This morning’s earnings report from EI DuPont de Nemours & Co. (NYSE: DD) continues the string of positive results from a Dow Jones component company. DuPont posted earnings per share of $1.26 on revenue of $8.62 billion, up from Dupont earnings of $0.61 and revenue of $6.86 billion in the same period last year. Analysts expected EPS of $0.93 on revenue of $8.27 billion.
DuPont’s earnings follow by a week a somewhat lukewarm earnings report from Air Products and Chemicals, Inc. (NYSE:A PD). Air Products reported EPS of $1.28, excluding charges related to its $5.3 billion takeover bid for Airgas Inc. (NYSE:
ARG), and revenue of $2.25 billion. While very strong compared with the same period a year ago, analysts expected revenue of $2.29 billion and EPS of $1.27. The other large chemical company player, The Dow Chemical Co. (NYSE: DOW) reports earnings next week, and is expected to post EPS of $0.56 on revenue of $13.62 billion.
DuPont’s solid quarter is lifting the company share price by more than 4% in early trading. The company’s agricultural segment delivered sales growth of 16% and pre-tax earnings growth of 31% compared with the same period a year ago. Other segments also topped 25% sales growth, led by the electronics and communications segment with a 53% jump year-over-year.
Looking ahead, DuPont raised its full-year EPS guidance to $2.90-$3.05, excluding items. The previous range was $2.50-$2.70, so the company is clearly expecting big things from the second half of 2010. DuPont expects sales growth to continue and productivity to increase. The company forecast full-year free cash flow of more than $1.7 billion.
The chemical companies have been able to keep their costs low while developing new products. Some of those products, like Dow’s combination roof shingle/solar panel, have been slow to take off because they depend on new construction, which has stalled in many areas of the country. Now that fears of a global double-dip have subsided somewhat, once the construction business picks up again, revenues and earnings should continue to grow.
The major diversified chemicals sector is up about 2% today, after rising 3% in early trading. Investors like what they’ve seen from DuPont, and are expecting good things next week from Dow.
