NEW YORK (Reuters) - U.S. chemical major DuPont Co (NYSE:DD - News) said on Tuesday that fourth-quarter earnings rose before special items, helped by increased profits from its performance materials business and strong agricultural sales in Brazil.
However, net income fell to $545 million, or 60 cents a share, from a year-earlier profit of $871 million, or 94 cents a share, which included tax benefits and insurance recoveries.
Excluding items, the company posted quarterly earnings of 57 cents a share, up from 45 cents a year earlier.
Analysts, on average, had forecast earnings of 50 cents a share, according to Reuters Estimates. But some analysts did note that a lower-than-expected tax rate added 5 cents a share to earnings in the quarter.
"Results (from) each of the five operating units were better than expected, most notably in Ag and Performance Materials," JPMorgan analyst Jeffrey Zekauskas said in a note to clients.
Sales in the quarter rose 11 percent to $6.98 billion, boosted by increased volumes and higher local selling prices. Wall Street had forecast sales of $6.69 billion.
"DuPont's strong earnings growth in the fourth quarter reflects our global presence," Chief Executive Charles Holliday said in a statement.
Shares of DuPont, which is a component of the Dow Jones industrial average (DJI:^DJI - News), rose 37 cents to $43.07 in morning trading on the New York Stock Exchange.
AG, PERFORMANCE MATERIALS SHINE
DuPont posted a 23 percent increase in sales from its agriculture business in the quarter, primarily driven by strong seed sales in Brazil.
The business though posted a seasonal pretax operating loss of $89 million, compared with a loss of $148 million a year ago.
Earlier this month, the Wilmington, Delaware-based company's shares rose when it increased its 2008 earnings forecast on higher sales from agricultural products in emerging markets.
Growing global appetite for agricultural products -- including the surging demand for corn from U.S. ethanol producers -- has helped DuPont and its peer Monsanto Co (NYSE:MON - News) post bumper seed sales in recent quarters.
On a conference call, Holliday said the company will also be looking at making some acquisitions this year to boost its biotech and seed offerings.
The performance materials business showed a 54 percent gain in pretax operating income that was spurred by increased polymer sales to the automobile, electronics and packaging industries.
The unit posted quarterly operating income of $186 million, compared with $121 million a year ago.
The main takeaway from DuPont's results, is the company's ability to offset slower end-market growth in the United States through its exposure to the faster-growth markets in Asia and Latin America, according to HSBC analyst Hassan Ahmed.
Holliday said sales from new product offerings and strong overseas growth continued to boost results despite the slowdown in U.S. housing and auto markets.
POSITIVE OUTLOOK
DuPont said it expected first-quarter earnings of $1.12 to $1.17 a share, and it affirmed its full-year earnings outlook of $3.35 to $3.55 a share.
Wall Street has forecast first-quarter earnings of $1.12 a share and full year 2008 earnings of $3.42 a share.
"We are confident we can deliver attractive growth in earnings in 2008, and see even stronger growth in the years to follow," Holliday said in a statement.
However, the company's shares are down 13.5 percent over the last three months, while the Standard & Poor's Chemical's Index (^GSPPM - News) has fallen 11.1 percent during the period.
(Reporting by Euan Rocha; Editing by Lisa Von Ahn and
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