DuPont expects costs to rise in 2022

A logo is pictured outside Dupont’s offices in Geneva, Switzerland, April 15, 2021. REUTERS/Denis Balibouse/File Photo

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Aug 2 (Reuters) – DuPont de Nemours (DD.N) expects to be hit hardest by logistics, raw materials and energy costs for the year, although price increases have helped the industrial materials maker battle inflationary pressures last quarter.

A host of factors ranging from the supply chain crisis to the war in Ukraine have pushed inflation to levels not seen in decades, prompting companies to re-evaluate their sales and production strategies and monitor near the costs.

Spending is expected to climb to around $700 million from its previous projection of $600 million, Chief Financial Officer Lori Koch said in a post-earnings call, her unit that provides processing and purification technologies for water is expected to experience the greatest increase.

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Dupont also said net sales and core operating income for the current quarter will be slightly lower than the second quarter, due to currency headwinds and the lack of sales contribution from the biomaterials unit. , who split in June.

The company’s shares fell 1% after it also cut its full-year earnings estimate.

He now expects adjusted earnings of $3.27 to $3.43 per share, down from a previous forecast of up to $3.5 per share, and revenue of $13 billion to $13.4 billion. of $13.7 billion, compared to the previously estimated $13.7 billion.

Sales from the electronics and industrial business, one of the company’s most revenue-generating segments, were up 16% year-on-year, while sales from its water and protection increased by 6%.

The company’s quarterly adjusted earnings of 88 cents per share beat market estimates of 75 cents per share, according to data from Refinitiv IBES.

Total sales jumped 7% to $3.32 billion, beating estimates of $3.25 billion.

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Reporting by Rithika Krishna in Bengaluru; Editing by Rashmi Aich and Anil D’Silva

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