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DuPont (DD) Invests $5M in European Production Resources

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DuPont de Nemours, Inc.’s (DD - Free Report) Mobility & Materials division recently announced an investment of $5 million toward Research and Development (R&D) and operating resources in its manufacturing facilities in Germany and Switzerland.

The investment in the new equipment, which has already been installed, is directed toward increasing the capacity for its high-performance automotive adhesives and also accelerating product delivery to customers.

The investment will enable the facilities to support the surging demand for the company’s adhesives for advanced mobility solutions for vehicle electrification. Products manufactured in these facilities include support materials for battery management required in vehicle charging, sealing and assembly; structural adhesives ensuring crash durability and light-weight vehicle structures; and glass bonding adhesives required for OEM installation and aftermarket repair of windscreens and backlites. Some of these products are BETAFORCE TC, BETATECH, BETAFORCE, BETAMATE and BETASEAL.

The company opines that on the back of sustained recovery of the global auto market, this boost to R&D activities will pace up the growth in hybrid and fully-electric vehicles, besides reinforcing its customer services by offering advanced adhesive solutions in the Asia-Pacific region.

Shares of DuPont have surged 75.1 % in a year compared with the industry’s rise of 68.6%. The estimated earnings growth rate for the current year is pegged at 9.8%.

In the last reported quarter, the company recorded earnings of 91 cents per share, beating the Zacks Consensus Estimate of 77 cents. It raked in net sales of $3,976 million, increasing 8% from the year-ago quarter and beating the Zacks Consensus Estimate of $3,811.5 million.

It saw higher organic sales across its segments in the quarter. It benefited from sustained strength in semiconductors and smartphone technologies, continued recovery in automotive and industrial markets, and strong demand for water filtration technologies.

DuPont raised its guidance for net sales and adjusted earnings per share for 2021. Net sales for the year are now forecasted between $15.7 billion and $15.9 billion compared with $15.4-$15.6 billion expected earlier. The company also expects adjusted earnings per share for 2021 in a band of $3.60-$3.75, up from the prior view of $3.30-$3.45.

 

Zacks Rank & Other Stocks to Consider

Currently, DuPont carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Cabot Corporation (CBT - Free Report) , Dow Inc. (DOW - Free Report) and Olin Corporation (OLN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot has a projected earnings growth rate of 125.9% for the current year. The company’s shares have risen 84.4% in a year.

Dow has a projected earnings growth rate of 261.5% for the current year. The company’s shares have jumped 92.6% in a year.

Olin has a projected earnings growth rate of 473.3% for the current year. The company’s shares have seen a surge of 329.8% in a year.

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