02.08.23
DuPont announced financial results for the fourth quarter and full year of 2022.
“Our fourth quarter results underpin the quality of our portfolio and our ability to offset a continued challenging global macro environment by focusing on the levers within our control,” said Ed Breen, DuPont executive chairman and CEO. “In the face of weak conditions in certain end-markets, namely electronics and construction, we delivered revenue and operating EBITDA results in line with our expectations.”
“Our leading global market positions, disciplined pricing actions and focus on execution drove sales and earnings growth for the year and these factors will be critical as we navigate continued global macro challenges in 2023,” Breen continued.
“The steps completed in 2022 to further transform our portfolio advance our strategy as a premier multi-industrial company and enable us to move forward with a stronger balance sheet and increased financial flexibility,” Breen said. “For the year, we deployed more than $5 billion of capital through share repurchase programs and dividends and retired $2.5 billion in long-term debt which highlights our ongoing commitment to a balanced capital allocation approach. We also remain focused on value creation by strengthening our position within key growth pillars through continued investment and innovation.”
Fourth Quarter 2022 Highlights:
• 4Q net sales of $3.1 billion decreased 4%; organic sales increased 5% versus year-ago period.
• 4Q GAAP income from continuing operations of $105 million; operating EBITDA of $758 million.
• 4Q GAAP EPS from continuing operations of $0.20; adjusted EPS of $0.89.
• Launched $3.25 billion accelerated share repurchase program and retired $2.5 billion of long-term debt due in 2023 using proceeds from the M&M Divestiture completed on Nov. 1.
Full Year 2022 Highlights:
• Full year 2022 net sales of $13 billion increased 4%; organic sales increased 8% versus prior year.
• Full year 2022 GAAP income from continuing operations of $1.06 billion; operating EBITDA of $3.26 billion.
• Full year GAAP EPS from continuing operations of $2.02; adjusted EPS of $3.41.
• Deployed more than $7.5 billion of capital during the year through share repurchases, dividends and debt paydown.
• Operating cash flow for the year was $588 million.
“Our teams successfully navigated a challenging 2022 despite significant inflation, global supply chain constraints, geopolitical tensions, dynamic global currencies and an ongoing global pandemic,” said Lori Koch, CFO of DuPont. “In 2023, we expect continued strength in areas such as water and auto adhesives, along with stable demand across industrial end-markets including aerospace and healthcare products. We anticipate lower volumes during the first half of 2023 in consumer electronics and semiconductors resulting from decreased consumer spending, inventory destocking and COVID-related impacts in China, primarily in E&I. We also expect ongoing softness in construction end-markets in W&P during 2023.
“For the first quarter of 2023, we anticipate continued weakness in these consumer-driven, short-cycle end-markets resulting in organic sales declines in the mid single-digits versus the year-ago period,” Koch continued. “As 2023 progresses, we assume stabilization of consumer electronics demand, normalization of customer inventory levels and improved China demand to drive sequential quarterly improvement in operating results, most notably in the second half of the year.”
“Our fourth quarter results underpin the quality of our portfolio and our ability to offset a continued challenging global macro environment by focusing on the levers within our control,” said Ed Breen, DuPont executive chairman and CEO. “In the face of weak conditions in certain end-markets, namely electronics and construction, we delivered revenue and operating EBITDA results in line with our expectations.”
“Our leading global market positions, disciplined pricing actions and focus on execution drove sales and earnings growth for the year and these factors will be critical as we navigate continued global macro challenges in 2023,” Breen continued.
“The steps completed in 2022 to further transform our portfolio advance our strategy as a premier multi-industrial company and enable us to move forward with a stronger balance sheet and increased financial flexibility,” Breen said. “For the year, we deployed more than $5 billion of capital through share repurchase programs and dividends and retired $2.5 billion in long-term debt which highlights our ongoing commitment to a balanced capital allocation approach. We also remain focused on value creation by strengthening our position within key growth pillars through continued investment and innovation.”
Fourth Quarter 2022 Highlights:
• 4Q net sales of $3.1 billion decreased 4%; organic sales increased 5% versus year-ago period.
• 4Q GAAP income from continuing operations of $105 million; operating EBITDA of $758 million.
• 4Q GAAP EPS from continuing operations of $0.20; adjusted EPS of $0.89.
• Launched $3.25 billion accelerated share repurchase program and retired $2.5 billion of long-term debt due in 2023 using proceeds from the M&M Divestiture completed on Nov. 1.
Full Year 2022 Highlights:
• Full year 2022 net sales of $13 billion increased 4%; organic sales increased 8% versus prior year.
• Full year 2022 GAAP income from continuing operations of $1.06 billion; operating EBITDA of $3.26 billion.
• Full year GAAP EPS from continuing operations of $2.02; adjusted EPS of $3.41.
• Deployed more than $7.5 billion of capital during the year through share repurchases, dividends and debt paydown.
• Operating cash flow for the year was $588 million.
“Our teams successfully navigated a challenging 2022 despite significant inflation, global supply chain constraints, geopolitical tensions, dynamic global currencies and an ongoing global pandemic,” said Lori Koch, CFO of DuPont. “In 2023, we expect continued strength in areas such as water and auto adhesives, along with stable demand across industrial end-markets including aerospace and healthcare products. We anticipate lower volumes during the first half of 2023 in consumer electronics and semiconductors resulting from decreased consumer spending, inventory destocking and COVID-related impacts in China, primarily in E&I. We also expect ongoing softness in construction end-markets in W&P during 2023.
“For the first quarter of 2023, we anticipate continued weakness in these consumer-driven, short-cycle end-markets resulting in organic sales declines in the mid single-digits versus the year-ago period,” Koch continued. “As 2023 progresses, we assume stabilization of consumer electronics demand, normalization of customer inventory levels and improved China demand to drive sequential quarterly improvement in operating results, most notably in the second half of the year.”
