- 2Q22 Net Sales of $3.3 billion,
increased 7%; organic sales increased 9% versus year-ago
period
- 2Q22 GAAP Income from continuing operations of $365 million; operating EBITDA of $829 million increased 6% versus year-ago period;
consistent operating EBITDA margin on year-over-year and sequential
basis
- 2Q22 GAAP EPS from continuing operations of $0.71; adjusted EPS of $0.88 increased 11% versus year-ago period
- ~$665 million of capital returned
to shareholders during the quarter through $500 million in share repurchases and
~$165 million in dividends
- Pricing actions continue to fully offset higher inflationary
costs from raw materials, logistics and energy
WILMINGTON, Del., Aug. 2, 2022
/PRNewswire/ -- - DuPont (NYSE: DD) today announced
financial results(1) for the second quarter of 2022.
"We delivered second quarter financial results ahead of
expectations by maintaining a disciplined focus on pricing actions
and operational excellence in the face of continued global supply
chain and logistics challenges and ongoing inflationary pressure,"
said Ed Breen, DuPont Executive
Chairman and Chief Executive Officer. "Underlying demand during the
quarter in our key end-markets remained strong. Year-over-year and
sequential sales and earnings growth in a volatile macro
environment demonstrated the strength of our portfolio, our deep
customer relationships and the leading market positions we hold
globally."
"We continue to advance our previously announced portfolio
actions of acquiring Rogers Corporation and divesting a substantial
portion of the former Mobility & Materials segment," Breen
continued. "Regarding Rogers, we expect to close the acquisition
during the third quarter of 2022, with China being the last remaining jurisdiction
requiring regulatory approval. For the M&M transactions, we
continue to expect the completion of the sale of portions of this
business to Celanese to close around year-end."
"As DuPont drives innovation investment to support long-term
growth, we continue to introduce new products across our key growth
pillars," Breen said. "We are excited to have won four 2022 Edison
Awards highlighting innovative technologies, while also progressing
well with our broader new product pipeline to support growth over
the coming years."
Second Quarter 2022
Results(1)
|
Dollars in millions,
unless noted
|
2Q'22
|
2Q'21
|
Change
vs.
2Q'21
|
Organic Sales
(2)
vs.
2Q'21
|
Net sales
|
$3,322
|
$3,104
|
7 %
|
9 %
|
GAAP Income from
continuing operations
|
$365
|
$395
|
(8) %
|
|
Operating
EBITDA(2)
|
$829
|
$780
|
6 %
|
|
Operating
EBITDA(2) margin %
|
25.0 %
|
25.1 %
|
(10) bps
|
|
GAAP EPS from
continuing operations
|
$0.71
|
$0.73
|
(3) %
|
|
Adjusted
EPS(2)
|
$0.88
|
$0.79
|
11 %
|
|
Net sales
- Net sales increased 7% on organic sales(2) growth of
9%; portfolio benefit of 1% was more than offset by a 3% currency
headwind.
- Organic sales(2) growth of 9% consisted of an 8%
increase in price and 1% increase in volume.
-
- Price increase reflects actions taken to offset continued
broad-based cost inflation.
- Volume increase reflects continued strong demand in
semiconductor, general industrial, water and construction
end-markets, muted primarily by lower volumes from protective
garments within Safety Solutions.
- 9% organic sales(2) growth in Water &
Protection; 8% organic sales(2) growth in Electronics
& Industrial; 15% organic sales(2) growth in
retained businesses reported in Corporate & Other, which
predominantly consists of our auto adhesives portfolio.
- Organic sales(2) growth in all regions globally,
including 13% in U.S & Canada,
8% in EMEA and 6% in Asia
Pacific.
GAAP Income/GAAP EPS from continuing operations
- GAAP income/GAAP EPS from continuing operations declined as
higher segment earnings and a lower share count were more than
offset by lower gains on business divestitures and a higher tax
rate compared to the year-ago period.
Operating EBITDA(2)
- Operating EBITDA(2) increased as pricing actions,
earnings associated with Laird Performance Materials and volume
gains more than offset higher inflationary costs from raw
materials, logistics and energy.
Adjusted EPS(2)
- Adjusted EPS(2) increased due to higher segment
earnings and a lower share count partially offset by a higher tax
rate compared to the year-ago period.
Operating cash flow
- Operating cash flow in the quarter of $86 million and capital expenditures of
$135 million resulted in free cash
flow(2) of $(49)
million.
Second Quarter 2022
Segment Highlights
|
|
Electronics &
Industrial
|
Dollars in millions,
unless noted
|
2Q'22
|
2Q'21
|
Change
vs.
2Q'21
|
Organic
Sales(2)
vs.
2Q'21
|
Net sales
|
$1,527
|
$1,320
|
16 %
|
8 %
|
Operating
EBITDA
|
$480
|
$424
|
13 %
|
|
Operating EBITDA margin
%
|
31.4 %
|
32.1 %
|
(70) bps
|
|
Net sales
- Net sales increased 16% on organic sales(2) growth
of 8%; a portfolio benefit of 11%, reflecting the acquisition of
Laird Performance Materials in the prior year, was slightly offset
by a 3% currency headwind.
- Organic sales(2) growth of 8% driven by a 6%
increase in volume and a 2% increase in price.
-
- Semiconductor Technologies sales up mid-teens on an
organic(2) basis as strong demand continued, led by the
on-going transition to more advanced node technologies and strong
fab utilization, along with growth in 5G communications and data
centers.
- Industrial Solutions sales up high single-digits on an
organic(2) basis, reflecting ongoing demand strength for
OLED materials, Kalrez® and Vespel® 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 volume declines. Volume gains
in industrial end-markets were more than offset by the anticipated
return to more normal seasonal order patterns in smartphones
compared to last year, along with softness in China smartphones, as well as personal
computing and in automotive end-markets.
Operating EBITDA
- Increase in operating EBITDA driven by earnings associated with
Laird Performance Materials, volume gains and higher pricing which
was partially offset by higher raw material and logistics
costs.
Water &
Protection
|
Dollars in millions,
unless noted
|
2Q'22
|
2Q'21
|
Change
vs.
2Q'21
|
Organic
Sales(2)
vs.
2Q'21
|
Net sales
|
$1,497
|
$1,412
|
6 %
|
9 %
|
Operating
EBITDA
|
348
|
352
|
(1) %
|
|
Operating EBITDA margin
%
|
23.2 %
|
24.9 %
|
(170) bps
|
|
Net sales
- Net sales increased 6% as organic sales(2) growth of
9% was partially offset by a 3% currency headwind.
- Organic sales(2) growth of 9% reflects a 12%
increase in price and a 3% decline in volume. The increase in price
reflects broad-based actions taken across the segment to offset
continued cost inflation.
-
- Shelter Solutions sales up high-teens on an
organic(2) basis driven by pricing gains and continued
demand strength in North America
residential construction, as well as ongoing growth in commercial
construction.
- Safety Solutions sales up mid-single-digits on an
organic(2) basis as pricing actions were partially
offset by lower volumes, primarily Tyvek® garments.
- Water Solutions sales up mid-single-digits on an
organic(2) basis on pricing gains, as well as steady
demand for water technologies.
Operating EBITDA
- Operating EBITDA was down slightly as pricing actions taken to
offset higher raw material, logistics and energy costs were more
than offset by volume declines.
Outlook
|
Dollars in millions,
unless noted
|
3Q'22E
|
Full Year
2022E
|
Net sales
|
$3,170 -
$3,370
|
$13,000 -
$13,400
|
Operating
EBITDA(2)
|
Approx. $810
|
$3,250 -
$3,350
|
Adjusted
EPS(2)
|
Approx.
$0.81
|
$3.27 -
$3.43
|
"Our strong first half 2022 results reflect positively on the
secular end-markets in which we operate and highlight our team's
focus on execution," said Lori Koch,
Chief Financial Officer of DuPont. "As we look towards the second
half, demand and overall order trends in our key end-markets remain
solid, however, future uncertainties continue to exist including
continued inflationary pressure, challenging supply chains, and
U.S. dollar strength against global currencies."
"We are narrowing our full year 2022 adjusted EPS guidance from
$3.20-$3.50 to $3.27-$3.43 while
maintaining the mid-point of our previous range." Koch continued.
"Our updated full year 2022 guidance ranges for net sales and
operating EBITDA reflect incremental foreign currency headwinds and
the removal of contribution from the Biomaterials business, which
was divested on May 31, 2022."
"We expect third quarter 2022 net sales and operating EBITDA to
be slightly weaker than second quarter 2022 as sequential volume
increases are expected to be offset by foreign currency headwinds
and the absence of the Biomaterials net sales contribution," Koch
said. "We are also expecting a negative impact during the third
quarter on operating EBITDA of approximately $15 million from unplanned downtime at our
Spruance site in Virginia within
the W&P segment resulting from an unforeseen utility disruption
with a third-party supplier. On a year-over-year basis, we expect
third quarter net sales to be up 2 percent at the mid-point of the
range, or up high single-digits on an organic basis."
Conference Call
The Company will host a live webcast of its second
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 in the
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. 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 interim
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, Multibase™ 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 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) 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.
The historic Mobility & Material segment costs that are
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 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 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 $600 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
June 30,
|
Six Months
Ended June 30,
|
2022
|
2021
|
2022
|
2021
|
Net sales
|
$
3,322
|
$
3,104
|
$
6,596
|
$
6,121
|
Cost of
sales
|
2,149
|
1,959
|
4,259
|
3,820
|
Research and
development expenses
|
141
|
133
|
284
|
272
|
Selling, general and
administrative expenses
|
385
|
395
|
774
|
790
|
Amortization of
intangibles
|
148
|
127
|
301
|
252
|
Restructuring and
asset related charges - net
|
—
|
5
|
101
|
7
|
Acquisition,
integration and separation costs
|
13
|
23
|
21
|
29
|
Equity in earnings of
nonconsolidated affiliates
|
20
|
20
|
46
|
43
|
Sundry income
(expense) - net
|
94
|
135
|
97
|
154
|
Interest
expense
|
122
|
129
|
242
|
275
|
Income from continuing
operations before income taxes
|
478
|
488
|
757
|
873
|
Provision for income
taxes on continuing operations
|
113
|
93
|
160
|
92
|
Income from continuing
operations, net of tax
|
365
|
395
|
597
|
781
|
Income from
discontinued operations, net of tax
|
430
|
92
|
706
|
5,104
|
Net income
|
795
|
487
|
1,303
|
5,885
|
Net income
attributable to noncontrolling interests
|
8
|
9
|
28
|
13
|
Net income available
for DuPont common stockholders
|
$
787
|
$
478
|
$
1,275
|
$
5,872
|
|
Per common share
data:
|
|
|
|
|
Earnings per common
share from continuing operations - basic
|
$
0.71
|
$
0.74
|
$
1.12
|
$
1.37
|
Earnings per common
share from discontinued operations - basic
|
0.85
|
0.17
|
1.38
|
8.98
|
Earnings per common
share - basic
|
$
1.56
|
$
0.91
|
$
2.51
|
$
10.35
|
Earnings per common
share from continuing operations - diluted
|
$
0.71
|
$
0.73
|
$
1.12
|
$
1.37
|
Earnings per common
share from discontinued operations - diluted
|
0.85
|
0.17
|
1.38
|
8.96
|
Earnings per common
share - diluted
|
$
1.55
|
$
0.90
|
$
2.50
|
$
10.33
|
|
Weighted-average common
shares outstanding - basic
|
505.4
|
529.6
|
508.7
|
567.0
|
Weighted-average common
shares outstanding - diluted
|
506.3
|
531.2
|
510.2
|
568.5
|
DuPont de Nemours,
Inc.
Consolidated
Balance Sheets
|
|
In millions, except
share amounts (Unaudited)
|
June 30,
2022
|
December 31,
2021
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
$
1,439
|
$
1,972
|
Accounts and notes
receivable - net
|
2,267
|
2,159
|
Inventories
|
2,356
|
2,086
|
Prepaid and other
current assets
|
187
|
177
|
Assets held for
sale
|
—
|
245
|
Assets of discontinued
operations
|
7,757
|
7,664
|
Total current
assets
|
14,006
|
14,303
|
Property, plant and
equipment - net of accumulated depreciation (June 30, 2022 -
$4,253; December 31, 2021 - $4,142)
|
5,564
|
5,753
|
Other Assets
|
|
|
Goodwill
|
16,610
|
16,981
|
Other intangible
assets
|
5,805
|
6,222
|
Restricted cash and
cash equivalents
|
53
|
53
|
Investments and
noncurrent receivables
|
836
|
919
|
Deferred income tax
assets
|
137
|
116
|
Deferred charges and
other assets
|
1,429
|
1,360
|
Total other
assets
|
24,870
|
25,651
|
Total Assets
|
$
44,440
|
$
45,707
|
Liabilities and
Equity
|
|
|
Current
Liabilities
|
|
|
Short-term
borrowings
|
$
661
|
$
150
|
Accounts
payable
|
2,135
|
2,102
|
Income taxes
payable
|
352
|
201
|
Accrued and other
current liabilities
|
1,004
|
1,040
|
Liabilities related to
assets held for sale
|
—
|
25
|
Liabilities of
discontinued operations
|
1,342
|
1,413
|
Total current
liabilities
|
5,494
|
4,931
|
Long-Term
Debt
|
10,625
|
10,632
|
Other Noncurrent
Liabilities
|
|
|
Deferred income tax
liabilities
|
590
|
1,459
|
Pension and other
post-employment benefits - noncurrent
|
694
|
762
|
Other noncurrent
obligations
|
900
|
873
|
Total other noncurrent
liabilities
|
2,184
|
3,094
|
Total
Liabilities
|
18,303
|
18,657
|
Commitments and
contingent liabilities
|
|
|
Stockholders'
Equity
|
|
|
Common stock
(authorized 1,666,666,667 shares of $0.01 par value
each;
issued 2022:
500,896,434 shares; 2021: 511,792,785 shares)
|
5
|
5
|
Additional paid-in
capital
|
49,176
|
49,574
|
Accumulated
deficit
|
(22,808)
|
(23,187)
|
Accumulated other
comprehensive (loss) income
|
(845)
|
41
|
Total DuPont
stockholders' equity
|
25,528
|
26,433
|
Noncontrolling
interests
|
609
|
617
|
Total
equity
|
26,137
|
27,050
|
Total Liabilities and
Equity
|
$
44,440
|
$
45,707
|
DuPont de Nemours,
Inc.
Consolidated
Statement of Cash Flows
|
|
In millions
(Unaudited)
|
Six Months Ended
June 30,
|
2022
|
2021
|
Operating
Activities
|
|
|
Net income
|
$
1,303
|
$
5,885
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
623
|
724
|
Credit for deferred
income tax and other tax related items
|
(922)
|
(157)
|
Earnings of
nonconsolidated affiliates less than (in excess of) dividends
received
|
6
|
(38)
|
Net periodic benefit
(credit) cost
|
(3)
|
4
|
Periodic benefit plan
contributions
|
(39)
|
(46)
|
Net gain on sales and
split-offs of assets, businesses and investments
|
(67)
|
(5,118)
|
Restructuring and
asset related charges - net
|
101
|
14
|
Other net
loss
|
37
|
92
|
Changes in assets and
liabilities, net of effects of acquired and divested
companies:
|
|
|
Accounts and notes
receivable
|
(283)
|
(346)
|
Inventories
|
(537)
|
(337)
|
Accounts
payable
|
217
|
232
|
Other assets and
liabilities, net
|
(141)
|
(91)
|
Cash provided by
operating activities
|
295
|
818
|
Investing
Activities
|
|
|
Capital
expenditures
|
(386)
|
(499)
|
Proceeds from sales of
property and businesses, net of cash divested
|
300
|
172
|
Acquisitions of
property and businesses, net of cash acquired
|
5
|
(11)
|
Purchases of
investments
|
(15)
|
(2,001)
|
Proceeds from sales
and maturities of investments
|
—
|
2,001
|
Other investing
activities, net
|
6
|
9
|
Cash used for
investing activities
|
(90)
|
(329)
|
Financing
Activities
|
|
|
Changes in short-term
notes borrowings
|
511
|
—
|
Proceeds from issuance
of long-term debt transferred to IFF at split-off
|
—
|
1,250
|
Payments on long-term
debt
|
—
|
(5,000)
|
Purchases of common
stock
|
(875)
|
(1,143)
|
Proceeds from issuance
of Company stock
|
83
|
108
|
Employee taxes paid
for share-based payment arrangements
|
(23)
|
(25)
|
Distributions to
noncontrolling interests
|
(20)
|
(24)
|
Dividends paid to
stockholders
|
(335)
|
(319)
|
Cash transferred to
IFF and subsequent adjustments
|
(11)
|
(100)
|
Other financing
activities, net
|
(4)
|
(3)
|
Cash used for
financing activities
|
(674)
|
(5,256)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(78)
|
(28)
|
Decrease in cash,
cash equivalents and restricted cash
|
(547)
|
(4,795)
|
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
|
1,500
|
3,942
|
Cash, cash equivalents
and restricted cash from discontinued operations, end of
period
|
29
|
38
|
Cash, cash
equivalents and restricted cash at end of period
|
$
1,529
|
$
3,980
|
DuPont de Nemours,
Inc.
Net Sales by
Segment and Geographic Region
|
|
Net Sales by Segment
and Geographic Region
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
Jun 30,
2022
|
Jun 30,
2021
|
Jun 30,
2022
|
Jun 30,
2021
|
Electronics &
Industrial
|
$
1,527
|
$
1,320
|
$
3,063
|
$
2,620
|
Water &
Protection
|
1,497
|
1,412
|
2,926
|
2,740
|
Corporate & Other
1
|
298
|
372
|
607
|
761
|
Total
|
$
3,322
|
$
3,104
|
$
6,596
|
$
6,121
|
U.S. &
Canada
|
$
1,095
|
$
972
|
$
2,144
|
$
1,864
|
EMEA
2
|
565
|
552
|
1,142
|
1,110
|
Asia Pacific
|
1,553
|
1,486
|
3,098
|
2,961
|
Latin
America
|
109
|
94
|
212
|
186
|
Total
|
$
3,322
|
$
3,104
|
$
6,596
|
$
6,121
|
Net Sales Variance
by Segment and Geographic Region
|
Three Months Ended
June 30, 2022
|
|
Local Price
&
Product Mix
|
Volume
|
Total
Organic
|
Currency
|
Portfolio &
Other
|
Total
|
|
Percent change from
prior year (Unaudited)
|
|
Electronics &
Industrial
|
2 %
|
6 %
|
8 %
|
(3) %
|
11 %
|
16 %
|
|
Water &
Protection
|
12
|
(3)
|
9
|
(3)
|
—
|
6
|
|
Corporate & Other
1
|
12
|
(3)
|
9
|
(2)
|
(27)
|
(20)
|
|
Total
|
8 %
|
1 %
|
9 %
|
(3) %
|
1 %
|
7 %
|
|
U.S. &
Canada
|
12 %
|
1 %
|
13 %
|
— %
|
— %
|
13 %
|
|
EMEA2
|
9
|
(1)
|
8
|
(8)
|
2
|
2
|
|
Asia Pacific
|
4
|
2
|
6
|
(3)
|
2
|
5
|
|
Latin
America
|
10
|
4
|
14
|
1
|
1
|
16
|
|
Total
|
8 %
|
1 %
|
9 %
|
(3) %
|
1 %
|
7 %
|
|
Net Sales Variance
by Segment and Geographic Region
|
Six Months Ended
June 30, 2022
|
|
Local Price
&
Product Mix
|
Volume
|
Total
Organic
|
Currency
|
Portfolio &
Other
|
Total
|
|
Percent change from
prior year (Unaudited)
|
|
Electronics &
Industrial
|
1 %
|
7 %
|
8 %
|
(2) %
|
11 %
|
17 %
|
|
Water &
Protection
|
11
|
(1)
|
10
|
(3)
|
—
|
7
|
|
Corporate & Other
1
|
11
|
(4)
|
7
|
(2)
|
(25)
|
(20)
|
|
Total
|
7 %
|
2 %
|
9 %
|
(2) %
|
1 %
|
8 %
|
|
U.S. &
Canada
|
11 %
|
4 %
|
15 %
|
— %
|
— %
|
15 %
|
|
EMEA2
|
9
|
—
|
9
|
(7)
|
1
|
3
|
|
Asia Pacific
|
3
|
2
|
5
|
(2)
|
2
|
5
|
|
Latin
America
|
8
|
4
|
12
|
—
|
2
|
14
|
|
Total
|
7 %
|
2 %
|
9 %
|
(2) %
|
1 %
|
8 %
|
|
1.
|
Corporate & Other
includes activities of the Retained Businesses and previously
divested businesses.
|
2.
|
Europe, Middle East and
Africa.
|
DuPont de Nemours,
Inc.
Selected Financial
Information and Non-GAAP Measures
|
|
|
|
Operating
EBITDA by Segment
|
Three Months
Ended
|
Six Months
Ended
|
|
In millions
(Unaudited)
|
Jun 30,
2022
|
Jun 30,
2021
|
Jun 30,
2022
|
Jun 30,
2021
|
|
Electronics &
Industrial
|
$
480
|
$
424
|
$
956
|
$
860
|
|
Water &
Protection
|
348
|
352
|
689
|
707
|
|
Corporate & Other
1
|
1
|
4
|
2
|
16
|
|
Total
|
$
829
|
$
780
|
$
1,647
|
$
1,583
|
|
1. In addition to
corporate expenses, Corporate & Other includes activities of
the Retained Businesses and previously divested
businesses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings
of Nonconsolidated Affiliates by Segment
|
Three Months
Ended
|
Six Months
Ended
|
|
In millions
(Unaudited)
|
Jun 30,
2022
|
Jun 30,
2021
|
Jun 30,
2022
|
Jun 30,
2021
|
|
Electronics &
Industrial
|
$
9
|
$
10
|
$
19
|
$
19
|
|
Water &
Protection
|
8
|
8
|
22
|
20
|
|
Corporate & Other
1
|
3
|
2
|
5
|
4
|
|
Total equity earnings
included in operating EBITDA (GAAP)
|
$
20
|
$
20
|
$
46
|
$
43
|
|
1. Corporate &
Other includes activities of the Retained Businesses and previously
divested businesses.
|
|
|
|
|
|
|
|
|
|
Reconciliation of
"Income (Loss) from continuing operations, net of tax" to
"Operating EBITDA"
|
Three Months
Ended
|
Six Months
Ended
|
|
|
In millions
(Unaudited)
|
Jun 30,
2022
|
Jun 30,
2021
|
Jun 30,
2022
|
Jun 30,
2021
|
|
Income from continuing
operations, net of tax (GAAP)
|
$
365
|
$
395
|
$
597
|
$
781
|
|
+ Provision for income
taxes on continuing operations
|
113
|
93
|
160
|
92
|
|
Income from continuing
operations before income taxes
|
$
478
|
$
488
|
$
757
|
$
873
|
|
+ Depreciation and
amortization
|
281
|
262
|
578
|
517
|
|
- Interest
income 1
|
2
|
5
|
3
|
9
|
|
+ Interest
expense
|
120
|
129
|
238
|
275
|
|
- Non-operating
pension/OPEB benefit 1
|
6
|
7
|
13
|
13
|
|
-
Foreign exchange (gains) losses, net 1
|
9
|
(10)
|
4
|
(16)
|
|
+ Future reimbursable
indirect costs
|
15
|
15
|
31
|
31
|
|
- Significant
items
|
48
|
112
|
(63)
|
107
|
|
Operating EBITDA
(non-GAAP)
|
$
829
|
$
780
|
$
1,647
|
$
1,583
|
|
1.
|
Included in "Sundry
income (expense) - net."
|
Reconciliation of
"Cash provided by operating activities" to Free Cash
Flow
|
Three Months
Ended
|
Six Months
Ended
|
In millions
(Unaudited)
|
Jun 30,
2022
|
Jun 30,
2021
|
Jun 30,
2022
|
Jun 30,
2021
|
Cash provided by
operating activities (GAAP) 1
|
$
86
|
$
440
|
$
295
|
$
818
|
Capital
expenditures
|
$
(135)
|
$
(216)
|
(386)
|
(499)
|
Free cash flow
(non-GAAP)
|
$
(49)
|
$
224
|
$
(91)
|
$
319
|
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 six 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 June 30,
2022
|
In millions, except per
share amounts (Unaudited)
|
Pretax
1
|
Net Income
2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$ 478
|
$ 357
|
$ 0.71
|
|
Less: Significant
items
|
|
|
|
|
Acquisition,
integration and separation costs 4
|
(13)
|
(11)
|
(0.02)
|
Acquisition,
integration and separation costs
|
Gain on divestiture
5
|
63
|
57
|
0.11
|
Sundry income (expense)
- net
|
Intended Rogers
Acquisition financing fees 6
|
(2)
|
(2)
|
—
|
Interest
expense
|
Income tax related
item
|
—
|
(11)
|
(0.02)
|
Provision for income
taxes on continuing operation
|
Total significant
items
|
$
48
|
$
33
|
$ 0.07
|
|
Less: Amortization of
intangibles
|
(148)
|
(115)
|
(0.23)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
6
|
5
|
0.01
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(15)
|
(12)
|
(0.02)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$ 587
|
$ 446
|
$ 0.88
|
|
Significant Items
Impacting Results for the Three Months Ended June 30,
2021
|
In millions, except per
share amounts (Unaudited)
|
Pretax
1
|
Net Income
2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$ 488
|
$ 390
|
$ 0.73
|
|
Less: Significant
items
|
|
|
|
|
Acquisition,
integration and separation costs 7
|
(23)
|
(21)
|
(0.04)
|
Acquisition,
integration and separation costs
|
Restructuring and
asset related charges - net 8
|
(5)
|
(3)
|
(0.01)
|
Restructuring and asset
related charges - net
|
Gain on divestiture
9
|
140
|
105
|
0.20
|
Sundry income (expense)
- net
|
Income tax related
item
|
—
|
(2)
|
—
|
Provision for income
taxes on continuing operation
|
Total significant
items
|
$ 112
|
$
79
|
$ 0.15
|
|
Less: Amortization of
intangibles
|
(127)
|
(100)
|
(0.20)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
7
|
4
|
0.01
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(15)
|
(12)
|
(0.02)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$ 511
|
$ 419
|
$ 0.79
|
|
1.
|
Income 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 per common
share from continuing operations - diluted.
|
4.
|
Acquisition,
integration and separation costs related to strategic initiatives
including the sale of the Biomaterials business unit, the
acquisition of Laird PM and the Intended Rogers
Acquisition.
|
5.
|
Reflects the gains on
sale of the Biomaterials business unit within Corporate & Other
and the sale of a land use right within the Water & Protection
segment.
|
6.
|
Reflects structuring
fees and the amortization of the commitment fees related to the
financing agreements entered into in preparation for the Intended
Rogers Acquisition.
|
7.
|
Acquisition,
integration and separation costs related to strategic initiatives,
which primarily includes the sale of the Solamet®, Biomaterials,
and Clean Technologies business units.
|
8.
|
Includes Board approved
restructuring plans and asset related charges.
|
9.
|
Reflects the gain from
the sale of the Solamet® business within Corporate & Other and
post-closing adjustments related previously divested
businesses.
|
DuPont de Nemours,
Inc.
Selected Financial
Information and Non-GAAP Measures
|
|
Significant Items
Impacting Results for the Six Months Ended June 30,
2022
|
In millions, except per
share amounts (Unaudited)
|
Pretax
1
|
Net Income
2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$ 757
|
$ 571
|
$ 1.12
|
|
Less: Significant
items
|
|
|
|
|
Acquisition,
integration and separation costs 4
|
(21)
|
(17)
|
(0.03)
|
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)
|
(0.12)
|
Restructuring and asset
related charges - net
|
Gain on divestiture
7
|
63
|
57
|
0.11
|
Sundry income (expense)
- net
|
Intended Rogers
Acquisition financing fees 8
|
(4)
|
(3)
|
(0.01)
|
Interest
expense
|
Income tax related
item
|
—
|
(14)
|
(0.03)
|
Provision for income
taxes on continuing operations
|
Total significant
items
|
$ (63)
|
$ (47)
|
$
(0.09)
|
|
Less: Amortization of
intangibles
|
(301)
|
(234)
|
(0.46)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
13
|
10
|
0.02
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(31)
|
(24)
|
(0.05)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$
1,139
|
$ 866
|
$ 1.70
|
|
Significant Items
Impacting Results for the Six Months Ended June 30,
2021
|
In millions, except per
share amounts (Unaudited)
|
Pretax
1
|
Net Income
2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$ 873
|
$ 778
|
$ 1.37
|
|
Less: Significant
items
|
|
|
|
|
Acquisition,
integration and separation costs 9
|
(29)
|
(26)
|
(0.04)
|
Acquisition,
integration and separation costs
|
Restructuring and
asset related charges - net 5
|
(7)
|
(5)
|
(0.01)
|
Restructuring and asset
related charges - net
|
Gain on divestitures
10
|
143
|
108
|
0.19
|
Sundry income (expense)
- net
|
Income tax related
item 11
|
—
|
75
|
0.13
|
Provision for income
taxes on continuing operations
|
Total significant
items
|
$ 107
|
$ 152
|
$ 0.27
|
|
Less: Amortization of
intangibles
|
(252)
|
(197)
|
(0.35)
|
Amortization of
intangibles
|
Less: Non-op pension /
OPEB benefit
|
13
|
7
|
0.01
|
Sundry income (expense)
- net
|
Less: Future
reimbursable indirect costs
|
(31)
|
(24)
|
(0.04)
|
Cost of sales; Research
and development expenses; Selling, general and administrative
expenses
|
Adjusted results
(non-GAAP)
|
$
1,036
|
$ 840
|
$ 1.48
|
|
1.
|
Income 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 per common
share from continuing operations - diluted.
|
4.
|
Acquisition,
integration and separation costs related to strategic initiatives
including the sale of the Biomaterials business unit, the
acquisition of Laird PM and the Intended Rogers
Acquisition.
|
5.
|
Includes Board approved
restructuring plans and asset related charges.
|
6.
|
Reflects a pre-tax
impairment charge related to an equity method
investment.
|
7.
|
Reflects the gains on
sale of the Biomaterials business unit within Corporate & Other
and the sale of land use right within the Water & Protection
segment.
|
8.
|
Reflects structuring
fees and the amortization of the commitment fees related to the
financing agreements entered into in preparation for the Intended
Rogers Acquisition.
|
9.
|
Acquisition,
integration and separation costs related to strategic initiatives,
which primarily includes the acquisition of Laird PM and the sale
of the Solamet®, Biomaterials, and Clean Technologies business
units.
|
10.
|
Reflects the gain from
the sale of the Solamet® business within Corporate & Other and
post-closing adjustments related to previously divested
businesses.
|
11.
|
Includes a net $77
million tax benefit primarily related to the impact of tax reform
in Switzerland.
|
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SOURCE DuPont