Industrial materials maker Dupont (DD.N) raised its full-year outlook for a second time on Tuesday as stronger demand and price hikes helped it beat expectations for quarterly earnings.
The company has benefited from a rebound in the auto and chip-making industries this year from the pandemic-led slump, but rising costs and supply constraints pose a risk to its recovery.
Dupont posted growth in all its segments in the second quarter, including semiconductor, smartphones, automotive, and residential construction, Chief Executive Officer Ed Breen said in a statement.
For the full year, the company said it expects net sales between $16.5 billion and $16.6 billion, compared with $15.7 billion to $15.9 billion forecast in May.
It also estimated adjusted earnings per share between $4.24 and $4.30, compared with its previous forecast of $3.60 to $3.75 per share.
Dupont said volumes grew by double-digits in its chip business in the second quarter, as customers increased investments in new technology and demand rose for memory chips used in servers and data centers.
Sales in its automaker-focused mobility and materials unit rose 61%. The company raised prices in the business by 13% in the quarter to offset higher raw material costs.
It also said that it expects to recover some of the volume lost in the quarter due to supply constraints once the issues ease.
Adjusted net income rose to $1.06 per share, beating the average analyst estimate of 95 cents per share, according to Refinitiv IBES data.
Revenue rose 4% to $4.1 billion, also topping estimates of $4.0 billion.