DuPont sets investors up for poor results due to weak demand
2023.02.07 09:11
DuPont sets investors up for poor results due to weak demand
By Kristina Sobol
Budrigannews.com – On Tuesday, DuPont de Nemours Inc. said that its sales for fiscal 2023 would be lower than expected because the company makes industrial materials and expects to sell fewer products to the chip and consumer electronics industries in the first half of the year.
In premarket trading, the company’s shares fell 2.1% to $70.88.
The year before, DuPont (NYSE:) fought the pandemic’s higher costs and constraints on the supply chain, some of which continued into this year.
Lori Koch, DuPont’s Chief Financial Officer, stated, “We anticipate continued weakness in these consumer-driven, short-cycle end-markets for the first quarter of 2023, resulting in organic sales declines in the mid single digits compared to the year-ago period.”
Refinitiv IBES data indicate that the business anticipates adjusted earnings of $3.50 to $4.00 per share for the full year, in contrast to estimates of $3.86 per share.
Compared to estimates of $12.91 billion, DuPont anticipated annual sales of $12.30 billion to $12.90 billion.
In the fourth quarter, net sales from its electronics and industrial unit, one of the company’s highest-generating segments, decreased by 8% to $1.34 billion.
DuPont, on the other hand, provided a positive forecast for the second half of the year because it anticipates that demand for consumer electronics will stabilize and that demand from China will rise.
In the fourth quarter, the company earned 89 cents per share on an adjusted basis, beating estimates of 78 cents per share. This was because higher product prices helped offset higher costs.
In order to address the rising costs of energy and raw materials, DuPont has been raising prices.
Additionally, the dividend for the first quarter was increased by 9% to 36 cents per share.
