01—Abstract
Summary
Summary of the 10-Q filed November 5, 2024. Cited figures are marked; the original filing is the authoritative source.
DuPont de Nemours, Inc. reported third-quarter 2024 net sales of $3.19 billiona, up from $3.06 billion a year earlier, driven by a 5 percent volume increase and a 2 percent increase from portfolio actions, partially offset by 2 percent declines in local price and product mix and 1 percent unfavorable currency impact.
Income from continuing operations rose to $480 millionb from $291 million, and net income available for common stockholders was $454 million versus $319 million. Results were helped by a $191 million non-cash gain on interest rate swaps and a lower effective tax rate of 18.1 percent, which the filing attributes largely to discrete tax benefits including an international tax audit settlement. Operating EBITDA, the company's segment profit measure, was $857 million versus $775 million.
Electronics & Industrial drove growth, with net sales up 13 percent on volume gains in Semiconductor Technologies and Interconnect Solutions, while Water & Protection net sales fell 2 percent. For the nine months ended September 30, 2024, net sales were approximately $9.3 billionc, up 1 percent, and cash provided by continuing operations was $1,757 million versus $1,545 million. Cash and cash equivalents fell to $1,645 million from $2,392 million at year-end 2023, and long-term debt declined to $7,170 million from $7,800 million after a $650 million partial redemption of 2038 notes.
The company completed its $5 billiond share buyback program in the first quarter of 2024 and has $500 million remaining under a $1 billion program that it stated it does not currently plan to complete, given its focus on the Intended Business Separations announced May 22, 2024, which would split the company into three independent public companies. The filing also discloses ongoing PFAS-related liabilities, with the company's share of the Water District Settlement Fund contribution of $400 million paid in 2023 and an accrued total of $226 million for MOU-related indemnification liabilities.
The filing notes credit ratings of BBB+ at S&P and Fitch and Baa1 at Moody's, with S&P and Fitch on watch negative and Moody's outlook negative following the separation announcement. Management stated the company has sufficient liquidity, with $3.6 billion of working capital and a current ratio of 2.28:1.
02—Key points
Key Highlights
- Net sales for Q3 2024 were $3,192 million, up from $3,058 million, with volume up 5 percent and portfolio actions adding 2 percent.
- Net income available for DuPont common stockholders was $454 million in Q3 2024 versus $319 million in Q3 2023; diluted EPS was $1.08 versus $0.70.
- Sundry income was $199 million in Q3 2024, including a $191 million gain from interest rate swap activity; the nine-month swap gain was $152 million.
- Electronics & Industrial net sales rose 13 percent in Q3 2024 to $1,551 million, while Water & Protection net sales declined 2 percent to $1,382 million.
- Long-term debt fell to $7,170 million from $7,800 million after a $650 million partial redemption of 2038 notes, which produced a $74 million loss on debt extinguishment.
- The company completed its $5 billion share buyback program and has $500 million remaining under a $1 billion program that it does not currently plan to complete.
- The planned separation into three independent public companies (the Intended Business Separations), announced May 22, 2024, led S&P and Fitch to place ratings on watch negative.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 5, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $1.71B$3.06B | −44.0% |
| Cost of Revenue | $1.13B$1.95B | −42.0% |
| Gross Profit | $580.00M$1.10B | −47.5% |
| R&D Expenses | $127.00M$128.00M | −0.8% |
| SG&A Expenses | $368.00M$360.00M | +2.2% |
| Net Income | $454.00M$319.00M | +42.3% |
| EPS (Basic) | $1.09$0.71 | +53.5% |
| EPS (Diluted) | $1.08$0.70 | +54.3% |
| Shares Outstanding (Basic) | 417.90M451.70M | −7.5% |
| Shares Outstanding (Diluted) | 419.50M453.40M | −7.5% |
05—Questions
Frequently Asked Questions
How did DuPont perform in the third quarter of 2024?
Net sales rose to $3,192 million from $3,058 million, and income from continuing operations increased to $480 million from $291 million. Operating EBITDA was $857 million versus $775 million. Part of the profit increase came from a $191 million non-cash interest rate swap gain and a lower effective tax rate of 18.1 percent.
What is the Intended Business Separation?
On May 22, 2024, DuPont announced a plan to separate into three independent, publicly traded companies by separating its Electronics and Water businesses. The filing says completion is expected within 18 to 24 months of announcement, is subject to customary conditions including Board approval, tax opinions and Form 10 registration, and is intended to be tax-free for U.S. federal income tax purposes for shareholders.
How is DuPont's liquidity and debt position?
Cash and cash equivalents were $1,645 million at September 30, 2024, down from $2,392 million at year-end 2023. Total debt was $7,170 million, and the company held $3.6 billion of working capital with a current ratio of 2.28:1. The company stated it was in compliance with its financial covenant requiring a debt-to-capitalization ratio not exceeding 0.60.
What PFAS-related liabilities does the filing disclose?
The company has accrued $226 million of indemnification liabilities under the MOU with Chemours, Corteva and EIDP for eligible PFAS costs, and it accrued $39 million for its share of the Ohio state settlement. The filing states it is reasonably possible that costs could exceed accrued amounts and could have a significant effect on financial condition or cash flows, and it cannot estimate a range of losses above the accrued liability.
Is DuPont continuing its share repurchases?
The company completed its $5 billion program in the first quarter of 2024. Under the $1 billion program approved in the first quarter of 2024, no purchases were made in the third quarter of 2024, and approximately $500 million remains authorized. The filing states the company does not currently plan to complete the remaining authorization, given its focus on the Intended Business Separations.
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