DuPont Reports Third Quarter 2021 Results
DuPont reported third quarter 2021 financials, achieving net sales of $4.3 billion, an 18% increase year-over-year. The results reflect a strong demand across various sectors, leading to significant organic sales growth of 16%. GAAP EPS was $0.80, a substantial rise from $0.11 in the previous year. The company also announced a definitive agreement to acquire Rogers Corporation (ROG) and is exploring divestiture options for part of its Mobility & Materials segment. Adjusted free cash flow conversion reached 112%.
- Net sales increased 18% year-over-year to $4.3 billion.
- GAAP EPS rose to $0.80 from $0.11 last year.
- Operating EBITDA grew 20% to $1.09 billion.
- Strong demand across electronics, automotive, and construction sectors.
- Acquisition of Rogers Corporation expected to enhance technology capabilities.
- Adjusted free cash flow conversion was 112%.
- Ongoing global semiconductor chip shortage impacting automotive demand.
- Order patterns slowing due to semiconductor shortages, particularly in automotive.
WILMINGTON, Del., Nov. 2, 2021 /PRNewswire/ -- DuPont (NYSE: DD) today announced financial results for the third quarter 2021.
"We delivered third quarter financial results ahead of expectations by maintaining a disciplined focus on operational excellence and pricing actions in the face of unprecedented global supply shortages, logistics challenges and sustained inflationary pressure," said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. "We leveraged our global supply network to meet the needs of our customers as demand remained robust across the electronics, automotive, construction and water end-markets and continued to improve across industrial end-markets globally."
"Today we also separately announced a definitive agreement to acquire Rogers Corporation(1), an advanced materials provider with superior technology innovation, applications engineering expertise, and leading end-market positions. In addition, we announced we are exploring options to divest a substantial portion of the Mobility & Materials segment(2)," Breen continued. "With these announcements, and building on our recent acquisition of Laird Performance Materials, we are significantly advancing our position as a premier multi-industrial company focused in the secular growth areas of electronics, water, protection, industrial technologies and next generation automotive. We are strengthening these pillars to further expand our capabilities to deliver differentiated, value-added technologies. These steps are expected to create tremendous opportunities for employees and unlock significant value for shareholders."
Third Quarter 2021 Results
Net sales totaled
GAAP EPS from continuing operations totaled
Operating EBITDA(3) was
Operating cash flow in the quarter of
(1) | On November 2, 2021 DuPont announced it had entered a definitive agreement to acquire Rogers Corporation (NYSE: ROG). The transaction is subject to approval by Rogers |
(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, |
(3) | Adjusted EPS, operating EBITDA, organic sales, free cash flow and free cash flow conversion are non-GAAP measures. See page 6 for further discussion, including a definition |
Third Quarter 2021 Segment Highlights
Electronics & Industrial
Electronics & Industrial reported net sales of
Volume growth was led by double-digit gains in Industrial Solutions with strength in consumer electronics, healthcare and industrial markets. Continued strength in Semiconductor Technologies also resulted in double-digit volume growth with demand driven by the on-going transition to more advanced technologies and growth in high performance computing and 5G communications. Within Interconnect Solutions, organic sales were down mid-single digits due to the anticipated shift in demand related to premium next-generation smartphones to the first half of the year, along with softness in automotive end-markets due to supply chain constraints. For the nine months ended September 30, 2021, organic sales for Interconnect Solutions were up high-single digits compared to the same period of the prior year.
Operating EBITDA for the segment was
Water & Protection
Water & Protection reported net sales of
Sales gains versus the year-ago period were led by Safety Solutions as continued recovery in industrial end-markets resulted in significant volume improvement for aramid fibers, coupled with pricing gains. Within Shelter Solutions, high-single digit organic growth reflects continued recovery in commercial construction led by demand for solid surfaces, as well as pricing gains. Demand in North American residential construction and retail channels for do-it-yourself applications remains strong. Broad-based demand for Water Solutions technologies also remained strong, however, logistics challenges continued to impact our ability to meet demand which resulted in organic growth in the low-single digits versus the year-ago period.
Operating EBITDA for the segment totaled
Mobility & Materials
Mobility & Materials reported net sales of
Sales gains were broad-based across the segment reflecting significant organic growth within each of Engineering Polymers, Performance Resins and Advanced Solutions. The local price increase of 16 percent reflects actions taken to offset raw material costs and higher metals pricing. Volume improvement reflects strong recovery from the impact of the COVID-19 pandemic including continued demand in the third quarter from automotive component manufacturers.
Operating EBITDA for the segment was
Outlook
"As our third quarter results demonstrate, the demand across our end-markets is strong and we are successfully executing against a backdrop of raw material inflation and global supply chain challenges. We moved quickly to implement strategic price increases in response to rising raw material costs and we will continue these actions in the fourth quarter to deliver neutral price/cost for the year," said Lori Koch, Chief Financial Officer of DuPont. "As we head into the fourth quarter, strong demand trends are expected to continue across almost all end-markets; however, we are seeing a deceleration in order patterns stemming from the ongoing global semiconductor chip shortage, primarily in automotive end-markets, which is consistent with the revisions to global auto build estimates which have come down 17 percent for the second half of 2021 versus estimates for the same period from just a few months ago. For full year 2021, we now estimate net sales to be between
Conference Call
The Company will host a live webcast of its third quarter earnings conference call with investors to discuss its results and business outlook, along with a strategic update today at 8:00 a.m. ET and extending until approximately 9:30 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"). The transaction is subject to approval by Rogers shareholders, 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 definitive agreements, 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) in connection with the Intended Rogers Acquisition, the failure to (x) obtain the necessary approval from Rogers' shareholders, regulatory approvals, or anticipated tax treatment, or (y) satisfy any of the other conditions to closing; (ii) the possibility that unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies could impact the value, timing or pursuit of the closing of the Intended Rogers Acquisition; (iii) 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; (iv) the ability to achieve expected benefits, synergies and operating efficiencies in connection with the Laird PM Acquisition within the expected time frames or at all or to successfully integrate Laird PM; (v) ability to achieve anticipated tax treatments in connection with the N&B Transaction, Laird PM Acquisition or the DWDP Distributions; (vi) changes in relevant tax and other laws; (vii) indemnification of certain legacy liabilities of EID in connection with the Corteva Distribution; (viii) risks and costs related to the performance under and impact of the cost sharing arrangement by and between DuPont, Corteva and The Chemours Company related to future eligible PFAS costs; (ix) failure to effectively manage acquisitions, divestitures, alliances, joint ventures and other portfolio changes, including meeting conditions under the Letter Agreement entered in connection with the Corteva Distribution, related to the transfer of certain levels of assets and businesses; (x) uncertainty as to the long-term value of DuPont common stock; (xi) risks and uncertainties related to the novel coronavirus (COVID-19) and the responses thereto (such as voluntary and in some cases, mandatory quarantines as well as shut downs and other restrictions on travel and commercial, social and other activities) on DuPont's business, results of operations, access to sources of liquidity and financial condition which depend on highly uncertain and unpredictable future developments, including, but not limited to, the duration and spread of the COVID-19 outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions resume; and (xii) other risks to DuPont's business, operations; each as further discussed in detail in and results of operations as discussed in DuPont's annual report on Form 10-K for the year ended December 31, 2020 and its subsequent reports on Form 10-Q and Form 8-K. 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 11 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 2021 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 September 30, | Nine Months Ended September 30, | ||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
Net sales | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 | ||||
Cost of sales | 2,778 | 2,417 | 7,945 | 7,034 | ||||||||
Research and development expenses | 152 | 140 | 456 | 466 | ||||||||
Selling, general and administrative expenses | 475 | 403 | 1,390 | 1,299 | ||||||||
Amortization of intangibles | 196 | 172 | 530 | 527 | ||||||||
Restructuring and asset related charges - net | 1 | 378 | 13 | 800 | ||||||||
Goodwill impairment charges | — | 183 | — | 3,214 | ||||||||
Acquisition, integration and separation costs | 29 | 22 | 58 | 161 | ||||||||
Equity in earnings of nonconsolidated affiliates | 25 | 29 | 76 | 170 | ||||||||
Sundry income (expense) - net | 8 | 430 | 170 | 631 | ||||||||
Interest expense | 115 | 165 | 390 | 517 | ||||||||
Income (loss) from continuing operations before income taxes | 558 | 208 | 1,846 | (2,629) | ||||||||
Provision for income taxes on continuing operations | 125 | 122 | 308 | 224 | ||||||||
Income (loss) from continuing operations, net of tax | 433 | 86 | 1,538 | (2,853) | ||||||||
(Loss) income from discontinued operations, net of tax | (29) | (158) | 4,751 | (300) | ||||||||
Net income (loss) | 404 | (72) | 6,289 | (3,153) | ||||||||
Net income attributable to noncontrolling interests | 13 | 7 | 26 | 20 | ||||||||
Net income (loss) available for DuPont common stockholders | $ | 391 | $ | (79) | $ | 6,263 | $ | (3,173) | ||||
Per common share data: | ||||||||||||
Earnings (loss) per common share from continuing operations - basic | $ | 0.81 | $ | 0.11 | $ | 2.74 | $ | (3.90) | ||||
(Loss) earnings per common share from discontinued operations - basic | (0.06) | (0.22) | 8.61 | (0.41) | ||||||||
Earnings (loss) per common share - basic | $ | 0.75 | $ | (0.11) | $ | 11.35 | $ | (4.31) | ||||
Earnings (loss) per common share from continuing operations - diluted | $ | 0.80 | $ | 0.11 | $ | 2.73 | $ | (3.90) | ||||
(Loss) earnings per common share from discontinued operations - diluted | (0.06) | (0.21) | 8.59 | (0.41) | ||||||||
Earnings (loss) per common share - diluted | $ | 0.75 | $ | (0.11) | $ | 11.32 | $ | (4.31) | ||||
Weighted-average common shares outstanding - basic | 521.5 | 734.4 | 551.7 | 735.8 | ||||||||
Weighted-average common shares outstanding - diluted | 523.1 | 734.9 | 553.1 | 735.8 | ||||||||
DuPont de Nemours, Inc. | ||||||
In millions, except share and per share amounts (Unaudited) | September 30, 2021 | December 31, 2020 | ||||
Assets | ||||||
Current Assets | ||||||
Cash and cash equivalents | $ | 1,670 | $ | 2,544 | ||
Accounts and notes receivable - net | 2,908 | 2,421 | ||||
Inventories | 2,844 | 2,393 | ||||
Other current assets | 225 | 181 | ||||
Assets held for sale | 850 | 810 | ||||
Assets of discontinued operations | — | 20,659 | ||||
Total current assets | 8,497 | 29,008 | ||||
Property, plant and equipment - net of accumulated depreciation (September 30, 2021 - | 6,921 | 6,867 | ||||
Other Assets | ||||||
Goodwill | 19,688 | 18,702 | ||||
Other intangible assets | 8,644 | 8,072 | ||||
Restricted cash and cash equivalents | 50 | 6,206 | ||||
Investments and noncurrent receivables | 1,029 | 1,047 | ||||
Deferred income tax assets | 175 | 190 | ||||
Deferred charges and other assets | 1,011 | 812 | ||||
Total other assets | 30,597 | 35,029 | ||||
Total Assets | $ | 46,015 | $ | 70,904 | ||
Liabilities and Equity | ||||||
Current Liabilities | ||||||
Accounts payable | $ | 2,538 | $ | 2,222 | ||
Income taxes payable | 206 | 169 | ||||
Accrued and other current liabilities | 1,335 | 1,085 | ||||
Liabilities related to assets held for sale | 142 | 140 | ||||
Liabilities of discontinued operations | — | 8,610 | ||||
Total current liabilities | 4,221 | 12,226 | ||||
Long-Term Debt | 10,629 | 15,611 | ||||
Other Noncurrent Liabilities | ||||||
Deferred income tax liabilities | 2,014 | 2,053 | ||||
Pension and other post-employment benefits - noncurrent | 1,017 | 1,110 | ||||
Other noncurrent obligations | 895 | 834 | ||||
Total other noncurrent liabilities | 3,926 | 3,997 | ||||
Total Liabilities | 18,776 | 31,834 | ||||
Commitments and contingent liabilities | ||||||
Stockholders' Equity | ||||||
Common stock (authorized 1,666,666,667 shares of | 5 | 7 | ||||
Additional paid-in capital | 49,702 | 50,039 | ||||
Accumulated deficit | (22,892) | (11,586) | ||||
Accumulated other comprehensive (loss) income | (182) | 44 | ||||
Total DuPont stockholders' equity | 26,633 | 38,504 | ||||
Noncontrolling interests | 606 | 566 | ||||
Total equity | 27,239 | 39,070 | ||||
Total Liabilities and Equity | $ | 46,015 | $ | 70,904 | ||
DuPont de Nemours, Inc. | ||||||
In millions (Unaudited) | Nine Months Ended September 30, | |||||
2021 | 2020 | |||||
Operating Activities | ||||||
Net income (loss) | $ | 6,289 | $ | (3,153) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||
Depreciation and amortization | 1,094 | 2,326 | ||||
Credit for deferred income tax and other tax related items | (182) | (481) | ||||
Earnings of nonconsolidated affiliates in excess of dividends received | (41) | (120) | ||||
Net periodic pension benefit cost | 1 | 30 | ||||
Pension contributions | (59) | (77) | ||||
Net gain on sales and split-offs of assets, businesses and investments | (5,117) | (612) | ||||
Restructuring and asset related charges - net | 15 | 807 | ||||
Goodwill impairment charges | — | 3,214 | ||||
Inventory step-up amortization | 12 | — | ||||
Other net loss | 126 | 127 | ||||
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||
Accounts and notes receivable | (399) | 133 | ||||
Inventories | (515) | 312 | ||||
Accounts payable | 379 | 43 | ||||
Other assets and liabilities, net | 57 | 245 | ||||
Cash provided by operating activities | 1,660 | 2,794 | ||||
Investing Activities | ||||||
Capital expenditures | (707) | (922) | ||||
Proceeds from sales of property and businesses, net of cash divested | 285 | 1,008 | ||||
Acquisitions of property and businesses, net of cash acquired | (2,323) | (73) | ||||
Purchases of investments | (2,001) | (1) | ||||
Proceeds from sales and maturities of investments | 2,001 | 1 | ||||
Other investing activities, net | 18 | 22 | ||||
Cash (used for) provided by investing activities | (2,727) | 35 | ||||
Financing Activities | ||||||
Changes in short-term notes payable | — | (1,439) | ||||
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) | (29) | ||||
Purchases of common stock | (1,643) | (232) | ||||
Proceeds from issuance of Company stock | 110 | 34 | ||||
Employee taxes paid for share-based payment arrangements | (26) | (14) | ||||
Distributions to noncontrolling interests | (34) | (48) | ||||
Dividends paid to stockholders | (476) | (662) | ||||
Cash transferred to IFF at split-off | (100) | — | ||||
Other financing activities, net | (2) | (55) | ||||
Cash (used for) provided by financing activities | (5,921) | 5,830 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (49) | 4 | ||||
(Decrease) Increase in cash, cash equivalents and restricted cash | (7,037) | 8,663 | ||||
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 | 1,738 | 10,233 | ||||
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | 7 | ||||
Cash, cash equivalents and restricted cash at end of period | 1,738 | 10,240 | ||||
DuPont de Nemours, Inc. | |||||||||||||
Net Sales by Segment and Geographic Region | Three Months Ended | Nine Months Ended | |||||||||||
In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||
Electronics & Industrial | $ | 1,467 | $ | 1,213 | $ | 4,087 | $ | 3,439 | |||||
Water & Protection | 1,397 | 1,249 | 4,137 | 3,769 | |||||||||
Mobility & Materials | 1,298 | 996 | 3,783 | 2,877 | |||||||||
Corporate | 109 | 171 | 375 | 503 | |||||||||
Total | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 | |||||
U.S. & Canada | $ | 1,208 | $ | 1,068 | $ | 3,414 | $ | 3,177 | |||||
EMEA 1 | 831 | 650 | 2,475 | 2,038 | |||||||||
Asia Pacific | 2,080 | 1,776 | 6,046 | 4,998 | |||||||||
Latin America | 152 | 135 | 447 | 375 | |||||||||
Total | $ | 4,271 | $ | 3,629 | $ | 12,382 | $ | 10,588 | |||||
Net Sales Variance by Segment | Three Months Ended September 30, 2021 | ||||||||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||||||||
Percent change from prior year (Unaudited) | |||||||||||||
Electronics & Industrial | — | % | 9 | % | 9 | % | 1 | % | 11 | % | 21 | % | |
Water & Protection | 2 | 9 | 11 | 1 | — | 12 | |||||||
Mobility & Materials | 16 | 12 | 28 | 2 | — | 30 | |||||||
Corporate | 3 | 9 | 12 | 1 | (49) | (36) | |||||||
Total | 6 | % | 10 | % | 16 | % | 1 | % | 1 | % | 18 | % | |
U.S. & Canada | 5 | % | 8 | % | 13 | % | — | % | — | % | 13 | % | |
EMEA 1 | 5 | 18 | 23 | 2 | 3 | 28 | |||||||
Asia Pacific | 6 | 8 | 14 | 2 | 1 | 17 | |||||||
Latin America | 3 | 6 | 9 | 2 | 2 | 13 | |||||||
Total | 6 | % | 10 | % | 16 | % | 1 | % | 1 | % | 18 | % | |
Net Sales Variance by Segment | Nine Months Ended September 30, 2021 | ||||||||||||
Local Price & | Volume | Total Organic | Currency | Portfolio / Other | Total | ||||||||
Percent change from prior year | |||||||||||||
Electronics & Industrial | — | % | 13 | % | 13 | % | 2 | % | 4 | % | 19 | % | |
Water & Protection | 1 | 7 | 8 | 2 | — | 10 | |||||||
Mobility & Materials | 9 | 19 | 28 | 3 | — | 31 | |||||||
Corporate | 3 | 2 | 5 | 2 | (32) | (25) | |||||||
Total | 3 | % | 12 | % | 15 | % | 2 | % | — | % | 17 | % | |
U.S. & Canada | 2 | % | 8 | % | 10 | % | — | % | (3) | % | 7 | % | |
EMEA 1 | — | 14 | 14 | 6 | 1 | 21 | |||||||
Asia Pacific | 4 | 14 | 18 | 2 | 1 | 21 | |||||||
Latin America | 3 | 16 | 19 | (1) | 1 | 19 | |||||||
Total | 3 | % | 12 | % | 15 | % | 2 | % | — | % | 17 | % | |
1. Europe, Middle East and Africa. | |||||||||||||
DuPont de Nemours, Inc. | |||||||||||||
Operating EBITDA by Segment | Three Months Ended | Nine Months Ended | |||||||||||
In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||
Electronics & Industrial | $ | 475 | $ | 421 | $ | 1,335 | $ | 1,084 | |||||
Water & Protection | 353 | 314 | 1,060 | 1,010 | |||||||||
Mobility & Materials | 280 | 160 | 852 | 352 | |||||||||
Corporate 1 | (21) | 11 | (50) | 62 | |||||||||
Total | $ | 1,087 | $ | 906 | $ | 3,197 | $ | 2,508 | |||||
1. Corporate includes | |||||||||||||
Equity in Earnings of Nonconsolidated Affiliates by Segment | Three Months Ended | Nine Months Ended | |||||||||||
In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||
Electronics & Industrial | $ | 13 | $ | 8 | $ | 32 | $ | 27 | |||||
Water & Protection | 7 | 7 | 27 | 19 | |||||||||
Mobility & Materials | 3 | 5 | 11 | 13 | |||||||||
Corporate 1 | 2 | 9 | 6 | 111 | |||||||||
Total equity earnings included in operating EBITDA (GAAP) | $ | 25 | $ | 29 | $ | 76 | $ | 170 | |||||
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 tax" | Three Months Ended | Nine Months Ended | |||||||||||
In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | |||||||||
Income (loss) from continuing operations, net of tax (GAAP) | $ | 433 | $ | 86 | $ | 1,538 | $ | (2,853) | |||||
+ Provision for income taxes on continuing operations | 125 | 122 | 308 | 224 | |||||||||
Income (loss) from continuing operations before income taxes | $ | 558 | $ | 208 | $ | 1,846 | $ | (2,629) | |||||
+ Depreciation and amortization | 370 | 345 | 1,031 | 1,039 | |||||||||
- Interest income 1 | — | 4 | 4 | 8 | |||||||||
+ Interest expense | 115 | 165 | 390 | 517 | |||||||||
- Non-operating pension/OPEB benefit 1 | 14 | 4 | 39 | 23 | |||||||||
- Foreign exchange losses, net 1 | (19) | (6) | (36) | (27) | |||||||||
- Significant items | (39) | (190) | 63 | (3,585) | |||||||||
Operating EBITDA (non-GAAP) | $ | 1,087 | $ | 906 | $ | 3,197 | $ | 2,508 | |||||
1. Included in "Sundry income (expense) - net." | |||||||||||||
Reconciliation of "Cash provided by operating activities" to Free Cash | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
In millions (Unaudited) | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2021 | Sep 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash provided by operating activities (GAAP) 1 | $ | 842 | $ | 1,274 | $ | 1,660 | $ | 2,794 | ||||||||||||||||||||||||||||||||||||||||||||||
Capital expenditures | (208) | (203) | (707) | (922) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Free cash flow (non-GAAP) | $ | 634 | $ | 1,071 | $ | 953 | $ | 1,872 | ||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Items Impacting Results for the Three Months Ended September 30, 2021 | ||||||||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification | ||||||
Reported results (GAAP) | $ | 558 | $ | 420 | $ | 0.80 | ||||
Less: Significant items | ||||||||||
Acquisition, integration and separation costs 4 | (29) | (29) | (0.05) | Acquisition, integration and separation | ||||||
Restructuring and asset related charges - net 5 | (1) | — | — | Restructuring and asset related charges - | ||||||
Gain on divestitures 6 | 3 | 3 | — | Sundry income (expense) - net | ||||||
Inventory step-up amortization 7 | (12) | (10) | (0.02) | Cost of sales | ||||||
Total significant items | $ | (39) | $ | (36) | $ | (0.07) | ||||
Less: Amortization of intangibles | (196) | (153) | (0.30) | Amortization of intangibles | ||||||
Less: Non-op pension / OPEB benefit | 14 | 10 | 0.02 | Sundry income (expense) - net | ||||||
Adjusted results (non-GAAP) | $ | 779 | $ | 599 | $ | 1.15 | ||||
Significant Items Impacting Results for the Three Months Ended September 30, 2020 | ||||||||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification | ||||||
Reported results (GAAP) | $ | 208 | $ | 79 | $ | 0.11 | ||||
Less: Significant items | ||||||||||
Acquisition, integration and separation costs 4 | (22) | (17) | (0.03) | Acquisition, integration and separation | ||||||
Restructuring and asset related charges - net 5 | (8) | (7) | (0.01) | Restructuring and asset related charges - | ||||||
Goodwill impairment charges 8 | (183) | (183) | (0.25) | Goodwill impairment charges | ||||||
Asset impairment charges 9 | (370) | (281) | (0.38) | Restructuring and asset related charges - | ||||||
Gain on divestitures 10 | 393 | 232 | 0.32 | Sundry income (expense) - net | ||||||
Income tax related item | — | 17 | 0.02 | Sundry income (expense) - net | ||||||
Total significant items | $ | (190) | $ | (239) | $ | (0.33) | ||||
Less: Amortization of intangibles | (172) | (134) | (0.17) | Amortization of intangibles | ||||||
Less: Non-op pension / OPEB benefit | 4 | 3 | — | Sundry income (expense) - net; | ||||||
Adjusted results (non-GAAP) | $ | 566 | $ | 449 | $ | 0.61 | ||||
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 |
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 held for |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects post closing adjustments related previously divested businesses. |
7. | Reflects the amortization of the inventory step-up related to the Laird PM Acquisition. |
8. | Reflects non-cash goodwill impairment charges related to former non-core businesses now within Corporate. |
9. | Reflects a |
10. | Reflects the net benefit related to the sale of the trichlorosilane business ("TCS") and equity stake in Hemlock Semiconductor JV (collectively, |
Significant Items Impacting Results for the Nine Months Ended September 30, 2021 | ||||||||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification | ||||||
Reported results (GAAP) | $ | 1,846 | $ | 1,512 | $ | 2.73 | ||||
Less: Significant items | ||||||||||
Acquisition, integration and separation costs 4 | (58) | (54) | (0.10) | Acquisition, integration and separation costs | ||||||
Restructuring and asset related charges - net 5 | (13) | (10) | (0.02) | Restructuring and asset related charges - | ||||||
Gain on divestitures 6 | 146 | 111 | 0.20 | Sundry income (expense) - net | ||||||
Inventory step-up amortization 7 | (12) | (10) | (0.02) | Cost of sales | ||||||
Income tax related item 8 | — | 74 | 0.14 | Provision for income taxes on | ||||||
Total significant items | $ | 63 | $ | 111 | $ | 0.20 | ||||
Less: Amortization of intangibles | (530) | (412) | (0.75) | Amortization of intangibles | ||||||
Less: Non-op pension / OPEB benefit | 39 | 29 | 0.05 | Sundry income (expense) - net | ||||||
Adjusted results (non-GAAP) | $ | 2,274 | $ | 1,784 | $ | 3.23 | ||||
Significant Items Impacting Results for the Nine Months Ended September 30, 2020 | ||||||||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification | ||||||
Reported results (GAAP) | $ | (2,629) | $ | (2,873) | $ | (3.90) | ||||
Less: Significant items | ||||||||||
Acquisition, integration and separation costs 4 | (161) | (125) | (0.17) | Acquisition, integration and separation | ||||||
Restructuring and asset related charges - net 5 | (139) | (108) | (0.15) | Restructuring and asset related charges - | ||||||
Goodwill impairment charges 9 | (3,214) | (3,214) | (4.37) | Goodwill impairment charges | ||||||
Asset impairment charges 10 | (661) | (503) | (0.68) | Restructuring and asset related charges - | ||||||
Gain on divestitures 11 | 590 | 334 | 0.45 | Sundry income (expense) - net | ||||||
Income tax related item | — | 21 | 0.03 | Sundry income (expense) - net | ||||||
Total significant items | $ | (3,585) | $ | (3,595) | $ | (4.89) | ||||
Less: Amortization of intangibles | (527) | (408) | (0.54) | Amortization of intangibles | ||||||
Less: Non-op pension / OPEB benefit | 23 | 17 | 0.02 | Sundry income (expense) - net; | ||||||
Adjusted results (non-GAAP) | $ | 1,460 | $ | 1,113 | $ | 1.51 | ||||
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 |
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 held for |
5. | Includes Board approved restructuring plans and other asset related charges. |
6. | Reflects the gain from the sale of the Solamet® business within Corporate and post closing adjustments related previously divested businesses. |
7. | Reflects the amortization of the inventory step-up related to the Laird PM Acquisition. |
8. | Reflects a net |
9. | Reflects non-cash goodwill impairment charges recorded as follows: a |
10. | Reflects a |
11. | Reflects a gain on the first quarter 2020 sale of the Company's Compound Semiconductor Solutions business within the Electronics & Industrial segment |
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SOURCE DuPont
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