| DuPont (NYSE: DD) announced its financial results(1) for the third quarter ended September 30, 2024. |
| “Our results reflect continued strong quarterly financial performance with sequential improvement across all key financial metrics,” said Lori Koch, DuPont's Chief Executive Officer. “Our ongoing innovation investments have positioned us well for growth as key end-markets recover. We are benefiting from continued demand recovery in electronics while also seeing improvement in our water and medical packaging end-markets. In the third quarter, a return to year-over-year organic sales growth coupled with solid execution drove strong operating leverage, resulting in 150 basis points of margin expansion.” |
| “I am pleased with the progress our teams are making on the intended separations of our electronics and water businesses,” Koch continued. “As we advance this plan, we remain excited about the tailored strategies each future company will implement to drive sustainable growth and deliver exceptional value to shareholders, customers and employees." |
| Third Quarter 2024 Results(1) |
|
Dollars in millions, unless noted |
3Q’24 |
3Q’23 |
Change vs. 3Q’23 |
Organic Sales (2)
vs. 3Q’23 |
| Net sales |
$3,192 |
$3,058 |
4% |
3% |
| GAAP Income from continuing operations |
$480 |
$291 |
65% |
|
| Operating EBITDA(2) |
$857 |
$775 |
11% |
|
| Operating EBITDA margin(2) % |
26.8 % |
25.3 % |
150 bps |
|
| GAAP EPS from continuing operations |
$1.13 |
$0.62 |
82% |
|
| Adjusted EPS(2) |
$1.18 |
$0.92 |
28% |
|
| Cash provided by operating activities – cont. Ops. |
$737 |
$740 |
- % |
|
| Transaction-adjusted free cash flow(2) |
$640 |
$621 |
3% |
|
|
| Net sales |
| • Net sales increased by 4% as organic sales(2) growth of 3% and a favourable portfolio impact of 2% were partially offset by a 1% currency headwind. Organic sales(2) growth reflected a 5% increase in volume partially offset by a 2% decrease in price. Higher volume was driven by continued strong growth in electronics end-markets coupled with a return to year-over-year growth in Water Solutions. |
| • 10% organic sales(2) growth in Electronics & Industrial; 2% organic sales(2) decline in Water & Protection; 6% organic sales(2) decline in the retained businesses reported in Corporate & Other. |
| • 9% organic sales(2) growth in Asia Pacific; 1% organic sales(2) growth in EMEA; 2% organic sales(2) decline in U.S. & Canada. |
| GAAP Income from continuing operations |
| • GAAP income/GAAP EPS from continuing operations increased as higher segment earnings, non-cash gains on interest rate swaps and benefits of a lower share count and tax rate were partially offset by higher transaction costs. |
| Operating EBITDA(2) |
| • Operating EBITDA(2) increased as volume gains, the impact of higher production rates and savings from restructuring actions were partially offset by higher variable compensation and select growth investments. |
| Adjusted EPS(2) |
| • Adjusted EPS(2) increased due to higher segment earnings and the benefits of a lower share count and tax rate. |
| Cash provided by operating activities from continuing operations |
| • Cash provided by operating activities from continuing operations in the quarter of $737 million, capital expenditures of $109 million and transaction cost payments for the Intended Business Separations of $12 million resulted in transaction-adjusted free cash flow and related conversion(2) of $640 million and 130%, respectively. |
| Third Quarter 2024 Segment Highlights |
| Electronics & Industrial |
|
Dollars in millions, unless noted |
3Q’24 |
3Q’23 |
Change vs. 3Q’23 |
Organic Sales(2) vs. 3Q’23 |
| Net sales |
$1,551 |
$1,368 |
13% |
10% |
| Operating EBITDA |
$467 |
$383 |
22% |
|
| Operating EBITDA margin % |
30.1 % |
28.0 % |
210 bps |
|
|
| Net sales |
| • Net sales increased 13% as organic sales(2) growth of 10% and a favourable portfolio impact of 4% was slightly offset by a currency headwind of 1%. |
| • Organic sales(2) growth of 10% reflects an 11% increase in volume slightly offset by a 1% decrease in price. |
| ◦ Semiconductor Technologies(3) sales are up more than 20% on an organic(2) basis on continued semiconductor demand recovery, primarily driven by AI technology applications and increased China demand. |
| ◦ Interconnect Solutions(3) sales are up low-double digits on an organic(2) basis reflecting broad-based consumer electronics recovery, share gains and volume benefits from AI-driven technology ramps. |
| ◦ Industrial Solutions(3) sales were down slightly on an organic(2) basis as strength in printing and packaging applications was offset by ongoing Kalrez® channel inventory destocking. |
| Operating EBITDA |
| • Operating EBITDA increased as volume gains, the impact of higher production rates, savings from productivity and restructuring actions and the earnings contribution from the Spectrum and Donatelle acquisitions were partially offset by higher variable compensation and select growth investments. |
| • Operating EBITDA margin of 30.1% increased 210 basis points. |
| Water & Protection |
|
Dollars in millions, unless noted |
3Q’24 |
3Q’23 |
Change vs. 3Q’23 |
Organic Sales(2) vs. 3Q’23 |
| Net sales |
$1,382 |
$1,413 |
(2)% |
(2)% |
| Operating EBITDA |
$364 |
$362 |
1% |
|
| Operating EBITDA margin % |
26.3 % |
25.6 % |
70 bps |
|
|
| Net sales |
| • Net sales decreased 2% due to a decrease in price while volume was flat. |
| ◦ Safety Solutions sales are down mid-single digits on an organic(2) basis due to a decrease in price along with year-over-year volume declines for medical packaging products. On a sequential basis, medical packaging sales increased 10% in the third quarter. |
| ◦ Shelter Solutions sales are down slightly on an organic(2) basis due to headwinds in North American residential construction markets mostly offset by growth in commercial construction. |
| ◦ Water Solutions sales are up low-single digits on an organic(2) basis driven by strength in ultrafiltration technologies along with continued volume recovery in China. On a sequential basis, Water Solutions sales increased 3% in the third quarter. |
| Operating EBITDA |
| • Operating EBITDA increased as productivity and savings from restructuring actions more than offset the organic revenue decline and higher variable compensation. |
| • Operating EBITDA margin of 26.3% increased 70 basis points |
| Financial Outlook |
|
Dollars in millions, unless noted |
4Q’24E |
Current Full Year 2024E |
Prior
Full Year 2024E |
| Net sales |
~$3,070 |
~$12,365 |
$12,400 - $12,500 |
| Operating EBITDA(2) |
~$790 |
~$3,125 |
$3,060 - $3,110 |
| Adjusted EPS(2) |
~$0.98 |
~$3.90 |
$3.70 - $3.80 |
|
| “We continue to build momentum and I am pleased with our third quarter financial performance, including another strong quarter of cash generation,” said Antonella Franzen, DuPont's Chief Financial Officer. “For the fourth quarter, we estimate net sales of about $3.070 billion, operating EBITDA of about $790 million and adjusted EPS of $0.98 per share. On a year-over-year basis, our fourth quarter guidance reflects continued momentum including sales and earnings growth assumptions for both E&I and W&P. Sequentially, our fourth quarter guidance assumes normal seasonal declines in electronics and construction markets, partially offset by continued recovery in water and medical packaging end-markets.” |
| “On a full-year basis, we are raising our earnings guidance and now expect operating EBITDA of about $3.125 billion and adjusted EPS of $3.90 per share with full-year net sales now expected to be about $12.365 billion,” Franzen concluded. |
| 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 in the Investor Relations section of the website at investors.dupont.com. |
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| DuPont de Nemours Inc |
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