Dive Brief:
- DuPont de Nemours ended Q4 2024 with a 7% increase in net sales year over year with $3.1 billion driven by strong demand within its electronics segment, according to an earnings release Tuesday.
- The chemical manufacturer’s net sales for the full year saw a 3% YOY increase to $12.4 billion, driven by rising product demand in electronics, water and medical packaging.
- Looking ahead, DuPont seeks to generate over $3 billion in net sales in Q1 and up to $12.9 billion for 2025 as it accelerates its plans to spin off its electronics segment by Nov. 1.
Dive Insight:
The electronics and industrials segment saw Q4 net sales increase 11% YOY to $1.5 billion. The segment’s growth was concentrated in the semiconductor market and driven by the increased adoption of artificial intelligence and strong demand in China, according to the earnings release.
The water and protection segment also saw a 6% sales increase in Q4 at approximately $1.4 billion, SVP and CFO Antonella Franzen said in the earnings call Tuesday. The portfolio saw growth in its water infiltration technologies that include reverse osmosis, ultrafiltration, ion exchange and nanofiltration.
“There's some incremental opportunities, not necessarily in ‘25, but longer term around both DLE, so direct lithium extractions, within the battery space and then also some PFAS opportunity as well,” CEO Lori Koch said on the call.
Despite stronger sales, the chemicals giant saw a profit loss of $61 million during the period. This is a marked improvement from a $300 million loss a year ago as demand strengthened for electronics, water and medical packaging. Water and protection sales dropped 4% for the full year to $5.4 billion as a result of declining organic sales, according to the earnings report.
The company expects to see the electronics business sales grow up to 7% in 2025, according to the Q4 earnings presentation. The projected growth is expected to be driven by the continuing semiconductor sector demand due to ongoing AI adoption, as well as greater transitioning to advanced nodes and normalized sales in China, Franzen said.
DuPont forecasts sales for its industrial co-segment to increase up to 4% due to continuing strong demand for medical devices and medical applications in biopharma markets, Franzen said. The company is also targeting mid-single-digit organic sales growth in 2025, Koch said.
“To enable this, we will continue focusing on optimizing our growth opportunities within each business, which includes both continued investment and innovation, as well as driving commercial excellence initiatives, including strategic marketing and sales effectiveness activities,” Koch said.
Another driver in DuPont’s sales gains is its restructuring plan, which the company has been working on since December 2023. The chemical manufacturer approved the cost-reduction plan due to high inflation and geopolitical uncertainty. DuPont is also streamlining operations after it acquired medical device maker Spectrum Plastics Group and sold 80% of its Delrin resin business in 2023.
Other actions include hiring a chief commercial officer to drive consistent execution across all of DuPont’s businesses, Koch added. The chemical maker hired machinery manufacturer SKF Group executive Lakshmi Yalamanchili as DuPont’s VP of commercial excellence effective Feb. 18, the company said in an email to Manufacturing Dive.
