DuPont Swings to Loss, Posts Lower Sales --Update
May 05 2020 - 7:27AM
Dow Jones News
By Dave Sebastian
DuPont de Nemours Inc. posted lower sales and swung to a loss
for the first quarter as the Covid-19 pandemic has led to higher
demand for personal protective equipment but also disrupted supply
chains.
The maker of nylon and other materials for the auto industry on
Tuesday posted a net loss of $616 million, or 83 cents a share,
compared with a profit of $521 million, or 69 cents a share, in the
same quarter last year. The loss was largely driven by
restructuring costs, a goodwill impairment charge and other
expenses.
Adjusted earnings were 84 cents a share, ahead of the 73 cents a
share analysts polled by FactSet had expected.
The Wilmington, Del., company said sales fell 3.6% to $5.22
billion from the year-ago period. Analysts were targeting $5.07
billion.
DuPont said sales grew in its electronics-and-imaging and
nutrition-and-biosciences segments, though declines in the
transportation-and-industrial, safety-and-construction and noncore
segments offset gains. Excluding the effect of currency and
portfolio, the company said sales fell 2%.
"Through April, we continue to see strength in personal
protection, water filtration, food and beverage, electronics and
probiotics," Executive Chairman and Chief Executive Ed Breen said.
"Automotive, oil and gas, and select industrial end markets
continue to suffer."
The company said it has stepped up production of personal
protective equipment. DuPont said it increased the production of
Tyvek garments by more than nine million a month, double the amount
produced for any prior crisis, the company said.
DuPont said it booked merger-related amortization expense and a
higher tax rate. It continues to face nylon pricing pressures. The
company earlier this year said lower nylon prices will weigh on its
profit this year, though it has withdrawn full-year guidance due to
the pandemic's uncertainty.
The company in April said it idled several manufacturing sites
that serve the auto industry after major U.S. car makers halted
production. DuPont makes materials for products including solar
cells, bulletproof vests, biofuels and probiotics.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
May 05, 2020 08:12 ET (12:12 GMT)
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