Markets News

DuPont sees strong annual profit as auto sector recovers, signals more cost cuts

Oct 29 (Reuters) - Industrial materials maker DuPont on Thursday forecast full-year profit above Wall Street expectations as it kept a tight check on costs and benefited from a recovery in the automotive industry, one of it biggest markets.

The company, which makes everything from brake fluid to fabric used in protective garments, has been cutting costs to battle weak demand in several industries due to the COVID-19 pandemic.

DuPont is heavily exposed to the auto industry, which has picked up momentum with car makers seeing a revival in sales after relaxation of lockdowns in several economies.

The company said its third-quarter sales in transportation and industrial business fell 14%, but rose 20% from the prior quarter.

Sales in its electronics and imaging business rose 7%, helped by builds in semiconductor technologies ahead of the launch of some premium smartphones.

Meanwhile, the industrial giant further raised its target to cut expenses by $280 million for the year, $100 million more than its previous forecast.

It forecast full-year profit of $3.17 to $3.21 per share, well above estimates of $3.03, according to Refinitiv data.

The company’s adjusted profit, however, fell about 10% to $645 million, or 88 cents per share, as lower demand hit volumes in the nutrition, transportation and construction businesses. (Reporting by Taru Jain in Bengaluru; Editing by Arun Koyyur)