(Reuters) -DuPont beat Wall Street expectations for first-quarter profit and revenue on Friday, helped by higher sales in its unit that caters to the electronics industry, although it warned of a hit to full-year earnings from tariffs. U.S. President Donald Trump has upended the global order through tariffs, forcing companies to assess the potential fallout […]
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DuPont results beat estimates as electronics unit gains from AI chip boom
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(Reuters) -DuPont beat Wall Street expectations for first-quarter profit and revenue on Friday, helped by higher sales in its unit that caters to the electronics industry, although it warned of a hit to full-year earnings from tariffs.
U.S. President Donald Trump has upended the global order through tariffs, forcing companies to assess the potential fallout from his chaotic trade policies.
DuPont said it was expecting a net cost impact of roughly $60 million, or 10 cents per share, from tariffs and that it was actively engaging with customers and suppliers to mitigate their impact.
The chemicals maker said the tariff exposure on imports into the United States was limited, but it might be bigger on products it exports to China.
It left its current-year forecast for adjusted profit of $4.30 to $4.40 per share unchanged, saying it did not include the tariff impact.
DuPont – which plans to spin off its electronics business, its biggest by revenue, by November 1 – reported its latest-quarter results under the new company structure.
The firm recorded a $768 million non-cash impairment charge related to the Aramids reporting unit, which led to a loss of $548 million from continuing operations.
DuPont’s total sales grew 4.6% to $3.07 billion, beating expectations of $3.04 billion, according to data compiled by LSEG, though they were partially offset by flat sales at the industrials segment, which will remain with DuPont post spinoff.
Net sales in the electronics segment rose to $1.12 billion from $984 million a year earlier, driven by AI technology applications and strong volumes in China.
Demand for semiconductors is booming due to the proliferation of AI-powered technology, benefiting companies such as DuPont, which supports advanced chip manufacturing, packaging and assembly processes.
DuPont posted an adjusted profit of $1.03 per share for the three months ended March 31, compared with analysts’ estimates of 95 cents per share.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Anil D’Silva)