Industrial materials maker DuPont de Nemours reported a second-quarter profit that beat Wall Street estimates on Tuesday, bolstered by strong demand for electronics and construction materials.
DuPont, which makes electronic materials used in chip packaging and mobile devices, said it benefited from a firm demand for high-end semiconductor technologies boosted by growth in 5G communications and data centers, amid an ongoing transition to more advanced node technologies.
The company, once part of the erstwhile chemical giant DowDuPont, lowered its full-year adjusted earnings to $3.27 and $3.43 per share from its previous guidance of $3.2 to $3.5.
It also toned down annual net sales forecast to between $13 billion and $13.4 billion, from up to $13.7 billion outlined earlier.
Dupont said net sales and operating core earnings in the current quarter would be slightly weaker than second-quarter, due to currency headwinds and the absence of the Biomaterials sales contribution.
Sales from the electronics and industrial unit, one of the company’s highest revenue generating segments, rose 16% to $1.53 billion in the second quarter, while the water and protection segment, which provides treatment and purification technologies, brought in $1.5 billion, up 6% from a year earlier.
“Underlying demand during the quarter in our key end-markets remained strong”, Chief Executive Officer Ed Breen said in a statement.
To offset the inflationary pressures, Dupont hiked prices of its products by 8% during the quarter.
The company’s quarterly adjusted profit of 88 cents per share, came above market estimates of 75 cents per share, according to Refinitiv IBES data.
Total sales jumped 7% to $3.32 billion, beating estimates of $3.25 billion.
Shares were up 1.81% at $61.29 in premarket trading.
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