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DuPont profit beats as cost cuts take hold

Published 10/25/2016, 06:55 AM
Updated 10/25/2016, 06:55 AM
© Reuters. DuPont products are shown for sale in a hardware store in National City

(Reuters) - Chemicals and seeds producer DuPont (N:DD) reported a better-than-expected quarterly profit as its cost-cutting measures paid off ahead of its merger with Dow Chemical Co (N:DOW).

DuPont said in July that it was on track to reach $1 billion in cost savings on a run-rate basis by the year-end.

The company also said it expected its $130 billion merger with Dow Chemical to close by the first quarter of 2017 and that their businesses would be spun off about 18 months following the closure.

Dow and DuPont plan to create three listed entities, focusing on agriculture, materials and specialty products.

The mega-merger is being scrutinized by regulators around the world, with EU antitrust officials resuming investigation this month after halting it in early September.

The company raised its full-year operating earnings forecast to $3.25 per share from the previous range of $3.15-$3.20 per share.

DuPont posted net income attributable to shareholders of $2 million, or breakeven per share, in the third quarter ended Sept. 30 compared with $235 million, or 26 cents per share, a year earlier.

The company recorded a net charge of $172 million related to employee severance and asset writedowns.

Excluding items, the company earned 34 cents per share, beating analysts' estimate of 21 cents per share, according to Thomson Reuters I/B/E/S.

DuPont's net sales rose marginally to $4.92 billion, also topping estimates of $4.87 billion.

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