(Reuters) – Industrial materials maker DuPont de Nemours reported a fall in first-quarter profit on Tuesday, hurt by headwinds related to raw material and logistic costs.
The profit declined despite the company hiking prices of its products by 6% in the quarter to offset higher inflationary costs from raw materials, logistics and energy.
“We anticipate key external uncertainties in the macro environment, namely COVID-related shutdowns in China, will further tighten supply chains resulting in slower volume growth and sequential margin contraction in the second quarter 2022”, Chief Executive Officer Ed Breen said in a statement.
DuPont said sales in electronics and industrial, one of its highest revenue generating segments, rose 18% to $1.54 billion. The company makes electronic materials used in chip packaging, mobile devices and autonomous vehicles.
The company’s adjusted net income fell to $420 million, or 82 cents per share, in the three months ended March. 31, from $421 million, or 69 cents per share, a year earlier.
(Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli)
