Shares of DuPont (DD) were higher after-hours Monday even as the chemicals company cut its full-year operating EPS due to unfavorable foreign exchange rates and said Chair and CEO Ellen Kullman will retire effective Oct. 16.
DuPont said current board member Edward Breen will serve as interim Chair and CEO effective from the same date. The board added it hired an executive recruitment firm to identify a permanent replacement.
For fiscal 2015, DuPont now expects operating EPS of $2.75, down from a prior view of $3.10 a share and below the mean estimate of analysts on Capital IQ of $3.16. The guidance cut is due to a continued strengthening of the U.S. dollar versus emerging market currencies, most notably the Brazilian real.
For H2, the company expects operating EPS of $0.40, down sharply from a prior outlook of $0.75 a share.
In an effort to respond to and offset deteriorating macroeconomic conditions, DuPont said it plans to achieve $1.3 billion of cost savings on a run rate-basis by the end of 2016, and approximately $1.6 billion of savings on a run rate-basis by the end of 2017.
Shares of DD were up over 4% in recent after-hours, still moving in the lower half of the 52-week range of $47.11 to $76.59.
Companies: E.I. du Pont de Nemours and Company
Price: 53.99 Price Change: +2.71 Percent Change: +5.28