DuPont Q3 2022 Earnings Report
Key Takeaways
DuPont reported a 4% increase in net sales to $3.3 billion for Q3 2022, with organic sales growing by 11%. The company's GAAP EPS from continuing operations was $0.69, and adjusted EPS was $0.82, a 4% increase year-over-year. DuPont also announced a new $5.0 billion share repurchase program and the intent to retire $2.5 billion of Senior Notes due in November 2023.
Net sales increased 4%; organic sales increased 11% versus year-ago period.
GAAP Income from continuing operations of $359 million; operating EBITDA of $856 million increased 5% versus year-ago period.
GAAP EPS from continuing operations of $0.69; adjusted EPS of $0.82 increased 4% versus year-ago period.
Announced Board approval of new $5.0 billion share repurchase program with intended $3.25 billion accelerated share repurchase program to be executed imminently.
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DuPont Revenue by Geographic Location
Forward Guidance
DuPont expects demand to remain strong in most end-markets, but anticipates continued softness in consumer electronics and some slowing in semiconductor fab production rates. The company plans to reduce production rates to realign working capital and expects incremental currency headwinds to further impact results. Full year organic sales growth is expected to be high-single digits, and updated full year adjusted EPS guidance includes a $0.09 headwind from an increased tax rate, offset by a lower share count and net interest benefits.
Positive Outlook
- Demand across most key end-markets remained strong.
- Teams continued to successfully execute in a challenging macro environment.
- Expect demand to remain strong in most end-markets, notably water, industrial and auto adhesives.
- Expect full year organic sales growth of high-single digits remains unchanged.
- Lower share count resulting from planned share repurchases and net interest benefits expected to be realized related to cash proceeds received from the M&M transaction.
Challenges Ahead
- Challenging macro environment marked by inflation and foreign currency headwinds.
- Anticipate continued softness in consumer electronics globally.
- Some expected slowing in customer semiconductor fab production rates.
- Expect incremental currency headwinds to further impact both top and bottom-line results.
- Updated full year adjusted EPS guidance is inclusive of a $0.09 headwind resulting from an increase in the anticipated tax rate for the full year 2022
Revenue & Expenses
Visualization of income flow from segment revenue to net income