(Reuters) - DuPont de Nemours raised its 2025 profit forecast and beat fourth-quarter earnings estimates on Tuesday, as the industrial materials maker benefited from strong demand for electronics and a recovery in its water and protection segment.
Improvement in U.S. manufacturing activity and a growing market for semiconductors used in artificial intelligence-based technology boosted profit for DuPont, which is involved in chip fabrication, packaging and assembly.
DuPont's electronics and industrial unit, the biggest in terms of turnover, reported a 10.6% jump in fourth-quarter net sales.
Meanwhile, its water and protection segment, which had been on a decline due to weak China demand, posted a 6.4% increase in sales, largely through higher volumes for medical packaging products in healthcare markets.
Earlier this year, the company said it had plans to split into three publicly traded companies to pursue focused growth, but has now decided against selling its water and protection unit, which manufactures water purification technologies and provides medical packaging among other services.
DuPont now plans to spin off only its electronics business and expects to complete the transaction by November 1.
It expects full-year adjusted earnings between $4.30 and $4.40 per share, higher than its forecast of $3.70 to $3.80 for 2024.
Analysts expect it to post adjusted earnings of $4.33 per share for 2025.
The company forecast sales of $12.8 billion to $12.9 billion, also above its last year's range. Analysts, however, are expecting $12.92 billion.
For the fourth quarter, Dupont reported an adjusted profit of $1.13 per share, beating analysts' average expectation of 98 cents.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
