Sept. 23 (Bloomberg) -- DuPont Co., the third-biggest U.S. chemical company, said Executive Vice President Ellen J. Kullman will take over as chief executive officer on Jan. 1, replacing Charles O. Holliday Jr.

Holliday, 60, will continue as chairman until Kullman takes over that position as well, Wilmington, Delaware-based DuPont said today in a statement. Kullman, 52, joined the company in 1988 and has been an executive vice president since 2006. She will be named president Oct. 1, the company said.

``I think it's a savvy move,'' said Gene Pisasale, who helps manage $25 billion, including DuPont shares at PNC Capital Advisors in Baltimore. ``Having a woman as a CEO of a major chemical company will be quite interesting because many of the products they sell are bought by women.''

DuPont products marketed to women include Corian countertops and Stainmaster carpets, he said.

DuPont shares fell 4 cents to $45.35 as of 9:36 a.m. in New York Stock Exchange composite trading. The shares gained 2.9 percent this year through yesterday.

DuPont's shares have risen 10 percent in the five years through yesterday, trailing the 18 percent gain in the Standard & Poor's 500 Index. Profit more than tripled from 2003 through last year, when net income was $2.99 billion.

``Now is the right time to make a seamless transition to new leadership,'' Holliday said in the statement.

Holliday, who has been with DuPont for 38 years and has been CEO since February 1998, said Kullman's transition to chairman will be ``relatively brief,'' without giving a specific date.

Kullman served as group vice president of DuPont's safety and protection unit from February 2002 until June 2006, helping revenue in the newly formed unit increase 57 percent to $5.5 billion.

Kullman will be the 19th executive to lead DuPont in its 206-year history, the company said.

To contact the reporter on this story: Jack Kaskey in New York at jkaskey@bloomberg.net

Last Updated: September 23, 2008 09:43 EDT