DuPont plans $4B share buyback amid activist pressure

Chemical maker DuPont, which is under pressure from hedge fund investor Nelson Peltz, said it will return up to $4 billion to shareholders using one-time dividend proceeds from the spinoff of its Chemours chemicals business.

The Wilmington, Del., company on Tuesday said the $4 billion will be returned to shareholders in the form of share buybacks.

The company also said it has identified at least $300 million of additional cost-cutting opportunities, bringing its total cost-saving effort to $1.3 billion.

Peltz's Trian Fund recently said the company should split itself into three parts. Trian also said it intends to nominate four people for election to the company's board.

DuPont's positive buybacks and cost-savings news was offset by its disappointing quarterly earnings.

Net sales for the quarter fell to $7.4 billion, a 5% decrease over last year.

DuPont said the revenue drop reflected a 4% impact from portfolio changes and a 3% "negative currency impact."

Profits improved over last year, however. The company posted earnings of earnings of $683 million, or 74 cents per share, for the three quarters ended on Dec. 31. That's up from $185 million, or 20 cents per share, a year earlier.

Analysts had predicted net income of 71 cents a share for the fourth quarter on revenue of $7.8 million.

"In 2015, we remain focused on generating superior returns for our shareholders, including through return of capital from the expected Chemours dividend, while positioning DuPont for our next stage of growth," said Ellen Kullman, chairman and chief executive.

Shares of DuPont fell slightly in early trading Tuesday by 2% to $72.70 a share.