By Pooja Menon
Aug 4 (Reuters) - DuPont narrowed its annual sales forecast on Tuesday, hurt by weakness in its Middle East water business and a lower foreign-exchange benefit, sending shares down nearly 5% premarket despite a quarterly profit beat and higher full-year earnings forecast.
The industrial materials maker now expects 2026 net sales of $7.16 billion to $7.19 billion, compared with its previous forecast of $7.16 billion to $7.22 billion.
DuPont has relied on price increases, productivity gains
and capital allocation actions, including the spin-off of its electronics business, debt reduction and share buybacks, to help offset weak underlying demand across parts of the chemicals market.
CFO Antonella Franzen said continued strength in healthcare, industrial water and aerospace end-markets was expected to drive mid-single-digit organic sales growth in the second half of the year.
J.P. Morgan analysts said uncertainty in the water business was likely to persist in the second half, even as the company factors in a ramp-up in organic growth, and expected the stock to trade mixed on Tuesday.
DuPont raised its 2026 adjusted core profit forecast to between $1.75 billion and $1.77 billion, from its previous range of $1.73 billion to $1.76 billion.
The company now expects adjusted earnings per share of $7.17 to $7.32, compared with a prior forecast of $7.02 to $7.16. DuPont said the range was restated to reflect its 1-for-3 reverse stock split, which took effect in June.
Net sales in its healthcare and water technologies segment rose nearly 5% to $856 million from a year earlier, while sales in diversified industrials increased 3.3% to $963 million.
The Wilmington, Delaware-based company posted adjusted profit of $1.88 per share for the three months ended June 30, beating analysts' average estimate of $1.76 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Vijay Kishore and Tasim Zahid)
