DuPont Misses Earning on Weak Solar Sales

By Ernest Scheyder

Tue Jan 24, 2012 1:38pm EST

(Reuters) - DuPont's (DD.N) quarterly revenue missed Wall Street expectations as its customers bought fewer solar-panel materials and digital television parts, offsetting strong demand for chemicals used in agriculture.

Fourth-quarter profit was slightly ahead of Wall Street's estimates, however, after DuPont raised prices by an average of 14 percent across its product lines. Without the price increase, revenue would have been roughly flat.

DuPont's results often serve as a barometer for the global economy since its products are used to produce nearly every consumer good, from toys and toothbrushes to smartphones and solar panels.

Sales of solar products fell during the fourth quarter as the solar industry worked off a glut of supply from verproduction.

DuPont Chief Executive Ellen Kullman said she expected solar customers to continue to hold off on additional purchases in the first quarter, but to reverse that trend later this year. Photovoltaic panel installations should increase 10 percent this year from 2011, she said.

DuPont's report comes the same day Germany's Siemens (SIEGn.DE), a bellwether for Europe's manufacturing industry, posted a lower-than-expected quarterly profit, partly due to weak sales of wind turbine materials.

Shares of Wilmington, Delaware-based DuPont fell 1.2 percent on Tuesday morning but pared losses to trade up 3 cents at $49.38 in the afternoon.

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