DuPont beats quarterly estimates, unveils $2 billion buyback plan

By Pooja Menon

Nov 6 (Reuters) - Industrial materials maker DuPont DD.N reported a stronger-than-expected third quarter on Thursday, and announced a new $2 billion share buyback plan tied to its spinoff of Qnity Electronics unit and the sale of the Aramids business.

Shares were little changed in morning trading as investors assessed the company's strong quarterly performance against a softer near-term forecast.

DuPont said it would continue to look at buybacks and mergers and acquisition activity, reassuring investors that the company is in a positive balance sheet position as it pivots toward becoming a leaner and high-growth technology-driven materials business.

The company had announced in August that it would sell its Aramids unit, which makes heat-resistant fibers, to rival Arclin for $1.8 billion. In October, its board approved the planned spinoff of Qnity Electronics.

DuPont said on a post-earnings call it expects 2025 organic sales to rise about 2%, fueled by strong demand in healthcare and water end-markets. It forecast full-year operating core earnings of $1.60 billion, up from its prior outlook of $1.58 billion.

It expects fourth-quarter adjusted earnings of 43 cents per share, below the consensus of 45 cents, according to data compiled by LSEG. It projected net sales of roughly $1.69 billion, while analysts estimated $1.72 billion.

The softer outlook and narrower margins reflected continued uneven demand across industrial and construction markets during DuPont's post-separation transition, it said.

Net sales in DuPont's industrials segment climbed 4.8% in the third quarter, while the electronics segment grew 11.2%.

"Ongoing strength in electronics, healthcare and water end-markets, along with focus on operational execution, continued to drive strong top-line growth and cash conversion," CEO Lori Koch said.

DuPont's quarterly net sales rose 7.3% to $3.07 billion, beating the estimate of $2.9 billion. Adjusted profit came in at $1.09 per share, compared with the expectations of $1.06.