DuPont Sheds Another 2,000 Jobs

DuPont (DD - Analyst Report) declared another 2,000 job cuts as part of its restructuring measures to counter the deteriorating conditions in the chemicals sector.

DuPont aims to save $225 million by the end of 2010, thanks to the restructuring plan.

The company stated that it would take a charge of $340 million to $390 million in the second quarter.

The chemicals maker had already announced a workforce reduction of 2,500 and also stated late last year it would remove 4,000 contractor positions.

The chemicals sector has suffered as demand from both industrial customers and consumers declined amid the global downturn. Last month, DuPont posted a 20% fall in first-quarter sales, which amounted to $6.9 billion.

The company recently cut its 2009 earnings guidance to between $1.70 and $2.10 per share from its previous view of $2 to $2.50 as it expects weak demand across major markets to continue this year.

Eleven analysts out of 14 have reduced their 2009 forecasts in the last month, sending the consensus lower by 19 cents per share to $1.77.

Shares of DuPont, a Zacks #4 Rank ("Sell"), are down almost 3% today on abnormally low volume of 3.9 million shares, compared to the daily average of 9.8 million.