DuPont cutting 1,500 jobs

WILMINGTON, Del. - Chemicals maker DuPont Co. on Monday said it will cut 1,500 jobs and consolidate manufacturing in its seeds unit in a move to lower operating costs by $100 million a year.

DuPont expects to book a related $200 million pretax charge in the fourth quarter to cover the restructuring.

In a separate announcement, the company sharply increased its fourth-quarter earnings target to reflect a series of tax gains that will more than offset the restructuring charges.

DuPont said it now expects to earn $3.25 per share in the quarter, including $370 million, or 39 cents per share, in net one-time gains. The previous estimate was for profit of $2.86 per share, including a gain of 1 cent per share.

The $370 million includes a gain of $500 million to reverse tax accruals and tax valuation allowances, and finalize taxes related to the return to the United States of profits earned abroad. The amount also includes a pretax gain of about $60 million related to insurance recoveries.

DuPont plans to reinvest the savings from the restructuring into its seeds business as it steps up competition with industry leader Monsanto. “Most of the changes” are expected to be done in 2007, the company said.

DuPont plans to report fourth-quarter earnings Jan. 23.