DuPont lifts forecast as price hikes offset Iran war-driven costs

By Pooja Menon

May 5 (Reuters) - Industrial materials ‌maker DuPont ​raised its ​annual profit and sales forecasts on Tuesday after beating first-quarter estimates, as price increases helped offset higher input costs driven by ‌the U.S. and Israel's war with Iran.

Its shares rose as much ⁠as 7.4% in early trading to $48.77, their highest level since March.

The escalation of the Middle ‌East conflict has disrupted oil ‌and petrochemical flows through the Strait of Hormuz, tightening global chemical supply and raising prices of plastics, polymers and resins.

"Our full-year net sales guidance ​now assumes about 4% organic growth, including about 1% of pricing due to actions taken to fully offset higher input costs related to the ⁠Middle East conflict," Chief Financial Officer Antonella Franzen said in a statement.

On a post-earnings call with analysts, Franzen ​added that DuPont has implemented surcharges and price increases to cover incremental costs, with the roughly $90 million impact expected to ​be fully covered starting in the second ‌quarter.

Executives said the company estimates about $30 million in "stranded costs", with roughly $10 million expected to be removed this year as it ⁠works to eliminate them over "the first two years".

DuPont raised its 2026 adjusted earnings per share forecast to between $2.35 and $2.40, from $2.25 to $2.30 earlier.

It now expects annual net sales of $7.16 billion ⁠to $7.26 billion, compared with its prior forecast of $7.08 billion to $7.14 billion.

DuPont said on April 1 ​it had completed the sale of Aramids business to peer Arclin for $1.8 billion.

SEGMENT RESULTS

Quarterly net sales at its healthcare and water technologies segment rose 5.6% to $806 million, supported by ‌growth in medical packaging and biopharma markets, partly offset by disruptions affecting industrial water and microelectronics.

Sales at its diversified industrials ‌unit rose 3% to $875 million.

The company posted an adjusted profit of 55 cents ⁠per share for the three months ‌ended March 31, beating ​the average of analysts' estimates of 48 cents, according to data compiled by LSEG.

(Reporting by Pooja Menon in Bengaluru; Editing by ‌Leroy Leo)

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