Chemical Company DuPont Accelerates Electronics Business Separation, Retains Water Business

DuPont de Nemours, Inc. DD shares traded higher in the premarket on Thursday after the company announced that it would separate its electronics business.

The Wilmington, Delaware-based company expects the transaction to be completed by Nov. 1.

Moreover, DuPont decided not to separate its water business after evaluating strategic alternatives. The company concluded that keeping the water business within the portfolio is the best approach to generate value and will allow DuPont to continue optimizing its portfolio following the electronics separation.

Notably, on May 22, DuPont announced its plan to split into three distinct publicly traded entities, with electronics and water businesses executed tax-free for shareholders.

DuPont CEO Lori Koch expects 2025 to be “a strong year” for the water business.

Outlook Reiterated: DuPont continues to expect net sales of about $3.07 billion and adjusted EPS of roughly 98 cents. Both numbers are in line with the consensus.

DuPont also reaffirmed full-year 2024 guidance for adjusted EPS of ~$3.90 versus the $3.91 consensus and revenue of $12.365 billion versus the $13.369 billion consensus.

The company plans to release fourth-quarter results on Feb. 11.

Investors can gain exposure to the stock via Putnam ETF Trust Putnam BioRevolution ETF SYNB and Materials Select Sector SPDR XLB.

Price Action: DuPont de Nemours shares are up 2.37% at $78.05 premarket at the last check Thursday.

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