DuPont Reports 1Q 2021 Results

Led by double-digit sales growth in the Electronics & Industrial segment, DuPont announced financial results for the first quarter 2021.

Net sales totaled $4 billion, up 8% versus the year-ago period as reported and up 7% versus the year-ago period on an organic basis. Sales were up on an as reported and organic basis in all three segments, led by double-digit growth in Electronics & Industrial on continued strength in both semiconductors and smartphone technologies.

“As we emerge from the COVID-19 pandemic, the leading positions we hold in semiconductor, smartphones, automotive, water filtration, and residential construction end-markets enabled us to deliver strong first quarter results ahead of expectations with organic sales growth in all three reporting segments,” said Ed Breen, DuPont executive chairman and CEO. “We delivered these results despite headwinds associated with escalating raw material and logistics costs and global supply constraints of key raw materials.”

“In addition to delivering solid financial results, we advanced a number of strategic priorities,” Breen continued. “During the first quarter, we completed the separation of our Nutrition & Biosciences business via a tax-free split and signed agreements to divest our Clean Technologies and Solamet businesses and expect all three transactions will deliver approximately $8 billion in gross proceeds.

GAAP EPS from continuing operations totaled $0.89 on GAAP income from continuing operations of $541 million, versus GAAP EPS from continuing operations of $(0.75) on a GAAP loss from continuing operations of $(550) million in the year-ago period. Operating EBITDA was $1.05 billion, up 15% versus operating EBITDA in the prior year.

Operating cash flow for the quarter was $378 million and included working capital headwinds of about $300 million led by higher accounts receivable balances on increased sales. Capital expenditures of $283 million resulted in free cash flow of $95 million.

In term of first quarter 2021 segments, Electronics & Industrial reported a record quarter with net sales of $1.3 billion, up 17% from the year-ago period. Organic sales were up 14% driven by a 15% volume gain offset by a 1% decline in price.

Volume gains were led by Semiconductor Technologies where new technology ramps in advanced nodes within logic and foundry along with robust demand for memory in servers and data centers delivered double-digit growth versus the year-ago period. Within Industrial Solutions, double-digit volume gains in display materials and healthcare more than offset continued weakness in aerospace and flexographic printing.
  
“With a strong start to the year, positive trends continuing in our key end-markets and confidence in our team’s ability to navigate through global supply constraints, we are raising our guidance for the year for net sales, operating EBITDA and adjusted EPS,” said Lori Koch, CFO of DuPont. “For full year 2021, we now estimate net sales to be between $15.7 billion and $15.9 billion and operating EBITDA between $3.98 billion and $4.08 billion.”