NEW YORK – DuPont (DD) on Wednesday cut its fourth-quarter earnings outlook on operational disruptions related to hurricanes and lower-than-expected performance in three business segments.
The company said earnings will be reduced by $200 million in pretax operating income from the low end of its previous outlook range, slightly offset by a lower-than-expected tax rate, leading to earnings per share of about 10 cents.
DuPont previously forecast earnings per share of 20 cents to 25 cents for the quarter, and analysts polled by Reuters Estimates on average expected 24 cents per share.
DuPont becomes the latest raw-materials company to indicate that, though Hurricanes Katrina and Rita have long passed, they continue to significantly affect operations. Earlier this week Alcoa (AA) posted a disappointing profit as the hurricanes continued to weigh on both production and on materials costs.
Lower-than-expected sales and higher-than-expected costs in crop protection chemicals, performance coatings and surfaces hurt results in the quarter, DuPont said.