DuPont Clocks 4% Sales Growth In Q3 Backed By Strength In Key End-Markets; Plans $5B Stock Buyback

DuPont Clocks 4% Sales Growth In Q3 Backed By Strength In Key End-Markets; Plans $5B Stock Buyback

DuPont de Nemours Inc DD Q3 sales increased 4% Y/Y to $3.3 billion. Organic growth of 11% consisted of an 8% increase in price and a 3% increase in volume.

  • Operating EBITDA margin rose 30 bps Y/Y 25.8%. Adjusted EPS was $0.82, up 4% Y/Y.
  • Share Buyback: On November 7, 2022, DuPont's board approved a new share repurchase program of up to $5 billion.
  • This new repurchase authorization is in addition to the $250 million remaining under its existing share repurchase program. 
  • DD plans to enter accelerated share repurchase agreements for $3.25 billion, with $250 million of such repurchases under the existing program and the remaining $3 billion under the new program.
  • It planned to retire $2.5 billion of Senior Notes due in November 2023 during Q4 of 2022. This will enable $100 million of annual interest savings. Additionally in the fourth quarter, it planned to reduce its commercial paper balance to zero.
  • Ed Breen, DuPont Executive Chairman, and CEO said, "Underlying demand during the quarter remained strong in most of our key end-markets, notably semiconductor, water, and general industrial."
  • Guidance: DuPont updated its FY22 adjusted EPS guidance to $3.30, versus prior guidance of $3.27 - $3.43, and above the consensus of $3.28.
  • It also toned its FY22 sales forecast to $13 billion, versus the prior guidance of $13 billion - $13.4 billion, below the consensus of $13.1 billion.
  • CFO Lori Koch said, "For the fourth quarter, we expect demand to remain strong in most end-markets, notably water, industrial and auto adhesives, but do anticipate continued softness in consumer electronics globally and some expected slowing in customer semiconductor fab production rates...Lastly, we expect incremental currency headwinds to further impact both top and bottom-line results."
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  • Price Action: DD shares are up 3.34% at $63.80 during the premarket session on the last check Tuesday.

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