DuPont said today it would reduce costs by $900 million, partly through job cuts, and aims to increase revenue by 6 per cent as it grapples with high raw material prices and the impending sale of its key clothing and carpet-fibre business.
The second largest US chemicals maker also said it plans to focus more on emerging markets - specifically China, Central and Eastern Europe and Brazil - where it foresees much of its growth.
The company said half of the cost cuts will come in 2004 and the rest in 2005. The cuts include $200 million of costs it would have incurred from operating its Invista clothing and carpet fibre business, which is being sold to Koch Industries for $4.4 billion. The sale of the unit, which generated a quarter of DuPont's sales last year, was announced last month.
The plan also includes $500 million in cost cuts from the reorganisation of staff, support services and manufacturing operations, and a $200 million improvement in margins from the consolidation of product lines.
The company said it would disclose the number of job cuts and details of restructuring charges when it announces first-quarter results on April 27, 2004.
Shares of DuPont were up 84 cents, or 2 per cent, at $42.30 in morning trade on the New York Stock Exchange.
