DuPont Beats Q2 Estimates, Forecasts Higher Full

Sep 04, 2023

The chemicals giant upped its full-year sales forecast on higher demand for its materials

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Chemicals giant DuPont De Nemours (DD) posted a smaller-than-expected loss in the second quarter while raising its full-year sales forecast, but projected lower earnings for the year.

DuPont posted a net loss of $131 million, or 84 cents a share, for the latest quarter. Adjusted EPS, which the company defines as EPS from continuing operations before taxes, came in at a positive 85 cents a share, versus projections of 83 cents.

Revenue, however, fell 7% to just under $3.1 billion, with organic sales falling 4% amid declines in volume. This reflected lower sales to customers in the construction industry, and consumers spending less on electronics amid a pullback in discretionary spending. DuPont is a major supplier of raw materials and adhesives used in electric circuitboards in products ranging from cars to computers.

The company's Electronics & Industrial segment, which manufactures components used in circuit boards and other electrical equipment, was particularly hard-hit, with revenues down 14%. Lower production volumes and capacity utilization for semiconductors, as well as reduced consumer demand, weighed on the segment. Semiconductor Technologies volume fell 19%, the most of any subsector.

Revenue at the chemicals giant has been on a steady downtrend in recent years, with quarterly net sales down more than $2 billion from 2019 levels.

Despite this, management remains optimistic. "We delivered second-quarter revenue and operating EBITDA results ahead of our expectations with sequential revenue and earnings growth as well as margin improvement," Ed Breen, DuPont executive chairman and CEO, said.

DuPont now expects higher sales for the year, raising its full-year forecast to a range of $12.45 billion to $12.55 billion, from between $12.3 billion and $12.5 billion, betting on increased demand for its materials. However, the company lowered its earnings forecast to between $3.40 and $3.50 a share, from $3.55 to $3.70.

Shares of DuPont were down about 1% trading at noon EDT Wednesday. They're up 14% so far this year, outpacing an 11% gain for the broader S&P 500 materials sector over the same period.

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DuPont. "DuPont Reports Second-Quarter 2023 Results."