DuPont beats earnings estimates on price hikes and demand for electronics

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FILE PHOTO: The logo of DuPont de Nemours, Inc. is seen on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S. August 3, 2021. REUTERS/Andrew Kelly

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Feb 8 (Reuters) – Industrial materials maker DuPont (DD.N) on Tuesday posted quarterly results that beat market expectations as price increases and strong demand in its electronics unit helped offset rising costs for electronics. raw materials.

The company also increased its quarterly dividend by 10% and announced a new $1 billion share buyback program as it capitalizes on a rebound in the auto and chip manufacturing sectors as well as the deployment of high-end telecommunications technologies.

DuPont, which makes advanced electronic materials for smart and autonomous vehicles and 5G wireless services, said organic sales in its Electronics & Industrial segment increased 9%, boosted by strong volumes in the Semiconductor Technologies division.

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The company said sales of its Water & Protection segment, which provides treatment and purification technologies, rose 16% in the quarter.

“Sustained strong demand in key end markets such as electronics and water … (was) critical to our fourth quarter results,” chief executive Ed Breen said in a statement.

To cover the inflationary pressure that agitates several industries, DuPont raised the price of its products by 7% during the quarter.

The company forecasts 2022 net sales of $17.4 billion to $17.8 billion, above analysts’ estimates, due to strong consumer demand.

But chief financial officer Lori Koch said high raw material and logistics costs would continue to impact margins, prompting DuPont to forecast roughly flat core earnings growth from the first. quarter compared to the previous three-month period.

It expects full-year adjusted earnings to be $4.60 to $4.90 per share, the midpoint of which falls below the consensus estimate of $4.86 per share. .

Total fourth-quarter sales jumped 14% to $4.3 billion and beat analysts’ average estimate of $4 billion, according to Refinitiv data. Adjusted net income of $1.08 per share also beat expectations of 98 cents per share.

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Reporting by Shariq Khan in Bengaluru; Edited by Shounak Dasgupta and Ramakrishnan M.

Our standards: The Thomson Reuters Trust Principles.

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