full-year and long-term outlook
for titanium dioxide amid recent fears about weak demand in the
pigment industry for the second half of the year.
DuPont--the bigger maker of the pigment and one of the best
leading indicators of broader industrial production--said it
expects demand for titanium dioxide to be stronger than that of
ore, partially due to changes in inventory levels. The company said
recent comments regarding market demand "overstate the softness in
the pigment industry." The company plans to offer additional
perspective when it reports second-quarter earnings on July 24.
Australian rival Iluka Resources Ltd. (ILU.AX) earlier this week
cut its full-year sales volume outlook for titanium dioxide, a key
pigment used to make paints, a move that pressured stocks across
the sector. The company also said it is reviewing its spending
plans and considering further cutbacks to output to deal with
slowing demand and a subsequent inventory buildup.
Meanwhile, Jefferies earlier this month cut its 2012 and 2013
views and downgraded DuPont to hold to reflect a weaker demand
outlook in Europe and "incremental deterioration" in the
titanium-dioxide space. The investment bank said price increases
were stalling earlier than expected.
DuPont in April reported its first-quarter profit rose 4% as the
company benefited from higher pricing and a jump in sales of
agricultural products, as well as strong growth in developing
markets.
Shares rose 1.6% to $48.22 in recent trading after sliding 2.9%
Monday. The stock is down 5.6% over the past three months.
Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com
