E.I. du Pont de Nemours and Co. (NYSE: DD) reported first-quarter 2016 results Tuesday before markets opened. The chemical giant posted quarterly adjusted operating earnings per share (EPS) of $1.26 on revenues of $7.41 billion. In the first quarter of 2015, the company reported EPS of $1.26 on revenues of $7.84 billion. Consensus estimates called for EPS of $1.04 and revenues of $7.19 billion.
On a GAAP basis, the company posted EPS of $1.39 for the quarter. Restructuring charges cost shareholders $0.06 per share while the sale of DuPont’s Shenzhen manufacturing operation added $0.24 per share.
Regarding the announced merger with Dow Chemical Co. (NYSE: DOW), DuPont said only that the merger achieved key milestones during the quarter and that the companies are working toward closing the intended merger.
CEO and Chairman Ed Breen said:
Solid execution, local price and product mix gains, and higher corn area led to a strong start to the year for our Ag business,” said Ed Breen, Chair and CEO of DuPont. “Our other businesses generally performed well, slightly above our expectations. We made progress with our global cost savings and restructuring plan and are on track for savings of $730 million in 2016, including significant improvements in our corporate cost performance.
The company increased its full-year EPS guidance from a prior range of $2.95 to $3.10 to a new range of $3.05 to $3.20. The expected currency exchange impact has been lowered from 30 cents a share to 20 cents. Cost savings continue to be forecast at $0.64 per share. Operating earnings are expected to be flat with 2015 in the first half of the year. A stronger-than-expected increase in the company’s Agriculture segment is likely to be offset in the second quarter.
Analysts are calling for full-year 2016 EPS of $3.03 and second-quarter EPS of $1.09. Full-year revenues are tabbed to reach $24.43 billion and second-quarter revenues are forecast at $6.9 billion.
Shares were inactive in Tuesday’s premarket, having closed at $65.97 on Monday, unchanged for the day, in a 52-week range of $47.11 to $75.72.
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