Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  DuPont takes $2.5 bln charge tied to auto business, posts wider loss
BackBack

DuPont takes $2.5 bln charge tied to auto business, posts wider loss

DuPont which manufactures various machinery related equipment for engines and fluids, has recorded severe loss in its sales
  • Before this it was reeling due to low prices of nylon while it its nutrition and electronics units benefited from robust demand
  • FILE PHOTO: Fiat Chrysler Automobiles assembly workers build a 2020 Argo, amid the spread of the coronavirus disease (COVID-19), at the Assembly Plant in Betim near Belo Horizonte, Brazil, May 20, 2020. REUTERS/Washington Alves/File Photo GLOBAL BUSINESS WEEK AHEAD (REUTERS)Premium
    FILE PHOTO: Fiat Chrysler Automobiles assembly workers build a 2020 Argo, amid the spread of the coronavirus disease (COVID-19), at the Assembly Plant in Betim near Belo Horizonte, Brazil, May 20, 2020. REUTERS/Washington Alves/File Photo GLOBAL BUSINESS WEEK AHEAD (REUTERS)

    BENGALURU : DuPont reported a wider second-quarter loss on Thursday and wrote down the value of its automotive business by $2.5 billion as the industrial materials giant struggles with a prolonged weakness in one of its biggest end-markets.

    DuPont, which makes materials used in products ranging from engine covers to brake fluid, is heavily exposed to the auto industry, which has been among the hardest hit after the coronavirus lockdowns emptied roads and shuttered car showrooms.

    The company booked the impairment charge under its Transportation & Industrial segment, which reported the sharpest decline in sales at 34%, saying the business was now worth less because of continued weakness in global automotive production.

    Even before the outbreak, DuPont had been grappling with lower sales in the unit, particularly due to lower prices for nylon, a stiff plastic used in making auto parts and industrial equipment.

    However, its nutrition and electronics units benefited from robust demand for food ingredients and memory chips with both businesses reporting growth in organic sales.

    Expecting a modest revival in automotive and residential construction industries, DuPont projected adjusted earnings between 71 and 73 cents for the current quarter, marginally above the 71 cents estimated by analysts according to Refinitiv IBES data.

    Net loss available to shareholders, which included the hefty charge, was $2.48 billion, or $3.37 per share, in the three months ended June 30 compared to a loss of $571 million, or 76 cents per share, a year earlier.

    On an adjusted basis, DuPont posted earnings of 70 cents per share, a fall of about 28% as the company idled some of its plants to match lower demand levels.

    The Wilmington, Delaware-based company, once part of the conglomerate DowDuPont that was split up last year, reported a 12% fall in sales to $4.8 billion.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

    This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

    Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 30 Jul 2020, 03:56 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie