(Reuters) – DuPont <DD.N> forecast annual profit above expectations on Thursday as a tight check on costs and a recovery in the automotive industry, one of its biggest markets, helped the industrial materials maker’s quarterly results beat estimates.
The company, which makes everything from brake fluid to fabric used in protective garments, has been cutting costs to battle weak demand in several industries due to the COVID-19 pandemic.
DuPont raised its cost-cut target, saying it expects to save $280 million for the year, $100 million more than its prior forecast, as it renegotiated some contracts and speeded up its workforce reduction plans.
The company, which is heavily exposed to the auto industry, is also benefiting from a revival in sales for car makers after a relaxation to lockdowns in several economies.
Its third-quarter sales in transportation and industrial business fell 14%, but rose 20% from the prior quarter.
Sales in its electronics and imaging business rose 7%, helped by builds in semiconductor technologies ahead of the launch of some premium smartphones.
It forecast full-year profit of $3.17 to $3.21 per share, well above estimates of $3.03, according to Refinitiv data.
Net sales forecast of $20.1 billion to $20.2 billion was at its midpoint, marginally above estimates of $20.1 billion.
DuPont’s adjusted earnings per share of 88 cents for the quarter beat estimates of 75 cents. Sales of $5.1 billion also surpassed $5 billion estimated by analysts.
(Reporting by Taru Jain in Bengaluru; Editing by Arun Koyyur)