We are downgrading our recommendation on E.I. DuPont de Nemours & Co. (DD) to Underperform following its lackluster third quarter results. Both revenues and adjusted earnings missed the Zacks Consensus Estimate.
Profit tumbled year over year due to lower demand across titanium dioxide and photovoltaic markets. DuPont witnessed weakness across a number of end markets in the quarter. The company reduced its earnings forecast for 2012 and announced a restructuring plan that includes headcount reductions.
DuPont is exposed to raw material cost inflation and currency headwinds and is witnessing a decline in sales volumes across many segments. Moreover, sluggish economic conditions may continue to dent its results going forward.
Powered by Facebook Comments