DuPont to Cut 1,500 Jobs, Raises Outlook

Posted 16 March 2006 @ 08:09 pm EET     Print     Reprint     E-Mail     Comments

WILMINGTON (AP) - Chemicals maker DuPont Co. said on Wednesday it plans to cut 1,500 jobs and close four facilities in Europe as it restructures its performance coatings business. The company also raised its earnings outlook for 2006.

In addition to the job cuts _ most of them in Europe _ DuPont said it plans to consolidate manufacturing and technical assets and tailor market strategies to key customers and segments.

The company plans to close four European manufacturing and laboratory facilities: two in Spain, one in The Netherlands and another in Germany. That is in addition to an announcement in February in which it said it would eliminate 200 positions in Michigan.

DuPont expects the restructuring announced Wednesday to reduce annual costs by $165 million and will log a pretax charge up to that amount in the first quarter, with additional charges of up to $55 million over the next year.

Dupont expects to put the plan in place over the next 18 months.

"This transformation plan is designed not only to improve the short-term health of these businesses but also to ensure a future of sustainable, profitable growth," said Charles O. Holliday Jr., DuPont chairman and chief executive.

Separately, DuPont raised its first-quarter profit guidance to 80 cents per share, up from a previous estimate of 70 cents per share. For 2006, the company now expects earnings of $2.70 a share, up 10 cents from an earlier projection.

The revised quarterly and full-year guidance excludes the $165 million pretax charge related to the restructuring plan.

Analysts polled by Thomson Financial forecast per-share profit, excluding special items, of 71 cents in the first quarter and $2.64 for the year.

DuPont said an improved operating performance in many of its segments was partly offset by weaker market conditions in Europe and unfavorable currency trends.

The company's shares rose $1.38, or 3.3 percent, to $43.30 in premarket trading.