Agricultural giant DuPont just slashed its forecast and blamed Brazil
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.
The company 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.
DuPont also announced that chair and CEO Ellen Kullman will retire October 16.
The stock rose as much as 5% in after-hours trading.