DuPont de Nemours Inc. expects to take a greater blow from expenses related to logistics, raw materials, and energy for the year irrespective of price hikes which in turn could allow the materials manufacturer to sustain inflationary pressures in the last quarter.

Inflation has reached levels not been seen in decades because of several causes, including the supply-chain issue and the war crisis in Ukraine. As a result, businesses are being forced to review their sales and production plans and keep a tight eye on expenses.

The company’s Chief Financial Officer Lori Koch stated during the post-earnings call that the expenses are projected to increase to USD 700 million from its earlier prediction of USD 600 million, with its unit that supplies water treatment and purification technologies presumed to have the highest increase. With various alterations, the company also trimmed its annual earnings predictions which reflected a dip of 1% in market share.

On a positive note, sales in DuPont’s water and protection business increased by 6%, while sales in the electronics and industrial sector, which is one of its highest revenue-producing segments, increased by 16%. Whereas the overall sales segment increased by 7% to USD 3.32 billion, exceeding projections of USD 3.25 billion.

DuPont reported second-quarter earnings with organic sales growth of 9%, consisting of an 8% price increase and a 1% volume gain. The price increases were implemented to counteract the effects of cost inflation.

According to Ed Breen, the Chief Executive Officer at DuPont, the company delivered Q2 financial results higher than anticipated by retaining a disciplined focus on pricing plans and operational efficiency in the face of rising global supply chain and logistics hurdles and ongoing inflationary pressure.

Interestingly, Breen also stated that in major end markets, the underlying demand remained robust throughout the quarter. While sales and earnings increased year over year and sequentially in a turbulent macro environment showed the strength in DuPont's portfolio, strong customer connections, and the dominant market positions the company enjoys globally.

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https://money.usnews.com/investing/news/articles/2022-08-02/dupont-quarterly-profit-jumps-63-on-strong-electronics-demand