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Recall Costs Cut Du Pont Earnings

June 06, 1992| Associated Press

NEW YORK — Du Pont Co. said Friday that it expected its second-quarter earnings to be reduced by 15 to 20 cents a share for costs associated with the recall of its Benlate DF fungicide.

Du Pont said it expects at least 90% of the expected $500 million to $560 million in claims relating to the recall to be settled by the end of the quarter.

The chemical company's 1991 earnings were reduced by 32 cents because of problems with Benlate. Du Pont reported a $240-million, or 36 cents per share, loss in the fourth quarter of 1991, but earned $1.4 billion, or $2.08 per share, for the year.

Benlate was recalled after an unusually large number of growers in Florida and other southeastern states reported stunting and other leaf damage to plants after application of the chemical to control fungal diseases.

Du Pont has said there is no evidence of injuries to humans from Benlate, but the company faces several claims for human health damage from the chemical.

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