DuPont de Nemours raised its full-year profit forecast above Street estimates on Tuesday after the industrial materials maker beat third-quarter earnings target on strong demand for electronics and artificial intelligence-based technology.
New orders improved in the U.S. manufacturing sector in September, primarily driven by an AI surge and increased China demand, which helped DuPont raise its profit target for a third time.
The manufacturer has also been benefiting from falling interest rates and lower material prices.
DuPont’s electronics and industrial unit, the biggest in terms of turnover, reported a 13.4% rise in third-quarter net sales.
Overall sales in the Asia-Pacific markets jumped 8% from a year earlier, while the U.S. markets gained 2%.
The company raised its 2024 adjusted earnings forecast to around $3.90 per share, up from $3.70 to $3.80 it previously forecast, and above analysts’ expectations of $3.77, according to data compiled by LSEG.
However, DuPont estimates net sales to be around $12.37 billion for the year, below the lower end of its earlier range of $12.40 billion to $12.50 billion. Analysts’ were expecting $12.44 billion.
The company said it expects normal seasonal declines in the electronics and construction markets in the fourth quarter.
For the third quarter, Dupont reported an adjusted profit of $1.18 per share, well above analysts’ average expectation of $1.03.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
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