Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  E I Du Pont De Nemours And Co    DD

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

DuPont curtails spending due to fiscal cliff

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/12/2012 | 10:33pm CEST

Chemical maker DuPont (>> E I Du Pont De Nemours And Co) will spend less on capital projects next year than initially planned due to uncertainty about the U.S. "fiscal cliff," Chief Executive Ellen Kullman said in an interview.

Chemical maker DuPont (>> E I Du Pont De Nemours And Co) will spend less on capital projects next year than initially planned due to uncertainty about the U.S. "fiscal cliff," Chief Executive Ellen Kullman said in an interview.

The company, which has the largest market value among U.S. chemical makers, plans to keep capital spending at around $1.8 billion in 2013 and is delaying some projects until it is clear what U.S. tax policy will be, Kullman said.

The company had planned to hike spending in the new year.

"We're not going to spend as much as we thought next year," she said in an interview with Reuters on Wednesday.

"We've looked at every program and asked, 'Can we spend less money now and delay some programs six months?'"

Agriculture and nutrition projects may get more funding due to their growth potential, but there's some uncertainty in the automotive sector, where DuPont sells paints and plastics, she said.

"Consumers will hold back until the fiscal cliff is resolved," said Kullman, who has run the Wilmington, Delaware-based company since 2009.

"It's not about politics anymore," she said. "It's about the country. It's about reducing our debt. It's about making a viable economy long into the future."

Kullman said she personally is willing to pay higher U.S. federal income taxes to help avert the fiscal cliff, a package of spending cuts and tax hikes due to take effect in January unless Washington lawmakers agree on a budget deal.

Kullman's 2011 compensation package was worth $12.2 million.

"We understand there has to be a balanced equation. There has to be increased revenues and there has to be decreased spending," she said.

If there is only a partial deal, one that doesn't address spending and the U.S. federal debt, Kullman said it could reduce U.S. GDP growth by as much as one percentage point.

"The biggest concern is not that they don't avert the cliff, but that they put forward a plan and never execute, or don't execute in a way that addresses the debt," she said. "Because otherwise you're just going to run up against that debt ceiling constantly."

BUYBACK VS. DIVIDENDS

Late Tuesday, DuPont announced a $1 billion stock buyback and said 2012 profit should hit the high end of its forecast.

DuPont decided a buyback, rather than a one-time dividend, would be better for shareholders, Kullman said. The company pays a 32-cent quarterly dividend currently, one of the better yields available to investors.

Due to the "fiscal cliff" uncertainty, Wal-Mart (>> Wal-Mart Stores, Inc.), Costco (>> Costco Wholesale Corporation) and other U.S. corporations have pulled forward 2013 dividend payouts to 2012, or issued one-time payouts, so shareholders won't have to pay expected higher capital gains taxes in 2013.

DuPont considered that approach, but decided against it, Kullman said.

"With the uncertainty that's out there, and with the tax law changes, we believe it better serves our shareholders to reduce our share count," she said. "Many of our shareholders are tax-exempt funds, so they don't pay tax on dividends."

NATURAL GAS EXPORTS

Kullman said the United States should consider the impact that exporting shale-derived natural gas would have on the nation's economic growth. Natural gas exports are controversial among executives of companies that are heavy users of the energy source and chemical feed stock.

DuPont uses natural gas in some of its U.S. Gulf Coast plants and other facilities, but does not use nearly as much as rival Dow Chemical Co (>> The Dow Chemical Company), which has argued natural gas should stay in the United States.

Asked if DuPont would support exports of natural gas, Kullman said, "I do think as a country we need to first and foremost make sure we have energy security ... If we have great excess reserves that we can monetize, that should be part of a consideration."

DuPont shares closed up 1.4 percent at $44.30 on the New York Stock Exchange on Wednesday.

(Reporting By Ernest Scheyder; editing by John Wallace, Nick Zieminski and Tim Dobbyn)

By Ernest Scheyder

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on E I DU PONT DE NEMOURS AND
03/23 E I DU PONT DE NEMOURS AND : Patent Issued for Knit Fabric and an Article Compri..
03/22DJAkzo Nobel Rebuffs Raised $24 Billion PPG Takeover Approach -- 2nd Update
03/20 E I DU PONT DE NEMOURS AND : DuPont Protection Solutions, Matching Performance t..
03/16 E I DU PONT DE NEMOURS AND : Patent Issued for Controlling Bioavailability of Nu..
03/16 E I DU PONT DE NEMOURS AND : Technical Reports on Agricultural Chemicals Stocks ..
03/10DJCorrection to PPG Makes $22 Billion Offer for AkzoNobel Story on Thursday
03/10 E I DU PONT DE NEMOURS AND : Patent Issued for Process for Obtaining Low Residua..
03/10DJAkzo Nobel Shuns $22 Billion Takeover Bid -- WSJ
03/09DJPPG Makes $22 Billion Offer for AkzoNobel, Is Rejected-- 5th Update
03/09DJAkzo Nobel Rejects $22 Billion Offer From PPG -- 4th Update
More news
Sector news : Industrial Conglomerates
02:16a Toshiba shares rise after report Westinghouse may file bankruptcy Tuesday
03/24 FTSE posts worst weekly performance since January as U.S. healthcare vote loo..
03/24 TOSHIBA : plans Westinghouse Chapter 11 filing, expects $9 billion in charges - ..
03/24DJSMITHS : 1st Half Pretax Profit More Than Doubles
03/24 British engineer Smiths posts higher first-half profit, reaffirms FY outlook
More sector news : Industrial Conglomerates
News from SeekingAlpha
03/25 Will The Dow/DuPont Merger Close In Q2?
03/23 REUTERS : EU regulators may soon OK Dow-DuPont, ChemChina-Syngenta deals
03/22 INDIAN REGULATOR : Dow-DuPont likely to hurt competition
03/20 Cabot Microelectronics Dominated CMP Slurry Revenues In 2016 While Versum Mat..
03/15 'Safe' Dividend Dogs Of The Dow For Spring By The Numbers As Of March 13
Advertisement
Financials ($)
Sales 2017 25 143 M
EBIT 2017 4 571 M
Net income 2017 3 249 M
Debt 2017 2 472 M
Yield 2017 2,05%
P/E ratio 2017 21,45
P/E ratio 2018 19,61
EV / Sales 2017 2,84x
EV / Sales 2018 2,70x
Capitalization 68 820 M
More Financials
Chart E I DU PONT DE NEMOURS AND
Duration : Period :
E I Du Pont De Nemours And Technical Analysis Chart | DD | US2635341090 | 4-Traders
Full-screen chart
Technical analysis trends E I DU PONT DE NE...
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 85,7 $
Spread / Average Target 7,6%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Edward D. Breen Chairman & Chief Executive Officer
Nicholas C. Fanandakis Chief Financial Officer & Executive Vice President
Phuong Tram Chief Information Officer
Douglas W. Muzyka Senior VP, Chief Science & Technology Officer
Lois D. Juliber Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
E I DU PONT DE NEMOURS..8.45%68 820
GENERAL ELECTRIC COMPA..-5.95%258 823
3M CO7.25%114 446
SIEMENS AG6.46%114 100
HONEYWELL INTERNATIONA..7.70%94 915
JARDINE MATHESON HOLDI..18.28%47 148
More Results