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."
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye