DuPont will report final results for the fourth quarter and full year 2007 on January 22.
The company expects full year 2007 earnings to be at the upper end of its previously announced range of USD 3.15 to USD 3.20 a share. This excludes USD 0.09 per share of charges for significant items recorded in the first nine months of 2007 and a net benefit of USD .02 per share the company expects to record for the fourth quarter 2007, as further described below.
“Our science-driven innovations and market differentiation enabled us to deliver fourth quarter revenues somewhat above our earlier expectations,” said DuPont Chairman & CEO Chad Holliday . “For the full year 2007, we will deliver 11 percent or more earnings growth despite a slowing U.S. economy and higher raw material prices. Looking ahead, we are confident that our improved business mix and ongoing initiatives to lower cost and boost returns on innovation will enable us to deliver attractive growth in earnings in 2008.”
The company also increased its 2008 earnings outlook to a range of USD 3.35 to USD 3.55 per share compared to its previous estimate of USD 3.31 to USD 3.52 reported on Oct. 23, 2007.
“We expect that continued growth worldwide from our Agriculture & Nutrition business segment and growth from all of our segments in emerging markets will more than compensate for a slower U.S. economy,” Chad said. “We will continue to deliver productivity improvements and fund targeted growth investments, while advancing our rich pipeline and delivering new, high-value products into the marketplace.”
The company also announced after-tax estimates of the following significant items it expects to record in the fourth quarter 2007:
- A charge of about USD 135 million to adjust the carrying value of its investment in a 50/50 polyester films joint venture. The rapid rise in oil-related raw materials costs, coupled with adverse changes in market conditions, have had a negative impact on the profitability of the venture's operations in North America and Europe. In addition, the company said it is taking steps to improve the value of this business.
- A benefit of USD 112 million related to agreement on certain tax audit issues which were previously reserved.
- A benefit of USD 46 million resulting from the reversal of certain litigation reserves established in prior periods for an elastomers anti-trust matter.