DuPont Cutting 1,500 Jobs After Q3 Miss
Earnings season continued to inflict pain as chemical giant DuPont (NYS: DD) this morning announced its intention to cut 1,500 jobs. The company reported a weak third quarter this morning, with total company reported earnings at $0.01 per share versus $0.48 per share in the prior year.
Total company third-quarter 2012 earnings, excluding significant items, were $0.44 per share versus $0.69 per share in the prior year, the company announced in a press release.
The announced job cuts amount to around 2% of DuPont's work force and will happen over the next 12 to 18 months. The company didn't disclose details of where the cuts would occur. They are part of a restructuring plan to "increase productivity, enhance competitiveness and accelerate growth."
Reuters reports that half the layoffs are due to the weak economy and half would stem from the $4.9 billion sale of the company's car paint business to the Carlyle Group in August.
Declining revenue and one-time items slammed DuPont's quarterly earnings, particularly as demand fell in Europe and Asia. Sales fell far below analyst expectations, plummeting 9% for the quarter. DuPont CEO Ellen Kullman said the company is "addressing these challenges now to position ourselves for improved performance."
Even without one-time items, earnings per share of $0.32 still fell far below analyst expectations of $0.46 a share. DuPont shares plunged more than 7% in early trading.
The article DuPont Cutting 1,500 Jobs After Q3 Miss originally appeared on Fool.com.Dan Carroll has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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