US chemical company DuPont becomes more cautious about profit margin – share falls

WILMINGTON (dpa-AFX) – The US specialty chemicals group DuPont (DuPont de Nemours) is more optimistic about sales development due to higher sales prices, but the high raw material and energy costs are eroding the profit margin. Demand is still high, but there are numerous uncertainties due to the war in Ukraine and the corona lockdowns in China, said CFO Lori Koch according to a statement on Tuesday. Because of rising sales prices, she raised the annual outlook for sales in continuing operations to between 13.3 and 13.7 billion US dollars (up to 13 billion euros). However, the manager continues to expect an operating profit before interest, taxes, depreciation and amortization (Ebitda) of 3.25 to 3.45 billion dollars.

The outlook now excludes the specialty plastics division, which – as announced in February – is to go to rival Celanese for $11 billion. The deal is expected to close towards the end of the year. Also no longer included is the business around the special plastic Delrin, which is also to be sold. In total, both areas generated revenues of a good four billion dollars in 2021.

In the first quarter, the company, based in Wilmington (US state Delaware), increased sales by nine percent year-on-year to almost $3.3 billion and operating profit by two percent to $818 million. The Group benefited from good demand in the electronics industry and in the water treatment and filtration technology business. In the second quarter it should be 750 to 800 million dollars in operating profit. Analysts had recently hoped for more. The stock fell a good 2 percent in premarket US trading.

The bottom line was $488 million for shareholders, down from $5.4 billion a year ago. At that time, however, the sale of shares and the spin-off of the Nutrition & Biosciences division led to the high result./mis/ngu/jha/