Ag Economy Woes Reflected in DuPont Earnings, Merger with Dow Still a Go

DuPont Company, which last month struck a deal to merge with Dow Chemical and form a new company, said Tuesday morning that its sales swung to a loss in its latest quarter — as sales were hard-hit abroad due to the strong U.S. dollar.
The Delaware-based company said it’s going to reshape its business ahead of the proposed tie-up with Dow — through several measures including job cuts and cost reductions this year.
Chief Executive Ed Breen addressed reporters and investors via webcast this morning.  Edward-breen
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Breen said the costs saving measures are not related to the planned merger with Dow.
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Breen also said that DuPont and Dow officials are set on closing the merger in the 2nd half of 2016, pending the necessary shareholder and regulatory approvals.
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For the year, DuPont expects to earn $2.95 to $3.10 a share, including a higher-than-anticipated 64 cents per share in cost savings.
In the fourth quarter, sales in DuPont’s agriculture segment fell 11% from a year earlier. Overall for the quarter, DuPont reported a loss of $253 million, or 29 cents a share.