DuPont DD is presently undergoing an investigation by Stull, Stull & Brody on potential claims from the company’s shareholders to find out if a breach of fiduciary duty was committed by its board of directors.
This claim by DuPont's shareholders is related to the previously announced full separation of DuPont's Performance Chemicals segment to form the The Chemours Company, LLC. Stull, Stull & Brody is also concerned whether DuPont's board is adopting certain anti-takeover provisions which can reduce the value of shareholders' investments.
DuPont remains committed to its cost-reduction strategies, with a target of achieving a minimum of $1.3 billion by 2017 on an annual run-rate basis. Moreover, the company strives to return significant capital to shareholders through its share repurchase programs. The company has returned capital of $3.7 million through share repurchases and dividends in 2014.
According to Matthew L. Trerotola, Executive Vice President of DuPont, the company has made significant progress in the Performance Materials, Safety & Protection, and Electronics & Communications segments. Trerotola added that DuPont has progressed and developed its portfolio in 2014 with 10 strategic actions and the much-awaited spin-off of The Chemours Company. He further added that the company’s bottom line and operating margins have expanded, with sustained improvements.
However, a challenging economic environment owing to currency headwinds and sustained volatility in energy markets can have an adverse impact on DuPont’s Performance Materials segment in 2015.
DuPont currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the diversified chemical space include Asahi Kasei Corp. AHKSY, Innospec Inc. IOSP and Air Products & Chemicals Inc. APD. While Asahi Kasei and Innospec sport a Zacks Rank #1 (Strong Buy), Air Products carries a Zacks Rank #2 (Buy).
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