On November 1, 2023, DuPont de Nemours Inc (DD, Financial) released its financial results for the third quarter ended September 30, 2023. Despite ongoing volume headwinds and softness in China, the company reported solid earnings for the quarter. The company's net sales decreased by 8% to $3.1 billion, with organic sales decreasing by 10% compared to the same period last year.
Financial Highlights
GAAP income from continuing operations was reported at $291 million, a decrease of 19% from the previous year. Operating EBITDA was $775 million, a decrease of 9% from the previous year. GAAP EPS from continuing operations was $0.62, a decrease of 10% from the previous year. However, the adjusted EPS increased by 12% to $0.92.
The company also reported a 28% increase in cash provided by operating activities from continuing operations, standing at $740 million. The adjusted free cash flow was $621 million, a significant increase of 47% from the previous year.
Segment Highlights
In the Electronics & Industrial segment, net sales decreased by 9% to $1.368 billion, with operating EBITDA standing at $383 million. The Water & Protection segment reported a decrease of 8% in net sales to $1.413 billion, with operating EBITDA at $362 million.
Company Outlook
For the full year 2023, DuPont de Nemours Inc (DD, Financial) expects net sales to be approximately $12.17 billion, with operating EBITDA at approximately $2.975 billion, and adjusted EPS at approximately $3.45.
Despite the current volume headwinds and slower industrial water demand in China, the company is planning additional restructuring actions to drive operational performance. The realization of savings from these actions is expected to begin later in the first quarter of 2024.
Company Commentary
“We delivered solid third quarter earnings despite ongoing volume headwinds from channel inventory destocking and continued softness in China. Sequential operating EBITDA growth of 5% and margin improvement of 140 basis points in the third quarter demonstrated sound operating execution, while strong cash generation and conversion during the quarter also highlighted our efforts to prioritize working capital improvement in the currently uneven global business climate,” said Ed Breen, DuPont Executive Chairman and Chief Executive Officer.
Explore the complete 8-K earnings release (here) from DuPont de Nemours Inc for further details.
