By Frank Esposito, Plastics News Staff
Wilmington, Delaware -- Poor third-quarter financial results are leading plastics and chemicals giant DuPont Co. to cut 1500 jobs in the next 12-18 months.
No details were available as to how the cuts would be split among various DuPont businesses. Officials said the job cuts and other moves would save the firm $300 million in 2013 and $450 million annually beginning in 2014. The cuts represent about 2 percent of the firm's global work force.
Third-quarter sales at Wilmington-based DuPont fell 9 percent to $7.4 billion, while profit plummeted almost 98 percent to $10 million, when compared to the same quarter in 2011.
Company officials cited shortfalls in titanium dioxide - a common pigment used to whiten plastics and other products - and in its photovoltaics business as reasons for the poor showing.
DuPont's Performance Materials unit - including nylon and other specialty plastics - saw third-quarter sales fall 8 percent to $1.6 billion, even as its operating income shot up 32 percent to $306 million.
Fletcher attributed the unit's lower third-quarter sales to lower selling prices and currency, while its improved operating income resulted from several factors, including lower feedstock costs and continued productivity efforts.
For the first nine months of 2012, Performance Materials' sales fell almost 9 percent to $4.9 billion, while its operating income slipped about 1 percent to $762 million. The unit's sales total ranked third among DuPont's seven business units in the first nine months of the year.
The full version of this story appears on sister publication Plastics News