01—Abstract
Summary
Summary of the 8-K filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
DuPont de Nemours, Inc. reported first quarter 2024 results on May 1, 2024, per Exhibit 99.1, a press release announcing Q1 2024 results.
Net sales were $2,931 milliona, down 3% from $3,018 million a year earlier, with organic sales down 6% (volume down 5%, price down 1%) partially offset by a 4% favorable portfolio impact, primarily from the August 2023 Spectrum acquisition. GAAP income from continuing operations fell 33% to $183 million, GAAP EPS from continuing operations was $0.41 versus $0.58, and operating EBITDA declined 4% to $682 million. Adjusted EPS was $0.79 versus $0.84, reflecting higher restructuring charges, lower segment earnings and higher net interest expense, partly offset by a lower share count.
Cash flow improved materially. Cash provided by operating activities from continuing operations was $493 millionb versus $405 million, and adjusted free cash flow was $286 million versus $173 million. The company completed a $500 million accelerated share repurchase launched in February, and the filing references a $1 billion share repurchase program announced February 6, 2024.
Electronics & Industrial net sales rose 5% to $1,365 millionc, with Semiconductor Technologies up 10% organically, while Water & Protection sales fell 11% to $1,291 million on channel inventory destocking. Management raised full-year 2024 guidance for net sales ($12,100 million to $12,400 million), operating EBITDA ($2,900 million to $3,050 million) and adjusted EPS ($3.45 to $3.75). The company expects sequential sales and earnings improvement in the second quarter of 2024, with year-over-year growth in the second half driven by electronics recovery and a return to volume growth in Water & Protection.
02—Key points
Key Highlights
- Net sales of $2,931 million, down 3%; organic sales down 6%, with a 4% favorable portfolio impact
- GAAP EPS from continuing operations of $0.41 versus $0.58; adjusted EPS of $0.79 versus $0.84
- Operating EBITDA of $682 million, down 4%, with operating EBITDA margin of 23.3%
- Adjusted free cash flow of $286 million, up 65%; adjusted free cash flow conversion of 86%
- $500 million accelerated share repurchase launched in February was completed in April
- Full-year 2024 guidance raised for net sales, operating EBITDA and adjusted EPS
- Semiconductor Technologies organic sales up 10%, while Water & Protection sales fell 11%
03—Questions
Frequently Asked Questions
Why did DuPont's earnings decline in the first quarter of 2024?
GAAP income from continuing operations fell 33% to $183 million, driven primarily by higher restructuring charges, lower segment earnings and higher net interest expense, partially offset by a lower share count. Adjusted EPS decreased to $0.79 from $0.84 for similar reasons.
Which business segments drove the results?
Electronics & Industrial net sales rose 5% to $1,365 million, helped by the Spectrum acquisition and 10% organic growth in Semiconductor Technologies. Water & Protection net sales fell 11% to $1,291 million, with Water Solutions and Safety Solutions affected by channel inventory destocking.
How did cash flow and capital return change?
Cash provided by operating activities from continuing operations rose to $493 million from $405 million, and adjusted free cash flow rose to $286 million from $173 million. The company completed a $500 million accelerated share repurchase in April.
What is the updated full-year 2024 outlook?
DuPont raised its full-year 2024 guidance to net sales of $12,100 million to $12,400 million, operating EBITDA of $2,900 million to $3,050 million, and adjusted EPS of $3.45 to $3.75. For the second quarter, it expects sequential sales and earnings improvement.
04—Continue