Weak third quarter results force cutbacks at DuPont

The Delaware chemical giant is doing some fine tuning after weak third quarter results.

DuPont plans to restructure in order to save $450 million over the next two years including cutting approximately 1,500 jobs globally in the next 12-18 months.

Company leaders plan to take action to save $228 million combined with the elimination of $238 million in residual costs.

“Today we are announcing additional actions we have launched to improve competitiveness and accelerate market driven innovation and growth by fine tuning the organization, eliminating costs and expanding targeted productivity programs,” said DuPont CEO Ellen Kullman during an earnings conference call Tuesday. “This effort is somewhat surgical in that each of our businesses has assessed what actions, if any is warranted; verses market condition and competitive sets.”

Excluding significant items, the company reported third quarter earnings at $.44 per share opposed to $.69 per share last year. The total reported earnings were $.01 per share versus $.48 per share last year.

According to DuPont, the third quarter results are a reflection of weak market conditions in Europe and uncertainty in Asia.

“Current uncertainties in the global economic outlook, softer demand in certain markets and strength in others require realigning business resources to match current growth opportunities and increase responsiveness to rapidly changing market realities,” said Kullman. “Businesses have identified cost saving opportunities by optimizing supply chains, consolidating facilities and refining their organization geographically to improve competitiveness in margins.”

The Wilmington-based company reported growth in agriculture, nutrition and health, industrial biosciences and performance materials.

The most challenged areas were performance chemicals, electronics and communication.