DuPont (NYSE:DD) issued a CYA press release and talked out of both sides of their mouth at the same time. They downgraded their own guidance blaming more conservative cash management practices by their customers. That mean revenues are off and are expected to stay off for quite some time
Dupont was very gutsy and attributed this quote to their Chair and CEO Ellen Kullman “We are seeing slower growth in certain segments during the fourth quarter, driven by global economic uncertainty. This uncertainty is contributing to ongoing conservative cash management in some supply chains.”
Thank You Ellen Kullman for blaming the economic slow down. What else you got? You know the press release is CYA when the investor relations and public relations contacts do not appear at the bottom for media or investor follow up. You know the press release is CYA because in the future the CEO has been positioned as warning the market about some nasty things that might happen. Unfortunately DuPont has no game and that is the tragedy.
Kullman was a director of General Motors from 2004-2008 but that’s probably another story.
CYA for those of you who do not know is an acronym for “Cover your ass”
George Gutowski writes from a caveat emptor perspective.
- DuPont Gives Good 2012 Guidance; Shares Rise (thestreet.com)
- Uh Oh, A Major Bellwether Just Cut 2011 Guidance (DD) (businessinsider.com)
- DuPont Sees Strong 2012 After Tricky Finish To 2011 (forbes.com)
- DuPont Cuts 2011 Earnings Guidance (thestreet.com)