Issue Date: October 27, 2008
DuPont, Celanese Lower Outlook
DuPont and Celanese both posted third-quarter earnings that beat analyst expectations, but that good news was overshadowed by dour warnings for the fourth quarter and lowered full-year estimates. DuPont now expects to earn between $3.25 and $3.30 per share for full-year 2008, versus a July 22 projection of $3.45 to $3.55. "Global markets are clearly in flux," CEO Charles O. Holliday Jr. told analysts in a conference call. Although DuPont has not been directly affected by the credit crisis, Holliday said, it will work with customers to anticipate any problems if the crisis spreads. Company executives listed a number of other factors that will lead to decreased fourth-quarter earnings, including the cost of replacing equipment damaged by hurricanes and a continued weakening of demand for housing and autos in the U.S. and Europe. In its report to investors, Celanese said it is already seeing signs of slowing growth in Asia linked to the credit crisis. The company decreased its full-year guidance to $3.40 to $3.55 per share from its previous estimate of between $3.60 and $3.85.
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