DuPont Reports Second Quarter 2023 Results
- Net sales decreased by 7% to $3.1 billion, primarily due to a 4% decline in organic sales.
- Operating EBITDA decreased by 11% to $738 million.
- Adjusted EPS decreased by 3% to $0.85.
- Cash provided by operating activities increased by 140% to $400 million, leading to adjusted free cash flow of $277 million.
- None.
Second Quarter 2023 Highlights
- Net Sales of
$3.1 billion 7% ; organic sales decreased4% versus year-ago period - GAAP Income from continuing operations of
$269 million $738 million - GAAP EPS from continuing operations of
$0.55 $0.85 - Cash provided by operating activities from continuing operations of
$400 million $277 million
"We delivered second quarter revenue and operating EBITDA results ahead of our expectations with sequential revenue and earnings growth as well as margin improvement," said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. "From an end-market view, we saw continued strength during the quarter in industrial end-markets where we continue to capitalize on strong customer relationships and a rich product portfolio. Our results continue to be impacted by the ongoing softness in consumer-driven businesses primarily within electronics, however, we did see sequential sales improvement in our Interconnect Solutions business during the second quarter."
"In addition to driving solid execution, we continue to advance our strategic priorities," Breen continued. "Yesterday we announced completion of the acquisition of Spectrum which aligns with our strategy of delivering innovative solutions to attractive end-markets with long-term secular growth trends. The business combination adds to our existing medical-related offerings and increases our revenue to high-growth healthcare markets to approximately 10 percent of our portfolio. Additionally, we are nearing completion of the
Second Quarter 2023 Results(1) | ||||
Dollars in millions, unless noted |
2Q'23 |
2Q'22 | Change vs. 2Q'22 | Organic Sales (2) vs. 2Q'22 |
Net sales | (7) % | (4) % | ||
GAAP Income from continuing operations | (26) % | |||
Operating EBITDA(2) | (11) % | |||
Operating EBITDA(2) margin % | 23.9 % | 25.0 % | (110)bps | |
GAAP EPS from continuing operations | (23) % | |||
Adjusted EPS(2) | (3) % | |||
Cash provided by operating activities – cont. ops | 140 % | |||
Adjusted free cash flow(2) | 502 % | |||
(1) Results and cash flows are presented on a continuing operations basis. See page 5 for further information, including the basis of presentation included in this release. |
(2) Adjusted EPS, operating EBITDA, organic sales and adjusted free cash flow are non-GAAP measures and only reflect continuing operations. See pages 6-7 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. |
(3) Adjusted EPS outlook on page 3 reflects expectations for continuing operations only and assumes that by year-end 2023, the Company initiates a new |
Net sales
- Net sales decreased
7% as organic sales(2) declined4% , along with currency headwinds of1% and unfavorable portfolio impact of2% . - Organic sales(2) decline of
4% consisted of a6% decrease in volume partially offset by a2% increase in price. - Lower volume resulted from decreased consumer electronics spending and channel inventory destocking, along with softness in construction end-markets, partially offset by continued strength in areas such as water, auto and in industrial end-markets such as aerospace and healthcare.
- Price increase reflects the carryover impact of actions taken in 2022 to offset broad-based cost inflation.
1% organic sales(2) growth in Water & Protection;12% organic sales(2) declines in Electronics & Industrial;9% organic sales(2) growth in the retained businesses reported in Corporate.4% organic sales(2) growth in EMEA,3% organic sales(2) decline inU.S. &Canada and8% organic sales(2) decline inAsia Pacific .
GAAP Income/GAAP EPS from continuing operations
- GAAP income/GAAP EPS from continuing operations decreased as lower segment earnings and the absence of a gain on divestiture in the prior year more than offset lower net interest expense and the impact of a lower share count related to the
$3.25 billion
Operating EBITDA(2)
- Operating EBITDA(2) decreased as volume declines and the impact of reduced production rates to better align inventory with demand were partially offset by net pricing benefits.
Adjusted EPS(2)
- Adjusted EPS(2) decreased as lower segment earnings and foreign exchange losses more than offset lower net interest expense and the impact of a lower share count.
Cash provided by operating activities from continuing operations
- Cash provided by operating activities from continuing operations in the quarter of
$400 million $123 million $277 million
Second Quarter 2023 Segment Highlights | ||||
Electronics & Industrial | ||||
Dollars in millions, unless noted |
2Q'23 |
2Q'22 | Change vs. 2Q'22 | Organic Sales(2) vs. 2Q'22 |
Net sales | (14) % | (12) % | ||
Operating EBITDA | (27) % | |||
Operating EBITDA margin % | 26.6 % | 31.4 % | (480) bps | |
Net sales
- Net sales decreased
14% as organic sales(2) declined12% , along with currency headwinds of1% and unfavorable portfolio impact of1% . - Organic sales(2) decline of
12% reflects a decrease in volume. - Semiconductor Technologies volume down
19% resulting from reduced semiconductor fab utilization rates due to weaker end-market demand and channel inventory destocking. - Interconnect Solutions volume down
15% due to decreased consumer electronics spending and channel inventory destocking. However, reported sales increased7% sequentially in the second quarter. - Industrial Solutions volume down
2% as ongoing strength in broad-based industrial markets was more than offset by lower demand in consumer-driven displays and advanced printing applications.
Operating EBITDA
- Operating EBITDA decreased due primarily to volume declines and reduced production rates to better align inventory with demand.
Water & Protection | ||||
Dollars in millions, unless noted |
2Q'23 |
2Q'22 | Change vs. 2Q'22 | Organic Sales(2) vs. 2Q'22 |
Net sales | — % | 1 % | ||
Operating EBITDA | 6 % | |||
Operating EBITDA margin % | 24.6 % | 23.2 % | 140 bps | |
Net sales
- Net sales were flat as organic sales(2) growth of
1% was offset by a1% currency headwind. - Organic sales(2) growth of
1% reflects a5% increase in price resulting from the carryover impact of broad-based actions taken in 2022 in response to cost inflation, mostly offset by a4% decrease in volume driven by declines in Shelter Solutions. - Water Solutions sales up mid-teens on an organic(2) basis on continued strong demand for water technologies, along with carryover pricing.
- Safety Solutions sales up mid-single digits on an organic(2) basis on carryover pricing and volume strength in aerospace, automotive and healthcare end-markets.
- Shelter Solutions sales down
12% on an organic(2) basis driven by continued demand softness in construction markets, including channel inventory destocking, slightly offset by carryover pricing.
Operating EBITDA
- Operating EBITDA increased as net pricing benefits and disciplined cost control were partially offset by lower volumes.
Outlook(3) | ||
Dollars in millions, unless noted |
3Q'23E |
Full Year 2023E |
Net sales | | |
Operating EBITDA(2) | ||
Adjusted EPS(2)(3) | ||
"As we look at the current demand environment, we continue to expect fairly steady demand in most of our industrial-based end-markets within the E&I and W&P segments, although we expect sales moderation in our Water Solutions business due to slower demand in
Conference Call
The Company will host a live webcast of its second quarter earnings conference call with investors to discuss its results and business outlook beginning 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 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
Beginning in the second quarter of 2023, the Company has segregated the cash flows from discontinued operations from the cash flows from continuing operations in accordance with ASC 230, Statement of Cash Flows. The interim Consolidated Statements of Cash Flows have been recast for all periods to reflect the change in presentation.
On November 1, 2022, DuPont completed the divestiture, previously announced on February 18, 2022, of the majority of the historical Mobility & Materials segment, including the Engineering Polymers business line and select product lines within the Advanced Solutions and Performance Resins business lines (the "M&M Divestiture"), to Celanese Corporation ("Celanese"). The Company also announced on February 18, 2022, that its Board of Directors has approved the divestiture of the Delrin® acetal homopolymer (H-POM) business. In addition to the entry into definitive agreements, the Company anticipates that the closing of the sale of Delrin® would be subject to regulatory approvals and other customary closing conditions, (the "Delrin® Divestiture" and together with the M&M Divestiture, the "M&M Divestitures").
The financial position of DuPont as of June 30, 2023 and December 31, 2022 presents the assets and liabilities of the Delrin® Divestiture as discontinued operations. The results of operations for the three and six months ended June 30, 2023 present the financial results of the Delrin® Divestiture as discontinued operations. In the comparative periods, the results of operations for both the M&M Divestiture and the Delrin® Divestiture are presented as discontinued operations. For the six months ended June 30, 2023, the interim Consolidated Statements of Cash Flows present the cash flows of the Delrin® Divestiture as discontinued operations. The interim Consolidated Statements of Cash Flows for the six months ended June 30, 2022, present the cash flows from the M&M Divestitures as discontinued operations. Unless otherwise indicated, the discussion of results, including the financial measures further discussed below, refer only to DuPont's Continuing Operations and do not include discussion of balances or activity of the M&M Divestitures.
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 possibility that the Company may fail to realize the anticipated benefits of the
Non-GAAP Financial Measures
Unless otherwise indicated, all financial metrics presented reflect continuing operations only.
This communication includes information that does not conform to accounting principles generally accepted in
Indirect costs, such as those related to corporate and shared service functions previously allocated to the M&M Divestitures, do not meet the criteria for discontinued operations and remain reported within continuing operations. A portion of these indirect costs include costs related to activities the Company is performing post-closing of the M&M Divestiture or will perform post-close of the Delrin Divestiture and for which it is/will be reimbursed ("Future Reimbursable Indirect Costs"). Future Reimbursable Indirect Costs are reported within continuing operations but are excluded from operating EBITDA as defined below. The remaining portion of these indirect costs is not subject to future reimbursement ("Stranded Costs"). Stranded Costs are reported within continuing operations in Corporate & Other and are included within Operating EBITDA.
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, the after-tax impact of non-operating pension / other post employment benefits ("OPEB") credits / costs and Future Reimbursable Indirect Costs. Management estimates amortization expense in 2023 associated with intangibles to be about
The Company's measure of profit/loss for segment reporting purposes is Operating EBITDA as this is the manner in which the Company's chief operating decision maker ("CODM") assesses performance and allocates resources. The Company defines Operating EBITDA as earnings (i.e., "Income from continuing operations before income taxes") before interest, depreciation, amortization, non-operating pension / OPEB benefits / charges, and foreign exchange gains / losses, excluding Future Reimbursable Indirect Costs, and adjusted for significant items. Reconciliations of these measures are provided on the following pages.
Operating EBITDA Margin is defined as Operating EBITDA divided by 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.
Adjusted free cash flow is defined as cash provided by/used for operating activities from continuing operations less capital expenditures and excluding the impact of cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business liquidity. As a result, adjusted 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 from continuing operations. Management believes adjusted 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.
Beginning in the second quarter of 2023, the Company has segregated the cash flows from discontinued operations from the cash flows from continuing operations in accordance with ASC 230, Statement of Cash Flows. In connection with this change, the Company updated the definition of adjusted free cash flow to include only activities from continuing operations. The Company believes that excluding cash flows from discontinued operations provides the Company's investors with better visibility into the underlying businesses cash generation for ongoing businesses. Adjusted free cash flows has been recast for all periods to reflect the change in definition.
Previously, in connection with its earnings release for the third quarter of 2022, the Company updated the definition of adjusted free cash flow to exclude the impact of cash inflows/outflows that are of a certain magnitude, unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business liquidity. The change was driven by the estimated tax payments associated with the M&M Divestiture which meet the magnitude criterion, were unusual in nature and infrequent in occurrence and were not related to the Company's ordinary course of business or underlying business liquidity. The Company believes that excluding items of this nature provides the Company's investors with better understanding of and enables them to compare our underlying business liquidity from period to period. Similar adjustments to the 2021 measures of adjusted free cash flow were not necessary. Following the change to adjusted free cash flow from continuing operations, noted above, adjustments to exclude the impact of cash inflows/outflows that are unusual in nature and/or infrequent in occurrence that neither relate to the ordinary course of the Company's business nor reflect the Company's underlying business liquidity will be adjusted to the extent they relate to continuing operations. Management notes that for the three and six month periods ended June 30, 2023 and 2022, respectively, there were no exclusions for items that are unusual in nature and/or infrequent in occurrence.
Adjusted free cash flow conversion is defined as adjusted free cash flow from continuing operations divided by net income from continuing operations adjusted to exclude the after-tax impact of noncash 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 | Six Months Ended | ||
2023 | 2022 | 2023 | 2022 | |
Net sales | $ 3,094 | $ 3,322 | $ 6,112 | $ 6,596 |
Cost of sales | 2,030 | 2,149 | 4,013 | 4,259 |
Research and development expenses | 125 | 141 | 252 | 284 |
Selling, general and administrative expenses | 358 | 385 | 698 | 774 |
Amortization of intangibles | 146 | 148 | 293 | 301 |
Restructuring and asset related charges - net | 17 | — | 31 | 101 |
Acquisition, integration and separation costs | 6 | 13 | 6 | 21 |
Equity in earnings of nonconsolidated affiliates | 14 | 20 | 29 | 46 |
Sundry income (expense) - net | 28 | 94 | 57 | 97 |
Interest expense | 98 | 122 | 193 | 242 |
Income from continuing operations before income taxes | 356 | 478 | 712 | 757 |
Provision for income taxes on continuing operations | 87 | 113 | 170 | 160 |
Income from continuing operations, net of tax | 269 | 365 | 542 | 597 |
(Loss) income from discontinued operations, net of tax | (386) | 430 | (394) | 706 |
Net (loss) income | (117) | 795 | 148 | 1,303 |
Net income attributable to noncontrolling interests | 14 | 8 | 22 | 28 |
Net (loss) income available for DuPont common stockholders | $ (131) | $ 787 | $ 126 | $ 1,275 |
Per common share data: | ||||
Earnings per common share from continuing operations - basic | $ 0.56 | $ 0.71 | $ 1.13 | $ 1.12 |
(Loss) earnings per common share from discontinued operations - basic | (0.84) | 0.85 | (0.86) | 1.38 |
(Loss) earnings per common share - basic | $ (0.29) | $ 1.56 | $ 0.27 | $ 2.51 |
Earnings per common share from continuing operations - diluted | $ 0.55 | $ 0.71 | $ 1.13 | $ 1.12 |
(Loss) earnings per common share from discontinued operations - diluted | (0.84) | 0.85 | (0.86) | 1.38 |
(Loss) earnings per common share - diluted | $ (0.28) | $ 1.55 | $ 0.27 | $ 2.50 |
Weighted-average common shares outstanding - basic | 459.2 | 505.4 | 459.0 | 508.7 |
Weighted-average common shares outstanding - diluted | 460.3 | 506.3 | 460.2 | 510.2 |
DuPont de Nemours, Inc. | ||
In millions, except share amounts (Unaudited) | June 30, 2023 | December 31, 2022 |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 4,885 | $ 3,662 |
Marketable securities | — | 1,302 |
Restricted cash and cash equivalents | 111 | 7 |
Accounts and notes receivable - net | 2,315 | 2,518 |
Inventories | 2,341 | 2,329 |
Prepaid and other current assets | 160 | 161 |
Assets of discontinued operations | 1,315 | 1,291 |
Total current assets | 11,127 | 11,270 |
Property, plant and equipment - net of accumulated depreciation (June 30, 2023 - | 5,701 | 5,731 |
Other Assets | ||
Goodwill | 16,643 | 16,663 |
Other intangible assets | 5,190 | 5,495 |
Restricted cash and cash equivalents - noncurrent | — | 103 |
Investments and noncurrent receivables | 757 | 733 |
Deferred income tax assets | 112 | 109 |
Deferred charges and other assets | 1,267 | 1,251 |
Total other assets | 23,969 | 24,354 |
Total Assets | $ 40,797 | $ 41,355 |
Liabilities and Equity | ||
Current Liabilities | ||
Short-term borrowings | $ 300 | $ 300 |
Accounts payable | 1,768 | 2,103 |
Income taxes payable | 135 | 233 |
Accrued and other current liabilities | 1,401 | 951 |
Liabilities of discontinued operations | 135 | 146 |
Total current liabilities | 3,739 | 3,733 |
Long-Term Debt | 7,775 | 7,774 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 1,028 | 1,158 |
Pension and other post-employment benefits - noncurrent | 529 | 522 |
Other noncurrent obligations | 1,173 | 1,151 |
Total other noncurrent liabilities | 2,730 | 2,831 |
Total Liabilities | 14,244 | 14,338 |
Commitments and contingent liabilities | ||
Stockholders' Equity | ||
Common stock (authorized 1,666,666,667 shares of issued 2023: 459,026,579 shares; 2022: 458,124,262 shares) | 5 | 5 |
Additional paid-in capital | 47,946 | 48,420 |
Accumulated deficit | (20,938) | (21,065) |
Accumulated other comprehensive loss | (890) | (791) |
Total DuPont stockholders' equity | 26,123 | 26,569 |
Noncontrolling interests | 430 | 448 |
Total equity | 26,553 | 27,017 |
Total Liabilities and Equity | $ 40,797 | $ 41,355 |
DuPont de Nemours, Inc. | ||
In millions (Unaudited) | Six Months Ended June 30, | |
2023 | 2022 | |
Operating Activities | ||
Net income | $ 148 | $ 1,303 |
(Loss) income from discontinued operations | (394) | 706 |
Net income from continuing operations | 542 | 597 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 559 | 578 |
Credit for deferred income tax and other tax related items | (25) | (59) |
Earnings of nonconsolidated affiliates in excess of dividends received | (21) | (10) |
Net periodic benefit costs | 15 | 2 |
Periodic benefit plan contributions | (35) | (34) |
Net gain on sales of assets, businesses and investments | (8) | (69) |
Restructuring and asset related charges - net | 31 | 101 |
Other net loss | 70 | 19 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | 86 | (178) |
Inventories | (35) | (287) |
Accounts payable | (125) | 96 |
Other assets and liabilities, net | (249) | (270) |
Cash provided by operating activities - continuing operations | 805 | 486 |
Investing Activities | ||
Capital expenditures | (355) | (347) |
Proceeds from sales of property and businesses, net of cash divested | — | 300 |
Purchases of investments | (32) | (15) |
Proceeds from sales and maturities of investments | 1,334 | — |
Other investing activities, net | 4 | 11 |
Cash provided by (used for) investing activities - continuing operations | 951 | (51) |
Financing Activities | ||
Changes in short-term borrowings | — | 511 |
Purchases of common stock | — | (875) |
Proceeds from issuance of Company stock | 12 | 83 |
Employee taxes paid for share-based payment arrangements | (24) | (23) |
Distributions to noncontrolling interests | (34) | (15) |
Dividends paid to stockholders | (330) | (335) |
Other financing activities, net | (1) | (4) |
Cash used for financing activities - continuing operations | (377) | (658) |
Cash Flows from Discontinued Operations | ||
Cash used for operations - discontinued operations | (107) | (191) |
Cash used for investing activities - discontinued operations | (19) | (39) |
Cash used for financing activities - discontinued operations | — | (16) |
Cash used in discontinued operations | (126) | (246) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (29) | (78) |
Increase (decrease) in cash, cash equivalents and restricted cash | 1,224 | (547) |
Cash, cash equivalents and restricted cash from continuing operations, beginning of period | 3,772 | 2,037 |
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period | — | 39 |
Cash, cash equivalents and restricted cash at beginning of period | 3,772 | 2,076 |
Cash, cash equivalents and restricted cash from continuing operations, end of period | 4,996 | 1,500 |
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | 29 |
Cash, cash equivalents and restricted cash at end of period | $ 4,996 | $ 1,529 |
DuPont de Nemours, Inc. | ||||
Net Sales by Segment and Geographic Region | Three Months Ended | Six Months Ended | ||
In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 |
Electronics & Industrial | $ 1,312 | $ 1,527 | $ 2,608 | $ 3,063 |
Water & Protection | 1,494 | 1,497 | 2,943 | 2,926 |
Corporate & Other 1 | 288 | 298 | 561 | 607 |
Total | $ 3,094 | $ 3,322 | $ 6,112 | $ 6,596 |
$ 1,045 | $ 1,095 | $ 2,068 | $ 2,144 | |
EMEA 2 | 585 | 565 | 1,167 | 1,142 |
1,350 | 1,553 | 2,643 | 3,098 | |
114 | 109 | 234 | 212 | |
Total | $ 3,094 | $ 3,322 | $ 6,112 | $ 6,596 |
Net Sales Variance by Segment | Three Months Ended June 30, 2023 | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | — % | (12) % | (12) % | (1) % | (1) % | (14) % | |
Water & Protection | 5 | (4) | 1 | (1) | — | — | |
Corporate & Other 1 | — | 9 | 9 | (1) | (11) | (3) | |
Total | 2 % | (6) % | (4) % | (1) % | (2) % | (7) % | |
4 % | (7) % | (3) % | — % | (2) % | (5) % | ||
EMEA2 | 4 | — | 4 | — | — | 4 | |
1 | (9) | (8) | (3) | (2) | (13) | ||
1 | 3 | 4 | 1 | — | 5 | ||
Total | 2 % | (6) % | (4) % | (1) % | (2) % | (7) % | |
Net Sales Variance by Segment | Six Months Ended June 30, 2023 | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | 1 % | (13) % | (12) % | (2) % | (1) % | (15) % | |
Water & Protection | 6 | (3) | 3 | (2) | — | 1 | |
Corporate & Other 1 | 3 | 4 | 7 | (2) | (13) | (8) | |
Total | 3 % | (7) % | (4) % | (2) % | (1) % | (7) % | |
5 % | (6) % | (1) % | (1) % | (2) % | (4) % | ||
EMEA2 | 5 | — | 5 | (2) | (1) | 2 | |
2 | (12) | (10) | (3) | (2) | (15) | ||
2 | 8 | 10 | — | — | 10 | ||
Total | 3 % | (7) % | (4) % | (2) % | (1) % | (7) % | |
1. | Corporate & Other includes activities of the Retained Businesses and the previously divested Biomaterials. |
2. | |
3. | Net sales attributed to |
DuPont de Nemours, Inc. | |||||
Operating EBITDA by Segment | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |
Electronics & Industrial | $ 349 | $ 480 | $ 711 | $ 956 | |
Water & Protection | 368 | 348 | 712 | 689 | |
Corporate & Other 1 | 21 | 1 | 29 | 2 | |
Total | $ 738 | $ 829 | $ 1,452 | $ 1,647 | |
1. Corporate & Other includes activities of the Retained Businesses and the previously divested Biomaterials. | |||||
Equity in Earnings of Nonconsolidated Affiliates by Segment | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |
Electronics & Industrial | $ 3 | $ 9 | $ 8 | $ 19 | |
Water & Protection | 11 | 8 | 21 | 22 | |
Corporate & Other 1 | — | 3 | — | 5 | |
Total equity earnings included in operating EBITDA (GAAP) | $ 14 | $ 20 | $ 29 | $ 46 | |
1. Corporate & Other includes activities of the Retained Businesses and other previously divested businesses including Biomaterials. | |||||
Reconciliation of "Income from continuing operations, net of tax" to | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 | |
Income from continuing operations, net of tax (GAAP) | $ 269 | $ 365 | $ 542 | $ 597 | |
+ Provision for income taxes on continuing operations | 87 | 113 | 170 | 160 | |
Income from continuing operations before income taxes | $ 356 | $ 478 | $ 712 | $ 757 | |
+ Depreciation and amortization | 282 | 281 | 559 | 578 | |
- Interest income 1 | 52 | 2 | 98 | 3 | |
+ Interest expense | 98 | 120 | 193 | 238 | |
- Non-operating pension/OPEB benefit (costs) credits 1 | (2) | 6 | (4) | 13 | |
- Foreign exchange (losses) gains, net 1 | (28) | 9 | (48) | 4 | |
+ Future reimbursable indirect costs | 2 | 15 | 4 | 31 | |
- Significant items (charge) benefit | (22) | 48 | (30) | (63) | |
Operating EBITDA (non-GAAP) | $ 738 | $ 829 | $ 1,452 | $ 1,647 | |
1. | Included in "Sundry income (expense) - net." |
Reconciliation of "Cash provided by operating activities - continuing | Three Months Ended | Six Months Ended | ||
In millions (Unaudited) | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2023 | Jun 30, 2022 |
Cash provided by operating activities (GAAP) 2 - continuing operations | $ 400 | $ 167 | $ 805 | $ 486 |
Capital expenditures | (123) | (121) | (355) | (347) |
Adjusted free cash flow (non-GAAP) | $ 277 | $ 46 | $ 450 | $ 139 |
1. | Adjusted Free Cash Flow is calculated on a continuing operations basis for all periods presented. Refer to the definitions of Non-GAAP metrics on pages 6-7 for additional information. |
2. | 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 - continuing operations" for the six month periods noted. |
DuPont de Nemours, Inc. | ||||
Significant Items Impacting Results for the Three Months Ended June 30, 2023 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 356 | $ 255 | $ 0.55 | |
Less: Significant items | ||||
Acquisition, integration & separation costs 4 | (6) | (5) | (0.01) | Acquisition, integration and separation |
Restructuring and asset related charges - net 5 | (17) | (13) | (0.03) | Restructuring and asset related charges - |
Gain on divestiture 6 | 1 | 1 | — | Sundry income (expense) - net |
Income tax related item | — | (1) | — | Provision for income taxes on continuing |
Total significant items | $ (22) | $ (18) | $ (0.04) | |
Less: Amortization of intangibles | (146) | (114) | (0.26) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit costs | (2) | (2) | — | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (2) | (2) | — | Selling, general and administrative |
Adjusted results (non-GAAP) | $ 528 | $ 391 | $ 0.85 | |
Significant Items Impacting Results for the Three Months Ended June 30, 2022 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 478 | $ 357 | $ 0.71 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 7 | (13) | (11) | (0.02) | Acquisition, integration and separation |
Gain on divestiture 8 | 63 | 57 | 0.11 | Sundry income (expense) - net |
Terminated Intended Rogers Acquisition | (2) | (2) | — | Interest expense |
Income tax related item | — | (11) | (0.02) | Provision for income taxes on continuing operations |
Total significant items | $ 48 | $ 33 | $ 0.07 | |
Less: Amortization of intangibles | (148) | (115) | (0.23) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit credits | 6 | 5 | 0.01 | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (15) | (12) | (0.02) | Cost of sales; Research and development |
Adjusted results (non-GAAP) | $ 587 | $ 446 | $ 0.88 | |
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 the Spectrum acquisition. |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects post-closing adjustments related to previously divested businesses. |
7. | Acquisition, integration and separation costs related the sale of the Biomaterials business unit and the Terminated Intended Rogers Acquisition. |
8. | Reflects the gains on sale of the Biomaterials business unit within Corporate & Other and the sale of land use right within the Water & Protection segment. |
9. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into in preparation for the Terminated Intended Rogers Acquisition. |
DuPont de Nemours, Inc. | ||||
Significant Items Impacting Results for the Six Months Ended June 30, 2023 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 712 | $ 520 | $ 1.13 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 4 | (6) | (5) | (0.01) | Acquisition, integration and separation |
Restructuring and asset related charges - net 5 | (31) | (24) | (0.05) | Restructuring and asset related charges - |
Gain on divestiture 6 | 7 | 6 | 0.01 | Sundry income (expense) - net |
Income tax items | — | (1) | — | Provision for income taxes on |
Total significant items | $ (30) | $ (24) | $ (0.05) | |
Less: Amortization of intangibles | (293) | (229) | (0.49) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit costs | (4) | (3) | (0.01) | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (4) | (3) | (0.01) | Selling, general and administrative |
Adjusted results (non-GAAP) | $ 1,043 | $ 779 | $ 1.69 | |
Significant Items Impacting Results for the Six Months Ended June 30, 2022 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 757 | $ 571 | $ 1.12 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 7 | (21) | (17) | (0.03) | Acquisition, integration and separation |
Restructuring and asset related charges - net 5 | (7) | (5) | (0.01) | Restructuring and asset related charges - |
Asset impairment charges 8 | (94) | (65) | (0.12) | Restructuring and asset related charges - |
Gain on divestiture 9 | 63 | 57 | 0.11 | Sundry income (expense) - net |
Terminated Intended Rogers Acquisition | (4) | (3) | (0.01) | Interest expense |
Income tax related item | — | (14) | (0.03) | Provision for income taxes on |
Total significant items | $ (63) | $ (47) | $ (0.09) | |
Less: Amortization of intangibles | (301) | (234) | (0.46) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit credits | 13 | 10 | 0.02 | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (31) | (24) | (0.05) | Cost of sales; Research and |
Adjusted results (non-GAAP) | $ 1,139 | $ 866 | $ 1.70 | |
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 Spectrum Acquisition. |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects post-closing adjustments related to previously divested businesses. |
7. | Acquisition, integration and separation costs related to strategic initiatives including the sale of the Biomaterials business unit and the Terminated Intended Rogers Acquisition. |
8. | Reflects a pre-tax impairment charge related to an equity method investment. |
9. | Reflects the gains on sale of the Biomaterials business unit within Corporate & Other and the sale of land use right within the Water & Protection segment. |
10. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into in preparation for the Terminated Intended Rogers Acquisition. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/dupont-reports-second-quarter-2023-results-301891029.html
SOURCE DuPont
FAQ
What were DuPont's net sales in the second quarter of 2023?
What was DuPont's operating EBITDA in the second quarter of 2023?
What was DuPont's adjusted EPS in the second quarter of 2023?
What was DuPont's cash provided by operating activities in the second quarter of 2023?
What was DuPont's adjusted free cash flow in the second quarter of 2023?
What were the main factors contributing to the decrease in net sales?
Why did DuPont's operating EBITDA decrease?
What factors led to the decrease in adjusted EPS?
What contributed to the increase in cash provided by operating activities?
