DuPont (DD – Analyst Report) logged forecast-topping earnings in third-quarter 2016, supported by its aggressive cost-reduction actions. The company saw improved operating margins across its business segments in the quarter.

The Delaware-based company recorded adjusted earnings of 34 cents per share in the reported quarter, up from 13 cents per share a year ago. The results trounced the Zacks Consensus Estimate of 21 cents. Operating costs (as adjusted) fell 14% year over year in the quarter.

On a reported basis, DuPont posted earnings from continuing operations of a penny per share for the quarter, down from 14 cents per share a year ago.

DuPont raked in net sales of $4,917 million for the reported quarter, up roughly 1% year over year. That beat the Zacks Consensus Estimate of $4,879 million. A 3% increase in volumes on higher demand across performance materials, agriculture, and nutrition & health businesses offset a 2% decline in prices in the quarter.

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Segment Review
 
Agriculture: Revenues rose 2% year over year to around $1.1 billion in the reported quarter. Segment operating loss was $189 million, a 10% year over year improvement as higher volumes, favorable currency impact and cost savings more than offset reduced local price and increased product costs.  

Electronics & Communications: Sales went down 7% to $493 million in the quarter. Operating earnings for the segment rose 4% year over year to $108 million as cost savings more than offset reduced demand and sustained weakness in consumer electronics.

Industrial Biosciences: Sales went up 5% to $392 million. Earnings jumped 28% to $78 million as benefits from cost-saving actions and higher demand in bioactives and biomaterials more than offset reduced volume in CleanTech.

Nutrition & Health: Sales rose 2% to $823 million. Operating earnings shot up 32% to $135 million on volumes gains, cost reduction actions and lower product costs.

Performance Materials: Sales moved up 2% to around $1.3 billion. Operating earnings rose 17% to $371 million as cost savings, higher demand in automotive markets and lower product costs more than offset unfavorable currency impact.

Protection Solutions: Sales were flat year over year at $722 million. Operating earnings rose 11% to $162 million on the back of cost savings and higher volumes.

Financials
 
DuPont ended the quarter with cash and cash equivalents of roughly $4.5 billion, up around 36% year over year. Total borrowings and capital lease obligations rose around 15% year over year to roughly $11.4 billion.

Outlook

DuPont raised its adjusted earnings guidance for 2016. The company now sees adjusted earnings for 2016 to rise 17% year over year to $3.25 per share, an increase from its earlier view of $3.15-$3.20 per share. The company now expects full-year earnings (on a reported basis) to be roughly $2.71 per share.