DuPont De Nemours Reports Mixed First Quarter, Sees Hope On The Horizon

DuPont De Nemours, Inc. (NYSE: DD) reported a first-quarter fiscal 2024 sales decline of 3% year-over-year to $2.931 billion, beating the consensus of $2.813 billion.

Organic sales fell 6%, reflecting a 5% decrease in volume and a 1% decrease in price. Organic sales by region YoY: EMEA -8%, U.S./Canada -7% and Asia Pacific -4%.

Ed Breen, DuPont Executive Chairman and CEO, said, “The first quarter was encouraging as the electronics market saw continued recovery, demonstrated by 11 percent year-over-year volume growth in Semiconductor Technologies and another quarter of volume growth in Interconnect Solutions.”

Electronics & Industrial sales totaled $1.365 billion (+5% Y/Y), and the operating EBITDA margin contracted by 50 bps to 27.4%.

Water & Protection sales were $1.291 billion (-11% Y/Y), and the operating EBITDA margin contracted by 80 bps to 22.9%.

DuPont’s operating EBITDA declined by 4% Y/Y, and its margin declined by 40 bps to 23.3%.

Adjusted EPS for the quarter was $0.79, down from $0.84 a year ago, beating the consensus of $0.65.

Operating cash flow from continuing activities for the quarter was $493 million, compared to $405 million a year ago. Adjusted free cash flow was $286 million (+65% Y/Y).

DuPont held cash and equivalents of $2.347 billion as of March-end.

“For the second quarter of 2024, we expect sequential sales and earnings improvement driven by favorable seasonality, continued electronics recovery, and reduced channel inventory destocking in industrial-based end-markets including water and medical packaging,” said Lori Koch, Chief Financial Officer. 

DuPont’s quarterly dividend of $0.38 per share is payable on June 17 to holders of record on May 31.

Q2 Outlook: DuPont expects net sales of ~$3.025 billion versus consensus of $3.025 billion, and Adjusted EPS of ~$0.84 against the consensus of $0.78; sees Operating EBITDA of ~$710 million.

2024 Outlook, raised: DuPont sees adjusted EPS of $3.45 – $3.75 (prior $3.25-$3.65) versus $3.45 consensus and revenue of $12.1 billion – $12.4 billion (prior $11.9 billion-$12.3 billion) versus $12.116 billion consensus.

Price Action: DD shares were trading higher by 7.77% to $78.13 at the last check Wednesday.