DuPont posted an attributable net loss of $2.48 billion, or $3.37/hare, in the second quarter of 2020. This was mostly a consequence of a $2.5-billion impairment charge in its Transportation and Industrial segment, which was heavily impacted by the coronavirus pandemic. DuPont earned 70 cents/share, excluding one-off items, which beat analysts’ estimates of 59 cents/share earnings.
DuPont said the writedown was not associated with tangible assets of the Transportation and Industrial segment but instead, a result of the prolonged weakness in the automotive sector. The company produces auto parts ranging from engine covers to brake fluids which saw demand declining due to the COVID-19 pandemic.
However, DuPont said that demand in the auto sector had begun picking up since mid-July. It expected 2021 to be a “decent” year for the auto industry. CFO Ed Breen said the worst had passed DuPont, but a new wave of infections could threaten the uneven and patchy recovery.
