(Reuters) -DuPont beat Wall Street expectations for first-quarter profit on Friday, helped by higher sales in its unit that caters to the electronics industry, and 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 engaged with customers and suppliers to mitigate their impact.
However, the company left its current forecast for annual adjusted profit of $4.30 to $4.40 per share unchanged, and said it did not include the tariff impact.
DuPont plans to spin off its electronics business, its biggest by revenue, by November 1 and reported its latest-quarter results under the new company structure.
The firm said it 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 during the January-to-March quarter, 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 has been rapidly increasing due to the proliferation of AI-powered technology, benefiting companies such as DuPont, which supports advanced chip manufacturing, packaging and assembly processes.
The Wilmington, Delaware-based company 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, according to data compiled by LSEG.
(Reporting by Vallari Srivastava in Bengaluru; Editing by Anil D’Silva)
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