Wilmington, DE, Oct. 23--DuPont¹s third quarter earnings more than tripled, fueled by sales to the hot housing and automotive industries. The company earned $469 million, or 47 cents a share, in the quarter, up from $142 million, or 13 cents a share, in the same period a year ago.
The better than expected increase in earnings was largely due to strong sales in businesses where consumer spending has held up, such as housing and automobiles, despite a slow economy. Businesses where the company reported higher volumes included performance materials, coatings, and textiles and interiors.
Overall, sales dipped to $5.5 billion from $5.6 billion a year ago, mostly because prices on some of its chemicals and plastics remain depressed.
Cost cutting helped the company, which has been trying to reposition itself. DuPont has already announced plans to eliminate at least 5,500 jobs and shed its textile and interiors unit, a maker of Lycra fabrics and Stainmaster carpets. It also sold its drug unit to Bristol-Myers Squibb.
DuPont expects the U.S. housing and automotive markets to remain strong, and consumer spending to hold up reasonably well. As a result, earnings are expected to show a big increase in the current quarter, when earnings could triple poor results from year ago. The company affirmed its full year earnings forecast as well.
Excluding items, the company earned 40 cents a share. Expectations for the company ranged from 30 cents a share to 37 cents a share, with the average forecast calling for 35 cents a share in profit, according to Thomson First Call.
Forecasts, however, have risen steadily this month after the company said it would handily beat the 28 cents a share analysts had been expecting.
