SAN FRANCISCO — DuPont has apparently taken another step in preparing its fibers business for a spin-off or sale by pumping up its management.
According to industry sources, DuPont is expected to name Steve McCracken president of the full $6.3 billion division, broadening his responsibilities to also cover intermediates. McCracken is currently president of the fibers business at Wilmington, Del.-based DuPont Textiles & Interiors. The announcement could come as early as today.
Sources also said Richard Goodmanson, a DuPont vice chairman who had served as president of the DTI division since its creation early last year, will become nonexecutive chairman of the division and return to his duties at DuPont.
In a related move, George McCormack, who had served as head of DTI’s intermediates business, is expected to be named group vice president of strategic projects at DuPont and will return to the main company.
As nonexecutive chairman, Goodmanson would run DTI’s board, which includes McCracken, DuPont chairman and chief executive officer Charles Holliday and DuPont chief financial officer Gary Pfieffer.
Separately on Tuesday, DuPont said that higher volume, favorable currency exchange rates and year-ago charges put it back into the black in the first quarter, although the effect of charges pulled DTI into the red. It also warned that second-quarter earnings would miss Wall Street estimates due to weak industrial demand, especially in its chemicals business. Shares gained 64 cents, or 1.5 percent, to close at $42.37 in New York Stock Exchange trading Tuesday.
Since early this year, DTI has been operating as a wholly owned, independently structured, unit of DuPont. DuPont plans to spin off the DTI business by the end of the year.
As reported, DuPont this month acknowledged having talks with an unnamed company to sell DTI, which includes its spandex, nylon and polyester operations. At that time, executives said DuPont is still considering selling off DTI through an initial public offering. Sources have said the unnamed company is Wichita, Kan.-based chemical giant Koch Industries, but there’s no confirmation on that from DuPont or Koch.
For the three months ended March 31, DTI had an aftertax operating loss of $5 million, as a $29 million charge to withdraw from a polyester joint venture in China more than offset a $19 million gain from a litigation settlement associated with DTI’s exit from a nylon joint venture, also in China. That reversed last year’s $20 million profit.However, DTI, DuPont’s second-largest division, produced the greatest growth as sales climbed 19.3 percent to $1.72 billion from $1.44 billion. Sales benefited from volume growth of 5 percent and a 6 percent higher U.S. dollar selling price.
In the quarter, DuPont reported net income of $535 million, or 53 cents a diluted share. That compares with last year’s loss of $2.47 billion, or $2.46. Excluding charges for a change in accounting principle in both year’s periods, DuPont would have posted earnings of $564 million, or 56 cents, versus $479 million, or 48 cents a year ago. Earnings per share exclusive of the charges beat the Wall Street estimate by 2 cents.
Sales grew 15.9 percent to $7.19 billion from $6.2 billion last year. DuPont said the higher sales floated on a 7 percent increase in sales volume as well as a 6 percent beneficial impact from a weaker U.S. dollar overseas.
"Our sales growth in the first quarter reflects strong volume increases in each of our five growth platforms and DuPont Textiles & Interiors," said ceo Holliday in a statement. "This broad-based volume growth, combined with particularly strong results in pharmaceuticals; agriculture and nutrition, and safety and protection, offset the impact of higher pension, energy and raw material costs in the first quarter."
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)