By Arshreet Singh
(Reuters) -DuPont de Nemours Inc raised its 2023 sales forecast on Wednesday, betting on demand picking up for its materials used to make a wide range of products including automotive components and semiconductors.
The chemicals maker had in May cut the top end of its annual revenue expectations, citing a slower-than-expected recovery in its electronics and industrial (E&I) markets.
"As we look at the current demand environment, we continue to expect fairly steady demand in most of our industrial-based end-markets within the E&I and W&P (water and protection) segments," Chief Financial Officer Lori Koch said in a statement.
For the semiconductor business, the company expects sales in the second half to improve slightly after an expected bottom in the second quarter.
DuPont (NYSE:DD) raised its annual sales forecast to between $12.45 billion and $12.55 billion from between $12.3 billion and $12.5 billion. Analysts on average were expecting $12.44 billion, according to Refinitiv data.
The company in May trimmed the top end of its annual sales forecast to $12.50 billion from $12.90 billion.
The water solutions business could see sales moderation due to slowing demand in China, the company said. The segment reported mid-teens rise in sales in the reported quarter.
Meanwhile, third-quarter earnings forecast of 84 cents per share was below estimates of 93 cents, even as cost controls helped top April-June profit expectations.
"We have been very aggressive on control and discretionary spend to minimize the decrementals... We did a small restructuring to be able to reduce some headcount primarily in the general and administrative space," Koch said on a post-earnings call.
On an adjusted basis, the company earned 85 cents per share, beating estimates of 83 cents.
Revenue fell 7% to $3.1 billion as sales in China tumbled 14%, driven by weak demand for electronics.