DuPont Reports Third Quarter 2023 Results
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Third Quarter 2023 Highlights
Net Sales of$3.1 billion decreased 8%; organic sales decreased 10% versus year-ago period- GAAP Income from continuing operations of
$291 million ; operating EBITDA of$775 million - GAAP EPS from continuing operations of
$0.62 ; adjusted EPS of$0.92 - Cash provided by operating activities from continuing operations of
$740 million ; adjusted free cash flow of$621 million
"We delivered solid third quarter earnings despite ongoing volume headwinds from channel inventory destocking and continued softness in
"As expected, our Interconnect Solutions business within the electronics portfolio recorded a second straight quarter of sequential sales lift and we are seeing signs of demand stabilization within semiconductor end-markets. We are, however, seeing additional channel destocking as well as slower industrial water demand in
"This morning we also announced that today we will close the previously announced sale of our 80.1% ownership interest in the Delrin® business to TJC," Breen continued. "With this Delrin® sale, completion of our
Third Quarter 2023 Results(1) | ||||
Dollars in millions, unless noted | 3Q'23 | 3Q'22 | Change vs. 3Q'22 | Organic Sales (2) vs. 3Q'22 |
Net sales | (8) % | (10) % | ||
GAAP Income from continuing operations | (19) % | |||
Operating EBITDA(2) | (9) % | |||
Operating EBITDA(2) margin % | 25.3 % | 25.8 % | (50)bps | |
GAAP EPS from continuing operations | (10) % | |||
Adjusted EPS(2) | 12 % | |||
Cash provided by operating activities – cont. ops. | 28 % | |||
Adjusted free cash flow(2) | 47 % |
Net sales
- Net sales decreased 8% as organic sales(2) decline of 10% was slightly offset by favorable portfolio impact of 2%, primarily reflecting the
August 1 st acquisition of Spectrum. - Organic sales(2) decline of 10% reflects lower volume primarily from semiconductor and construction end-markets, as well as the impact of channel inventory destocking.
- 13% organic sales(2) decline in Electronics & Industrial; 8% organic sales(2) decline in Water & Protection; 1% organic sales(2) growth in the retained businesses reported in Corporate, which includes mid-single digit growth in the adhesives business.
- 12% organic sales(2) decline in
Asia Pacific ; 10% organic sales(2) decline inU.S. &Canada ; 2% organic sales(2) decline in EMEA.
(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 of this communication. |
GAAP Income/GAAP EPS from continuing operations
- GAAP income/GAAP EPS from continuing operations decreased as lower segment earnings and the absence of a one-time credit recorded in the prior year related to the CARES Act more than offset lower net interest expense and the impact of a lower share count related to the accelerated share repurchase transactions.
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 lower input costs and earnings associated with Spectrum.
- Operating EBITDA(2) margin increased 140 basis points sequentially in the third quarter.
Adjusted EPS(2)
- Adjusted EPS(2) increased as the impact of a lower share count and lower net interest expense more than offset lower segment earnings.
Cash provided by operating activities from continuing operations
- Cash provided by operating activities from continuing operations in the quarter of
$740 million and capital expenditures of$119 million resulted in adjusted free cash flow(2) of$621 million .
Third Quarter 2023 Segment Highlights | ||||
Electronics & Industrial | ||||
Dollars in millions, unless noted | 3Q'23 | 3Q'22 | Change vs. 3Q'22 | Organic Sales(2) vs. 3Q'22 |
Net sales | (9) % | (13) % | ||
Operating EBITDA | (19) % | |||
Operating EBITDA margin % | 28.0 % | 31.3 % | (330) bps |
Net sales
- Net sales decreased 9% as organic sales(2) decline of 13% was partially offset by favorable portfolio impact of 4% primarily reflecting the Spectrum acquisition within Industrial Solutions.
- Organic sales(2) decline of 13% reflects a 12% decline in volume and a 1% decline in price.
- Semiconductor Technologies sales down high-teens on an organic basis resulting from a continuation of inventory destocking and reduced semiconductor fab utilization rates due to ongoing consumer electronics demand weakness. On a reported basis, Semiconductor Technologies sales were flat sequentially in the third quarter.
- Interconnect Solutions sales down 11% year-over-year on an organic basis driven by lower consumer electronics volumes and channel inventory destocking, as well as the impact of lower pass-through metals prices. On a reported basis, Interconnect Solutions sales increased 8% sequentially in the third quarter.
- Industrial Solutions sales down high-single digits on an organic basis due primarily to channel inventory destocking within biopharma markets and continued lower demand in electronics-related markets, slightly offset by increased demand for OLED materials.
Operating EBITDA
- Operating EBITDA decreased due to volume declines and reduced production rates to better align inventory with demand, slightly offset by earnings associated with Spectrum.
- Operating EBITDA(2) margin increased 140 basis points sequentially in the third quarter.
Water & Protection | ||||
Dollars in millions, unless noted | 3Q'23 | 3Q'22 | Change vs. 3Q'22 | Organic Sales(2) vs. 3Q'22 |
Net sales | (8) % | (8) % | ||
Operating EBITDA | (5) % | |||
Operating EBITDA margin % | 25.6 % | 24.9 % | 70 bps |
Net sales
- Net sales decreased 8% due to a 9% decline in volume slightly offset by a 1% increase in price.
- Safety Solutions sales down high-single digits on an organic(2) basis due to volume declines driven by channel inventory destocking.
- Shelter Solutions sales down high-single digits on an organic(2) basis driven by continued construction market softness, including channel inventory destocking.
- Water Solutions sales down mid-single digits on an organic(2) basis driven by lower volumes resulting primarily from weaker industrial demand as well as distributor inventory destocking in
China .
Operating EBITDA
- Operating EBITDA decreased due to lower volumes partially offset by the impact of net pricing benefits.
- Operating EBITDA(2) margin increased 100 basis points sequentially in the third quarter.
Outlook | ||
Dollars in millions, unless noted | Full Year 2023E | |
Net sales | ||
Operating EBITDA(2) | ||
Adjusted EPS(2) |
"Our teams continue to successfully execute in a constrained volume environment through strong internal discipline and focus on operational excellence," said
"As we look at the fourth quarter, underlying consumer electronics demand is expected to be similar with the third quarter and reflected by stable order rates from our customers, with some sequential sales lift expected in Semiconductor Technologies," Koch continued. "However, versus our prior guidance, we are seeing additional channel inventory destocking and slower industrial water demand in
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 beginning today at
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, SMor ® 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
The financial position of DuPont as of
Cautionary Statement about 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) risks and uncertainties related to the settlement agreement concerning PFAS liabilities reached
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
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 nine month periods ended
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. Consolidated Statements of Operations | ||||
In millions, except per share amounts (Unaudited) | Three Months Ended | Nine Months Ended | ||
2023 | 2022 | 2023 | 2022 | |
Net sales | $ 3,058 | $ 3,317 | $ 9,170 | $ 9,913 |
Cost of sales | 1,954 | 2,095 | 5,967 | 6,354 |
Research and development expenses | 128 | 129 | 380 | 413 |
Selling, general and administrative expenses | 360 | 356 | 1,058 | 1,130 |
Amortization of intangibles | 155 | 146 | 448 | 447 |
Restructuring and asset related charges - net | 8 | — | 39 | 101 |
Acquisition, integration and separation costs | 9 | 7 | 15 | 28 |
Equity in earnings of nonconsolidated affiliates | 11 | 16 | 40 | 62 |
Sundry income (expense) - net | 55 | 26 | 112 | 123 |
Interest expense | 102 | 128 | 295 | 370 |
Income from continuing operations before income taxes | 408 | 498 | 1,120 | 1,255 |
Provision for income taxes on continuing operations | 117 | 139 | 287 | 299 |
Income from continuing operations, net of tax | 291 | 359 | 833 | 956 |
Income (loss) from discontinued operations, net of tax | 37 | 17 | (357) | 723 |
Net income | 328 | 376 | 476 | 1,679 |
Net income attributable to noncontrolling interests | 9 | 9 | 31 | 37 |
Net income available for DuPont common stockholders | $ 319 | $ 367 | $ 445 | $ 1,642 |
Per common share data: | ||||
Earnings per common share from continuing operations - basic | $ 0.62 | $ 0.69 | $ 1.76 | $ 1.81 |
Earnings (loss) per common share from discontinued operations - basic | 0.08 | 0.05 | (0.78) | 1.44 |
Earnings per common share - basic | $ 0.71 | $ 0.73 | $ 0.97 | $ 3.25 |
Earnings per common share from continuing operations - diluted | $ 0.62 | $ 0.69 | $ 1.75 | $ 1.80 |
Earnings (loss) per common share from discontinued operations - diluted | 0.08 | 0.05 | (0.78) | 1.44 |
Earnings per common share - diluted | $ 0.70 | $ 0.73 | $ 0.97 | $ 3.24 |
Weighted-average common shares outstanding - basic | 451.7 | 499.4 | 456.5 | 505.6 |
Weighted-average common shares outstanding - diluted | 453.4 | 500.4 | 457.8 | 506.9 |
DuPont de Nemours, Inc. | ||
In millions, except share amounts (Unaudited) | ||
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 1,338 | $ 3,662 |
Marketable securities | — | 1,302 |
Restricted cash and cash equivalents | 409 | 7 |
Accounts and notes receivable - net | 2,399 | 2,518 |
Inventories | 2,279 | 2,329 |
Prepaid and other current assets | 196 | 161 |
Assets of discontinued operations | 1,314 | 1,291 |
Total current assets | 7,935 | 11,270 |
Property, plant and equipment - net of accumulated depreciation ( | 5,756 | 5,731 |
Other Assets | ||
Goodwill | 17,251 | 16,663 |
Other intangible assets | 6,038 | 5,495 |
Restricted cash and cash equivalents - noncurrent | — | 103 |
Investments and noncurrent receivables | 751 | 733 |
Deferred income tax assets | 103 | 109 |
Deferred charges and other assets | 1,299 | 1,251 |
Total other assets | 25,442 | 24,354 |
Total Assets | $ 39,133 | $ 41,355 |
Liabilities and Equity | ||
Current Liabilities | ||
Short-term borrowings | $ 475 | $ 300 |
Accounts payable | 1,685 | 2,103 |
Income taxes payable | 119 | 233 |
Accrued and other current liabilities | 1,272 | 951 |
Liabilities of discontinued operations | 137 | 146 |
Total current liabilities | 3,688 | 3,733 |
Long-Term Debt | 7,740 | 7,774 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 1,326 | 1,158 |
Pension and other post-employment benefits - noncurrent | 511 | 522 |
Other noncurrent obligations | 1,241 | 1,151 |
Total other noncurrent liabilities | 3,078 | 2,831 |
Total Liabilities | 14,506 | 14,338 |
Commitments and contingent liabilities | ||
Stockholders' Equity | ||
Common stock (authorized 1,666,666,667 shares of issued 2023: 430,011,698 shares; 2022: 458,124,262 shares) | 4 | 5 |
Additional paid-in capital | 48,190 | 48,420 |
Accumulated deficit | (22,854) | (21,065) |
Accumulated other comprehensive loss | (1,148) | (791) |
Total DuPont stockholders' equity | 24,192 | 26,569 |
Noncontrolling interests | 435 | 448 |
Total equity | 24,627 | 27,017 |
Total Liabilities and Equity | $ 39,133 | $ 41,355 |
DuPont de Nemours, Inc. Consolidated Statement of Cash Flows | ||
In millions (Unaudited) | Nine Months Ended | |
2023 | 2022 | |
Operating Activities | ||
Net income | $ 476 | $ 1,679 |
(Loss) income from discontinued operations | (357) | 723 |
Net income from continuing operations | $ 833 | $ 956 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 853 | 861 |
Credit for deferred income tax and other tax related items | (40) | (124) |
Earnings of nonconsolidated affiliates in excess of dividends received | (13) | (11) |
Net periodic benefit costs | 23 | 1 |
Periodic benefit plan contributions | (49) | (44) |
Net gain on sales of assets, businesses and investments | (8) | (75) |
Restructuring and asset related charges - net | 39 | 101 |
Other net loss | 72 | 12 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | 100 | (232) |
Inventories | 57 | (318) |
Accounts payable | (191) | 32 |
Other assets and liabilities, net | (131) | (95) |
Cash provided by operating activities - continuing operations | $ 1,545 | $ 1,064 |
Investing Activities | ||
Capital expenditures | (474) | (502) |
Proceeds from sales of property and businesses, net of cash divested | 16 | 364 |
Acquisitions of property and businesses, net of cash acquired | (1,761) | 5 |
Purchases of investments | (32) | (15) |
Proceeds from sales and maturities of investments | 1,334 | 15 |
Other investing activities, net | (2) | 4 |
Cash used for investing activities - continuing operations | $ (919) | $ (129) |
Financing Activities | ||
Changes in short-term borrowings | 175 | 1,137 |
Proceeds from credit facility | — | 600 |
Repayments of credit facility | — | (600) |
Purchases of common stock | (2,000) | (1,125) |
Proceeds from issuance of Company stock | 22 | 83 |
Employee taxes paid for share-based payment arrangements | (25) | (25) |
Distributions to noncontrolling interests | (34) | (27) |
Dividends paid to stockholders | (495) | (500) |
Other financing activities, net | (2) | (4) |
Cash used for financing activities - continuing operations | $ (2,359) | $ (461) |
Cash Flows from Discontinued Operations | ||
Cash used for operations - discontinued operations | (176) | (350) |
Cash used for investing activities - discontinued operations | (60) | (56) |
Cash used for financing activities - discontinued operations | — | (19) |
Cash used in discontinued operations | $ (236) | $ (425) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (56) | (191) |
Decrease in cash, cash equivalents and restricted cash | $ (2,025) | $ (142) |
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 | 1,747 | 1,896 |
Cash, cash equivalents and restricted cash from discontinued operations, end of period | — | 38 |
Cash, cash equivalents and restricted cash at end of period | $ 1,747 | $ 1,934 |
DuPont de Nemours, Inc. | ||||
Three Months Ended | Nine Months Ended | |||
In millions (Unaudited) | ||||
Electronics & Industrial | $ 1,368 | $ 1,511 | $ 3,976 | $ 4,574 |
Water & Protection | 1,413 | 1,534 | 4,356 | 4,460 |
Corporate & Other 1 | 277 | 272 | 838 | 879 |
Total | $ 3,058 | $ 3,317 | $ 9,170 | $ 9,913 |
$ 1,093 | $ 1,149 | $ 3,161 | $ 3,293 | |
EMEA 2 | 535 | 523 | 1,702 | 1,665 |
1,302 | 1,524 | 3,945 | 4,622 | |
128 | 121 | 362 | 333 | |
Total | $ 3,058 | $ 3,317 | $ 9,170 | $ 9,913 |
Net Sales Variance by Segment | Three Months Ended | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio & | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | (1) % | (12) % | (13) % | — % | 4 % | (9) % | |
Water & Protection | 1 | (9) | (8) | — | — | (8) | |
Corporate & Other 1 | (1) | 2 | 1 | 1 | — | 2 | |
Total | — % | (10) % | (10) % | — % | 2 % | (8) % | |
1 % | (11) % | (10) % | — % | 5 % | (5) % | ||
EMEA2 | 3 | (5) | (2) | 4 | — | 2 | |
(1) | (11) | (12) | (2) | (1) | (15) | ||
— | 2 | 2 | — | 4 | 6 | ||
Total | — % | (10) % | (10) % | — % | 2 % | (8) % | |
Net Sales Variance by Segment | Nine Months Ended | ||||||
Local Price & | Volume | Total Organic | Currency | Portfolio & | Total | ||
Percent change from prior year | |||||||
Electronics & Industrial | 1 % | (13) % | (12) % | (1) % | — % | (13) % | |
Water & Protection | 4 | (5) | (1) | (1) | — | (2) | |
Corporate & Other 1 | 2 | 3 | 5 | (1) | (9) | (5) | |
Total | 2 % | (8) % | (6) % | (1) % | — % | (7) % | |
3 % | (8) % | (5) % | — % | 1 % | (4) % | ||
EMEA2 | 4 | (2) | 2 | — | — | 2 | |
1 | (11) | (10) | (3) | (2) | (15) | ||
1 | 6 | 7 | — | 2 | 9 | ||
Total | 2 % | (8) % | (6) % | (1) % | — % | (7) % |
1. | Corporate & Other includes activities of the Retained Businesses and Biomaterials prior to its |
2. | |
3. | Net sales attributed to |
DuPont de Nemours, Inc. Selected Financial Information and Non-GAAP Measures | |||||
Operating EBITDA by Segment | Three Months Ended | Nine Months Ended | |||
In millions (Unaudited) | |||||
Electronics & Industrial | $ 383 | $ 473 | $ 1,094 | $ 1,429 | |
Water & Protection | 362 | 382 | 1,074 | 1,071 | |
Corporate & Other 1 | 30 | 1 | 59 | 3 | |
Total | $ 775 | $ 856 | $ 2,227 | $ 2,503 | |
1. In addition to corporate expenses, Corporate & Other includes activities of the Retained Businesses and Biomaterials prior to its | |||||
Equity in Earnings of Nonconsolidated Affiliates by Segment | Three Months Ended | Nine Months Ended | |||
In millions (Unaudited) | |||||
Electronics & Industrial | $ 3 | $ 7 | $ 11 | $ 26 | |
Water & Protection | 8 | 9 | 29 | 31 | |
Corporate & Other 1 | — | — | — | 5 | |
Total equity earnings included in operating EBITDA (GAAP) | $ 11 | $ 16 | $ 40 | $ 62 | |
1. Corporate & Other includes activities of the Retained Businesses and Biomaterials prior to its | |||||
Reconciliation of "Income from continuing operations, net of tax" to | Three Months Ended | Nine Months Ended | |||
In millions (Unaudited) | |||||
Income from continuing operations, net of tax (GAAP) | $ 291 | $ 359 | $ 833 | $ 956 | |
+ Provision for income taxes on continuing operations | 117 | 139 | 287 | 299 | |
Income from continuing operations before income taxes | $ 408 | $ 498 | $ 1,120 | $ 1,255 | |
+ Depreciation and amortization | 294 | 283 | 853 | 861 | |
- Interest income 1 | 34 | 5 | 132 | 8 | |
+ Interest expense | 102 | 127 | 295 | 365 | |
'- Non-operating pension/OPEB benefit (costs) credits 1 | (3) | 7 | (7) | 20 | |
'- Foreign exchange losses (gains), net 1 | 17 | 5 | (31) | 9 | |
+ Future reimbursable indirect costs | 2 | 14 | 6 | 45 | |
- Significant items (charge) benefit | (17) | 49 | (47) | (14) | |
Operating EBITDA (non-GAAP) | $ 775 | $ 856 | $ 2,227 | $ 2,503 | |
1. Included in "Sundry income (expense) - net." | |||||
Reconciliation of "Cash provided by operating activities - continuing operations" to Adjusted Free Cash Flow 1
| Three Months Ended | Nine Months Ended | |||
In millions (Unaudited) | |||||
Cash provided by operating activities - continuing operations (GAAP) 2 | $ 740 | $ 578 | $ 1,545 | $ 1,064 | |
Capital expenditures | (119) | (155) | (474) | (502) | |
Adjusted Free Cash Flow (non-GAAP) | $ 621 | $ 423 | $ 1,071 | $ 562 |
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 page 6 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 nine month periods noted. |
DuPont de Nemours, Inc. Selected Financial Information and Non-GAAP Measures | ||||
Significant Items Impacting Results for the Three Months Ended | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 408 | $ 282 | $ 0.62 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 4 | (9) | (9) | (0.02) | Acquisition, integration and separation |
Restructuring and asset related charges - net 5 | (8) | (6) | (0.01) | Restructuring and asset related charges - |
Income tax related item | — | 6 | 0.01 | Provision for income taxes on |
Total significant items | $ (17) | $ (9) | $ (0.02) | |
Less: Amortization of intangibles | (155) | (121) | (0.27) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit costs | (3) | (2) | (0.01) | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (2) | (1) | — | Selling, general and administrative |
Adjusted results (non-GAAP) | $ 585 | $ 415 | $ 0.92 | |
Significant Items Impacting Results for the Three Months Ended | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 498 | $ 343 | $ 0.69 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 6 | (7) | (5) | (0.01) | Acquisition, integration and separation |
Gain on divestiture 7 | 5 | 3 | 0.01 | Sundry income (expense) - net |
Intended Rogers Acquisition financing fees 8 | (1) | (1) | — | Interest expense |
Income tax related item | — | 13 | 0.02 | Provision for income taxes on |
Employee Retention Credit 9 | 52 | 40 | 0.08 | Cost of sales; Research and |
Total significant items | $ 49 | $ 50 | $ 0.10 | |
Less: Amortization of intangibles | (146) | (113) | (0.22) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit credits | 7 | 6 | 0.01 | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (14) | (11) | (0.02) | Cost of sales; Research and |
Adjusted results (non-GAAP) | $ 602 | $ 411 | $ 0.82 |
1. | Income (loss) from continuing operations before income taxes. |
2. | Net income 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. | Acquisition, integration and separation costs related to the sale of the Biomaterials business unit and the Terminated Intended Rogers Acquisition. |
7. | Reflects gain related to interest on a milestone payment associated with the TCS/HSC disposal. |
8. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into for the Terminated Intended Rogers Acquisition. |
9. | Employee Retention Credit pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act as enhanced by the Consolidated Appropriations Act ("CAA") and American Rescue Plan Act ("ARPA"). |
DuPont de Nemours, Inc. Selected Financial Information and Non-GAAP Measures | ||||
Significant Items Impacting Results for the Nine Months Ended | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 1,120 | $ 802 | $ 1.75 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 4 | (15) | (14) | (0.03) | Acquisition, integration and separation |
Restructuring and asset related charges - net 5 | (39) | (30) | (0.06) | Restructuring and asset related charges - |
Gain on divestiture 6 | 7 | 6 | 0.01 | Sundry income (expense) - net |
Income tax related item | — | 5 | 0.01 | Provision for income taxes on |
Total significant items | $ (47) | $ (33) | $ (0.07) | |
Less: Amortization of intangibles | (448) | (350) | (0.77) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit costs | (7) | (5) | (0.01) | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (6) | (4) | (0.01) | Selling, general and administrative |
Adjusted results (non-GAAP) | $ 1,628 | $ 1,194 | $ 2.61 | |
Significant Items Impacting Results for the Nine Months Ended | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results (GAAP) | $ 1,255 | $ 914 | $ 1.80 | |
Less: Significant items | ||||
Acquisition, integration and separation costs 7 | (28) | (22) | (0.04) | 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) | (0.13) | Restructuring and asset related charges - |
Gain on divestitures 9 | 68 | 60 | 0.12 | Sundry income (expense) - net |
Intended Rogers Acquisition financing fees 10 | (5) | (4) | (0.01) | Interest Expense |
Income tax related item | — | (1) | — | Provision for income taxes on |
Employee Retention Credit 11 | 52 | 40 | 0.08 | Cost of sales; Research and |
Total significant items | $ (14) | $ 3 | $ 0.01 | |
Less: Amortization of intangibles | (447) | (347) | (0.69) | Amortization of intangibles |
Less: Non-op pension / OPEB benefit credits | 20 | 16 | 0.03 | Sundry income (expense) - net |
Less: Future reimbursable indirect costs | (45) | (35) | (0.07) | Cost of sales; Research and |
Adjusted results (non-GAAP) | $ 1,741 | $ 1,277 | $ 2.52 |
1. | Income (loss) from continuing operations before income taxes. |
2. | Net income 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 asset related charges. |
6. | Reflects post-closing adjustments related to previously divested businesses. |
7. | Acquisition, integration and separation costs related to primarily related to costs associated with the divestiture of the Biomaterials business unit and the 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, the sale of land use right within the Water & Protection segment, and the gain related to interest on a milestone payment associated with the TCS/HSC Disposal. |
10. | Reflects structuring fees and the amortization of the commitment fees related to the financing agreements entered into for the Terminated Intended Rogers Acquisition. |
11. | Employee Retention Credit pursuant to the Coronavirus Aid, Relief, and Economic Security ("CARES") Act as enhanced by the Consolidated Appropriations Act ("CAA") and American Rescue Plan Act ("ARPA"). |
View original content to download multimedia:https://www.prnewswire.com/news-releases/dupont-reports-third-quarter-2023-results-301973525.html
SOURCE DuPont
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