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Strong dollar weighs on DuPont’s full-year profit forecast

Billionaire investor Nelson Peltz, chairman and chief executBillionaire investor Nelson Peltz, chairman and chief execut
Nelson PeltzPhotograph by Lisa Kyle — Bloomberg/Getty Images

DuPont (DD) reported a better-than-expected profit as cost cuts propped up margins in some businesses but the chemical manufacturer said a stronger dollar would eat into its full-year operating profit.

Net income attributable to DuPont fell 28% while sales fell 9%, hurt by the strong dollar.

Dupont, which receives 60% of its sales from outside the United States, said it expects a strong dollar to reduce its 2015 profit by 80 cents per share, higher than its earlier forecast of 60 cents.

The company said it now expects full-year operating earnings at the low end of its forecast of $4.00-$4.20 per share.

The company, which is locked in a proxy battle with activist investor Nelson Peltz, also raised its quarterly dividend to 49 cents per share from 47 cents on Tuesday.

Higher margins in electronics and communications, performance materials and safety and protection businesses helped DuPont mitigate the impact of weak sales in the quarter ended March 31.

Net income attributable to DuPont fell to $1.03 billion, or $1.13 per share, while sales fell to $9.17 billion. Excluding items, the profit was $1.34 per share.

Analysts on average expected a profit of $1.31 per share on revenue of $9.41 billion, according to Thomson Reuters I/B/E/S.