By Seher Dareen
-Industrial materials maker DuPont de Nemours (NYSE:DD) raised its full-year forecasts on Wednesday, benefiting from strong demand for its products used in making electronics and semiconductors amid an artificial intelligence-led boom.
Shares of the company rose 4.8% in afternoon trade.
After widely destocking last year due to low demand, an uptick in the manufacturing sector is benefiting companies that make chemicals and other materials used in a variety of industries including automotive and electronics.
DuPont's electronics and industrial unit, its biggest in terms of sales, saw a 7.1% rise in net sales in the quarter, driven by strong demand for semiconductors and consumer technology products.
Earlier this week, Samsung (KS:005930) and AMD (NASDAQ:AMD) reported a jump in their earnings on the AI-boom that has boosted prices for semiconductors and memory chips.
Demand in the electronics market is expected to remain strong for the rest of the year, DuPont said.
The company on Wednesday raised its 2024 adjusted earnings forecast to $3.70 to $3.80 per share, from $3.45 to $3.75 previously, and net sales estimate to between $12.40 billion and $12.50 billion, from $12.10 billion to $12.40 billion.
The 2024 forecast raise was based on the semiconductors and electronics segment, stronger-than-expected recovery in the water business, and stable growth in its building products business despite a soft housing environment, said Aleksey Yefremov, senior analyst of U.S. chemicals equity research at KeyBanc Capital Markets.
DuPont expects to announce leadership appointments for its new businesses early next year. It revealed plans to split its electronics and water segments in May, and had said it expected to complete the process within 18-24 months.
The Wilmington, Delaware-based company reported an adjusted profit of 97 cents per share for the second quarter, above analysts' average estimate of 85 cents, according to LSEG data.