01—Abstract
Summary
Summary of the 10-K filed February 11, 2022. Cited figures are marked; the original filing is the authoritative source.
DuPont de Nemours, Inc. reported net sales of $16.65 billiona for 2021, up 16 percent from $14.34 billion in 2020, driven by a 10 percent increase in volume and a 4 percent increase from local price and product mix.
Net income available to common stockholders was $6.47 billionb, compared with a loss of $2.95 billion in 2020, largely reflecting a $4.71 billion gain from discontinued operations tied to the February 1, 2021 divestiture of the Nutrition & Biosciences business to IFF. Income from continuing operations before income taxes was $2.20 billion, versus a pre-tax loss of $2.25 billion in 2020, which included $3.21 billion of goodwill impairment charges that did not recur in 2021. Operating EBITDA rose to $4.17 billion from $3.44 billion.
The company's balance sheet shrank substantially after the N&B separation: total debt fell to $10.78 billionc from $15.61 billion, and cash and cash equivalents were $2.01 billion at year-end. Net working capital was $3.80 billion. Cash provided by operating activities was $2.28 billion, while capital expenditures totaled $891 million.
The company acquired Laird Performance Materials for $2.40 billiond in July 2021 and agreed to acquire Rogers Corporation for about $5.2 billion, with closing expected by the end of the second quarter of 2022. It also initiated a divestiture process for a substantial portion of its Mobility & Materials segment, which predominantly includes the Engineering Polymers and Performance Resins lines.
For 2022, the company expects demand to remain strong across all segments and anticipates earnings improvement versus 2021, while raw material and logistics costs are expected to remain elevated. The Board declared a first-quarter 2022 dividend of $0.33 per share, a ten percent increase, and authorized a new $1.0 billion share buyback program.
02—Key points
Key Highlights
- Net sales were $16.65 billion in 2021, up 16 percent from $14.34 billion in 2020, with volume up 10 percent and local price and product mix up 4 percent.
- Net income available to common stockholders was $6.47 billion, or $11.89 per diluted share, compared with a loss of $2.95 billion in 2020, driven by a $4.71 billion gain from discontinued operations.
- Operating EBITDA increased to $4.17 billion from $3.44 billion, with Electronics & Industrial reaching $1.76 billion and Mobility & Materials rising to $1.08 billion from $588 million.
- Total debt was reduced to $10.78 billion from $15.61 billion, following the repayment of $3.0 billion in term loans and the redemption of the May 2020 Notes.
- The company acquired Laird Performance Materials for $2.40 billion on July 1, 2021, and agreed to acquire Rogers Corporation for about $5.2 billion, expected to close by the end of the second quarter of 2022.
- A divestiture process was initiated for a substantial portion of the Mobility & Materials segment, which predominantly includes the Engineering Polymers and Performance Resins lines of business.
- The Board declared a first-quarter 2022 dividend of $0.33 per share, a ten percent increase, and authorized a new $1.0 billion share buyback program expiring March 31, 2023.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 11, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $12.57B$20.40B | −38.4% |
| Cost of Revenue | $7.97B$7.06B | +12.9% |
| Gross Profit | $4.59B$13.33B | −65.5% |
| R&D Expenses | $557.00M$565.00M | −1.4% |
| SG&A Expenses | $1.60B$1.49B | +7.4% |
| Net Income | $6.47B-$2.95B | +319.1% |
| EPS (Basic) | $11.92$-4.01 | +397.3% |
| EPS (Diluted) | $11.89$-4.01 | +396.5% |
| Shares Outstanding (Basic) | 542.70M735.50M | −26.2% |
| Shares Outstanding (Diluted) | 544.20M735.50M | −26.0% |
05—Questions
Frequently Asked Questions
What drove the swing from a net loss in 2020 to strong net income in 2021?
Net income available to common stockholders was $6.47 billion in 2021 compared with a loss of $2.95 billion in 2020. The main driver was a $4.71 billion income from discontinued operations, which includes a non-taxable gain of $4.92 billion on the split-off of Nutrition & Biosciences. Continuing operations also improved, with pre-tax income of $2.20 billion versus a pre-tax loss of $2.25 billion, as 2020 included $3.21 billion of goodwill impairment charges that did not recur.
How much debt does DuPont carry, and how has it changed?
Total debt was $10.78 billion at December 31, 2021, down from $15.61 billion at December 31, 2020. The decrease reflects the termination and repayment of the $3.0 billion term loan facilities in the first quarter of 2021 and the redemption of the $2.0 billion May 2020 Notes in the second quarter of 2021. The company's credit ratings at January 31, 2022 were BBB+ from S&P, Baa1 from Moody's with a negative outlook, and BBB+ from Fitch.
What is the status of the Rogers acquisition and the Mobility & Materials divestiture?
DuPont agreed on November 2, 2021 to acquire Rogers Corporation for about $5.2 billion in cash, with closing expected by the end of the second quarter of 2022, subject to regulatory approvals and customary conditions. Rogers shareholders approved the transaction on January 25, 2022. A 2021 Term Loan Facility of $5.2 billion will fund it and must be repaid upon completion of the intended divestiture of the In-Scope M&M Businesses. The divestiture process for a substantial portion of Mobility & Materials remains subject to Board approval and no definitive agreement is described as signed.
What does management expect for 2022?
The company expects demand to remain strong across all segments, led by ongoing strength in semiconductors, along with continued demand in industrial technologies, smartphone sales, water filtration and residential construction. It anticipates raw material and logistics costs will remain at elevated levels. Anticipated demand, productivity actions, Laird PM synergies and pricing actions are expected to deliver earnings improvement versus 2021. Capital expenditures are expected to be about $900 million.
How are shareholders being returned capital?
DuPont paid dividends of $1.20 per share in 2021 totaling $630 million. The Board declared a first-quarter 2022 dividend of $0.33 per share, a ten percent increase over the first-quarter 2021 dividend. The company repurchased 14.5 million shares for $1.1 billion under its $1.5 billion 2021 buyback program, which expires June 30, 2022, and the Board authorized an additional $1.0 billion program in February 2022 that expires March 31, 2023.
06—Continue