INDUSTRIAL materials maker DuPont de Nemours beat Wall Street estimates for first-quarter profit and raised its full-year forecasts on Wednesday (May 1), as it benefited from higher sales in its electronics and semiconductors segment.
Chemicals companies had resorted to cost cuts and destocking last year due to low demand in key markets. But the overall manufacturing output is now improving.
The United States reported an increase in output in February and March, while China and South Korea also saw some recovery even as factory activity in many Asian economies weakened in March.
“Channel inventory destocking within our industrial-based businesses has bottomed and assumed recovery timing is on track with our previous expectations,” DuPont chief executive officer Ed Breen said.
DuPont raised its adjusted earnings per share between US$3.45 and US$3.75 from US$3.25 to US$3.65 it had previously forecast.
It also estimates sales to rise to US$12.10 billion to US$12.40 billion from its prior target of US$11.90 billion to US$12.30 billion.
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“Year-over-year sales and earnings growth assumed in the second half of 2024 is expected to be driven by further electronics market recovery and a return to volume growth in its water and protections unit,” said Lori Koch, chief financial officer of DuPont.
The company’s electronics and industrial unit, the biggest segment in terms of revenue, saw a 5 per cent rise in net sales to US$1.37 billion. Analysts had expected US$1.32 billion, according to LSEG data.
The company’s adjusted profit was 79 cents per share, above analysts’ average estimate of 65 cents.
DuPont expects second-quarter sales of US$3.03 billion and adjusted profit of 84 cents. Analysts were expecting earnings of 78 cents for the period, with sales to be in line. REUTERS
