Agricultural giant DuPont is soaring after cutting its forecast and announcing its CEO will retire

old dupont paint

(Wikimedia Commons)

DuPont just cut its forecast for full-year earnings and announced CEO Ellen Kullman will retire, and now the stock is surging.

In a press release after the market close on Monday, the company announced that it now expects operating earnings per share of about $2.75, versus $3.10 previously guided.

Behind the lowered guidance is basically one thing: Brazil.

The company also announced that CEO Ellen Kullman will retire on October 16.

In after hours trade on Monday, the stock was up as much as 6%.

In a release, DuPont said, "The revised outlook primarily reflects continued strengthening of the U.S. dollar versus currencies in emerging markets, particularly the Brazilian Real; and a further weakening of agricultural markets, primarily in Brazil."

DuPont added that Brazil's domestic demand for crop protection and seed products was slammed in the third quarter by its weakening economy. With their margins shrinking, farmers are getting more reluctant to grow as much crop as they used to, and it's harder to access credit, according to DuPont.

Brazil's currency has been slammed in the past year with other emerging market currencies, and recently weakened to a record low against the dollar. Standard and Poor's cut Brazil's credit rating to "junk" last month, as the country strives to improve its fiscal situation.

And now, Brazil's struggling economy is hurting DuPont.

The company is speeding up its cost savings plans, and anticipates that it will save $1.3 billion by the end of 2016.

NOW WATCH: 13 Surprising Facts About Brazil

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