DuPont Reports Fourth Quarter and Full Year 2021 Results
DuPont (NYSE: DD) reported a strong financial performance for Q4 and full year 2021, achieving net sales of $4.3 billion, a 14% increase year-over-year, and $16.7 billion for the year, up 16%. The company benefited from strategic pricing actions and strong demand in sectors like electronics and water. GAAP EPS for Q4 was $0.47, down from $0.60, primarily due to higher expenses. DuPont announced a new $1 billion share buyback and a 10% increase in its quarterly dividend to $0.33 per share. The outlook for 2022 anticipates continued growth in sales and earnings despite raw material cost pressures.
- Q4 net sales up 14% year-over-year to $4.3 billion.
- Full year net sales increased 16% to $16.7 billion.
- Adjusted EPS for Q4 rose 54% to $1.08.
- New $1 billion share buyback program authorized.
- 10% increase in quarterly dividend to $0.33 per share.
- Expect net sales for 2022 between $17.4 billion and $17.8 billion.
- GAAP EPS for Q4 decreased to $0.47 from $0.60.
- Operating EBITDA margin negatively impacted by higher raw material and logistics costs.
WILMINGTON, Del., Feb. 8, 2022 /PRNewswire/ -- DuPont (NYSE: DD) today announced financial results for the fourth quarter and full year 2021.
"Our fourth quarter financial results reflect a disciplined focus on pricing actions and operational excellence in a sustained environment of unprecedented global supply chain challenges and rising inflation," said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. "Sustained strong demand in key end-markets such as electronics and water, along with our continued ability to offset raw material inflation with price, were critical to our fourth quarter results. The leading market positions we hold globally, as well as our focus on execution, has led to sales and earnings growth throughout the year and will be key to our success in 2022."
"In addition to delivering strong financial performance, we advanced a number of strategic priorities in 2021," Breen continued. "With our acquisition of Laird Performance Materials, definitive agreement to acquire Rogers Corporation(1) and intent to divest a substantial portion of the Mobility & Materials segment(2), we are advancing our position as a premier multi-industrial company and are focusing our portfolio around key growth pillars – electronics, water, protection, industrial technologies and next-generation automotive. We expect these steps will provide high-growth, high-value opportunities in sectors with long-term secular trends."
"For the year, we returned more than
Fourth Quarter 2021 Results
Net sales totaled
GAAP EPS from continuing operations totaled
Operating EBITDA(4) was
Operating cash flow in the quarter of
Full Year 2021 Results
Full year net sales totaled
Full year GAAP EPS from continuing operations totaled
Full year operating EBITDA(4) was
Operating cash flow for the year of
Quarterly Dividend
The Company today announced that its Board of Directors has declared a first quarter dividend of
Share Buyback Program
The Company today announced that its Board of Directors authorized a new
The actual timing and manner, which may include open-market purchases or privately negotiated transactions, as well as the number and value of shares repurchased under these programs will be determined by senior management at its discretion depending on a number of factors, including the market price of DuPont common stock, general market and economic conditions, applicable requirements and other business considerations.
(1) | 1) On November 2, 2021 DuPont announced it had entered a definitive agreement to acquire Rogers Corporation (NYSE: ROG). The transaction is subject to regulatory approvals and customary closing conditions. |
(2) | On November 2, 2021 DuPont announced that it has initiated a divestiture process related to a substantial portion of its Mobility & Materials segment. The outcome of which, including the entry into a definitive agreement, is subject to approval by the DuPont Board of Directors. |
(3) | Future dividends are at the discretion of the DuPont Board of Directors. |
(4) | Adjusted EPS, operating EBITDA, organic sales, free cash flow and free cash flow conversion are non-GAAP measures. See page 7 for further discussion, including a definition of significant items. Reconciliation to the most directly comparable GAAP measure, including details of significant items begins on page 12 of this communication. |
Fourth Quarter and Full Year 2021 Segment Highlights
Electronics & Industrial
Electronics & Industrial reported fourth quarter net sales of
Volume growth was led by Semiconductor Technologies with gains of more than 20 percent. Continued demand strength was driven by the on-going transition to more advanced technologies and growth in high-performance computing and 5G communications. Within Industrial Solutions, mid-teens volume growth primarily reflects ongoing strength for Kalrez® and Vespel® offerings within electronics and industrial markets. As expected, organic sales for Interconnect Solutions were down versus the year-ago period reflecting the anticipated impact of the shift in demand related to premium next-generation smartphones to the first half of 2021, along with softness in automotive end-markets due to supply chain constraints, primarily the semiconductor chip shortage.
Fourth quarter operating EBITDA for the segment was
For the year, Electronics & Industrial net sales of
Water & Protection
Water & Protection reported fourth quarter net sales of
Sales gains versus the year-ago period were led by high-teens organic sales growth in Safety Solutions as continued recovery in industrial end-markets resulted in significant volume improvement for aramid fibers, coupled with pricing gains. Within Water Solutions, high-teens organic sales growth reflects strong global demand for water technologies, primarily in industrial and desalination markets. Within Shelter Solutions, mid-teens organic sales growth reflects pricing actions and volume growth related to both North American residential construction and the continued recovery in commercial construction led by demand for solid surfaces.
Operating EBITDA for the segment was
For the year, Water & Protection net sales of
Mobility & Materials
Mobility & Materials reported fourth quarter net sales of
The local price increase of 16 percent was broad-based across the segment and primarily reflects actions taken to offset raw material costs. Volume declines reflect softness in global auto production due to supply chain constraints, primarily the semiconductor chip shortage.
Operating EBITDA for the segment was
For the year, Mobility & Materials net sales of
Outlook
"For 2022 we expect net sales between
"For the first quarter of 2022, we expect net sales between
Conference Call
The Company will host a live webcast of its fourth quarter earnings conference call with investors to discuss its results and business outlook today at 8:00 a.m. ET. The slide presentation that accompanies the conference call will be posted on the DuPont's Investor Relations Events and Presentations page. A replay of the webcast also will be available on the DuPont's Investor Relations Events and Presentations page following the live event.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with technology-based materials and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, healthcare and worker safety. More information about the company, its businesses and solutions can be found at www.dupont.com. Investors can access information included on the Investor Relations section of the website at www.investors.dupont.com.
DuPontTM and all products, unless otherwise noted, denoted with TM, SM or ® are trademarks, service marks or registered trademarks of affiliates of DuPont de Nemours, Inc.
Overview
Effective August 31, 2017, E. I. du Pont de Nemours and Company ("EID") and The Dow Chemical Company ("TDCC") each merged with subsidiaries of DowDuPont Inc. (n/k/a "DuPont") and, as a result, EID and TDCC became subsidiaries of the Company (the "DWDP Merger"). On April 1, 2019, the Company completed the separation of the materials science business through the spin-off of Dow Inc., ("Dow") including Dow's subsidiary The Dow Chemical Company (the "Dow Distribution"). On June 1, 2019, the Company completed the separation of the agriculture business through the spin-off of Corteva, Inc. ("Corteva") including Corteva's subsidiary E. I. du Pont de Nemours and Company ("EID"), (the "Corteva Distribution" and together with the Dow Distribution, the "DWDP Distributions").
On February 1, 2021, the Company completed the divestiture of the Nutrition & Biosciences ("N&B") business to International Flavors & Fragrance Inc. ("IFF") in a Reverse Morris Trust transaction (the "N&B Transaction") that resulted in IFF issuing shares to DuPont stockholders. The results of operations of DuPont for all periods presented reflect the historical financial results of N&B as discontinued operations, as applicable. The cash flows related to N&B have not been segregated and are included in the Consolidated Statements of Cash Flows for the applicable periods.
In addition, the Company includes in discontinued operations activity related to the indemnification obligations pertaining to EID legacy liabilities including eligible PFAS costs under the cost sharing arrangement (the "MOU") by and between DuPont, Corteva and The Chemours Company.
On July 1, 2021, DuPont completed the previously announced acquisition (the "Laird PM Acquisition") of the Laird Performance Materials business, ("Laird PM").
On November 2, 2021, DuPont announced it has entered definitive agreements to acquire Rogers Corporation ("Rogers"), (the "Intended Rogers Acquisition"). On January 25, 2022, Rogers shareholders approved the transaction. Closing, is expected by the end of the second quarter 2022, subject to regulatory approvals and customary closing conditions.
On November 2, 2021, DuPont announced that it has initiated a divestiture process (the "In-Scope M&M Divestiture Process") related to a substantial portion of its Mobility & Materials segment, (the "In-Scope M&M Businesses"). The outcome of which, including the entry into a definitive agreement, is subject to approval of the DuPont Board of Directors.
Cautionary Statement Regarding Forward Looking Statements
This communication contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "target," and similar expressions and variations or negatives of these words.
Forward-looking statements address matters that are, to varying degrees, uncertain and subject to risks, uncertainties, and assumptions, many of which that are beyond DuPont's control, that could cause actual results to differ materially from those expressed in any forward-looking statements. Forward-looking statements are not guarantees of future results. Some of the important factors that could cause DuPont's actual results to differ materially from those projected in any such forward-looking statements include, but are not limited to: (i) the timing and outcome of the In-Scope M&M Divestiture Process and the risks, costs and ability to realize benefits from the pursuit of any disposition of the In-Scope M&M Businesses resulting therefrom; (ii) ability to achieve anticipated tax treatments in connection with mergers, acquisitions, divestitures and other portfolio changes actions and impact of changes in relevant tax and other laws; (iii) indemnification of certain legacy liabilities of EID in connection with the Corteva Distribution; (iv) risks and costs related to each of the parties respective performance under and the impact of the arrangement to share future eligible PFAS costs by and between DuPont, Corteva and Chemours; (v) failure to timely close on anticipated terms, realize expected benefits and effectively manage and achieve anticipated synergies and operational efficiencies in connection with mergers, acquisitions, divestitures and other portfolio changes including the Intended Rogers Acquisition (vi) risks and uncertainties, including increased costs and the ability to obtain raw materials and meet customer needs , related to operational and supply chain impacts or disruptions, which may result from, among other events, the COVID-19 pandemic and actions in response to it, and geo-political and weather-related events; (vii) ability to offset increases in cost of inputs, including raw materials, energy and logistics; and (viii) other risks to DuPont's business, operations; each as further discussed in DuPont's most recent annual report and subsequent current and periodic reports filed with the U.S. Securities Exchange Commission. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Consequences of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business or supply chain disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on DuPont's consolidated financial condition, results of operations, credit rating or liquidity. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. DuPont assumes no obligation to publicly provide revisions or updates to any forward-looking statements whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
Non-GAAP Financial Measures
This earnings release includes information that does not conform to accounting principles generally accepted in the United States of America ("U.S. GAAP") and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company, including allocating resources. DuPont's management believes these non-GAAP financial measures are useful to investors because they provide additional information related to the ongoing performance of DuPont to offer a more meaningful comparison related to future results of operations. These non-GAAP financial measures supplement disclosures prepared in accordance with U.S. GAAP, and should not be viewed as an alternative to U.S. GAAP. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Reconciliations for these non-GAAP measures to U.S. GAAP are provided in the Selected Financial Information and Non-GAAP Measures starting on page 12 and in the Reconciliation to Non-GAAP Measures on the Investors section of the Company's website. Non-GAAP measures included in this release are defined below. The Company has not provided forward-looking U.S. GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable U.S. GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of certain future events. These events include, among others, the impact of portfolio changes, including asset sales, mergers, acquisitions, and divestitures; contingent liabilities related to litigation, environmental and indemnifications matters; impairments and discrete tax items. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP results for the guidance period.
Adjusted earnings per common share from continuing operations - diluted ("Adjusted EPS"), is defined as earnings per common share from continuing operations - diluted, excluding the after-tax impact of significant items, after-tax impact of amortization expense of intangibles and the after-tax impact of non-operating pension / other post employment benefits ("OPEB") benefits / charges. Management estimates amortization expense in 2022 associated with intangibles to be approximately
Operating EBITDA, is defined as earnings (i.e. income (loss) from continuing operations before income taxes) before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, adjusted to exclude significant items. Operating EBITDA margin is calculated as operating EBITDA divided by net sales. Operating EBITDA leverage is calculated as the year-over-year percentage change in operating EBITDA divided by the year-over-year percentage change in net sales.
Significant items are items that arise outside the ordinary course of the Company's business that management believes may cause misinterpretation of underlying business performance, both historical and future, based on a combination of some or all of the item's size, unusual nature and infrequent occurrence. Management classifies as significant items certain costs and expenses associated with integration and separation activities related to transformational acquisitions and divestitures as they are considered unrelated to ongoing business performance.
Organic Sales is defined as net sales excluding the impacts of currency and portfolio.
Free cash flow is defined as cash provided by/used for operating activities less capital expenditures. As a result, free cash flow represents cash that is available to the Company, after investing in its asset base, to fund obligations using the Company's primary source of liquidity, cash provided by operating activities. Management believes free cash flow, even though it may be defined differently from other companies, is useful to investors, analysts and others to evaluate the Company's cash flow and financial performance, and it is an integral measure used in the Company's financial planning process. Free cash flow conversion is defined as free cash flow divided by net income adjusted to exclude the after-tax impact of non-cash impairment charges, gains or losses on divestitures, and amortization expense of intangibles.
DuPont de Nemours, Inc. | ||||
In millions, except per share amounts (Unaudited) | Three Months Ended December 31, | Twelve Months Ended December 31, | ||
2021 | 2020 | 2021 | 2020 | |
Net sales | $ 4,271 | $ 3,750 | $ 16,653 | $ 14,338 |
Cost of sales | 2,858 | 2,474 | 10,803 | 9,508 |
Research and development expenses | 162 | 159 | 618 | 625 |
Selling, general and administrative expenses | 465 | 402 | 1,855 | 1,701 |
Amortization of intangibles | 195 | 169 | 725 | 696 |
Restructuring and asset related charges - net | 42 | 45 | 55 | 845 |
Goodwill impairment charges | — | — | — | 3,214 |
Acquisition, integration and separation costs | 75 | 16 | 133 | 177 |
Equity in earnings of nonconsolidated affiliates | 18 | 17 | 94 | 187 |
Sundry income (expense) - net | (7) | 36 | 163 | 667 |
Interest expense | 135 | 155 | 525 | 672 |
Income (loss) from continuing operations before income taxes | 350 | 383 | 2,196 | (2,246) |
Provision for (benefit from) income taxes on continuing operations | 84 | (64) | 392 | 160 |
Income (loss) from continuing operations, net of tax | 266 | 447 | 1,804 | (2,406) |
(Loss) income from discontinued operations, net of tax | (40) | (217) | 4,711 | (517) |
Net income (loss) | 226 | 230 | 6,515 | (2,923) |
Net income attributable to noncontrolling interests | 22 | 8 | 48 | 28 |
Net income (loss) available for DuPont common stockholders | $ 204 | $ 222 | $ 6,467 | $ (2,951) |
Per common share data: | ||||
Earnings (loss) per common share from continuing operations - basic | $ 0.47 | $ 0.60 | $ 3.24 | $ (3.31) |
(Loss) earnings per common share from discontinued operations - basic | (0.08) | (0.30) | 8.68 | (0.70) |
Earnings (loss) per common share - basic | $ 0.40 | $ 0.30 | $ 11.92 | $ (4.01) |
Earnings (loss) per common share from continuing operations - diluted | $ 0.47 | $ 0.60 | $ 3.23 | $ (3.31) |
(Loss) earnings per common share from discontinued operations - diluted | (0.08) | (0.30) | 8.66 | (0.70) |
Earnings (loss) per common share - diluted | $ 0.39 | $ 0.30 | $ 11.89 | $ (4.01) |
Weighted-average common shares outstanding - basic | 516.1 | 734.6 | 542.7 | 735.5 |
Weighted-average common shares outstanding - diluted | 517.8 | 735.4 | 544.2 | 735.5 |
DuPont de Nemours, Inc. | |||
In millions, except share and per share amounts (Unaudited) | December 31, 2021 | December 31, 2020 | |
Assets | |||
Current Assets | |||
Cash and cash equivalents | $ 2,011 | $ 2,544 | |
Accounts and notes receivable - net | 2,711 | 2,421 | |
Inventories | 2,862 | 2,393 | |
Other current assets | 236 | 181 | |
Assets held for sale | 245 | 810 | |
Assets of discontinued operations | — | 20,659 | |
Total current assets | 8,065 | 29,008 | |
Property, plant and equipment - net of accumulated depreciation December 31, 2021 - | 6,966 | 6,867 | |
Other Assets | |||
Goodwill | 19,578 | 18,702 | |
Other intangible assets | 8,442 | 8,072 | |
Restricted cash and cash equivalents | 53 | 6,206 | |
Investments and noncurrent receivables | 981 | 1,047 | |
Deferred income tax assets | 143 | 190 | |
Deferred charges and other assets | 1,479 | 812 | |
Total other assets | 30,676 | 35,029 | |
Total Assets | $ 45,707 | $ 70,904 | |
Liabilities and Equity | |||
Current Liabilities | |||
Short-term borrowings and finance lease obligations | $ 150 | $ 1 | |
Accounts payable | 2,612 | 2,222 | |
Income taxes payable | 278 | 169 | |
Accrued and other current liabilities | 1,197 | 1,084 | |
Liabilities related to assets held for sale | 25 | 140 | |
Liabilities of discontinued operations | — | 8,610 | |
Total current liabilities | 4,262 | 12,226 | |
Long-Term Debt | 10,632 | 15,611 | |
Other Noncurrent Liabilities | |||
Deferred income tax liabilities | 1,974 | 2,053 | |
Pension and other post-employment benefits - noncurrent | 852 | 1,110 | |
Other noncurrent obligations | 937 | 834 | |
Total other noncurrent liabilities | 3,763 | 3,997 | |
Total Liabilities | 18,657 | 31,834 | |
Commitments and contingent liabilities | |||
Stockholders' Equity | |||
Common stock (authorized 1,666,666,667 shares of | 5 | 7 | |
Additional paid-in capital | 49,574 | 50,039 | |
Accumulated deficit | (23,187) | (11,586) | |
Accumulated other comprehensive income | 41 | 44 | |
Total DuPont stockholders' equity | 26,433 | 38,504 | |
Noncontrolling interests | 617 | 566 | |
Total equity | 27,050 | 39,070 | |
Total Liabilities and Equity | $ 45,707 | $ 70,904 | |
DuPont de Nemours, Inc. | ||
In millions (Unaudited) | Twelve Months Ended December 31, | |
2021 | 2020 | |
Operating Activities | ||
Net income (loss) | $ 6,515 | $ (2,923) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 1,458 | 3,094 |
Credit for deferred income tax and other tax related items | (323) | (692) |
Earnings of nonconsolidated affiliates less than (in excess of) dividends received | 9 | (87) |
Net periodic pension benefit (credit) cost | (1) | 37 |
Pension contributions | (85) | (98) |
Net gain on sales and split-offs of assets, businesses and investments | (5,092) | (642) |
Restructuring and asset related charges - net | 57 | 849 |
Goodwill impairment charges | — | 3,214 |
Inventory step-up amortization | 12 | — |
Other net loss | 181 | 175 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | (255) | 308 |
Inventories | (537) | 570 |
Accounts payable | 317 | 177 |
Other assets and liabilities, net | 25 | 113 |
Cash provided by operating activities | 2,281 | 4,095 |
Investing Activities | ||
Capital expenditures | (891) | (1,194) |
Proceeds from sales of property, businesses, and ownership interests in nonconsolidated affiliates, | 797 | 1,033 |
Acquisitions of property and businesses, net of cash acquired | (2,346) | (70) |
Purchases of investments | (2,001) | (1) |
Proceeds from sales and maturities of investments | 2,001 | 1 |
Other investing activities, net | 39 | 29 |
Cash used for investing activities | (2,401) | (202) |
Financing Activities | ||
Changes in short-term notes payable | 150 | (1,829) |
Proceeds from issuance of long-term debt | — | 8,275 |
Proceeds from issuance of long-term debt transferred to IFF at split-off | 1,250 | — |
Payments on long-term debt | (5,000) | (2,031) |
Purchases of common stock | (2,143) | (232) |
Proceeds from issuance of Company stock | 115 | 57 |
Employee taxes paid for share-based payment arrangements | (26) | (15) |
Distributions to noncontrolling interests | (41) | (50) |
Dividends paid to stockholders | (630) | (882) |
Cash transferred to IFF and working capital adjustments | (153) | — |
Other financing activities, net | (29) | (55) |
Cash (used for) provided by financing activities | (6,507) | 3,238 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (72) | 67 |
(Decrease) Increase in cash, cash equivalents and restricted cash | (6,699) | 7,198 |
Cash, cash equivalents and restricted cash from continuing operations, beginning of period | 8,767 | 1,569 |
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period | 8 | 8 |
Cash, cash equivalents and restricted cash at beginning of period | 8,775 | 1,577 |
Cash, cash equivalents and restricted cash from continuing operations, end of period | 2,076 | 8,767 |
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | 8 |
Cash, cash equivalents and restricted cash at end of period | 2,076 | 8,775 |
DuPont de Nemours, Inc. | ||||
Net Sales by Segment and Geographic Region | Three Months Ended | Twelve Months Ended | ||
In millions (Unaudited) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 |
Electronics & Industrial | $ 1,467 | $ 1,235 | $ 5,554 | $ 4,674 |
Water & Protection | 1,415 | 1,224 | 5,552 | 4,993 |
Mobility & Materials | 1,262 | 1,128 | 5,045 | 4,005 |
Corporate | 127 | 163 | 502 | 666 |
Total | $ 4,271 | $ 3,750 | $ 16,653 | $ 14,338 |
U.S. & Canada | $ 1,218 | $ 1,054 | $ 4,632 | $ 4,231 |
EMEA 1 | 847 | 717 | 3,322 | 2,755 |
Asia Pacific | 2,051 | 1,840 | 8,097 | 6,838 |
Latin America | 155 | 139 | 602 | 514 |
Total | $ 4,271 | $ 3,750 | $ 16,653 | $ 14,338 |
Net Sales Variance by Segment | Three Months Ended December 31, 2021 | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | — % | 9 % | 9 % | — % | 10 % | 19 % | |
Water & Protection | 5 | 12 | 17 | (1) | — | 16 | |
Mobility & Materials | 16 | (3) | 13 | (1) | — | 12 | |
Corporate | 4 | 9 | 13 | 1 | (36) | (22) | |
Total | 7 % | 6 % | 13 % | (1) % | 2 % | 14 % | |
U.S. & Canada | 7 % | 7 % | 14 % | — % | 2 % | 16 % | |
EMEA 1 | 8 | 9 | 17 | (2) | 3 | 18 | |
Asia Pacific | 5 | 5 | 10 | (1) | 2 | 11 | |
Latin America | 6 | 4 | 10 | — | 2 | 12 | |
Total | 7 % | 6 % | 13 % | (1) % | 2 % | 14 % | |
Net Sales Variance by Segment | Twelve Months Ended December 31, 2021 | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | — % | 12 % | 12 % | 1 % | 6 % | 19 % | |
Water & Protection | 2 | 8 | 10 | 1 | — | 11 | |
Mobility & Materials | 12 | 12 | 24 | 2 | — | 26 | |
Corporate | 3 | 4 | 7 | 1 | (33) | (25) | |
Total | 4 % | 10 % | 14 % | 2 % | — % | 16 % | |
U.S. & Canada | 4 % | 7 % | 11 % | — % | (2) % | 9 % | |
EMEA 1 | 3 | 13 | 16 | 4 | 1 | 21 | |
Asia Pacific | 5 | 11 | 16 | 1 | 1 | 18 | |
Latin America | 4 | 13 | 17 | (1) | 1 | 17 | |
Total | 4 % | 10 % | 14 % | 2 % | — % | 16 % | |
1. Europe, Middle East and Africa. | |||||||
DuPont de Nemours, Inc. | |||||
Operating EBITDA by Segment | Three Months Ended | Twelve Months Ended | |||
In millions (Unaudited) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |
Electronics & Industrial | $ 423 | $ 384 | $ 1,758 | $ 1,468 | |
Water & Protection | 325 | 303 | 1,385 | 1,313 | |
Mobility & Materials | 230 | 236 | 1,082 | 588 | |
Corporate 1 | (5) | 8 | (55) | 70 | |
Total | $ 973 | $ 931 | $ 4,170 | $ 3,439 | |
1. Corporate includes | |||||
Equity in Earnings of Nonconsolidated Affiliates by Segment | Three Months Ended | Twelve Months Ended | |||
In millions (Unaudited) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |
Electronics & Industrial | $ 9 | $ 7 | $ 41 | $ 34 | |
Water & Protection | 9 | 7 | 36 | 26 | |
Mobility & Materials | (2) | 6 | 9 | 19 | |
Corporate 1 | 2 | (3) | 8 | 108 | |
Total equity earnings included in operating EBITDA (GAAP) | $ 18 | $ 17 | $ 94 | $ 187 | |
1. Corporate activity in 2020 reflects equity earnings associated with the Hemlock Semiconductor joint venture divested in the third quarter of 2020. | |||||
Reconciliation of "Income (Loss) from continuing operations, net of | Three Months Ended | Twelve Months Ended | |||
In millions (Unaudited) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |
Income (loss) from continuing operations, net of tax (GAAP) | $ 266 | $ 447 | $ 1,804 | $ (2,406) | |
+ Provision for income taxes on continuing operations | 84 | (64) | 392 | 160 | |
Income (loss) from continuing operations before income taxes | $ 350 | $ 383 | $ 2,196 | $ (2,246) | |
+ Depreciation and amortization | 364 | 334 | 1,395 | 1,373 | |
- Interest income 1 | — | 4 | 4 | 12 | |
+ Interest expense | 113 | 155 | 503 | 672 | |
- Non-operating pension/OPEB benefit 1 | 13 | 7 | 52 | 30 | |
- Foreign exchange losses, net 1 | (17) | (12) | (53) | (39) | |
- Significant items | (142) | (58) | (79) | (3,643) | |
Operating EBITDA (non-GAAP) | $ 973 | $ 931 | $ 4,170 | $ 3,439 | |
1. Included in "Sundry income (expense) - net." | |||||
Reconciliation of "Cash provided by operating activities" to Free Cash | Three Months Ended | Twelve Months Ended | |||
In millions (Unaudited) | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2021 | Dec 31, 2020 | |
Cash provided by operating activities (GAAP) 1 | $ 621 | $ 1,301 | $ 2,281 | $ 4,095 | |
Capital expenditures | (184) | (272) | (891) | (1,194) | |
Free cash flow (non-GAAP) | $ 437 | $ 1,029 | $ 1,390 | $ 2,901 | |
1. Refer to the Consolidated Statement of Cash Flows included in the schedules above for major GAAP cash flow categories as well as further detail relating to the changes in "Cash provided by operating activities" for the twelve month periods noted. In addition, includes cash activity related to N&B prior to the N&B Transaction. | |||||
DuPont de Nemours, Inc. | ||||
Significant Items Impacting Results for the Three Months Ended December 31, 2021 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 350 | $ 244 | $ 0.47 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 4 | (75) | (57) | (0.11) | Acquisition, integration and separation costs |
Restructuring and asset related charges - net 5 | (42) | (32) | (0.06) | Restructuring and asset related charges - net |
Loss on divestitures 6 | (3) | (40) | (0.08) | Sundry income (expense) - net |
Rogers acquisition financing fees 7 | (22) | (16) | (0.03) | Interest expense |
Income tax related item 8 | — | (26) | (0.05) | Provision for income taxes on continuing operations |
Total significant items | $ (142) | $ (171) | $ (0.33) | |
Less: Amortization of intangibles | (195) | (152) | (0.30) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit | 13 | 10 | 0.02 | Sundry income (expense) - net |
Adjusted results (non-GAAP) | $ 674 | $ 557 | $ 1.08 | |
Significant Items Impacting Results for the Three Months Ended December 31, 2020 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 383 | $ 439 | $ 0.60 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 9 | (16) | (25) | (0.03) | Acquisition, integration and separation costs |
Restructuring and asset related charges - net 5 | (45) | (35) | (0.05) | Restructuring and asset related charges - net |
Gain on divestitures | 3 | 4 | 0.01 | Sundry income (expense) - net |
Income tax related item 10 | — | 107 | 0.14 | Provision for income taxes on continuing operations |
Total significant items | $ (58) | $ 51 | $ 0.07 | |
Less: Amortization of intangibles | (169) | (132) | (0.18) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit | 7 | 7 | 0.01 | Sundry income (expense) - net |
Adjusted results (non-GAAP) | $ 603 | $ 513 | $ 0.70 | |
1. | Income (loss) from continuing operations before income taxes. |
2. | Net income (loss) from continuing operations available for DuPont common stockholders. The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. |
3. | Earnings (loss) per common share from continuing operations - diluted. |
4. | Acquisition, integration and separation costs related to strategic initiatives including the planned divestiture of the In-Scope M&M Businesses and the Intended Rogers Acquisition. |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects the loss related to the sale of the Clean Technologies business reflected within Corporate. |
7. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into in preparation for the Intended Rogers Acquisition. |
8. | Reflects the tax impacts of internal restructurings executed in anticipation of the divestiture of the In-Scope M&M Businesses. |
9. | Acquisition, integration and separation costs strategic initiatives including the divestiture of the held for sale businesses. |
10. | Includes an |
DuPont de Nemours, Inc. | ||||
Significant Items Impacting Results for the Twelve Months Ended December 31, 2021 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 2,196 | $ 1,756 | $ 3.23 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 4 | (133) | (111) | (0.20) | Acquisition, integration and separation costs |
Restructuring and asset related charges - net 5 | (55) | (42) | (0.08) | Restructuring and asset related charges - net |
Gain on divestitures 6 | 143 | 71 | 0.13 | Sundry income (expense) - net |
Inventory step-up amortization 7 | (12) | (10) | (0.02) | Cost of sales |
Rogers acquisition financing fees 8 | (22) | (16) | (0.03) | Interest expense |
Income tax related item 9 | — | 48 | 0.09 | Provision for income taxes on continuing operations |
Total significant items | $ (79) | $ (60) | $ (0.11) | |
Less: Amortization of intangibles | (725) | (564) | (1.03) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit | 52 | 39 | 0.07 | Sundry income (expense) - net |
Adjusted results (non-GAAP) | $ 2,948 | $ 2,341 | $ 4.30 | |
Significant Items Impacting Results for the Twelve Months Ended December 31, 2020 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ (2,246) | $ (2,434) | $ (3.31) | |
Less: Significant items | ||||
Acquisition, integration and separation costs 10 | (177) | (150) | (0.20) | Acquisition, integration and separation costs |
Restructuring and asset related charges - net 5 | (184) | (143) | (0.20) | Restructuring and asset related charges - net |
Goodwill impairment charges 11 | (3,214) | (3,214) | (4.37) | Goodwill impairment charges |
Asset impairment charges 12 | (661) | (503) | (0.68) | Restructuring and asset related charges - net |
Gain on divestitures 13 | 593 | 338 | 0.46 | Sundry income (expense) - net |
Income tax related item 14 | — | 128 | 0.17 | Provision for income taxes on continuing operations |
Total significant items | $ (3,643) | $ (3,544) | $ (4.82) | |
Less: Amortization of intangibles | (696) | (540) | (0.73) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit | 30 | 24 | 0.03 | Sundry income (expense) - net |
Adjusted results (non-GAAP) | $ 2,063 | $ 1,626 | $ 2.21 | |
1. | Income (loss) from continuing operations before income taxes. |
2. | Net income (loss) from continuing operations available for DuPont common stockholders. The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment. |
3. | Earnings (loss) per common share from continuing operations - diluted. |
4. | Acquisition, integration and separation costs related to strategic initiatives including the acquisition of Laird PM, the planned divestiture of the In-Scope M&M Businesses, the Intended Rogers Acquisition, and the completed and planned divestitures of the held for sale businesses included within Corporate. |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects the gain from the sale of the Solamet® business, the loss from the sale of the Clean Technologies business within Corporate and post closing adjustments related to previously divested businesses. |
7. | Reflects the amortization of the inventory step-up related to the Laird PM Acquisition. |
8. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into in preparation for the Intended Rogers Acquisition. |
9. | Reflects a net |
10. | Acquisition, integration and separation costs related to strategic initiatives including the divestiture of the held for sale businesses and post-DWDP Merger integration. |
11. | Reflects non-cash goodwill impairment charges recorded as follows: a |
12. | Reflects a |
13. | Reflects a gain on the first quarter 2020 sale of the Company's Compound Semiconductor Solutions business within the Electronics & Industrial segment and the net benefit related to the sale of the trichlorosilane business ("TCS") and equity stake in Hemlock Semiconductor JV (collectively, "TCS/Hemlock"), which includes a settlement of a supply agreement dispute, during the third quarter 2020 within Corporate. |
14. | Includes an |
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SOURCE DuPont
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