DuPont net exceeds estimate; 2008 outlook affirmed

NEW YORK (MarketWatch) -- E.I. du Pont de Nemours & Co. reported Tuesday that first-quarter profit rose a stronger-than-expected 26%, with higher revenue driven by the blue chip's agriculture and nutrition segment, as management affirmed its earnings estimate for the year.

But shares of the Wilmington, Del.-based company (DD:E.I. du Pont de Nemours and Company DD 50.27, -1.97, -3.8%) came under pressure as DuPont warned that challenging business conditions in the U.S. construction and vehicle markets are expected to continue through the rest of the year, primarily due to falling home prices that aren't expected to hit bottom until late in 2009.
DuPont's shares, part of the Dow Jones Industrial Average, lately traded at $50.21, down 3.9%.

DuPont, which has interests in chemicals, agribusiness, construction, communications and transportation, said profit reached $1.19 billion, or $1.31 a share, from $945 million, or $1.01 a share, earned in the year-earlier first quarter.
Revenue rose 7%, reaching $8.77 billion from $8.16 billion. Net sales rose $8.58 billion, up 9% from the prior year's $7.85 billion.

A poll of analysts by FactSet Research yielded consensus estimates calling for earnings of $1.28 a share and sales of $8.58 billion.
On April 10, DuPont raised its first-quarter profit outlook to $1.20 a share from a range of $1.14 to $1.19 a share previously, citing the weaker dollar and emerging markets' growth. See full story.

DuPont's agriculture business has been riding the wave of farming growth in the U.S. and overseas. Greater demand in emerging markets for staple crops such as corn, rice and soybeans has collided with the new demands of a growing biofuels industry in more developed countries.

"Last year, we estimated lower demand in U.S. construction and auto would cost DuPont about 20 cents of earnings per share in year-on-year headwind," said Executive Vice President Ellen Kullman on a post-earnings conference call. "We expect the same order of magnitude of headwind in 2008, and we've included an additional 20-cent hit in our full-year EPS guidance."
DuPont affirmed that it expects to earn an adjusted $3.40 to $3.55 a share for 2009 and continues to expect a second-quarter net profit of about $1.05 a share.
On an adjusted basis, profit for the first half should be 10% ahead of the first six months of 2007, DuPont estimated.