DuPont(US:DD)2024-11-05 11:08Financial Performance - Net sales for Q3 2024 were $3.2 billion, a 4% increase year-over-year, with organic sales growth of 3%[1][3] - GAAP income from continuing operations rose to $480 million, an increase of 65% compared to Q3 2023[1][3] - Operating EBITDA for Q3 2024 was $857 million, reflecting an 11% increase from the previous year, with a margin expansion of 150 basis points to 26.8%[1][3][4] - Adjusted EPS increased to $1.18, up 28% from $0.92 in Q3 2023[1][3] - Net income for the three months ended September 30, 2024, was $462 million, up from $328 million in the same period of 2023, marking a significant increase of 40.7%[40] - Earnings per share from continuing operations (diluted) rose to $1.13 for the three months ended September 30, 2024, compared to $0.62 in the prior year, an increase of 82.3%[41] - Net income for the nine months ended September 30, 2024, increased to $844 million, compared to $476 million in the same period of 2023[45] - Reported earnings (GAAP) for the nine months ended September 30, 2024, were $1,149 million, with net income of $816 million, translating to an EPS of $1.94[55] Segment Performance - Electronics & Industrial segment net sales grew 13% to $1.55 billion, with organic sales growth of 10% driven by semiconductor demand recovery[7][10] - Water & Protection segment net sales decreased 2% to $1.38 billion, with organic sales also down 2% due to price declines[10][11] - The Electronics & Industrial segment reported net sales of $4,424 million for the nine months ended September 30, 2024, up from $3,976 million in 2023[46] - The Water & Protection segment's net sales decreased to $4,064 million for the nine months ended September 30, 2024, from $4,356 million in 2023[46] Cash Flow and Liquidity - Cash provided by operating activities from continuing operations was $737 million, leading to transaction-adjusted free cash flow of $640 million[1][6] - Cash provided by operating activities from continuing operations was $1,757 million for the nine months ended September 30, 2024, up from $1,545 million in 2023[45] - Cash used for investing activities from continuing operations was $725 million for the nine months ended September 30, 2024, compared to $919 million in 2023[45] - Adjusted free cash flow for the three months ended September 30, 2024, was $628 million, compared to $621 million in the prior year, reflecting a 1.1% increase[52] - Transaction-adjusted free cash flow for the nine months ended September 30, 2024, was $1,351 million, compared to $1,071 million in the prior year, indicating a 26.1% increase[52] Guidance and Future Expectations - For Q4 2024, the company expects net sales of approximately $3.07 billion and operating EBITDA of about $790 million[13] - Full year 2024 guidance raised to operating EBITDA of about $3.125 billion and adjusted EPS of $3.90 per share[13] - The company is advancing plans to separate its Electronics and Water businesses, expected to be completed within 18 to 24 months[21] - Management anticipates that the Intended Business Separations will have a material impact on the company's financial statements, indicating a significant transformational change[36] Non-GAAP Measures and Adjustments - DuPont's Adjusted Earnings for the quarter were reported at $595 million, translating to approximately $1.08 per share due to amortization expenses[28] - DuPont's management emphasizes the importance of non-GAAP financial measures for evaluating ongoing performance and resource allocation[25] - Significant items related to integration and separation activities are classified to avoid misinterpretation of underlying business performance[31] - DuPont's ability to convert earnings to cash is measured through Adjusted Free Cash Flow Conversion, which is a key indicator of financial health[35] - Adjusted earnings (non-GAAP) for the nine months ended September 30, 2024, were $1,646 million, up from $1,236 million in the same period last year, reflecting a 33.3% increase[55] Asset and Liability Management - Total assets decreased to $37,461 million as of September 30, 2024, from $38,552 million at the end of 2023, a decline of 2.9%[43] - Cash and cash equivalents decreased to $1,645 million as of September 30, 2024, down from $2,392 million at the end of 2023, a reduction of 31.2%[43] - Long-term debt decreased to $7,170 million as of September 30, 2024, compared to $7,800 million at the end of 2023, a decrease of 8.1%[43] - Total current liabilities decreased to $2,825 million as of September 30, 2024, from $3,098 million at the end of 2023, a reduction of 8.8%[43]