DuPont provided an update on current business conditions and announced actions it is taking to address macroeconomic uncertainty driven by the global outbreak of COVID-19.
“Our team is meeting the unprecedented challenges presented by the COVID-19 pandemic with an unwavering commitment to the safety of our employees, our customers and the communities in which we operate, all while delivering solid financial results for the first quarter of 2020,” said Ed Breen, executive chairman and CEO. “However, as this pandemic expands globally, the uncertainty around demand in select end-markets continues. In response, we continue to advance initiatives to improve our working capital, and have taken steps to delay certain capital investments and idle production at several manufacturing sites.”
Due to the uncertainties presented by COVID-19, DuPont has implemented a number of proactive measures to enhance its already strong liquidity position and improve working capital. DuPont entered into a 364-day $1.0 billion revolving credit facility, replacing the $750 million revolving credit facility that was set to expire in June 2020, and secured a $2.0 billion 364-day delayed-draw facility ensuring its ability to meet the November 2020 maturities; the company may elect to replace this facility via the capital markets.
The company delayed certain capital investments, and idled production at several manufacturing sites, predominantly production plants within the Transportation and Industrial segment, due to the current global automotive environment.
“Securing these two new facilities further strengthens our near-term liquidity position. Additionally, we now have committed financing in place to bridge our debt maturing in November 2020 to the receipt of the special cash payment in connection with the Nutrition & Biosciences and IFF transaction,” said Breen. “Combined with our existing cash balances and available borrowings through our commercial paper program, these facilities provide the liquidity needed to navigate these uncertain times.”
DuPont also announced it expects first-quarter 2020 GAAP EPS in the range of $1.00) to $0.70 and adjusted EPS in the range of $0.82 - $0.84 on net sales of approximately $5.2 billion. First-quarter 2020 GAAP income (loss) from continuing operations is expected to be in the range of $725) million to $510 million and operating EBITDA is expected to be approximately $1.3 billion.