AgroPages-DuPont projects 4Q loss, lower 2009 outlook-Agricultural news

US tertiary?chemical manufacturer DuPont Co. has sharply reduced its financial targets and announced a big round of job cuts. The Delaware-based company projected a surprise fourth-quarter loss and forecast 2009 earnings below analysts estimates, citing a rapid demand slump and a global recession it expects to last "well into 2009," reports Dow Jones Newswires. Company executives said sales volumes were down about 15% in October and November, accelerating from a 4% decline in the third quarter. However, DuPont continued to forecast favorable conditions in 2009 for the agrochemical sector.

A new restructuring program includes 2,500 job cuts and a 10% to 20% reduction in planned capital spending. DuPont also said it will reduce its number of contractors by 4,000 by the end of 2008, with additional reductions in 2009. In addition, DuPont has temporarily idled about 100 manufacturing sites worldwide.

DuPont said its moves will deliver about $600 million in fixed-cost productivity improvements in 2009, as well as about $130 million in additional cost reductions. Previously, DuPont said it was targeting $200 million in cost savings next year. Pretax savings from the companys restructuring steps are expected to total about $730 million in 2009 and boost earnings by $250 million a year.

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DuPont projects 4Q loss, lower 2009 outlook

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