DuPont sees quarterly profit above expectations on coronavirus-led demand

By Arathy S Nair

(Reuters) - Industrial materials maker DuPont <DD.N> on Monday estimated first-quarter profit above Wall Street's expectations, as the coronavirus outbreak lifted demand for its products used in personal protection and water filtration.

The company, however, suspended its forecast for full-year sales and adjusted earnings, citing uncertainty caused by the COVID-19 pandemic in some of its end markets.

DuPont, which makes everything from brake fluid to fabric used in protective garments, is expected to have mixed impact from the virus outbreak.

Demand for some of the company's products, such as Tyvek personal protective garments, has risen, while other key end markets, like the automotive sector, have suffered due to a decline in travel brought by the pandemic.

DuPont said it had idled operations at several manufacturing sites, mainly production plants that fall under its transportation and industrial business, and delayed some capital investment to bolster its cash reserves.

It had also entered a $1.0 billion revolving credit facility, replacing the $750 million facility set to expire in June, and secured $2.0 billion in committed financing to ensure that it can refinance debt maturities in November.

Shares of DuPont, which was spun-off from conglomerate DowDupont in a three-way split last year, were up 4.3% at $40 in pre-market trading.

The company said it expects to report first-quarter adjusted earnings per share between 82 cents and 84 cents on net sales of about $5.2 billion, as strong demand for materials used in food and beverage, probiotics and electronics markets also buoyed results.

Analysts on average had estimated profit of 68 cents per share on revenue of $5.01 billion, according to Refinitiv Eikon data.

Dupont in March trimmed its full-year sales forecast by $200 million to a range of $21.3 billion to $21.8 billion and maintained annual adjusted earnings outlook of $3.70 per share to $3.90 per share.

The company, which has been cutting costs aggressively, said last month it would consider lowering costs beyond the $90 million it had previously estimated.

Dupont is slated to report its first-quarter results on May 5.

(Reporting by Arathy S Nair in Bengaluru; Editing by Aditya Soni)