By Dhirendra Tripathi
Investing.com – DuPont stock (NYSE:DD) traded 5.2% higher Tuesday as the maker of industrial materials rode price hikes and strong demand in its electronics unit to leave fourth-quarter estimates behind.
Compounding the gains were the company’s decision to boost its quarterly dividend by 10% and the board’s approval for a $1 billion share buyback program.
Net sales rose 14% to $4.3 billion on growth across all its operating regions and solid organic growth in its business segments.
Sales in electronics and industrial jumped 19%. The July 2021 acquisition of Laird Performance Materials added to sales. Organic volumes were higher too, driven by a shift to high-performance computing and 5G communications. DuPont makes advanced electronic materials for smart and autonomous vehicles and 5G wireless services.
Sales at the water and protection segment, which provides treatment and purification technologies, grew by 16%. Demand for its water technologies, primarily in industrial and desalination markets, was strong. Mobility and materials grew 12%, thanks to higher prices. However, volumes fell, reflecting the softness in global auto production.
The company expects 2022 net sales to be $17.6 billion at midpoint of its guidance range, up 5.3%. However, in the current quarter, the raw material and logistics cost inflation are likely to weigh on performance, according to the company. Net sales in the quarter are seen at around $4.25 billion.