Materials and chemicals maker DuPont De Nemours Inc (DD.N) is in advanced talks to sell its Delrin resins unit to private equity firm The Jordan Company for about $1.8 billion, Bloomberg News reported on Sunday, citing people familiar with the matter. The report said the deal could be announced as soon as this week, adding that no final decision has been made and that talks could still fall apart. The unit produces Delrin acetal homopolymer, used in high-load mechanical applications such as gears and safety restraints for cars and trucks, door systems, conveyor belts, and healthcare delivery devices. Its sales have been slowed by slowing global automotive and construction industry growth.
Earlier this month, DuPont raised its 2023 sales forecast as demand picks up for its materials used in demanding products and parts. According to reports, the Company focuses on its electronics, automotive, water, and industrial technologies businesses.
According to a research note from analyst firm RBC Capital Markets, the Company is expected to post a net income of $1.06 per share. The firm’s forecast calls for a rise of 10.8% in earnings per share compared with last year’s results. The note added that the Company is also expected to post a rise of 11.7% in operating EBITDA per share compared with the prior-year period.
Earnings per share from continuing operations available for common stockholders – diluted. Includes the income tax effect on significant items calculated based upon enacted tax laws and statutory income tax rates applicable to each underlying non-GAAP adjustment. It also includes the termination fee of $162.5 million related to the terminated Intended Rogers Acquisition and other asset-related charges and a pre-tax charge on an equity method investment.
Revenue – excluding the impact of currency headwinds. Net sales increase of 9% as organic growth(2) of 9% was partially offset by the impact of currency headwinds. Operating EBITDA increased as price increases and disciplined cost control more than offset inflationary cost pressure, including higher raw material, logistics, and energy costs and a 2% currency headwind.
The Company will host a live webcast of its conference call with investors to discuss financial results and business outlook today beginning at 8:00 a.m. ET. The slide presentation accompanying the conference call will be posted on the Investor Relations Events and Presentations page. A replay of the webcast will be available following the live event.
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This release contains forward-looking statements based on current expectations, estimates, and assumptions about the future. These statements are subject to uncertainties and risks, some of which are beyond the Company’s control. Those risks and uncertainties include but are not limited to, the ability to complete the planned divestiture of the Mobility & Materials segment and the related business units, changes in economic and other conditions in the markets where the Company operates, and other factors as discussed in the section entitled “Risk Factors” of the Company’s Form 10-K filed with the Securities and Exchange Commission on February 18, 2022.
