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WILMINGTON, Del., May 2, 2023 - DuPont (NYSE: DD) today announced financial results(1) for the first quarter ended March 31, 2023.
“We delivered earnings in line with our expectations for the first quarter of 2023 which reflects our team’s continued strong execution despite a lower volume environment in electronics and construction-related end markets,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer. “While sales within Semiconductor Technologies and Interconnect Solutions were down during the quarter as expected, Industrial Solutions as well as the Water & Protection segment delivered organic sales growth and we saw continued robust demand within our auto adhesives portfolio. Our businesses are well-equipped to leverage leading market positions and accelerate growth when consumer-driven, short-cycle electronics end markets recover.”
“Today we also announced a definitive agreement to acquire Spectrum Plastics Group(3), a leading manufacturer of critical components and devices primarily into medical end-markets for highly complex, mission critical applications,” Breen continued. “This intended acquisition adds to DuPont’s industrial technologies growth pillar and strengthens our existing position in stable and fast-growing healthcare end-markets. We expect this deal to add substantial shareholder value over time through both growth and clear synergies with our existing medical-related products.”
First Quarter 2023 Results(1)
Dollars in millions, unless noted |
1Q’23 |
1Q’22 |
Change vs. 1Q’22 |
Organic Sales (2) vs. 1Q’22 |
Net sales |
$3,018 |
$3,274 |
(8)% |
(3)% |
GAAP Income from continuing operations |
$273 |
$232 |
18% |
|
Operating EBITDA(2) |
$714 |
$818 |
(13)% |
|
Operating EBITDA(2) margin % |
23.7% |
25.0% |
(130) bps |
|
GAAP EPS from continuing operations |
$0.58 |
$0.42 |
38% |
|
Adjusted EPS(2) |
$0.84 |
$0.82 |
2% |
|
Net sales
GAAP Income/GAAP EPS from continuing operations
Operating EBITDA(2)
Adjusted EPS(2)
Operating cash flow
First Quarter 2023 Segment Highlights
Electronics & Industrial
Dollars in millions, unless noted |
1Q’23 |
1Q’22 |
Change vs. 1Q’22 |
Organic Sales(2) vs. 1Q’22 |
Net sales |
$1,296 |
$1,536 |
(16)% |
(13)% |
Operating EBITDA |
$362 |
$476 |
(24)% |
|
Operating EBITDA margin % |
27.9% |
31.0% |
(310) bps |
|
Net sales
Operating EBITDA
Water & Protection
Dollars in millions, unless noted |
1Q’23 |
1Q’22 |
Change vs. 1Q’22 |
Organic Sales(2) vs. 1Q’22 |
Net sales |
$1,449 |
$1,429 |
1% |
4% |
Operating EBITDA |
$344 |
$341 |
1% |
|
Operating EBITDA margin % |
23.7% |
23.9% |
(20) bps |
|
Net sales
Operating EBITDA
Outlook(4)
Dollars in millions, unless noted |
2Q’23E |
Full Year 2023E |
Net sales |
~$3,020 |
$12,300 - $12,500 |
Operating EBITDA(2) |
~$715 |
$3,000 - $3,100 |
Adjusted EPS(2)(4) |
~$0.84 |
$3.55 - $3.70 |
“I am pleased with our team’s focus on execution as we start the year in an environment of select volume pressure with lower volumes in electronics and construction,” said Lori Koch, Chief Financial Officer of DuPont. “We continue to expect ongoing strength throughout the year in areas such as water, automotive, aerospace and healthcare. Within electronics markets, we continue to see weakness and channel inventory destocking in the near-term.”
“Based on recent customer feedback and third-party market forecasts within electronics, we expect customer utilization rates to bottom relatively near-term and to improve during the third quarter, which is about a quarter later than previously expected,” Koch continued. “Due to the delay in electronics recovery, we are adjusting the high-end of our existing guidance ranges for full year net sales, operating EBITDA and adjusted EPS. For the second quarter 2023, we expect similar results to the first quarter as overall market conditions are anticipated to be generally the same.”
(1) Results presented on a continuing operations basis. See page 5 for further information, including the basis of presentation included in this release.
(2) Adjusted EPS, operating EBITDA, operating EBTIDA margin, 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.
(3) Acquisition of Spectrum Plastics Group (“Spectrum”) is expected to close by the end of the third quarter 2023, subject to customary closing conditions and regulatory approval.
(4) 2023 outlook on page 3 excludes estimated impact related to intended acquisition of Spectrum. Adjusted EPS outlook on page 3 assumes that by year-end 2023, the Company substantially completes the remaining repurchase authority under its $5 billion share buyback program announced on November 8, 2022.
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 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.
For further information contact:
DuPont Investors: Chris Mecray +1 302-999-2030 |
Media: Dan Turner +1 302-299-7628 |
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.