Here is a look at more of Wednesday's top business stories:
DuPont posts $543 million profit
WILMINGTON, Del., July 24 (UPI) -- DuPont Co., the nation's largest chemical company, said it posted a second-quarter net income of $543 million, or 54 cents a share, compared with a net loss of $213 million, or 21 cents a share during the same period last year.
Dupont noted its latest results included one time charges of 17 cents a share. The most significant was a previously announced restructuring charge for DuPont's Textiles and Interiors businesses.
Last year's results included charges related to job cuts, plant shutdowns and asset write-downs.
Analysts on Wall Street had expected DuPont to post a net income of 66 cents a share, according to Thomson Financial/First Call.
DuPont said in late June that its second-quarter profits would beat analyst estimates, which at that time was 56 cents a share, according to First Call.
Consolidated sales declined to $6.7 billion from $7.0 billion a year ago.
Segment sales, including transfers and a pro rata share of sales by equity affiliates, were $7.4 billion, down 5 percent from $7.8 billion in 2001.
Charles O. Holliday, Jr., chairman and chief executive officer, said, "We are now benefiting from the steps taken to position ourselves for sustainable growth.
"I am pleased with our improved business results and the continuing progress of the global economic recovery. Our businesses and their customers are experiencing positive momentum in many of the markets they serve. The improvements in our businesses are broad-based and are creating a positive environment for DuPont to meet its growth goals and to increase value for our shareholders," Holliday said.
Looking ahead, DuPont said it expects the global economic recovery to continue, but at a more modest pace than the growth rates experienced in the first half, which benefited in part from inventory restocking.
North America and Asia should continue to lead the way with a somewhat slower recovery expected in Europe. Economic conditions in South America remain uncertain, the company said.
While recent U.S. stock market turmoil creates more uncertainty about the pace of recovery, strong housing and automotive markets, low inflation and interest rates, the weaker dollar, and improving productivity in our businesses all point to continued growth for DuPont, the company said.
In addition, while the pricing environment remains difficult, it appears to have generally stabilized in most DuPont businesses and should begin to improve as demand continues to increase.
DuPont said it expects substantial improvement in second half 2002 results versus the depressed results of the prior year.
The company said it expects third quarter earnings per share to be about double those of third quarter 2001, on an underlying basis.
Fourth-quarter results are expected to be sequentially stronger, given seasonal trends combined with the expected continuation of economic recovery over the balance of the year.
The company expects its fourth-quarter underlying earnings per share to be about triple those of fourth quarter 2001.
"Consistent focus on innovation and productivity to provide our customers with more value is paying off. We expect to see continued momentum in the second half as a direct result," Holliday added.
Earnings improve at Martha Stewart Living Omnimedia
NEW YORK, July 24 (UPI) -- Martha Stewart Living Omnimedia Inc. said its second-quarter net income from continuing operations rose to $8.1 million, or 16 cents a share, from $5.7 million, or 12 cents a share, during the same period last year.
Analysts on Wall Street were expecting the company to post a net income of 15 cents a share, according to Thomson Financial/First Call.
Revenue jumped 16 percent to $78.6 million from $67.8 million a year ago.
Publishing revenues increased 15 percent to $47.3 million from $41.1 million a year ago.
Advertising pages in Martha Stewart Living increased 12 percent in the quarter, with strength in the food and automotive categories.
The company said it published two issues of Martha Stewart Kids in the current quarter, compared to one issue in the 2001 quarter.
Television revenues rose to $7.2 million from $6.9 million in the same period a year ago, benefiting from licensing revenues received from two new cable programs on HGTV network, from Martha's Home and from Martha's Garden, partially offset by lower syndicated advertising revenues associated with lower industry-wide advertising rates.
Martha Stewart, chairman and chief executive officer, said, "We are very pleased with our results for the second quarter. They underscore the strength of our brand, reflect continued demand for our company's high-quality, original how-to content and products for the home and are a testament to the creativity and hard work of our talented team of over 600 employees.
"We remain focused on teaching and inspiring our loyal readers, viewers, and shoppers, who appreciate the unparalleled quality and unique information, products, and value proposition offered to them by our brand," Stewart said.
Stewart has been under fire following reports the home decorating diva sold shares of drugmaker ImClone Systems Inc. just before regulators dealt the company a setback by refusing to review its cancer drug Erbitux. Stewart has repeatedly denied any wrongdoing.
Sharon Patrick, president and chief operating officer, said, "We recognize that the investigations and related speculation and media attention surrounding a personal sale of non-company stock by Stewart present challenges for our company.
"However, we are confident that the company is prepared to meet them. Our strong financial position puts us in a solid position to combat any short-term business impact that may arise and allows us to concentrate on continuing to provide great value to our consumers, advertisers, and business partners," Patrick said.
"In doing so, we will not deviate from our long-standing brand expansion strategy of evolving from expert personality to quality product to trusted brand labels such as Martha Stewart Living, Martha Stewart Weddings, Martha Stewart Baby and Kids, Martha Stewart Everyday, and Martha Stewart Signature," Patrick added.
Looking forward, the company said it expects third quarter earnings per share of 6 to 7 cents a share, but it was unable to provide guidance regarding its fourth quarter and full-year results.
ITT Industries posts higher results
WHITE PLAINS, N.Y., July 24 (UPI) -- Defense systems and technology company ITT Industries Inc. said its second-quarter net income rose to $92.9 million, or 99 cents a share, from $85.3 million, or 84 cents a share during the same period last year.
ITT Industries, which makes products ranging from military night-vision goggles to industrial pumps, said its sales rose 11 percent to $1.32 billion from $1.18 billion a year, attributable almost entirely to growth in ITT's Defense Electronics & Services and Fluid Technology segments.
Analysts on Wall Street had expected the company to post a net income of 93 cents a share, according to Thomson Financial/First Call.
The company said its income benefited from lower interest costs, which is the result of continued favorable interest rates, increased cash flow and reduced debt balances.
Lou Giuliano, chairman, president and chief executive officer, said, "This was an outstanding quarter for ITT, with organic growth, earnings and cash flow all stronger than expected.
"Our defense business had a terrific quarter, with revenues up 32 percent over the second quarter last year. Our record free-cash flow is a testament to the effective work of our entire team, having reached $184 million for the first half of the year, $48 million above the comparable period in 2001," Giuliano said.
"Clearly we are benefiting from our multi-industry portfolio. Our Fluid Technology segment had a good quarter, with strong results in wastewater and water markets. Our Defense business had higher international sales and its backlog continues to grow. Our Electronic Components segment, which continues to face difficult market conditions, performed in line with expectations. Our Motion and Flow Control segment rebounded to achieve a 14 percent operating margin," Giuliano added.
Looking ahead, the company said it was expecting its full year earnings per share to reach a range of $3.58 to $3.68.
