DuPont ($DFT) Profit More than Doubles; Raises Guidance

By Jayce Shelton

DuPont Company (NYSE: DFT) posted a more than doubling of first-quarter profit, citing rising revenue and lower raw material prices.

For the quarter, the chemical giant said it earned $1.13 billion, or $1.24 per share, compared with $488 million, or 54 cents per share, for the first quarter last year. The company said it earned 10 cents from favorable currency exchange.

The mean analyst estimate polled by Thomson Reuters expected earnings of $1.06 per share on $8.06 billion in revenue.

“Our intense focus on customers, sustained R&D investments and productivity improvements are delivering growth,” said Chairman and Chief Executive Ellen Kullman.

Revenue rose 23 percent to $8.48 billion on 19 percent higher volume. Gross margin expanded from 24.5 percent to 31.7 percent due to lower material costs and raised unit prices, said the company.

DuPont hiked its 2010 earnings forecast to a range of $2.50 to $2.70 per share from previous guidance of $2.15 to $2.45.

During the recession, the company responded to a sudden drop in demand by cutting costs and refocusing its efforts to expand margins.
Standard & Poor’s Rating Services recently raised its rating for the company to stable from negative, citing improved economic conditions help the company’s credit ratios.

Outstanding highlights in the latest quarter include a double-digit gain in orders for soy and corn seed posted by its agriculture segment, a future engine of growth for the company. The company’s agriculture business saw its revenue and earnings increase 6 percent and 10 percent, respectively.

The company’s plastic films and packaging materials segment saw a spike of 63 percent in revenue and profitability from previous years of losses.