DuPont raises full-year forecasts on strong electronics
Technology
DuPont raises full-year forecasts on strong electronics
(Reuters) - Industrial materials maker DuPont de Nemours raised full-year forecasts on Wednesday, benefiting from strong demand for electronics and artificial intelligence-based technology that helped it beat second-quarter results.
After widely destocking last year due to low demand, an uptick in the manufacturing sector is benefiting companies that make chemicals and other materials used in a variety of industries including automotive and electronics.
Production at factories in the United States rose 1.1% in June from a year earlier and climbed 3.4% in the second quarter.
DuPont's electronics and industrial unit, its biggest in terms of sales, saw a 7.1% rise in net sales in the quarter, driven by strong demand for semiconductors and consumer technology products.
Demand in the electronics market is expected to remain strong for the rest of the year, DuPont said, sending its shares up 4.5% in premarket trading.
CEO Lori Koch, who took the role in May, said the company had made progress around separating its electronics and water businesses.
DuPont announced plans to split its electronics and water segments in May and said it expected to complete the process within 18-24 months.
The company on Wednesday raised its 2024 adjusted earnings forecast to $3.70 to $3.80 per share, from its previous range of$3.45 to $3.75, and net sales estimate to $12.40 billion and $12.50 billion, from $12.10 billion to $12.40 billion previously.
The Wilmington, Delaware-based company reported an adjusted profit of 97 cents per share for the second quarter, above analysts' average estimate of 85 cents, according to LSEG data.
