- 1Q22 Net Sales of $3.3 billion,
increased 9%; organic sales increased 9% versus year-ago
period
- 1Q22 GAAP Income from continuing operations of $232 million; operating EBITDA of $818 million increased 2% versus year-ago
period
- 1Q22 GAAP EPS from continuing operations of $0.42; adjusted EPS of $0.82 increased 19% versus year-ago period
- $544 million of capital returned
to shareholders during the quarter through share repurchases and
dividends
- Pricing actions fully offset higher inflationary costs from raw
materials, logistics and energy during the quarter
WILMINGTON, Del., May 3, 2022
/PRNewswire/ -- DuPont (NYSE: DD) today announced financial
results(1) for the first quarter of 2022.
"In the face of continuing unprecedented global supply chain
challenges and cost inflation, further intensified during the
quarter by the war in Ukraine, we
delivered first quarter financial results well ahead of
expectations," said Ed Breen,
DuPont Executive Chairman and Chief Executive Officer. "These
results underscore the leading market positions we hold globally
and reflect our team's agility while working closely with our
suppliers and customers through challenging
circumstances."
"This solid start to the year reinforces the enthusiasm we have
for our transformation as a premier multi-industrial company poised
to provide high-value customer solutions in sectors with compelling
long-term secular growth drivers," Breen continued. "Our
portfolio actions underway to divest a substantial portion of the
historic Mobility & Materials segment and acquire Rogers
Corporation are expected to enhance our financial flexibility and
enable more consistent value creation for our shareholders by
further focusing our portfolio on higher-growth, higher-margin and
less cyclical end-markets."
First Quarter 2022
Results(1)
|
Dollars in millions,
unless noted
|
1Q'22
|
1Q'21
|
Change
vs.
1Q'21
|
Organic Sales
(2)
vs.
1Q'21
|
Net sales
|
$3,274
|
$3,017
|
9%
|
9%
|
GAAP Income from
continuing operations
|
$232
|
$386
|
(40)%
|
|
Operating
EBITDA(2)
|
$818
|
$803
|
2%
|
|
Operating
EBITDA(2) margin %
|
25.0%
|
26.6%
|
(160) bps
|
|
GAAP EPS from
continuing operations
|
$0.42
|
$0.64
|
(34)%
|
|
Adjusted
EPS(2)
|
$0.82
|
$0.69
|
19%
|
|
Net sales
- Net sales increased 9% on organic sales growth(2) of
9%; portfolio benefit of 2% was offset by a 2% currency
headwind.
- Organic sales(2) growth of 9% consisted of a 6%
increase in price and 3% increase in volume.
-
- Price increase reflects actions taken to offset continued
broad-based cost inflation.
- Volume growth reflects continued strong demand in electronics,
industrial technologies, water and construction end-markets,
partially muted by continued supply chain constraints, mainly in
automotive end-markets.
- 10% organic sales(2) growth in Water &
Protection; 9% organic sales(2) growth in Electronics
& Industrial.
- Sales growth in all regions globally, including high-teens
organic sales(2) growth in U.S & Canada, high single-digit organic
sales(2) growth in EMEA and low single-digit organic
sales(2) growth in Asia
Pacific.
GAAP Income/GAAP EPS from continuing operations
- GAAP income/GAAP EPS from continuing operations declined
primarily due to the absence of an income tax benefit recorded in
the year-ago period and an asset impairment charge related to an
equity method investment, partially offset by higher segment
results.
- GAAP EPS from continuing operations benefitted from a lower
share count versus the year-ago period.
Operating EBITDA(2)
- Operating EBITDA(2) increased as pricing actions,
volume gains, along with earnings associated with Laird Performance
Materials more than offset higher inflationary costs from raw
materials, logistics and energy, as well as weaker product mix in
Water & Protection and the absence of a gain on an asset
divestiture in the prior year.
Adjusted EPS(2)
- Adjusted EPS(2) increased primarily due to a lower
share count and higher segment earnings.
Operating cash flow
- Operating cash flow in the quarter of $209 million and capital expenditures of
$251 million resulted in free cash
flow(2) of $(42)
million.
First Quarter 2022
Segment Highlights
|
|
Electronics &
Industrial
|
Dollars in millions,
unless noted
|
1Q'22
|
1Q'21
|
Change
vs.
1Q'21
|
Organic
Sales(2)
vs.
1Q'21
|
Net sales
|
$1,536
|
$1,300
|
18%
|
9%
|
Operating
EBITDA
|
$476
|
$436
|
9%
|
|
Operating EBITDA margin
%
|
31.0%
|
33.5%
|
(250) bps
|
|
Net sales
- Organic sales(2) growth of 9% driven by an 8%
increase in volume and 1% increase in price.
-
- Semiconductor Technologies sales up mid-teens on an
organic(2) basis as robust demand continued, led by the
on-going transition to more advanced node technologies, along with
growth in high-performance computing and 5G communications.
- Industrial Solutions sales up low double-digits on an
organic(2) basis, reflecting ongoing demand strength for
OLED materials, Kalrez® products and for applications in healthcare
markets such as biopharma tubing.
- Interconnect Solutions sales down low single-digits on
an organic(2) basis due to a slight volume decline.
Volume gains in industrial end-markets were more than offset by
declines in consumer electronics in China and the anticipated return to normal
seasonal order patterns in smartphones compared to last year.
- Acquisition of Laird Performance Materials in prior year
increased net sales for the segment by 11%; currency translation
was a 2% headwind.
Operating EBITDA
- Increase in operating EBITDA driven by volume gains, earnings
associated with Laird Performance Materials and higher pricing
which more than offset the absence of a gain on an asset
divestiture in the prior year, higher raw material and logistics
costs and Kapton® plant expansion start-up costs.
- The primary driver of the operating EBITDA margin decline was
the absence of a gain on an asset divestiture in the prior
year.
Water &
Protection
|
Dollars in millions,
unless noted
|
1Q'22
|
1Q'21
|
Change
vs.
1Q'21
|
Organic
Sales(2)
vs.
1Q'21
|
Net sales
|
$1,429
|
$1,328
|
8%
|
10%
|
Operating
EBITDA
|
$341
|
$355
|
(4)%
|
|
Operating EBITDA margin
%
|
23.9%
|
26.7%
|
(280) bps
|
|
Net sales
- Organic sales(2) growth of 10% driven by broad-based
pricing actions across the segment. Volumes were flat as gains in
Shelter Solutions and Water Solutions were offset by declines in
Safety Solutions.
-
- Shelter Solutions sales up high-teens on an
organic(2) basis driven by pricing gains and continued
robust demand in North America
residential construction, as well as ongoing improvement in
commercial construction.
- Water Solutions sales up high single-digits on an
organic(2) basis driven by ongoing demand strength for
water technologies globally, as well as pricing gains.
- Safety Solutions sales up mid single-digits on an
organic(2) basis as pricing actions were partially
offset by lower Tyvek® volumes.
- Currency translation was a 2% headwind to net sales for the
segment.
Operating EBITDA
- Operating EBITDA declined as pricing actions taken to offset
higher raw material, logistics and energy costs was more than
offset by weaker product mix.
- The primary driver of the operating EBITDA margin decline was
the impact of price/cost inflation.
Outlook
|
|
Dollars in millions,
unless noted
|
2Q'22E
|
Full Year
2022E
|
Net sales
|
$3,200 -
$3,300
|
$13,300 -
$13,700
|
Operating
EBITDA(2)
|
$750 - $800
|
$3,250 -
$3,450
|
Adjusted
EPS(2)
|
$0.70 -
$0.80
|
$3.20 -
$3.50
|
"I am pleased with our strong financial results to start the
year which reflect positively on the strength of our portfolio and
our team's focus on execution," said Lori
Koch, Chief Financial Officer of DuPont. "End-market demand
remains strong, however, many external uncertainties still exist
related to global supply chain challenges, including the impact of
the ongoing war in Ukraine and new
COVID-related shutdowns in China.
Based on our current expectations, our full year 2022 guidance
ranges for operating EBITDA and adjusted EPS on a continuing
operations basis remain unchanged. We are increasing our estimated
full year 2022 net sales range for continuing operations to be
between $13.3 billion and
$13.7 billion to reflect our
current assumption for cost inflation related to raw materials,
logistics and energy which we continue to expect to offset with
price."
"While underlying demand continues to remain solid and our teams
have demonstrated the ability to execute in these unprecedented
circumstances, we anticipate key external uncertainties in the
macro environment, namely COVID-related shutdowns in China, will further tighten supply chains
resulting in slower volume growth and sequential margin contraction
in the second quarter 2022."
Conference Call
The Company will host a live
webcast of its first 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.
DuPont™ and all products, unless otherwise noted, denoted with
™, SM or ® are trademarks, service marks or registered
trademarks of affiliates of DuPont de Nemours, Inc.
Overview
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's shareholders approved the transaction. Closing, is
expected by late in the second quarter 2022 or in early third
quarter 2022, subject to regulatory approvals and customary closing
conditions.
On February 18, 2022, DuPont
announced that it has entered into definitive agreements to divest
a majority of its historic Mobility & Materials segment,
excluding certain Advanced Solutions and Performance Resins
businesses, to Celanese Corporation ("Celanese"), (the "M&M
Divestiture"). Closing is expected around the end of 2022, subject
to regulatory approvals and customary closing conditions.
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 (the
Delrin® business together with the M&M Divestiture businesses,
the "M&M Businesses"). 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").
As of March 31, 2022, the results
of operations and the assets and liabilities of the businesses in
scope for the M&M Divestitures are presented as discontinued
operations for all periods presented. The cash flows of these
businesses have not been segregated and are included in the
Consolidated Statement of Cash Flows. 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 businesses
in scope for the M&M Divestitures.
The Auto Adhesives & Fluids, MultibaseTM and Tedlar® product
lines previously within the historic Mobility & Materials
segment (the "Retained Businesses") are not included in the scope
of the intended divestitures. The Retained Businesses are reported
in Corporate & Other. The reporting changes have been
retrospectively applied for all periods presented.
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 parties'
ability to meet expectations regarding the timing, completion and
accounting and tax treatments of the M&M Divestiture to
Celanese, including (x) any failure to obtain necessary regulatory
approvals, anticipated tax treatment or to satisfy any of the other
conditions to the proposed transaction, (y) 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 proposed transaction, and (z) risks and costs and pursuit
and/or implementation, timing and impacts to business operations of
the separation of business lines in scope for the M&M
Divestiture to Celanese, (ii) the timing and outcome of the Delrin®
Business Divestiture, including entry into definitive agreements,
and the risks, costs and ability to realize benefits from the
pursuit of the Delrin® Business Divestiture; (iii) 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; (iv)
indemnification of certain legacy liabilities; (v) 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; (vi) failure to timely
close on anticipated terms (or at all), 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 and the M&M Divestitures; (vii) 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; (viii) ability to
offset increases in cost of inputs, including raw materials, energy
and logistics; (ix) risks, including ability to achieve, and costs
associated with DuPont's sustainability strategy including the
actual conduct of the company's activities and results thereof, and
the development, implementation, achievement or continuation of any
goal, program, policy or initiative discussed or expected,; and (x)
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 and
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 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.
Mobility & Material businesses costs classified as
discontinued operations include only direct operating expenses
incurred by the M&M Businesses which the Company will cease to
incur upon the close of the M&M Divestitures. Indirect costs,
such as those related to corporate and shared service functions
previously allocated to the M&M Businesses, 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 will continue to undertake
post-closing of the M&M Divestiture, and for which it will be
reimbursed ("Future Reimbursable Indirect Costs"). Future
Reimbursable Indirect Costs are reported within continuing
operations but are excluded from Adjusted EPS and operating EBITDA
as defined below. The remaining portion of these indirect costs are
not subject to future reimbursement ("Stranded Costs"). Stranded
Costs are reported within continuing operations in Corporate &
Other and are included within Adjusted EPS and Operating
EBITDA.
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, 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 2022 associated with intangibles to be
approximately $610 million on a
pre-tax basis, or approximately $0.93
per share.
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.
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.
|
|
(1)
|
During the first
quarter of 2022, a substantial portion of the Company's historic
Mobility & Materials segment met the criteria to be classified
as discontinued operations for current and historical periods. See
page 5 for further information, including the basis of presentation
included in this release.
|
(2)
|
Adjusted EPS, operating
EBITDA, organic sales and free cash flow are non-GAAP measures. See
page 6 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
11 of this communication.
|
|
|
DuPont de Nemours,
Inc.
Consolidated
Statements of Operations
|
|
In millions, except per
share amounts (Unaudited)
|
Three Months Ended
March 31,
|
2022
|
2021
|
Net sales
|
$
3,274
|
$
3,017
|
Cost of sales
|
2,110
|
1,861
|
Research and development expenses
|
143
|
139
|
Selling, general and administrative expenses
|
389
|
395
|
Amortization of intangibles
|
153
|
125
|
Restructuring and asset related charges - net
|
101
|
2
|
Acquisition, integration and separation costs
|
8
|
6
|
Equity in earnings of nonconsolidated affiliates
|
26
|
23
|
Sundry income (expense) - net
|
3
|
19
|
Interest expense
|
120
|
146
|
Income from continuing
operations before income taxes
|
279
|
385
|
Provision for (benefit from) income taxes on continuing
operations
|
47
|
(1)
|
Income from continuing
operations, net of tax
|
232
|
386
|
Income from discontinued operations, net of tax
|
276
|
5,012
|
Net income
|
508
|
5,398
|
Net
income attributable to noncontrolling interests
|
20
|
4
|
Net income available
for DuPont common stockholders
|
$
488
|
$
5,394
|
|
Per common share
data:
|
|
|
Earnings per common share from continuing operations -
basic
|
$
0.42
|
$
0.64
|
Earnings per common share from discontinued operations -
basic
|
0.54
|
8.28
|
Earnings per common share - basic
|
$
0.95
|
$
8.92
|
Earnings per common share from continuing operations -
diluted
|
$
0.42
|
$
0.64
|
Earnings per common share from discontinued operations -
diluted
|
0.53
|
8.26
|
Earnings per common share - diluted
|
$
0.95
|
$
8.90
|
|
Weighted-average common
shares outstanding - basic
|
512.0
|
604.8
|
Weighted-average common
shares outstanding - diluted
|
513.8
|
606.3
|
DuPont de Nemours,
Inc.
Consolidated
Balance Sheets
|
|
|
|
|
In millions, except
share amounts (Unaudited)
|
March 31,
2022
|
December 31,
2021
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash equivalents
|
$
1,672
|
$
1,972
|
Accounts and notes receivable - net
|
2,327
|
2,159
|
Inventories
|
2,238
|
2,086
|
Prepaid and other current assets
|
189
|
177
|
Assets held for sale
|
242
|
245
|
Assets of discontinued operations
|
7,775
|
7,664
|
Total current assets
|
14,443
|
14,303
|
Property, plant and
equipment - net of accumulated depreciation (March 31, 2022 -
$4,215; December 31, 2021 - $4,142)
|
5,668
|
5,753
|
Other Assets
|
|
|
Goodwill
|
16,878
|
16,981
|
Other intangible assets
|
6,040
|
6,222
|
Restricted cash and cash equivalents
|
53
|
53
|
Investments and noncurrent receivables
|
821
|
919
|
Deferred income tax assets
|
127
|
116
|
Deferred charges and other assets
|
1,363
|
1,360
|
Total other assets
|
25,282
|
25,651
|
Total Assets
|
$
45,393
|
$
45,707
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Short-term borrowings
|
$
405
|
$
150
|
Accounts payable
|
2,176
|
2,102
|
Income taxes payable
|
197
|
201
|
Accrued and other current liabilities
|
978
|
1,040
|
Liabilities related to assets held for sale
|
31
|
25
|
Liabilities of discontinued operations
|
1,335
|
1,413
|
Total current liabilities
|
5,122
|
4,931
|
Long-Term
Debt
|
10,634
|
10,632
|
Other Noncurrent
Liabilities
|
|
|
Deferred income tax liabilities
|
1,276
|
1,459
|
Pension and other post-employment benefits -
noncurrent
|
733
|
762
|
Other noncurrent obligations
|
837
|
873
|
Total other noncurrent liabilities
|
2,846
|
3,094
|
Total
Liabilities
|
18,602
|
18,657
|
Commitments and
contingent liabilities
|
|
|
Stockholders'
Equity
|
|
|
Common stock (authorized 1,666,666,667 shares of $0.01 par
value each;
issued 2022: 508,528,772
shares; 2021: 511,792,785 shares)
|
5
|
5
|
Additional paid-in capital
|
49,487
|
49,574
|
Accumulated deficit
|
(23,096)
|
(23,187)
|
Accumulated other comprehensive (loss) income
|
(220)
|
41
|
Total DuPont stockholders' equity
|
26,176
|
26,433
|
Noncontrolling interests
|
615
|
617
|
Total equity
|
26,791
|
27,050
|
Total Liabilities and
Equity
|
$
45,393
|
$
45,707
|
DuPont de Nemours,
Inc.
Consolidated
Statement of Cash Flows
|
|
In millions
(Unaudited)
|
Three Months Ended
March 31,
|
2022
|
2021
|
Operating
Activities
|
|
|
Net
income
|
$
508
|
$
5,398
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
Depreciation and amortization
|
342
|
391
|
Credit for deferred income tax
and other tax related items
|
(252)
|
(105)
|
Earnings of nonconsolidated
affiliates less than (in excess of) dividends received
|
18
|
(20)
|
Net periodic benefit (credit)
cost
|
(1)
|
2
|
Periodic benefit plan
contributions
|
(20)
|
(28)
|
Net loss (gain) on sales and
split-offs of assets, businesses and investments
|
3
|
(4,982)
|
Restructuring and asset related
charges - net
|
101
|
4
|
Other net loss
|
24
|
53
|
Changes in assets and liabilities, net of effects of acquired
and divested companies:
|
|
|
Accounts and notes
receivable
|
(254)
|
(228)
|
Inventories
|
(277)
|
(174)
|
Accounts payable
|
304
|
92
|
Other assets and liabilities,
net
|
(287)
|
(25)
|
Cash provided by operating activities
|
209
|
378
|
Investing
Activities
|
|
|
Capital expenditures
|
(251)
|
(283)
|
Proceeds from sales of property and businesses, net of cash
divested
|
15
|
31
|
Acquisitions of property and businesses, net of cash
acquired
|
5
|
(11)
|
Purchases of investments
|
—
|
(2,001)
|
Other investing activities, net
|
2
|
4
|
Cash used for investing activities
|
(229)
|
(2,260)
|
Financing
Activities
|
|
|
Changes in short-term notes borrowings
|
254
|
—
|
Proceeds from issuance of long-term debt transferred to IFF
at split-off
|
—
|
1,250
|
Payments on long-term debt
|
—
|
(3,000)
|
Purchases of common stock
|
(375)
|
(500)
|
Proceeds from issuance of Company stock
|
83
|
90
|
Employee taxes paid for share-based payment
arrangements
|
(22)
|
(15)
|
Distributions to noncontrolling interests
|
(18)
|
(19)
|
Dividends paid to stockholders
|
(169)
|
(161)
|
Cash transferred to IFF and subsequent adjustments
|
(11)
|
(100)
|
Other financing activities, net
|
—
|
(3)
|
Cash used for financing activities
|
(258)
|
(2,458)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(25)
|
(37)
|
(Decrease) in cash,
cash equivalents and restricted cash
|
(303)
|
(4,377)
|
Cash, cash equivalents and restricted cash from continuing
operations, beginning of period
|
2,037
|
8,733
|
Cash, cash equivalents and restricted cash from discontinued
operations, beginning of period
|
39
|
42
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
2,076
|
8,775
|
Cash, cash equivalents and restricted cash from continuing
operations, end of period
|
1,734
|
4,364
|
Cash, cash equivalents and restricted cash from discontinued
operations, end of period
|
39
|
34
|
Cash, cash
equivalents and restricted cash at end of period
|
$
1,773
|
$
4,398
|
DuPont de Nemours,
Inc.
Net Sales by
Segment and Geographic Region
|
|
Net Sales by Segment
and Geographic Region
|
Three Months
Ended
|
In millions
(Unaudited)
|
Mar 31,
2022
|
Mar 31,
2021
|
Electronics &
Industrial
|
$
1,536
|
$
1,300
|
Water &
Protection
|
1,429
|
1,328
|
Corporate & Other
1
|
309
|
389
|
Total
|
$
3,274
|
$
3,017
|
U.S. &
Canada
|
$
1,049
|
$
892
|
EMEA
2
|
577
|
558
|
Asia Pacific
|
1,545
|
1,475
|
Latin
America
|
103
|
92
|
Total
|
$
3,274
|
$
3,017
|
Net Sales Variance by Segment
and Geographic Region
|
Three Months Ended March 31,
2022
|
|
Percent change from
prior year
(Unaudited)
|
Local Price &
Product Mix
|
Volume
|
Total Organic
|
Currency
|
Portfolio / Other
|
Total
|
|
Electronics &
Industrial
|
1%
|
8%
|
9%
|
(2)%
|
11%
|
18%
|
|
Water &
Protection
|
10
|
—
|
10
|
(2)
|
—
|
8
|
|
Corporate & Other
1
|
10
|
(6)
|
4
|
(2)
|
(23)
|
(21)
|
|
Total
|
6%
|
3%
|
9%
|
(2)%
|
2%
|
9%
|
|
U.S. &
Canada
|
11%
|
7%
|
18%
|
—%
|
—%
|
18%
|
|
EMEA2
|
9
|
—
|
9
|
(6)
|
—
|
3
|
|
Asia Pacific
|
2
|
1
|
3
|
(1)
|
3
|
5
|
|
Latin
America
|
6
|
4
|
10
|
—
|
2
|
12
|
|
Total
|
6%
|
3%
|
9%
|
(2)%
|
2%
|
9%
|
|
- Corporate & Other includes activities of
the Retained Businesses, Biomaterials and previously
divested businesses.
- Europe, Middle East and Africa.
|
|
DuPont de Nemours,
Inc.
Selected Financial
Information and Non-GAAP Measures
|
|
|
|
Operating EBITDA by
Segment
|
Three Months Ended
|
|
In millions
(Unaudited)
|
Mar 31, 2022
|
Mar 31, 2021
|
|
Electronics &
Industrial
|
$
476
|
$
436
|
|
Water &
Protection
|
341
|
355
|
|
Corporate & Other
1
|
1
|
12
|
|
Total
|
$
818
|
$
803
|
|
1. Corporate
& Other includes activities of the Retained Businesses,
Biomaterials and previously divested businesses.
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of Nonconsolidated Affiliates by
Segment
|
Three Months Ended
|
|
In millions
(Unaudited)
|
Mar 31, 2022
|
Mar 31, 2021
|
|
Electronics &
Industrial
|
$
10
|
$
9
|
|
Water &
Protection
|
14
|
12
|
|
Corporate & Other
1
|
2
|
2
|
|
Total equity earnings
included in operating EBITDA (GAAP)
|
$
26
|
$
23
|
|
1. Corporate &
Other includes activities of the Retained Businesses, Biomaterials
and previously divested businesses.
|
|
|
|
|
|
Reconciliation of "Income (Loss) from continuing
operations, net of tax" to
"Operating EBITDA"
|
Three Months Ended
|
|
|
In millions
(Unaudited)
|
Mar 31, 2022
|
Mar 31, 2021
|
|
Income from continuing
operations, net of tax (GAAP)
|
$
232
|
$
386
|
|
+ Provision for
(benefit from) income taxes on continuing operations
|
47
|
(1)
|
|
Income from continuing
operations before income taxes
|
$
279
|
$
385
|
|
+ Depreciation and
amortization
|
297
|
255
|
|
- Interest income
1
|
1
|
4
|
|
+ Interest
expense
|
118
|
146
|
|
- Non-operating
pension/OPEB benefit 1
|
7
|
6
|
|
- Foreign
exchange losses, net 1
|
(5)
|
(6)
|
|
+ Future reimbursable
indirect costs
|
16
|
16
|
|
- Significant
items
|
(111)
|
(5)
|
|
Operating EBITDA
(non-GAAP)
|
$
818
|
$
803
|
|
- Included in "Sundry income (expense) -
net."
|
Reconciliation of "Cash provided by operating
activities" to Free Cash Flow
|
Three Months Ended
|
In millions
(Unaudited)
|
Mar 31, 2022
|
Mar 31, 2021
|
Cash provided by
operating activities (GAAP) 1
|
$
209
|
$
378
|
Capital
expenditures
|
(251)
|
(283)
|
Free cash flow
(non-GAAP)
|
$
(42)
|
$
95
|
- 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 three month periods
noted. In addition, includes cash activity related to
the M&M Businesses and in the comparative period, the
former Nutrition & Biosciences business segment prior to
separation.
|
DuPont de Nemours,
Inc.
Selected Financial
Information and Non-GAAP Measures
|
|
Significant Items Impacting Results for the Three
Months Ended March 31, 2022
|
In millions, except per
share amounts (Unaudited)
|
Pretax 1
|
Net
Income 2
|
EPS 3
|
Income Statement Classification
|
Reported results
(GAAP)
|
$ 279
|
$ 214
|
$ 0.42
|
|
Less: Significant
items
|
|
|
|
|
Acquisition, integration and separation costs
4
|
(8)
|
(6)
|
(0.01)
|
Acquisition,
integration and separation costs
|
Restructuring and asset related charges - net
5
|
(7)
|
(5)
|
(0.01)
|
Restructuring and asset
related charges - net
|
Asset impairment charges 6
|
(94)
|
(65)
|
(0.13)
|
Restructuring and asset
related charges - net
|
Intended Rogers Acquisition financing fees
7
|
(2)
|
(1)
|
—
|
Interest
expense
|
Income tax related item
|
—
|
(3)
|
(0.01)
|
Provision for income
taxes on continuing operations
|
Total significant
items
|
$ (111)
|
$ (80)
|
$
(0.16)
|
|
Less: Amortization of
intangibles
|
(153)
|
(119)
|
(0.23)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
7
|
5
|
0.01
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(16)
|
(12)
|
(0.02)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$ 552
|
$ 420
|
$ 0.82
|
|
Significant Items Impacting Results for the Three
Months Ended March 31, 2021
|
In millions, except per
share amounts (Unaudited)
|
Pretax 1
|
Net
Income 2
|
EPS 3
|
Income Statement Classification
|
Reported results
(GAAP)
|
$ 385
|
$ 388
|
$ 0.64
|
|
Less: Significant
items
|
|
|
|
|
Acquisition, integration and separation costs
8
|
(6)
|
(5)
|
—
|
Acquisition,
integration and separation costs
|
Restructuring and asset related charges - net
5
|
(2)
|
(2)
|
—
|
Restructuring and asset
related charges - net
|
Gain on divestitures
|
3
|
3
|
—
|
Sundry income (expense)
- net
|
Income tax related item 9
|
—
|
77
|
0.12
|
Provision for income
taxes on continuing operations
|
Total significant
items
|
$
(5)
|
$
73
|
$ 0.12
|
|
Less: Amortization of
intangibles
|
(125)
|
(97)
|
(0.16)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
6
|
3
|
0.01
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(16)
|
(12)
|
(0.02)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$ 525
|
$ 421
|
$ 0.69
|
|
- Income (loss) from continuing operations
before income taxes.
- 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.
- Earnings (loss) per common share from
continuing operations - diluted.
- Acquisition, integration and separation costs
related to strategic initiatives including the acquisition of Laird
PM and the Intended Rogers Acquisition.
- Includes Board approved restructuring plans
and other asset related charges.
- Reflects a pre-tax impairment charge related
to an equity method investment.
- Reflects structuring fees and the
amortization of the commitment fees related to the financing
agreements entered into in preparation for the Intended Rogers
Acquisition.
- Acquisition, integration and separation costs
related to strategic initiatives, which primarily includes the sale
of the Solamet® business unit and the plan divestiture of
the Biomaterials business unit.
- Includes a net $77 million tax benefit
primarily related to the impact of tax reform in Switzerland.
|
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SOURCE DuPont