WILMINGTON, Del., May 4, 2021 /PRNewswire/ -- DuPont (NYSE: DD)
today announced financial results for the first quarter 2021.
"As we emerge from the COVID-19 pandemic, the leading positions
we hold in semiconductor, smartphones, automotive, water
filtration, and residential construction end-markets enabled us to
deliver strong first quarter results ahead of expectations with
organic sales growth in all three reporting segments," said
Ed Breen, DuPont Executive Chairman
and Chief Executive Officer. "We delivered these results despite
headwinds associated with escalating raw material and logistics
costs and global supply constraints of key raw materials. Our teams
have worked closely with our suppliers and customers to help
mitigate the impact incurred as a result of these industry
challenges."
"In addition to delivering solid financial results, we advanced
a number of strategic priorities," Breen continued. "During the
first quarter, we completed the separation of our Nutrition &
Biosciences business via a tax-free split and signed agreements to
divest our Clean Technologies and Solamet® businesses(2)
and expect all three transactions will deliver approximately
$8 billion in gross proceeds.
Additionally, we announced a definitive agreement to acquire Laird
Performance Materials(2) which complements our
Electronics & Industrial segment. The planned acquisition of
Laird Performance Materials is part of our strategy of growing as a
global innovation leader through targeted M&A. We also executed
$500 million of share repurchases
under our existing program and have approximately $500 million repurchase authorization remaining
which we intend to complete by June
1. Also, as previously announced, our Board of Directors
authorized a new $1.5 billion share
buyback program which expires on June 30,
2022. Finally, we de-levered our balance sheet during the
quarter by paying down our $3 billion
term loan and we will redeem the $2
billion May 2020 bonds later
this month. These actions, combined with our dividend policy,
further illustrate our commitment to a balanced capital allocation
approach."
First Quarter 2021 Results
Net sales totaled $4.0 billion, up
8 percent versus the year-ago period as reported and up 7 percent
versus the year-ago period on an organic(1) basis. Sales
were up on an as reported and organic basis in all three segments
led by double-digit growth in Electronics & Industrial on
continued strength in both semiconductors and smartphone
technologies, high single-digit organic growth in Mobility &
Materials on further recovery in automotive and industrial markets,
and strong demand in Water & Protection for water filtration
technologies. On a regional basis, organic sales growth was led by
Asia Pacific more than offsetting
declines in US & Canada and
EMEA.
GAAP EPS from continuing operations totaled $0.89 on GAAP income from continuing operations
of $541 million, versus GAAP EPS from
continuing operations of $(0.75) on a
GAAP loss from continuing operations of $(550) million in the year-ago period. The
improvement is attributable to the absence of prior year goodwill
and asset impairment charges, significantly less integration and
separation costs, a significantly lower share count, higher segment
earnings, and a lower tax rate, partially offset by the absence of
a prior year gain related to a divestiture.
Operating EBITDA(1) was $1.05
billion, up 15 percent versus operating EBITDA(1)
in the prior year. Strong demand in Electronics & Industrial
and Mobility & Materials as well as benefits from prior year
cost initiatives contributed to 160 basis points of operating
EBITDA margin expansion and 1.9 times operating EBITDA leverage.
Adjusted EPS(1) was $0.91,
up 90% versus adjusted EPS(1) in the year-ago period due
to a significantly lower share count, higher segment results and
benefits associated with a lower base tax rate and lower interest
expense.
Operating cash flow for the quarter was $378 million and included working capital
headwinds of about $300 million led
by higher accounts receivable balances on increased sales. Capital
expenditures of $283 million resulted
in free cash flow(1) of $95
million.
During the first quarter 2021, DuPont completed the previously
announced separation of its Nutrition & Biosciences business
(the "N&B Business") in a Reverse Morris Trust transaction, in
which Nutrition & Biosciences, Inc. ("N&B") was merged with
a subsidiary of International Flavors and Fragrances Inc. ("IFF").
In connection with closing of the IFF transaction and the related
exchange offer, DuPont accepted and retired 197.4 million shares of
DuPont common stock.
First Quarter 2021 Segment Highlights
Electronics & Industrial
Electronics & Industrial reported a record quarter with net
sales of $1.3 billion, up 17 percent
from the year-ago period. Organic sales were up 14 percent driven
by a 15 percent volume gain offset by a 1 percent decline in price.
Currency was a 3 percent tailwind.
Volume gains were led by Semiconductor Technologies where new
technology ramps in advanced nodes within logic and foundry along
with robust demand for memory in servers and data centers delivered
double-digit growth versus the year-ago period. Interconnect
Solutions also delivered double-digit growth, driven by higher
material content in premium, next-generation smartphones. Within
Industrial Solutions, double-digit volume gains in display
materials and healthcare more than offset continued weakness in
aerospace and flexographic printing.
Operating EBITDA for the segment was $436
million, an increase of 33 percent from operating EBITDA of
$327 million in the year-ago period,
driven primarily by strong volume growth and a gain on an asset
divestiture.
Water & Protection
Water & Protection reported net sales of $1.3 billion, up 4 percent from the year-ago
period. Organic sales were up 1 percent on a 1 percent increase in
volume. Currency was a 3 percent tailwind.
Sales gains were led by Water Solutions with double-digit volume
growth reflecting strong demand for our reverse osmosis and
ultrafiltration technologies. Ongoing strength in residential
construction and retail channels for do-it-yourself applications
resulted in volume growth in Shelter Solutions versus the year-ago
period. Within Safety Solutions, strengthening demand for aramid
fibers in industrial and automotive end markets was more than
offset by continued weakness in aerospace resulting in low-single
digit volume declines.
Operating EBITDA for the segment totaled $355 million, relatively flat with operating
EBITDA of $357 million in the
year-ago period as sales gains and cost productivity actions were
offset by higher manufacturing and supply chain costs.
Mobility & Materials
Mobility & Materials reported net sales of $1.2 billion, up 11 percent from the year-ago
period. Organic sales were up 8 percent driven by a 7 percent
volume gain and a 1 percent increase in price. Currency was a 3
percent tailwind.
Double-digit growth in Performance Resins and Advanced Solutions
was attributable to the continued recovery of the global automotive
market as well as strong demand for specialty pastes used in
consumer electronics. Demand within Engineering Polymers was
strong; however, global supply constraints in key raw materials
resulted in low-single digit volume declines. We expect to recover
this volume as the raw material constraints are alleviated.
Operating EBITDA for the segment was $278
million, an increase of 29 percent from operating EBITDA of
$215 million in the year-ago period,
as higher volumes and savings from productivity actions delivered a
320 basis point improvement in operating EBITDA margins versus the
year-ago period.
Second Quarter and Full Year 2021
Outlook
"With a strong start to the year, positive trends continuing in
our key end-markets and confidence in our team's ability to
navigate through global supply constraints, we are raising our
guidance for the year for net sales, operating EBITDA and adjusted
EPS," said Lori Koch, Chief
Financial Officer of DuPont. "For full year 2021, we now estimate
net sales to be between $15.7 billion
and $15.9 billion and operating
EBITDA between $3.98 billion and
$4.08 billion. Our outlook for full
year adjusted EPS is now in the range of $3.60 to $3.75 per
share, an increase of $0.30 per share
from our previous estimates."
"We also expect similar top-line trends continuing from first
quarter into the second quarter coupled with slight escalation in
raw materials and logistics costs. We expect second quarter of 2021
results to be up significantly versus the second quarter of last
year with net sales estimated between $3.925
billion and $4.025 billion,
operating EBITDA between $990 million
and $1,010 million, and adjusted EPS
between $0.93 and $0.95 per share."
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 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
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.
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.
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.
On March 8, 2021, DuPont announced
entry into a definitive agreement to acquire the Laird Performance
Materials business, subject to regulatory approval and customary
closing conditions, (the "proposed Laird PM Acquisition").
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) ability to achieve
expectations regarding the timing, completion, integration, and
accounting and tax treatments related to the proposed Laird PM
Acquisition; (ii) the ability to achieve expected benefits,
synergies and operating efficiencies in connection with the
proposed Laird PM Acquisition within the expected time frames or at
all or to successfully integrate the Laird Performance Materials
business; (iii) ability to achieve anticipated tax treatments in
connection with the N&B Transaction or the DWDP Distributions;
(iv) changes in relevant tax and other laws; (v) indemnification of
certain legacy liabilities of EID in connection with the Corteva
Distribution; (vi) 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; (vii) 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; (viii)
uncertainty as to the long-term value of DuPont common stock; (ix)
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 (x) 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.
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 TDCC (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 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 resulting 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.
On February 1, 2021, the Company
announced changes to its management and reporting structure. As a
result of these changes segments were renamed and underlying
businesses were realigned. Financial results contained within this
earnings release reflect the new reporting structure for all
periods presented.
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
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 associated with intangibles acquired as part of the DWDP
Merger and the after-tax impact of non-operating pension / other
post employment benefits ("OPEB") benefits / charges. Although
amortization of EID intangibles acquired as part of the DWDP Merger
is excluded from these non-GAAP measures, management believes it is
important for investors to understand that such intangible assets
contribute to revenue generation. Amortization of intangible assets
that relate to past acquisitions will recur in future periods until
such intangible assets have been fully amortized. Any future
acquisitions may result in amortization of additional intangible
assets. Management estimates amortization expense in 2021
associated with intangibles acquired as part of the DWDP Merger to
be approximately $480 million on a
pre-tax basis, or approximately $0.70
per share.
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.
(1) Adjusted EPS,
operating EBITDA and free cash flow are non-GAAP measures. See page
6 for further discussion. Reconciliation to the most directly
comparable GAAP measure, including details of significant items
begins on page 11 of this communication.
|
(2) Subject to
regulatory approval and other customary closing
conditions.
|
DuPont de Nemours,
Inc.
|
Consolidated
Statements of Operations
|
|
In millions, except
per share amounts (Unaudited)
|
Three Months
Ended
March
31,
|
2021
|
2020
|
Net sales
|
$
|
3,976
|
|
$
|
3,670
|
|
Cost of
sales
|
2,512
|
|
2,319
|
|
Research and
development expenses
|
156
|
|
173
|
|
Selling, general and
administrative expenses
|
456
|
|
482
|
|
Amortization of
intangibles
|
167
|
|
178
|
|
Restructuring and
asset related charges - net
|
2
|
|
398
|
|
Goodwill impairment
charges
|
—
|
|
533
|
|
Integration and
separation costs
|
6
|
|
123
|
|
Equity in earnings of
nonconsolidated affiliates
|
26
|
|
39
|
|
Sundry income
(expense) - net
|
16
|
|
212
|
|
Interest
expense
|
146
|
|
171
|
|
Income (loss) from
continuing operations before income taxes
|
573
|
|
(456)
|
|
Provision for income
taxes on continuing operations
|
32
|
|
94
|
|
Income (loss) from
continuing operations, net of tax
|
541
|
|
(550)
|
|
Income (loss) from
discontinued operations, net of tax
|
4,857
|
|
(60)
|
|
Net income
(loss)
|
5,398
|
|
(610)
|
|
Net income
attributable to noncontrolling interests
|
4
|
|
6
|
|
Net income (loss)
available for DuPont common stockholders
|
$
|
5,394
|
|
$
|
(616)
|
|
|
Per common share
data:
|
|
|
Earnings (loss) per
common share from continuing operations - basic
|
$
|
0.89
|
|
$
|
(0.75)
|
|
Earnings (loss) per
common share from discontinued operations - basic
|
8.03
|
|
(0.08)
|
|
Earnings (loss) per
common share - basic
|
$
|
8.92
|
|
$
|
(0.83)
|
|
Earnings (loss) per
common share from continuing operations - diluted
|
$
|
0.89
|
|
$
|
(0.75)
|
|
Earnings (loss) per
common share from discontinued operations - diluted
|
8.01
|
|
(0.08)
|
|
Earnings (loss) per
common share - diluted
|
$
|
8.90
|
|
$
|
(0.83)
|
|
|
Weighted-average
common shares outstanding - basic
|
604.8
|
|
|
738.6
|
|
Weighted-average
common shares outstanding - diluted
|
606.3
|
|
|
738.6
|
|
DuPont de Nemours,
Inc.
|
Consolidated
Balance Sheets
|
|
In millions, except
share and per share amounts (Unaudited)
|
March 31,
2021
|
December 31,
2020
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
$
|
4,384
|
|
$
|
2,544
|
|
Marketable
securities
|
2,001
|
|
—
|
|
Accounts and notes
receivable - net
|
2,609
|
|
2,421
|
|
Inventories
|
2,499
|
|
2,393
|
|
Other current
assets
|
184
|
|
181
|
|
Assets held for
sale
|
863
|
|
810
|
|
Assets of discontinued
operations
|
—
|
|
20,659
|
|
Total current
assets
|
12,540
|
|
29,008
|
|
Property, plant and
equipment - net of accumulated depreciation (March 31, 2021 -
$4,359; December 31, 2020 - $4,256)
|
6,744
|
|
6,867
|
|
Other
Assets
|
|
|
Goodwill
|
18,511
|
|
18,702
|
|
Other intangible
assets
|
7,857
|
|
8,072
|
|
Restricted
cash
|
—
|
|
6,206
|
|
Investments and
noncurrent receivables
|
1,059
|
|
1,047
|
|
Deferred income tax
assets
|
177
|
|
190
|
|
Deferred charges and
other assets
|
916
|
|
812
|
|
Total other
assets
|
28,520
|
|
35,029
|
|
Total
Assets
|
$
|
47,804
|
|
$
|
70,904
|
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Short-term borrowings
and finance lease obligations
|
$
|
1,997
|
|
$
|
1
|
|
Accounts
payable
|
2,219
|
|
2,222
|
|
Income taxes
payable
|
189
|
|
169
|
|
Accrued and other
current liabilities
|
1,129
|
|
1,084
|
|
Liabilities related to
assets held for sale
|
133
|
|
140
|
|
Liabilities of
discontinued operations
|
—
|
|
8,610
|
|
Total current
liabilities
|
5,667
|
|
12,226
|
|
Long-Term
Debt
|
10,625
|
|
15,611
|
|
Other Noncurrent
Liabilities
|
|
|
Deferred income tax
liabilities
|
1,918
|
|
2,053
|
|
Pension and other
post-employment benefits - noncurrent
|
1,040
|
|
1,110
|
|
Other noncurrent
obligations
|
849
|
|
834
|
|
Total other noncurrent
liabilities
|
3,807
|
|
3,997
|
|
Total
Liabilities
|
$
|
20,099
|
|
$
|
31,834
|
|
Commitments and
contingent liabilities
|
|
|
Stockholders'
Equity
|
|
|
Common stock
(authorized 1,666,666,667 shares of $0.01 par value each;
issued 2021: 532,090,582 shares; 2020:
734,204,054 shares)
|
5
|
|
7
|
|
Additional paid-in
capital
|
49,964
|
|
50,039
|
|
Accumulated
deficit
|
(22,618)
|
|
(11,586)
|
|
Accumulated other
comprehensive (loss) income
|
(163)
|
|
44
|
|
Total DuPont
stockholders' equity
|
27,188
|
|
38,504
|
|
Noncontrolling
interests
|
517
|
|
566
|
|
Total
equity
|
27,705
|
|
39,070
|
|
Total Liabilities and
Equity
|
$
|
47,804
|
|
$
|
70,904
|
|
DuPont de Nemours,
Inc.
|
Consolidated
Statement of Cash Flows
|
|
In millions
(Unaudited)
|
Three Months
Ended
March
31,
|
2021
|
2020
|
Operating
Activities
|
|
|
Net income
(loss)
|
$
|
5,398
|
|
$
|
(610)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
391
|
|
772
|
|
Credit for deferred
income tax and other tax related items
|
(105)
|
|
(164)
|
|
Earnings of
nonconsolidated affiliates in excess of dividends
received
|
(20)
|
|
(31)
|
|
Net periodic pension
benefit cost
|
2
|
|
7
|
|
Pension
contributions
|
(26)
|
|
(26)
|
|
Net gain on sales and
split-offs of assets, businesses and investments
|
(4,982)
|
|
(197)
|
|
Restructuring and
asset related charges - net
|
4
|
|
404
|
|
Goodwill impairment
charges
|
—
|
|
533
|
|
Other net
loss
|
53
|
|
49
|
|
Changes in assets and
liabilities, net of effects of acquired and divested
companies:
|
|
|
Accounts and notes
receivable
|
(228)
|
|
(134)
|
|
Inventories
|
(174)
|
|
(134)
|
|
Accounts
payable
|
92
|
|
236
|
|
Other assets and
liabilities, net
|
(27)
|
|
13
|
|
Cash provided by
operating activities
|
378
|
|
718
|
|
Investing
Activities
|
|
|
Capital
expenditures
|
(283)
|
|
(481)
|
|
Proceeds from sales of
property and businesses, net of cash divested
|
31
|
|
427
|
|
Acquisitions of
property and businesses, net of cash acquired
|
(11)
|
|
(73)
|
|
Purchases of
investments
|
(2,001)
|
|
(1)
|
|
Other investing
activities, net
|
4
|
|
4
|
|
Cash used for
investing activities
|
(2,260)
|
|
(124)
|
|
Financing
Activities
|
|
|
Changes in short-term
notes payable
|
—
|
|
69
|
|
Proceeds from issuance
of long-term debt
|
—
|
|
25
|
|
Proceeds from issuance
of long-term debt transferred to IFF at split-off
|
1,250
|
|
—
|
|
Payments on long-term
debt
|
(3,000)
|
|
(1)
|
|
Purchases of common
stock
|
(500)
|
|
(232)
|
|
Proceeds from issuance
of Company stock
|
90
|
|
34
|
|
Employee taxes paid
for share-based payment arrangements
|
(15)
|
|
(12)
|
|
Distributions to
noncontrolling interests
|
(19)
|
|
(6)
|
|
Dividends paid to
stockholders
|
(161)
|
|
(222)
|
|
Cash transferred to
IFF at split-off
|
(100)
|
|
—
|
|
Other financing
activities, net
|
(3)
|
|
1
|
|
Cash used for
financing activities
|
(2,458)
|
|
(344)
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
(37)
|
|
(45)
|
|
(Decrease)
Increase in cash, cash equivalents and restricted
cash
|
(4,377)
|
|
205
|
|
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
|
4,398
|
|
1,776
|
|
Cash, cash equivalents
and restricted cash from discontinued operations, end of
period
|
—
|
|
6
|
|
Cash, cash
equivalents and restricted cash at end of period
|
4,398
|
|
1,782
|
|
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,
2021
|
Mar 31,
2020
|
Electronics &
Industrial
|
$
|
1,300
|
|
$
|
1,115
|
|
Water &
Protection
|
1,328
|
|
1,276
|
|
Mobility &
Materials
|
1,215
|
|
1,091
|
|
Corporate
|
133
|
|
188
|
|
Total
|
$
|
3,976
|
|
$
|
3,670
|
|
U.S. &
Canada
|
$
|
1,051
|
|
$
|
1,152
|
|
EMEA
1
|
830
|
|
791
|
|
Asia
Pacific
|
1,950
|
|
1,581
|
|
Latin
America
|
145
|
|
146
|
|
Total
|
$
|
3,976
|
|
$
|
3,670
|
|
Net Sales Variance
by Segment and Geographic Region
|
Three Months Ended
March 31, 2021
|
|
Percent change from
prior year (Unaudited)
|
Local Price
&
Product Mix
|
Volume
|
Total
Organic
|
Currency
|
Portfolio /
Other
|
Total
|
|
Electronics &
Industrial
|
(1)
|
%
|
15
|
%
|
14
|
%
|
3
|
%
|
—
|
%
|
17
|
%
|
|
Water &
Protection
|
—
|
|
1
|
|
1
|
|
3
|
|
—
|
|
4
|
|
|
Mobility &
Materials
|
1
|
|
7
|
|
8
|
|
3
|
|
—
|
|
11
|
|
|
Corporate
|
1
|
|
(4)
|
|
(3)
|
|
1
|
|
(27)
|
|
(29)
|
|
|
Total
|
—
|
%
|
7
|
%
|
7
|
%
|
3
|
%
|
(2)
|
%
|
8
|
%
|
|
U.S. &
Canada
|
—
|
%
|
(4)
|
%
|
(4)
|
%
|
—
|
%
|
(5)
|
%
|
(9)
|
%
|
|
EMEA
1
|
(2)
|
|
—
|
|
(2)
|
|
7
|
|
—
|
|
5
|
|
|
Asia
Pacific
|
1
|
|
19
|
|
20
|
|
3
|
|
—
|
|
23
|
|
|
Latin
America
|
6
|
|
—
|
|
6
|
|
(7)
|
|
—
|
|
(1)
|
|
|
Total
|
—
|
%
|
7
|
%
|
7
|
%
|
3
|
%
|
(2)
|
%
|
8
|
%
|
|
1.
|
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,
2021
|
Mar 31,
2020
|
|
Electronics &
Industrial
|
$
|
436
|
|
$
|
327
|
|
|
Water &
Protection
|
355
|
|
357
|
|
|
Mobility &
Materials
|
278
|
|
215
|
|
|
Corporate
1
|
(22)
|
|
8
|
|
|
Total
|
$
|
1,047
|
|
$
|
907
|
|
|
1. Corporate include
$(42) million and $(36) million of general corporate expenses for
the three months ended March 31, 2021 and 2020,
respectively.
|
|
|
|
|
|
Equity in Earnings
of Nonconsolidated Affiliates by Segment
|
Three Months
Ended
|
|
In millions
(Unaudited)
|
Mar 31,
2021
|
Mar 31,
2020
|
|
Electronics &
Industrial
|
$
|
9
|
|
$
|
9
|
|
|
Water &
Protection
|
12
|
|
7
|
|
|
Mobility &
Materials
|
3
|
|
1
|
|
|
Corporate
1
|
2
|
|
22
|
|
|
Total equity earnings
included in operating EBITDA (GAAP)
|
$
|
26
|
|
$
|
39
|
|
|
1. Corporate activity
in 2020 reflects equity earnings associated with the Hemlock
Semiconductor joint venture.
|
|
|
|
|
|
Reconciliation of
"Income (Loss) from continuing operations, net of tax" to
"Operating EBITDA"
|
Three Months
Ended
|
|
In millions
(Unaudited)
|
Mar 31,
2021
|
Mar 31,
2020
|
|
Income (loss) from
continuing operations, net of tax (GAAP)
|
$
|
541
|
|
$
|
(550)
|
|
|
+ Provision for income
taxes on continuing operations
|
32
|
|
94
|
|
|
Income (loss) from
continuing operations before income taxes
|
$
|
573
|
|
$
|
(456)
|
|
|
+ Depreciation and
amortization
|
328
|
|
345
|
|
|
- Interest
income 1
|
2
|
|
2
|
|
|
+ Interest
expense
|
146
|
|
171
|
|
|
- Non-operating
pension/OPEB benefit 1
|
12
|
|
11
|
|
|
- Foreign
exchange losses, net 1
|
(9)
|
|
(3)
|
|
|
- Significant
items
|
(5)
|
|
(857)
|
|
|
Operating EBITDA
(non-GAAP)
|
$
|
1,047
|
|
$
|
907
|
|
|
1.
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,
2021
|
Mar 31,
2020
|
|
Cash provided by
operating activities (GAAP) 1
|
$
|
378
|
|
$
|
718
|
|
|
Capital
expenditures
|
(283)
|
|
(481)
|
|
|
Free cash flow
(non-GAAP)
|
$
|
95
|
|
$
|
237
|
|
|
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 to the changes in "Cash provided by operating activities"
for the three month periods noted. In addition, includes cash
activity related to N&B prior to the N&B
Transaction.
|
DuPont de Nemours,
Inc.
|
Selected Financial
Information and Non-GAAP Measures
|
|
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)
|
$
|
573
|
|
$
|
537
|
|
$
|
0.89
|
|
|
Less: Significant
items
|
|
|
|
|
Integration and
separation costs 4
|
(6)
|
|
(5)
|
|
—
|
|
Integration and
separation costs
|
Restructuring and
asset related charges - net 5
|
(2)
|
|
(2)
|
|
—
|
|
Restructuring and
asset related charges - net
|
Gain on divestitures
6
|
3
|
|
3
|
|
—
|
|
Sundry income
(expense) - net
|
Income tax related
item 7
|
—
|
|
76
|
|
0.12
|
|
Provision for income
taxes on continuing operations
|
Total significant
items
|
$
|
(5)
|
|
$
|
72
|
|
$
|
0.12
|
|
|
Less: Merger-related
amortization of intangibles
|
(120)
|
|
(94)
|
|
(0.15)
|
|
Amortization of
intangibles
|
Less: Non-op pension
/ OPEB benefit
|
12
|
|
9
|
|
0.01
|
|
Sundry income
(expense) - net
|
Adjusted results
(non-GAAP)
|
$
|
686
|
|
$
|
550
|
|
$
|
0.91
|
|
|
|
Significant Items
Impacting Results for the Three Months Ended March 31,
2020
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$
|
(456)
|
|
$
|
(556)
|
|
$
|
(0.75)
|
|
|
Less: Significant
items
|
|
|
|
|
Integration and
separation costs 4
|
(123)
|
|
(94)
|
|
(0.13)
|
|
Integration and
separation costs
|
Restructuring and
asset related charges - net 5
|
(128)
|
|
(98)
|
|
(0.13)
|
|
Restructuring and
asset related charges - net
|
Goodwill impairment
charge 8
|
(533)
|
|
(533)
|
|
(0.72)
|
|
Goodwill impairment
charges
|
Asset impairment
charges 9
|
(270)
|
|
(206)
|
|
(0.28)
|
|
Restructuring and
asset related charges - net
|
Gain on divestitures
10
|
197
|
|
102
|
|
0.14
|
|
Sundry income
(expense) - net
|
Income tax related
item
|
—
|
|
7
|
|
0.01
|
|
Sundry income
(expense) - net
|
Total significant
items
|
$
|
(857)
|
|
$
|
(822)
|
|
$
|
(1.11)
|
|
|
Less: Merger-related
amortization of intangibles
|
(129)
|
|
(100)
|
|
(0.13)
|
|
Amortization of
intangibles
|
Less: Non-op pension
/ OPEB benefit
|
11
|
|
8
|
|
0.01
|
|
Sundry income
(expense) - net; Provision for income taxes on continuing
operations
|
Adjusted results
(non-GAAP)
|
$
|
519
|
|
$
|
358
|
|
$
|
0.48
|
|
|
1.
|
Income (loss) from
continuing operations before income taxes.
|
2.
|
Net income (loss)
from continuing operations available for DuPont common
stockholders. The income tax effect on significant items was
calculated based upon the enacted tax laws and statutory income tax
rates applicable in the tax jurisdiction(s) of the underlying
non-GAAP adjustment.
|
3.
|
Earnings (loss) per
common share from continuing operations - diluted.
|
4.
|
Integration and
separation costs related to strategic initiatives including the
divestiture of the held for sale businesses, post-DWDP Merger
integration and the DWDP Distributions.
|
5.
|
Includes Board
approved restructuring plans and other asset related
charges.
|
6.
|
Reflects post closing
adjustments related previously divested businesses.
|
7.
|
Reflects a net $76
million tax benefit primarily related to a $59 million tax benefit
resulting from the impact of tax reform in Switzerland.
|
8.
|
Reflects a non-cash
goodwill impairment charges of $533 million related to a former
non-core businesses which are now within Corporate.
|
9.
|
Reflects a $270
million pre-tax impairment charge related to a long-lived asset
group of a former non-core business which is now within
Corporate.
|
10.
|
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