Aug 4 (Reuters) - Industrial materials maker DuPont raised its annual profit forecasts on Tuesday after beating second-quarter estimates, driven by price hikes and the impact of its capital deployment measures.
The company has benefited from capital deployment actions such as the spin-off of its electronics business, debt reduction and share repurchases, as well as surcharges and price increases to offset higher feedstock and energy costs, at a time when the global chemicals industry has also grappled
with weak demand in key end-markets.
Ongoing tensions surrounding the Strait of Hormuz since late February have disrupted oil and petrochemical flows, tightening global chemical supplies and driving up plastics and polymer prices.
The company lifted its 2026 adjusted core profit outlook to between $1.75 billion and $1.77 billion, from $1.73 billion to $1.76 billion forecast previously.
It now expects adjusted earnings per share of $7.17 to $7.32, up from a prior forecast of $7.02 to $7.16 — a range that the company has restated to reflect its 1-for-3 reverse stock split, which took effect in June.
CFO Antonella Franzen said continued strength across healthcare, industrial water and aerospace end-markets is expected to drive mid-single-digit organic sales growth in the second half of the year.
Net sales at its healthcare and water technologies segment rose nearly 5% to $856 million from a year earlier, while net sales at its diversified industrials segment increased 3.3% to $963 million.
DuPont forecast annual net sales of $7.16 billion to $7.19 billion, narrowing its prior forecast range of $7.16 billion to $7.22 billion, citing a headwind from lower currency benefits.
The Wilmington, Delaware-based company posted adjusted profit of $1.88 per share for the three months ended June 30, beating analysts' estimate of $1.76 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Vijay Kishore)
