DuPont's (DD) Delrin Introduces Breakthrough New Resin
DuPont de Nemours, Inc.'s DD unit Delrin has unveiled a high molecular weight nucleated resin designed for use in applications needing excellent creep resistance and fatigue durability. Delrin 51HSE expands Delrin's ability to replace metal, allowing clients to save money and weight while lowering noise. It also permits smart design principles that are advantageous for lowering carbon footprint.
The new Delrin resin is based on formulations that have set the bar for high-performance plastic gears. While Delrin 100 is known as designers’ first choice for high-stress applications, Delrin 51HSE resin expands on those qualities and provides a significant improvement in fatigue and creep performance.
The improvement in static gear strength of Delrin 51HSE is around 10%. But, the true benefit comes from a two-fold boost in durability, providing clients with a cost-effective alternative to converting from metal gears or other more expensive solutions.
DuPont, in August 2023, announced a $1.8 billion definitive agreement to sell an 80.1% controlling interest in the Delrin acetal homopolymer business to TJC LP. TJC has received fully committed capital for the transaction, which is expected to conclude by the end of 2023, subject to standard closing conditions and regulatory approval. At the conclusion of the transaction, DuPont will receive $1.25 billion in pre-tax cash proceeds, a $350 million note receivable and a 19.9% non-controlling common equity holding in the Delrin business.
Shares of DuPont have gained 34.6% over the past year compared with the 6.8% rise of its industry.
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DuPont, on its second-quarter call, said that it now sees net sales for 2023 to be in the range of $12,450-$12,550 million. Adjusted earnings per share for 2023 are forecast to be $3.40-$3.50. The company sees third-quarter 2023 net sales of roughly $3,150 million. Adjusted earnings per share for the quarter are projected at roughly 84 cents.
DuPont de Nemours, Inc. Price and Consensus
DuPont de Nemours, Inc. price-consensus-chart | DuPont de Nemours, Inc. Quote
Zacks Rank & Key Picks
DuPont currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Hawkins Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 86.6% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 47.1% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 49.3% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.
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