DuPont Cuts FY21 Earnings, Sales View Below Market; To Buy Rogers Corp. For $5.2 Bln - Quick Facts

(RTTNews) - While reporting improved third-quarter results on Tuesday, chemical company DuPont De Nemours & Co. (DD) trimmed its forecast for fiscal 2021 earnings and sales, both below market estimates.

Separately, DuPont announced a series of actions advancing its strategy. The company has entered into a definitive agreement to acquire Rogers Corp. (ROG), a provider of engineered materials and components, for $5.2 billion. The transaction is expected to close in the second quarter of 2022, subject to customary closing conditions, including approval by Rogers shareholders and receipt of applicable regulatory approvals.

As part of its ongoing transformation, DuPont also announced that it intends to divest a substantial portion of its Mobility & Materials segment.

In pre-market activity on the NYSE, DuPont shares were losing around 3.7 percent to trade at $68.58.

For full year 2021, DuPont now expects adjusted earnings in the range of $4.18 to $4.22 per share, lower than previously expected $4.24 to $4.30 per share.

Operating EBITDA is now expected between $4.14 billion and $4.17 billion, down from previous view of $4.21 billion and $4.26 billion.

For the year, net sales are now expected to be between $16.34 billion and $16.40 billion, compared to previous view between $16.45 billion and $16.55 billion.

On average, analysts polled by Thomson Reuters expect earnings of $4.3 per share for the year on sales of $16.5 billion. Analysts' estimates typically exclude special items.

Lori Koch, Chief Financial Officer of DuPont. "As we head into the fourth quarter, strong demand trends are expected to continue across almost all end-markets; however, we are seeing a deceleration in order patterns stemming from the ongoing global semiconductor chip shortage, primarily in automotive end-markets, which is consistent with the revisions to global auto build estimates which have come down 17 percent for the second half of 2021 versus estimates for the same period from just a few months ago."