Ink World Staff07.31.20
DuPont announced financial results for the second quarter 2020.
Net sales totaled $4.8 billion, down 12% versus the year-ago period. On an organic basis, net sales were down 10% as organic growth of 7% in Electronics & Imaging and 1% in Nutrition & Biosciences was more than offset by organic sales declines in the other segments.
“In the midst of the ongoing pandemic we delivered results ahead of expectations, while also continuing our emphasis on the safety and well-being of our employees and the needs of our customers,” said Ed Breen, DuPont executive chairman and CEO.
“We delivered on our structural cost commitments and generated organic revenue growth in the Electronics & Imaging and Nutrition & Biosciences segments despite significant declines in global economic activity,” added Breen. “Additionally, we saw continued strength in Tyvek protective garment and water end markets, achieving double-digit revenue growth for the second consecutive quarter. I am proud of our team’s focus on execution, and I am confident in the actions we have taken to mitigate the impact of this pandemic. I believe we are well-positioned to emerge from this as an even stronger company.”
"The quick and decisive actions we took in the early days of the pandemic to strengthen our balance sheet, increase our cost savings initiatives, and differentially manage our portfolio enabled us to deliver a solid quarter,” said Lori Koch, DuPont CFO. “Our businesses are well-equipped to build upon their leading market positions and outperform when markets fully recover.”
GAAP loss from continuing operations totaled $(2.5) billion, versus GAAP loss from continuing operations of $(1.1 billion) in the year-ago period; the decline mostly attributable to a non-cash impairment charge in the Transportation & Industrial segment resulting from significant near-term demand weakness in the automotive industry due to COVID-19 as well as revised views of market recovery based on third-party estimates.
Operating EBITDA was $1.1 billion, down 20% versus operating EBITDA in the prior year. Strength in semiconductor, water, Tyvek protective garment, and health & wellness markets coupled with approximately $130 million of cost savings was more than offset by volume declines and charges of $160 million associated with temporarily idling certain facilities primarily in the Transportation & Industrial segment.
Operating cash flow of $802 million included reductions in working capital of more than $160 million in the quarter. Capital expenditures of approximately $240 million resulted in free cash flow of $564 million.
In particular, Electronics & Imaging reported net sales of $905 million in the second quarter of 2020, up 5% from the year-ago period. Organic sales were up 7% with volume up 7% and price flat. Currency and portfolio were each a 1% headwind.
Strong volume gains in Semiconductor Technologies more than offset weaker demand in Interconnect Solutions and Image Solutions. Double-digit gains in Semiconductor Technologies were led by continued strength within logic and foundry, driven by the ramp-up of advanced technology nodes, as well as robust demand for memory in servers and data centers. Volume declines within Interconnect Solutions were primarily due to softness in smartphones and select industrial markets. Within Image Solutions, strength in ink for the consumer segment was more than offset by weakness in flexographic plates, textile inks, and OLEDs.
Operating EBITDA for the segment was $277 million, an increase of 13% from operating EBITDA of $246 million in the year-ago period, driven primarily by volume gains in Semiconductor Technologies and cost productivity actions. Operating EBITDA margins improved 190 basis points versus the year-ago period.
Net sales totaled $4.8 billion, down 12% versus the year-ago period. On an organic basis, net sales were down 10% as organic growth of 7% in Electronics & Imaging and 1% in Nutrition & Biosciences was more than offset by organic sales declines in the other segments.
“In the midst of the ongoing pandemic we delivered results ahead of expectations, while also continuing our emphasis on the safety and well-being of our employees and the needs of our customers,” said Ed Breen, DuPont executive chairman and CEO.
“We delivered on our structural cost commitments and generated organic revenue growth in the Electronics & Imaging and Nutrition & Biosciences segments despite significant declines in global economic activity,” added Breen. “Additionally, we saw continued strength in Tyvek protective garment and water end markets, achieving double-digit revenue growth for the second consecutive quarter. I am proud of our team’s focus on execution, and I am confident in the actions we have taken to mitigate the impact of this pandemic. I believe we are well-positioned to emerge from this as an even stronger company.”
"The quick and decisive actions we took in the early days of the pandemic to strengthen our balance sheet, increase our cost savings initiatives, and differentially manage our portfolio enabled us to deliver a solid quarter,” said Lori Koch, DuPont CFO. “Our businesses are well-equipped to build upon their leading market positions and outperform when markets fully recover.”
GAAP loss from continuing operations totaled $(2.5) billion, versus GAAP loss from continuing operations of $(1.1 billion) in the year-ago period; the decline mostly attributable to a non-cash impairment charge in the Transportation & Industrial segment resulting from significant near-term demand weakness in the automotive industry due to COVID-19 as well as revised views of market recovery based on third-party estimates.
Operating EBITDA was $1.1 billion, down 20% versus operating EBITDA in the prior year. Strength in semiconductor, water, Tyvek protective garment, and health & wellness markets coupled with approximately $130 million of cost savings was more than offset by volume declines and charges of $160 million associated with temporarily idling certain facilities primarily in the Transportation & Industrial segment.
Operating cash flow of $802 million included reductions in working capital of more than $160 million in the quarter. Capital expenditures of approximately $240 million resulted in free cash flow of $564 million.
In particular, Electronics & Imaging reported net sales of $905 million in the second quarter of 2020, up 5% from the year-ago period. Organic sales were up 7% with volume up 7% and price flat. Currency and portfolio were each a 1% headwind.
Strong volume gains in Semiconductor Technologies more than offset weaker demand in Interconnect Solutions and Image Solutions. Double-digit gains in Semiconductor Technologies were led by continued strength within logic and foundry, driven by the ramp-up of advanced technology nodes, as well as robust demand for memory in servers and data centers. Volume declines within Interconnect Solutions were primarily due to softness in smartphones and select industrial markets. Within Image Solutions, strength in ink for the consumer segment was more than offset by weakness in flexographic plates, textile inks, and OLEDs.
Operating EBITDA for the segment was $277 million, an increase of 13% from operating EBITDA of $246 million in the year-ago period, driven primarily by volume gains in Semiconductor Technologies and cost productivity actions. Operating EBITDA margins improved 190 basis points versus the year-ago period.
