WILMINGTON, Del., May 5, 2020 /PRNewswire/ --
- 1Q20 GAAP EPS from continuing operations of $(0.83); adjusted EPS of $0.84
- 1Q20 GAAP Income (Loss) from continuing operations of
$(610) million and Operating EBITDA
of $1.3 billion
- 1Q20 Net Sales of $5.2 billion,
down 4 percent; organic sales down 2 percent
- Further strengthened liquidity with $1.0
billion revolving credit facility
- Issued $2.0 billion bond to
refinance debt maturities due in November
2020; replaces the $2.0
billion 364-day delayed-draw facility
- Continues to advance separation of Nutrition & Biosciences
business in preparation for merger with IFF in 1Q 2021
- Implemented initiatives to mitigate the impact of COVID-19
including actions to deliver more than $500
million of working capital improvement and reducing capital
expenditures by ~$500 million versus
the prior year
DuPont (NYSE: DD) today announced financial results for the
first quarter 2020.
"In the face of an unprecedented health, financial, and
humanitarian crisis, we are prioritizing the safety and well-being
of our employees, customers, suppliers, and other stakeholders,"
said Ed Breen, DuPont Executive
Chairman and Chief Executive Officer. "Our colleagues are working
tirelessly to support the massive effort to provide critical
protection to healthcare and other front-line workers who bear the
greatest burden in the fight against this pandemic. Our innovation
capabilities are enabling us to rapidly create and deploy new tools
in this battle and we will continue to advance those, along with
targeted in-kind and financial donations, to provide as many as
possible with our solutions."
"By continuing to invest in our R&D engine across the
Company, prioritizing cash generation, further improving our cost
structure, and advancing our portfolio rationalization efforts, we
delivered first quarter results above our initial expectations in
each core segment and positioned ourselves for future growth and
profitability."
"Along with IFF, we remain committed to creating the global
leader in high-value ingredients and solutions for Food &
Beverage, Home & Personal Care, and Health & Wellness
markets," Breen added. "The combination of our Nutrition &
Biosciences business with IFF remains on track for a 1Q 2021
closing(1), and we plan to file the initial registration
statement with the SEC in the coming days. This represents another
important milestone towards creating tremendous opportunity for our
employees and customers, as well as significant value for our
shareholders."
COVID-19 Update
As an essential provider of personal protective equipment and
important materials in other companies' supply chains, DuPont
employees across the globe are committed to help combat the
COVID-19 pandemic. During the quarter the Company announced a
number of initiatives in support of this mission, including:
- Increased production of Tyvek® garments by more than nine
million per month, which is more than double the amount produced
for any prior crisis
- Launched #TyvekTogether campaign, an initiative to deliver an
additional five to six million garments per month through the rapid
development of a safe, easier-to-use version of Tyvek® and by
enabling others to join DuPont in protecting frontline responders,
with free access to our designs and usage instructions
- Partnered with Cummins, Inc. to use DuPont filtration
technology to help strengthen the supply of N95 respirator
masks
Due to the uncertainties presented by COVID-19, DuPont has also
implemented a number of proactive measures to enhance its already
strong liquidity position and improve working capital.
- 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
- Issued $2.0 billion bond
offering; the proceeds of which will be used to satisfy debt
maturities due in November 2020. This
facility replaces the $2.0 billion
364-day delayed-draw facility announced in April 2020
- Delayed certain capital investments; now expecting to reduce
capital expenditures by ~$500 million
versus prior year
- Idled production at several manufacturing sites, predominantly
production plants within the Transportation & Industrial
segment, due to the current global automotive environment
- Accelerated working capital initiatives across each
business
- Increased the anticipated benefits from the incremental 2020
cost actions previously announced; now targeting $180 million of savings in 2020
"We took quick, decisive action to manage our working capital
and to better align our production volumes with the demand we
expect in the near term," Breen continued. "Additionally, our
recent bond offering and our new $1
billion revolving credit facility further strengthen our
balance sheet and improve our liquidity position. With the addition
of these, and the special cash payment associated with the closing
of the N&B and IFF transaction, we have a solid plan in place
to satisfy our debt maturities. This provides us the flexibility
needed to navigate these uncertain times."
First Quarter 2020 Results
Net sales totaled $5.2 billion,
down 4 percent versus the year-ago period. On an organic basis, net
sales were down 2 percent as 8 percent organic growth in
Electronics & Imaging and 3 percent organic growth in Nutrition
& Biosciences was more than offset by organic sales declines in
the other segments.
GAAP Income (loss) from continuing operations totaled
$(610) million, versus pro forma GAAP
Income from continuing operations of $18
million in the year-ago period. Operating
EBITDA(2) was $1.3
billion, down 8 percent versus pro forma operating
EBITDA(2) in the prior year. Strong gross margin
improvement was more than offset by the absence of prior year gains
in our Electronics & Imaging and Safety & Construction
segments, nylon pricing pressures, and volume declines across the
Transportation & Industrial and Non- Core segments.
GAAP EPS from continuing operations totaled $(0.83) versus pro forma GAAP EPS from continuing
operations in the year-ago period of $0.02; the decline is mostly attributable to
higher significant items, incremental merger-related amortization
expense, a higher tax rate and lower segment results, partially
offset by the absence of costs historically allocated to Dow and
Corteva. Adjusted EPS(2) decreased 9 percent to
$0.84, compared with pro forma
adjusted EPS(2) in the year-ago period of $0.92 primarily driven by the absence of prior
year gains of $0.08, nylon headwinds,
and a higher tax rate partially offset by a lower share count,
lower depreciation and amortization, and lower foreign exchange
losses.
Over $200 million of cash was
generated in the quarter with cash from operating activities of
$718 million and gross proceeds from
the sale of the Compound Semiconductor Solutions business of
approximately $420 million offset by
capital expenditures of $481 million,
share repurchases of $232 million,
and dividends of $222 million. The
year-over-year change in cash from working capital improved over
$300 million in the quarter versus
the same period last year.
First Quarter 2020 Segment Highlights
Electronics & Imaging
Electronics & Imaging
reported net sales of $884 million,
up 7 percent from the year-ago period. Organic sales were up 8
percent driven by a 9 percent volume gain offset by a 1 percent
decline in price. Currency was a 1 percent headwind.
Volume gains were led by Semiconductor Technologies where new
technology ramps within logic and foundry, coupled with robust
demand for memory in servers and data centers delivered
double-digit growth versus the year-ago period. Volume growth
within Interconnect Solutions was also strong, driven by higher
material content in premium, next-generation smartphones. Within
Image Solutions, volume gains in flexographic plates, mainly into
consumer packaged goods, were mostly offset by weakness in inks and
OLEDs.
Operating EBITDA for the segment was $253
million, a decrease of 12 percent from pro forma operating
EBITDA of $288 million in the
year-ago period, driven primarily by the absence of a $50 million gain associated with an asset sale
recognized in the prior year.
Nutrition & Biosciences
Nutrition &
Biosciences reported net sales of $1.5
billion, up 1 percent from the year-ago period. Organic
sales were up 3 percent with a 2 percent price improvement and a 1
percent volume gain. Currency was a 2 percent headwind.
Sales gains were led by Health & Biosciences with
high-single digit growth versus the same period last year. The
probiotics business recorded its strongest quarter ever with
mid-teens growth as key initiatives to strengthen the North America market were implemented and
consumer demand for immune health strengthened globally. Strong
consumer demand in the home & personal care and animal
nutrition markets also provided double-digit growth in the quarter.
Food & Beverage sales were up slightly on an organic basis with
improvement in protein solutions driven by increased demand for
packaged foods and on-going strength in the plant-based meat
category, off-set by continued upstream challenges in the
sweeteners supply chain. Steady demand across Pharma Solutions
contributed to the gains in the quarter.
Operating EBITDA for the segment was $385
million, an increase of 10 percent from pro forma operating
EBITDA of $349 million in the
year-ago period. Pricing gains across the segment and a favorable
product mix led by the strength in Health & Biosciences
provided a 210 basis point improvement in segment operating EBITDA
margins.
Transportation & Industrial
Transportation &
Industrial reported net sales of $1.1
billion, down 13 percent from the year-ago period. Organic
sales were down 12 percent with volume down 8 percent and price
lower by 4 percent. Currency was a 1 percent headwind.
Volume declined 8 percent due to lower auto builds, as global
automotive production was down nearly 25 percent versus the
year-ago period. The impact of the COVID-19 pandemic on other key
industrial markets in addition to automotive contributed to the
double-digit volume declines within both Mobility Solutions and
Industrial & Consumer. In Healthcare and Specialty, Kalrez®
revenues increased mid-teens percent as strong demand for
differentiated, high performance seals in semiconductor
manufacturing more than offset weaker demand within oil and
gas.
Operating EBITDA for the segment was $308
million, a decrease of 17 percent from pro forma operating
EBITDA of $373 million in the
year-ago period, driven primarily by the impact of the volume and
price declines within Mobility Solutions partially offset by raw
material tailwinds and favorable product mix.
Safety & Construction
Safety & Construction
reported net sales of $1.3 billion,
down 1 percent from the year-ago period. Organic sales were down 2
percent with a 2 percent price improvement offset by a 4 percent
decline in volume. Recent acquisitions in the Water Solutions
business increased reported sales by 2 percent. Currency was a 1
percent headwind.
Demand for Tyvek® protective garments was robust, leading to a
55 percent increase in garment sales as compared to the same
quarter last year which was partially enabled by efforts to
increase capacity. Despite the strength in protective garments,
sales in the Safety Solutions business declined mid-single digits
as demand weakened across industrial, aerospace, and defense
markets as a result of the COVID-19 pandemic and challenges in the
oil and gas industry. Similarly, Shelter Solutions sales declined
low-single digits as construction activity was impacted by
stay-at-home orders issued across the globe. Demand continued to be
strong in Water Solutions which drove mid-single digit organic
growth in the quarter despite temporary softness in the
China market at the height of the
COVID-19 pandemic.
Operating EBITDA for the segment totaled $368 million, a decrease of 2 percent from pro
forma operating EBITDA of $374
million in the year-ago period. The absence of prior year
licensing income of $26 million and
lower volumes more than offset improved product mix and
productivity actions.
Non-Core
Non-Core reported net sales of $366 million, down 19 percent from the year-ago
period. Organic sales were down 10 percent driven by 12 percent
volume declines offset by 2 percent pricing gains. The September 2019 divestiture of the DuPont
Sustainable Solutions business reduced sales by 9 percent. Currency
was flat.
Significant volume declines due to weak demand for
trichlorosilane (TCS) and for Sorona® fiber in carpet and apparel
applications was partially offset by volume gains in pastes.
Operating EBITDA for the segment was $42
million, a decrease of 57 percent from pro forma operating
EBITDA of $98 million in the year-ago
period with the benefits from price more than offset by
significantly lower volumes of TCS and Sorona® fiber and lower
Hemlock Semiconductor equity earnings.
Outlook
"DuPont has weathered many challenges and crises over its two
centuries and our team is navigating this period with the benefit
of our cumulative expertise," Breen said. "While it is still
impossible to predict timing, our markets will eventually stabilize
and return to growth. In the interim we are prioritizing the safety
and health of our employees, safely maintaining our operations,
strengthening our balance sheet, and partnering with other industry
leaders to combat this pandemic. Through April, we continue to see
strength in personal protection, water filtration, food and
beverage, electronics and probiotics. Automotive, oil and gas, and
select industrial end markets continue to suffer. We are monitoring
developments across our geographies and operations on a daily basis
and we will continue to adapt to the changing environment. Over the
longer term, our resilient people and our operational discipline
will help assure that we weather this period, deliver for our
stakeholders, and emerge strong when recovery eventually begins,"
Breen said.
"We have intensified our focus on what we can control in this
rapidly changing business environment by executing on a disciplined
plan. This includes optimizing working capital, deferring certain
capital expenditures, improving our cost structure, and
strengthening our liquidity," said Lori
Koch, DuPont Chief Financial Officer. "These actions will
ensure our balance sheet remains strong and all of our businesses
are positioned for growth when market demand returns."
Conference Call
The Company will host a live webcast
of its first quarter earnings conference call with investors to
discuss its results and business outlook today at 8:00 a.m. ET. The slide presentation that
accompanies the conference call will be posted on the DuPont's
Investor Relations Events and Presentations page. A replay of the
webcast also will be available on the DuPont's Investor Relations
Events and Presentations page following the live event.
About DuPont
DuPont (NYSE: DD) is a global innovation
leader with technology-based materials, ingredients and solutions
that help transform industries and everyday life. Our employees
apply diverse science and expertise to help customers advance their
best ideas and deliver essential innovations in key markets
including electronics, transportation, construction, water, health
and wellness, food and worker safety. More information about the
company, its businesses and solutions can be found at
www.dupont.com. Investors can access information included on the
Investor Relations section of the website at
www.investors.dupont.com.
DuPontTM and all products, unless otherwise noted,
denoted with TM, SM or ® are
trademarks, service marks or registered trademarks of affiliates of
DuPont de Nemours, Inc.
Cautionary Statement Regarding Forward Looking
Statements
This communication contains "forward-looking
statements" within the meaning of the federal securities laws,
including Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
In this context, forward-looking statements often address expected
future business and financial performance and financial condition,
and often contain words such as "expect," "anticipate," "intend,"
"plan," "believe," "seek," "see," "will," "would," "target," and
similar expressions and variations or negatives of these words.
On April 1, 2019, the company
completed the separation of its materials science business into a
separate and independent public company by way of a pro rata
dividend- in-kind of all the then outstanding stock of Dow Inc.
(the "Dow Distribution"). The company completed the separation of
its agriculture business into a separate and independent public
company on June 1, 2019, by way of a
pro rata dividend-in-kind of all the then outstanding stock of
Corteva, Inc. (the "Corteva Distribution").
On December 15, 2019, DuPont and
IFF announced they had entered definitive agreements to combine
DuPont's Nutrition & Biosciences business with IFF in a
transaction that would result in IFF issuing shares to DuPont
shareholders, pending customary closing conditions, other approvals
including regulatory and that of IFF's shareholders.
Forward-looking statements address matters that are, to varying
degrees, uncertain and subject to risks, uncertainties and
assumptions, many of which that are beyond DuPont's control, that
could cause actual results to differ materially from those
expressed in any forward-looking statements. Forward-looking
statements are not guarantees of future results. Some of the
important factors that could cause DuPont's actual results to
differ materially from those projected in any such forward-looking
statements include, but are not limited to: (i) the parties'
ability to meet expectations regarding the timing, completion and
accounting and tax treatments of the proposed transaction with IFF;
changes in relevant tax and other laws, (ii) failure to obtain
necessary regulatory approvals, approval of IFF's shareholders,
anticipated tax treatment or any required financing or to satisfy
any of the other conditions to the proposed transaction with IFF,
(iii) the possibility that unforeseen liabilities, future capital
expenditures, revenues, expenses, earnings, synergies, economic
performance, indebtedness, financial condition, losses, future
prospects, business and management strategies that could impact the
value, timing or pursuit of the proposed transaction with IFF, (iv)
risks and costs and pursuit and/or implementation of the separation
of the N&B Business, including timing anticipated to complete
the separation, any changes to the configuration of businesses
included in the separation if implemented, (v) risks and costs
related to the Dow Distribution and the Corteva Distribution
(together, the "Distributions") including (a) with respect to
achieving all expected benefits from the Distributions; (b) the
incurrence of significant costs in connection with the
Distributions, including costs to service debt incurred by the
Company to establish the relative credit profiles of Corteva, Dow
and DuPont and increased costs related to supply, service and other
arrangements that, prior to the Dow Distribution, were between
entities under the common control of DuPont; (c) indemnification of
certain legacy liabilities of E. I. du Pont de Nemours and Company
("Historical EID") in connection with the Corteva Distribution; and
(d) potential liability arising from fraudulent conveyance and
similar laws in connection with the Distributions; (vi) failure to
effectively manage acquisitions, divestitures, alliances, joint
ventures and other portfolio changes, including meeting conditions
under the Letter Agreement entered in connection with the Corteva
Distribution, related to the transfer of certain levels of assets
and businesses; (vii) uncertainty as to the long-term value of
DuPont common stock; (viii) potential inability or reduced access
to the capital markets or increased cost of borrowings, including
as a result of a credit rating downgrade (ix) risks and
uncertainties related to the novel coronavirus (COVID-19) and the
responses thereto (such as voluntary and in some cases, mandatory
quarantines as well as shut downs and other restrictions on travel
and commercial, social and other activities) on DuPont's business,
results of operations, access to sources of liquidity and financial
condition which depend on highly uncertain and unpredictable future
developments, including, but not limited to, the duration and
spread of the COVID-19 outbreak, its severity, the actions to
contain the virus or treat its impact, and how quickly and to what
extent normal economic and operating conditions resume. and (x)
other risks to DuPont's business, operations and results of
operations including from: failure to develop and market new
products and optimally manage product life cycles; ability, cost
and impact on business operations, including the supply chain, of
responding to changes in market acceptance, rules, regulations and
policies and failure to respond to such changes; outcome of
significant litigation, environmental matters and other commitments
and contingencies; failure to appropriately manage process safety
and product stewardship issues; global economic and capital market
conditions, including the continued availability of capital and
financing, as well as inflation, interest and currency exchange
rates; changes in political conditions, including tariffs, trade
disputes and retaliatory actions; impairment of goodwill or
intangible assets; the availability of and fluctuations in the cost
of energy and raw materials; business or supply disruption,
including in connection with the Distributions; ability to
effectively manage costs as the company's portfolio evolves;
security threats, such as acts of sabotage, terrorism or war,
global health concerns and pandemics, natural disasters and weather
events and patterns which could or could continue to result in a
significant operational event for DuPont, adversely impact demand
or production; ability to discover, develop and protect new
technologies and to protect and enforce DuPont's intellectual
property rights; unpredictability and severity of catastrophic
events, including, but not limited to, acts of terrorism or
outbreak of war or hostilities, as well as management's response to
any of the aforementioned factors. These risks are and will be more
fully discussed in DuPont's current, quarterly and annual reports
and other filings made with the U.S. Securities and Exchange
Commission, in each case, as may be amended from time to time in
future filings with the SEC. While the list of factors presented
here is considered representative, no such list should be
considered a complete statement of all potential risks and
uncertainties. Unlisted factors may present significant additional
obstacles to the realization of forward-looking statements.
Consequences of material differences in results as compared with
those anticipated in the forward-looking statements could include,
among other things, business disruption, operational problems,
financial loss, legal liability to third parties and similar risks,
any of which could have a material adverse effect on DuPont's
consolidated financial condition, results of operations, credit
rating or liquidity. You should not place undue reliance on
forward-looking statements, which speak only as of the date they
are made. DuPont assumes no obligation to publicly provide
revisions or updates to any forward-looking statements whether as a
result of new information, future developments or otherwise, should
circumstances change, except as otherwise required by securities
and other applicable laws. A detailed discussion of some of the
significant risks and uncertainties which may cause results and
events to differ materially from such forward-looking statements is
included in the section titled "Risk Factors" (Part I, Item 1A) of
DuPont's 2019 Annual Report on Form 10-K, Item 8.01 of DuPont's
current report on Form 8-K filed on April 20, 2020 and as updated
by DuPont's subsequent periodic and current reports filed with the
SEC.
Overview
Effective August 31, 2017,
pursuant to the merger of equals transaction contemplated by the
Agreement and Plan of Merger, dated as of December 11, 2015, as amended on March 31, 2017, The Dow Chemical Company and its
consolidated subsidiaries ("Historical Dow") and E. I. du Pont de
Nemours and Company and its consolidated subsidiaries ("Historical
EID") each merged with subsidiaries of DowDuPont and as a result,
Historical Dow and Historical EID became subsidiaries of DowDuPont
(the "DWDP Merger"). Prior to the DWDP Merger, DowDuPont did not
conduct any business activities other than those required for its
formation and matters contemplated by the Merger Agreement.
Historical Dow was determined to be the accounting acquirer in the
DWDP Merger and as a result, Historical EID's assets and
liabilities were reflected at fair value as of the close of the
DWDP Merger.
Effective as of 5:00 p.m. on
April 1, 2019, DowDuPont completed
the separation of its materials science business into a separate
and independent public company by way of a distribution of Dow Inc.
("Dow") through a pro rata dividend in-kind of all of the
then-issued and outstanding shares of Dow's common stock, par value
$0.01 per share (the "Dow Common
Stock"), to holders of DowDuPont's common stock, par value
$0.01 per share (the "DowDuPont
Common Stock"), as of the close of business on March 21, 2019 (the "Dow Distribution").
Effective as of 12:01 a.m. on
June 1, 2019, DuPont completed the
separation of its agriculture business into a separate and
independent public company by way of a distribution of Corteva Inc.
("Corteva") through a pro rata dividend in-kind of all of the
then-issued and outstanding shares of Corteva's common stock, par
value $0.01 per share (the "Corteva
Common Stock"), to holders of DuPont de Nemours, Inc.'s common
stock, par value $0.01 per share, as
of the close of business on May 24,
2019 (the "Corteva Distribution" and, together with the Dow
Distribution, the "Distributions").
Following the Corteva Distribution, DuPont holds the specialty
products business as continuing operations. The results of
operations of DuPont for the three months ended March 31, 2019 present the historical financial
results of Dow and Corteva as discontinued operations. The cash
flows related to Dow and Corteva have not been segregated and are
included in the interim Consolidated Statements of Cash Flows for
the applicable period.
The unaudited pro forma Consolidated Statements of Operations
(discussed in the following section) included herein include costs
previously allocated to the materials science and agriculture
businesses that did not meet the definition of expenses related to
discontinued operations in accordance with Financial Accounting
Standards Codification 205, "Presentation of Financial Statements"
("ASC 205") and thus are reflected in the Company's results of
continuing operations. A significant portion of these costs relate
to Historical Dow and consist of leveraged services provided
through service centers, as well as other corporate overhead costs
related to information technology, finance, manufacturing, research
& development, sales & marketing, supply chain, human
resources, sourcing & logistics, legal and communications,
public affairs & government affairs functions. These costs are
no longer incurred by the Company following the Distributions.
DuPontTM and all products, unless otherwise noted,
denoted with TM, SM or ® are
trademarks, service marks or registered trademarks of affiliates of
DuPont de Nemours, Inc.
Unaudited Pro Forma Financial Information
In order to provide the most meaningful comparison of results of
operations and results by segment, supplemental unaudited pro forma
financial information has been included in the following financial
schedules. The unaudited pro forma financial information (the "pro
forma financial statements") is derived from DuPont's Consolidated
Financial Statements and accompanying notes, adjusted to give
effect to certain events directly attributable to the Distributions
and Financings (as defined below). In contemplation of the
Distributions and to achieve the respective credit profiles of each
of DuPont, Dow, and Corteva, in the fourth quarter of 2018,
DowDuPont consummated a public underwritten offer of eight series
of senior unsecured notes (the "2018 Senior Notes") in the
aggregate principal amount of $12.7
billion and entered into a term loan agreement consisting of
two term loan facilities (the "Term Loan Facilities") in the
aggregate principal amount of $3.0
billion. In May 2019, the
funds from the Term Loan Facilities were drawn, along with the
issuance of approximately $1.4
billion in commercial paper (the "Funding CP Issuance"
together with the 2018 Senior Notes and Term Loan Facilities, the
"Financings"). The net proceeds from the Financings together with
cash from operations were used to fund cash contributions to Dow
and Corteva, and DowDuPont's $3.0
billion share repurchase program which was completed in the
first quarter of 2019 (the "Share Repurchase Program").
The pro forma financial statements were prepared in accordance
with Article 11 of Regulation S-X. The historical consolidated
financial information has been adjusted to give effect to pro forma
events that are (1) directly attributable to the Distributions and
the Financings (collectively the "Transactions"), (2) factually
supportable and (3) with respect to the Consolidated Statements of
Operations, expected to have a continuing impact on the results.
The unaudited pro forma Statements of Operations for the three
months ended March 31, 2019 give
effect to the pro forma events as if they had been consummated on
January 1, 2018. There were no pro
forma adjustments for the three months ended March 31, 2020.
Restructuring or integration activities or other costs following
the Distributions that may be incurred to achieve cost or growth
synergies of DuPont are not reflected. The pro forma financial
statements provide shareholders with summary financial information
and historical data that is on a basis consistent with how DuPont
reports current financial information.
The pro forma financial statements are presented for
informational purposes only, and do not purport to represent what
DuPont's results of operations or financial position would have
been had the Transactions occurred on the dates indicated, nor do
they purport to project the results of operations or financial
position for any future period or as of any future date.
Non-GAAP Financial Measures
This earnings release includes information that does not conform
to accounting principles generally accepted in the United States of America ("U.S. GAAP") and
are considered non-GAAP measures. Management uses these measures
internally for planning, forecasting and evaluating the performance
of the Company, including allocating resources. DuPont's management
believes these non-GAAP financial measures are useful to investors
because they provide additional information related to the ongoing
performance of DuPont to offer a more meaningful comparison related
to future results of operations. These non-GAAP financial measures
supplement disclosures prepared in accordance with U.S. GAAP, and
should not be viewed as an alternative to U.S. GAAP. Furthermore,
such non-GAAP measures may not be consistent with similar measures
provided or used by other companies. Reconciliations for these
non-GAAP measures to U.S. GAAP are provided in the Selected
Financial Information and Non-GAAP Measures starting on page 14 and
on the Investors section of the Company's website. Non-GAAP
measures included in this release are defined below. The Company
has not provided forward-looking U.S. GAAP financial measures or a
reconciliation of forward-looking non-GAAP financial measures to
the most comparable U.S. GAAP financial measures on a
forward-looking basis because the Company is unable to predict with
reasonable certainty the ultimate outcome of certain future events.
These events include, among others, the impact of portfolio
changes, including asset sales, mergers, acquisitions, and
divestitures; contingent liabilities related to litigation,
environmental and indemnifications matters; impairments and
discrete tax items. These items are uncertain, depend on various
factors, and could have a material impact on U.S. GAAP results for
the guidance period.
Pro forma adjusted earnings per common share from continuing
operations - diluted ("Pro forma adjusted EPS"), is defined as pro
forma earnings per common share from continuing operations -
diluted, excluding the after-tax impact of significant items,
after-tax impact of amortization expense associated with
intangibles acquired as part of the DWDP Merger, after-tax impact
of non-operating pension / other post employment benefits ("OPEB")
benefits / charges and the after-tax impact of costs historically
allocated to the materials science and agriculture businesses that
did not meet the criteria to be recorded as discontinued
operations. Adjusted earnings per common share from continuing
operations - diluted ("Adjusted EPS"), is defined as earnings per
common share from continuing operations - diluted, excluding the
after-tax impact of significant items, after-tax impact of
amortization expense associated with intangibles acquired as part
of the DWDP Merger and the after-tax impact of non-operating
pension / OPEB benefits / charges. Although amortization of
Historical EID intangibles acquired as part of the DWDP Merger is
excluded from these non-GAAP measures, management believes it is
important for investors to understand that such intangible assets
contribute to revenue generation. Amortization of intangible assets
that relate to past acquisitions will recur in future periods until
such intangible assets have been fully amortized. Any future
acquisitions may result in amortization of additional intangible
assets. Management estimates amortization expense in 2020
associated with intangibles acquired as part of the DWDP Merger to
be approximately $1.9 billion on a
pre-tax basis, or approximately $2.00
per share.
Pro forma operating EBITDA, is defined as earnings (i.e. pro
forma income (loss) from continuing operations before income taxes)
before interest, depreciation, amortization, non-operating pension
/ OPEB benefits / charges, and foreign exchange gains / losses,
excluding the impact of costs historically allocated to the
materials science and agriculture businesses that did not meet the
criteria to be recorded as discontinued operations and adjusted to
exclude significant items. Operating EBITDA, is defined as earnings
(i.e. income (loss) from continuing operations before income taxes)
before interest, depreciation, amortization, non-operating pension
/ OPEB benefits / charges, and foreign exchange gains / losses,
adjusted to exclude significant items.
Significant items are items that arise outside the ordinary
course of the Company's business that management believes may cause
misinterpretation of underlying business performance, both
historical and future, based on a combination of some or all of the
item's size, unusual nature and infrequent occurrence. Management
classifies as significant items certain costs and expenses
associated with integration and separation activities related to
transformational acquisitions and divestitures as they are
considered unrelated to ongoing business performance.
Organic Sales is defined as net sales excluding the impacts of
currency and portfolio.
(1)
|
Closing of
transaction with IFF is subject to IFF shareholder approval,
regulatory approval and customary
closing conditions
|
(2)
|
Adjusted EPS, pro
forma adjusted EPS, operating EBITDA and pro forma operating EBITDA
are non-GAAP measures. See page 8 for further
discussion. Reconciliation to the most directly comparable
GAAP measure, including details of significant items begins on page
14 of this communication.
|
DuPont de Nemours,
Inc.
|
Consolidated
Statements of Operations
|
|
In millions, except per
share amounts (Unaudited)
|
Three Months Ended
March 31,
|
2020
|
2019
|
Net sales
|
$
5,221
|
$
5,414
|
Cost of
sales
|
3,318
|
3,621
|
Research and
development expenses
|
236
|
267
|
Selling, general and
administrative expenses
|
633
|
726
|
Amortization of
intangibles
|
533
|
256
|
Restructuring and
asset related charges - net
|
404
|
71
|
Goodwill impairment
charge
|
533
|
—
|
Integration and
separation costs
|
197
|
611
|
Equity in earnings of
nonconsolidated affiliates
|
39
|
40
|
Sundry income
(expense) - net
|
211
|
84
|
Interest
expense
|
183
|
151
|
Loss from continuing
operations before income taxes
|
(566)
|
(165)
|
Provision for (benefit
from) income taxes on continuing operations
|
44
|
(91)
|
Loss from continuing
operations, net of tax
|
(610)
|
(74)
|
Income from
discontinued operations, net of tax
|
—
|
646
|
Net (loss)
income
|
(610)
|
572
|
Net income
attributable to noncontrolling interests
|
6
|
51
|
Net (loss) income
available for DuPont common stockholders
|
$
(616)
|
$
521
|
|
Per common share
data:
|
|
|
Loss per common share
from continuing operations - basic
|
$
(0.83)
|
$
(0.11)
|
Earnings per common
share from discontinued operations - basic
|
—
|
0.80
|
(Loss) Earnings per
common share - basic
|
$
(0.83)
|
$
0.69
|
Loss per common share
from continuing operations - diluted
|
$
(0.83)
|
$
(0.11)
|
Earnings per common
share from discontinued operations - diluted
|
—
|
0.80
|
(Loss) Earnings per
common share - diluted
|
$
(0.83)
|
$
0.69
|
|
Weighted-average common
shares outstanding - basic
|
738.6
|
750.0
|
Weighted-average common
shares outstanding - diluted
|
738.6
|
750.0
|
DuPont de Nemours,
Inc.
Consolidated Balance Sheets
|
|
In millions, except
share and per share amounts (Unaudited)
|
Mar 31,
2020
|
Dec 31,
2019
|
Assets
|
|
|
Current
Assets
|
|
|
Cash and cash
equivalents
|
$
1,748
|
$
1,540
|
Accounts and notes
receivable - net
|
3,869
|
3,802
|
Inventories
|
4,410
|
4,319
|
Other current
assets
|
365
|
338
|
Total current
assets
|
10,392
|
9,999
|
Investments
|
|
|
Investments in
nonconsolidated affiliates
|
1,227
|
1,204
|
Other
investments
|
24
|
24
|
Noncurrent
receivables
|
31
|
32
|
Total
investments
|
1,282
|
1,260
|
Property, plant and
equipment - net of accumulated depreciation (March 31, 2020 -
$5,189
million; December 31, 2019 - $4,969)
|
9,912
|
10,143
|
Other Assets
|
|
|
Goodwill
|
32,317
|
33,151
|
Other intangible
assets
|
12,834
|
13,593
|
Deferred income tax
assets
|
210
|
236
|
Deferred charges and
other assets
|
1,040
|
1,014
|
Total other
assets
|
46,401
|
47,994
|
Total Assets
|
$
67,987
|
$
69,396
|
Liabilities
and Equity
|
|
|
Current
Liabilities
|
|
|
Short-term borrowings
and finance lease obligations
|
$
3,925
|
$
3,830
|
Accounts
payable
|
2,846
|
2,934
|
Income taxes
payable
|
340
|
240
|
Accrued and other
current liabilities
|
1,434
|
1,342
|
Total current
liabilities
|
8,545
|
8,346
|
Long-Term
Debt
|
13,618
|
13,617
|
Other Noncurrent
Liabilities
|
|
|
Deferred income tax
liabilities
|
3,314
|
3,514
|
Pension and other
post employment benefits - noncurrent
|
1,155
|
1,172
|
Other noncurrent
obligations
|
1,238
|
1,191
|
Total other noncurrent
liabilities
|
5,707
|
5,877
|
Total
Liabilities
|
$
27,870
|
$
27,840
|
Commitments and
contingent liabilities
|
|
|
Stockholders'
Equity
|
|
|
Common stock
(authorized 1,666,666,667 shares of $0.01 par value each;
issued 2020: 733,793,781 shares; 2019: 738,564,728
shares)
|
7
|
7
|
Additional paid-in
capital
|
50,605
|
50,796
|
(Accumulated deficit)
Retained earnings
|
(9,251)
|
(8,400)
|
Accumulated other
comprehensive loss
|
(1,810)
|
(1,416)
|
Total DuPont
stockholders' equity
|
39,551
|
40,987
|
Noncontrolling
interests
|
566
|
569
|
Total
equity
|
40,117
|
41,556
|
Total Liabilities and
Equity
|
$
67,987
|
$
69,396
|
DuPont de Nemours,
Inc.
|
Consolidated
Statement of Cash Flows
|
|
In millions
(Unaudited)
|
Three
Months Ended
March 31,
|
2020
|
2019
|
Operating
Activities
|
|
|
Net (loss)
income
|
$
(610)
|
$
572
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
772
|
1,520
|
Credit for deferred
income tax and other tax related items
|
(164)
|
(368)
|
Earnings of
nonconsolidated affiliates less than (in excess of) dividends
received
|
(31)
|
767
|
Net periodic pension
benefit (credit) cost
|
7
|
(8)
|
Pension
contributions
|
(26)
|
(153)
|
Net gain on sales of
assets, businesses and investments
|
(197)
|
(43)
|
Restructuring and
asset related charges - net
|
404
|
287
|
Goodwill impairment
charge
|
533
|
—
|
Amortization of
merger-related inventory step-up
|
—
|
205
|
Other net
loss
|
49
|
93
|
Changes in assets and
liabilities, net of effects of acquired and divested
companies:
|
|
|
Accounts and notes
receivable
|
(134)
|
(1,643)
|
Inventories
|
(134)
|
(194)
|
Accounts
payable
|
236
|
(732)
|
Other assets and
liabilities, net
|
13
|
(277)
|
Cash provided by
operating activities
|
718
|
26
|
Investing
Activities
|
|
|
Capital
expenditures
|
(481)
|
(1,139)
|
Investment in gas
field developments
|
—
|
(25)
|
Proceeds from sales of
property and businesses, net of cash divested
|
427
|
125
|
Acquisitions of
property and businesses, net of cash acquired
|
(73)
|
—
|
Proceeds from sale of
ownership interests in nonconsolidated affiliates
|
—
|
21
|
Purchases of
investments
|
(1)
|
(189)
|
Proceeds from sales
and maturities of investments
|
—
|
212
|
Other investing
activities, net
|
4
|
(5)
|
Cash used for
investing activities
|
(124)
|
(1,000)
|
Financing
Activities
|
|
|
Changes in short-term
notes payable
|
69
|
798
|
Proceeds from issuance
of long-term debt
|
25
|
1,000
|
Payments on long-term
debt
|
(1)
|
(363)
|
Purchases of common
stock
|
(232)
|
(1,579)
|
Proceeds from issuance
of Company stock
|
34
|
63
|
Employee taxes paid
for share-based payment arrangements
|
(12)
|
(76)
|
Distributions to
noncontrolling interests
|
(6)
|
(11)
|
Dividends paid to
stockholders
|
(222)
|
(851)
|
Debt extinguishment
costs
|
—
|
(13)
|
Other financing
activities, net
|
1
|
—
|
Cash used for
financing activities
|
(344)
|
(1,032)
|
Effect of exchange rate
changes on cash, cash equivalents and restricted cash
|
(45)
|
50
|
Increase (Decrease)
in cash, cash equivalents and restricted cash
|
205
|
(1,956)
|
Cash, cash equivalents
and restricted cash from continuing operations, beginning of
period
|
1,577
|
8,591
|
Cash, cash equivalents
and restricted cash from discontinued operations, beginning of
period
|
—
|
5,431
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
1,577
|
14,022
|
Cash, cash equivalents
and restricted cash from continuing operations, end of
period
|
1,782
|
6,862
|
Cash, cash equivalents
and restricted cash from discontinued operations, end of
period
|
—
|
5,204
|
Cash, cash
equivalents and restricted cash at end of period
|
$
1,782
|
$
12,066
|
DuPont de Nemours,
Inc.
|
Pro Forma
Consolidated Statements of Operations
|
|
In millions, except
per share amounts (Unaudited)
|
Three Months
Ended
|
Mar 31,
2020
|
Mar 31,
2019
|
As
Reported
|
Pro Forma
1
|
Net sales
|
$
5,221
|
$
5,414
|
Cost of
sales
|
3,318
|
3,643
|
Research and
development expenses
|
236
|
267
|
Selling, general and
administrative expenses
|
633
|
726
|
Amortization of
intangibles
|
533
|
256
|
Restructuring and
asset related charges - net
|
404
|
71
|
Goodwill impairment
charge
|
533
|
—
|
Integration and
separation costs
|
197
|
438
|
Equity in earnings of
nonconsolidated affiliates
|
39
|
40
|
Sundry income
(expense) - net
|
211
|
84
|
Interest
expense
|
183
|
180
|
Loss from continuing
operations before income taxes
|
(566)
|
(43)
|
Provision for (benefit
from) income taxes on continuing operations
|
44
|
(61)
|
(Loss) Income from
continuing operations, net of tax
|
(610)
|
18
|
Net income
attributable to noncontrolling interests from continuing
operations
|
6
|
4
|
Net (loss) income
from continuing operations available for DuPont common
stockholders
|
$
(616)
|
$
14
|
|
Per common share
data:
|
|
|
(Loss) Earnings per
common share from continuing operations - basic
|
$
(0.83)
|
$
0.02
|
(Loss) Earnings per
common share from continuing operations - diluted
|
$
(0.83)
|
$
0.02
|
|
Weighted-average common
shares outstanding - basic
|
738.6
|
750.0
|
Weighted-average common
shares outstanding - diluted
|
738.6
|
753.1
|
1. Refer to page 16
for additional detail on the pro forma adjustments included in the
pro forma Consolidated Statements of Operations.
|
DuPont de Nemours,
Inc.
|
Net Sales by
Segment and Geographic Region
|
|
Net Sales by Segment
and Geographic Region In
millions (Unaudited)
|
Three Months
Ended
|
Mar 31,
2020
|
Mar 31,
2019
|
Electronics &
Imaging
|
$
884
|
$
825
|
Nutrition &
Biosciences
|
1,551
|
1,535
|
Transportation &
Industrial
|
1,144
|
1,317
|
Safety &
Construction
|
1,276
|
1,283
|
Non-Core
|
366
|
454
|
Total
|
$
5,221
|
$
5,414
|
U.S. &
Canada
|
$
1,742
|
$
1,776
|
EMEA
1
|
1,271
|
1,380
|
Asia Pacific
|
1,913
|
1,945
|
Latin
America
|
295
|
313
|
Total
|
$
5,221
|
$
5,414
|
|
Net Sales Variance
by Segment
and Geographic Region
Percent change from
prior year (Unaudited)
|
Three Months Ended
March 31, 2020
|
Local Price
&
Product Mix
|
Volume
|
Total
Organic
|
Currency
|
Portfolio /
Other
|
Total
|
Electronics &
Imaging
|
(1)%
|
9 %
|
8 %
|
(1)%
|
— %
|
7 %
|
Nutrition &
Biosciences
|
2
|
1
|
3
|
(2)
|
—
|
1
|
Transportation &
Industrial
|
(4)
|
(8)
|
(12)
|
(1)
|
—
|
(13)
|
Safety &
Construction
|
2
|
(4)
|
(2)
|
(1)
|
2
|
(1)
|
Non-Core
|
2
|
(12)
|
(10)
|
—
|
(9)
|
(19)
|
Total
|
— %
|
(2)%
|
(2)%
|
(1)%
|
(1)%
|
(4)%
|
U.S. &
Canada
|
— %
|
(2)%
|
(2)%
|
— %
|
— %
|
(2)%
|
EMEA
1
|
1
|
(5)
|
(4)
|
(3)
|
(1)
|
(8)
|
Asia Pacific
|
(1)
|
—
|
(1)
|
(1)
|
—
|
(2)
|
Latin
America
|
2
|
(3)
|
(1)
|
(3)
|
(2)
|
(6)
|
Total
|
— %
|
(2)%
|
(2)%
|
(1)%
|
(1)%
|
(4)%
|
1. Europe, Middle
East and Africa.
|
DuPont de Nemours,
Inc.
|
Selected Financial
Information and Non-GAAP Measures
|
|
Operating EBITDA by
Segment
|
Three
Months Ended
|
|
Mar 31,
2020
|
Mar 31,
2019
|
In millions
(Unaudited)
|
As
Reported
|
Pro
Forma
|
Electronics &
Imaging
|
$
253
|
$
288
|
Nutrition &
Biosciences
|
385
|
349
|
Transportation &
Industrial
|
308
|
373
|
Safety &
Construction
|
368
|
374
|
Non-Core
|
42
|
98
|
Corporate
|
(35)
|
(52)
|
Total
|
$
1,321
|
$
1,430
|
|
Equity in Earnings
of Nonconsolidated Affiliates
|
Three
Months Ended
|
|
Mar 31,
2020
|
Mar 31,
2019
|
In millions
(Unaudited)
|
As
Reported
|
Pro
Forma
|
Equity earnings
(GAAP)
|
$
39
|
$
40
|
Significant items
included in equity earnings 1
|
—
|
1
|
Equity earnings
included in operating EBITDA (non-GAAP)
|
$
39
|
$
41
|
|
Equity earnings
included in operating EBITDA by segment
|
|
Electronics &
Imaging
|
$
9
|
$
3
|
Nutrition &
Biosciences
|
—
|
—
|
Transportation &
Industrial
|
1
|
—
|
Safety &
Construction
|
7
|
8
|
Non-Core
|
22
|
30
|
Total equity earnings
included in operating EBITDA (non-GAAP)
|
$
39
|
$
41
|
1. Reflects a
restructuring charge related to a joint venture in the Non-Core
segment.
|
|
Reconciliation of
"Income (Loss) from continuing operations, net of tax"
to "Operating EBITDA"
|
Three Months
Ended
|
|
Mar
31, 2020
|
Mar 31,
2019
|
In millions
(Unaudited)
|
As
Reported
|
Pro
Forma
|
Income (loss) from
continuing operations, net of tax (GAAP)
|
$
(610)
|
$
18
|
+ Provision for income
taxes on continuing operations
|
44
|
(61)
|
Income (loss) from
continuing operations before income taxes
|
$
(566)
|
$
(43)
|
+ Depreciation and
amortization
|
772
|
527
|
- Interest income
1
|
2
|
40
|
+ Interest expense
2
|
173
|
180
|
- Non-operating
pension/OPEB benefit 1
|
11
|
21
|
- Foreign exchange
gains (losses), net 1
|
(8)
|
(61)
|
+ Costs
historically allocated to the materials science and agriculture
businesses 3
|
—
|
256
|
- Adjusted significant
items
|
(947)
|
(510)
|
Operating EBITDA
(non-GAAP)
|
$
1,321
|
$
1,430
|
1. Included in
"Sundry income (expense) - net."
|
2. The three
months ended March 31, 2020 excludes N&B financing fee
amortization. Refer to page 15 for details of significant
items.
|
3.
Costs previously allocated to the materials science and agriculture businesses that did not meet the definition of expenses related to discontinued operations in
accordance with
ASC 205.
|
|
|
DuPont de Nemours,
Inc.
|
Selected Financial
Information and Non-GAAP Measures
|
|
Significant Items
Impacting Results for the Three Months Ended March 31,
2020
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Reported results
(GAAP)
|
$
(566)
|
$
(616)
|
$ (0.83)
|
|
Less: Significant
items
|
|
|
|
|
Integration
and separation costs 4
|
(197)
|
(154)
|
(0.21)
|
Integration and
separation costs
|
Restructuring
and asset related charges - net 5
|
(134)
|
(102)
|
(0.14)
|
Restructuring and asset
related charges -
net
|
Goodwill
impairment charge
|
(533)
|
(533)
|
(0.72)
|
Goodwill impairment
charge
|
Asset
impairment charges 6
|
(270)
|
(206)
|
(0.28)
|
Restructuring and asset
related charges -
net
|
Net gain on
divestiture 7
|
197
|
102
|
0.14
|
Sundry income (expense)
- net
|
N&B
financing fee amortization 8
|
(10)
|
(8)
|
(0.01)
|
Interest
expense
|
Income tax
related item
|
—
|
28
|
0.04
|
Provision for income
taxes on
continuing operations
|
Total significant
items
|
$
(947)
|
$
(873)
|
$ (1.18)
|
|
Less: Merger-related
amortization of intangibles
|
(482)
|
(368)
|
(0.50)
|
Amortization of
intangibles
|
Less: Non-op pension
/ OPEB benefit
|
11
|
8
|
0.01
|
Sundry income (expense)
- net
|
Adjusted results
(non-GAAP)
|
$
852
|
$
617
|
$
0.84
|
|
|
Significant Items
Impacting Pro Forma Results for the Three Months Ended March 31,
2019
|
In millions, except
per share amounts (Unaudited)
|
Pretax
1
|
Net
Income 2
|
EPS
3
|
Income Statement
Classification
|
Pro forma results
(GAAP)
|
$
(43)
|
$
14
|
$
0.02
|
|
Less: Significant
items
|
|
|
|
|
Integration
and separation costs 4
|
(438)
|
(345)
|
(0.46)
|
Integration and
separation costs
|
Restructuring
and asset related charges - net 5
|
(72)
|
(55)
|
(0.07)
|
Restructuring and asset
related charges - net; Equity
in earnings of
nonconsolidated affiliates
|
Income tax
related item
|
—
|
62
|
0.08
|
Provision for income
taxes on
continuing operations
|
Total significant
items
|
$
(510)
|
$
(338)
|
$ (0.45)
|
|
Less: Merger-related
amortization of intangibles
|
(200)
|
(157)
|
(0.21)
|
Amortization of
intangibles
|
Less: Non-op pension
/ OPEB benefit
|
21
|
17
|
0.02
|
Sundry income (expense)
- net
|
Less: Costs
historically allocated to the materials
science and agriculture businesses 9
|
(256)
|
(197)
|
(0.26)
|
Cost of sales;
Research and
development expense; Selling, general
and administrative expenses
|
Adjusted pro forma
results (non-GAAP)
|
$
902
|
$
689
|
$
0.92
|
|
1.
|
(Loss) Income from
continuing operations before income taxes.
|
2.
|
Net (loss) income
from continuing operations available for DuPont common
stockholders. The income tax effect on significant
items was calculated
based upon the enacted tax laws and statutory income tax rates
applicable in the tax jurisdiction(s) of the
underlying non-GAAP
adjustment.
|
3.
|
(Loss) Earnings per
common share from continuing operations - diluted.
|
4.
|
Integration and
separation costs related to the Merger, post-Merger integration,
the Distributions and, beginning in the fourth
quarter of 2019, the
intended separation of the Nutrition & Biosciences
business.
|
5.
|
Includes Board
approved restructuring plans and asset related charges.
|
6.
|
Reflects long-lived
asset impairment charges related to an asset group within the
Non-Core segment.
|
7.
|
Reflects a gain on
the sale of the Company's Compound Semiconductor Solutions business
within the Electronics & Imaging segment.
|
8.
|
Included in "Interest
expense" and relates to committed financing in connection with the
intended separation of the N&B Business.
|
9.
|
Costs previously
allocated to the materials science and agriculture businesses that
did not meet the definition of expenses related to
discontinued
operations in accordance with ASC 205.
|
DuPont de Nemours,
Inc.
|
Supplemental
Unaudited Pro Forma Combined Financial Information
|
|
Unaudited Pro Forma
Combined Statement of Income
In millions, except per
share amounts
|
Three Months Ended
March 31, 2019
|
DuPont
1
|
Pro
Forma
Adjustments2
|
Pro
Forma
|
Net sales
|
$
5,414
|
$
—
|
$
5,414
|
Cost of
sales
|
3,621
|
22
|
3,643
|
Research and
development expenses
|
267
|
—
|
267
|
Selling, general and
administrative expenses
|
726
|
—
|
726
|
Amortization of
intangibles
|
256
|
—
|
256
|
Restructuring and
asset related charges - net
|
71
|
—
|
71
|
Goodwill impairment
charge
|
—
|
—
|
—
|
Integration and
separation costs
|
611
|
(173)
|
438
|
Equity in earnings of
nonconsolidated affiliates
|
40
|
—
|
40
|
Sundry income
(expense) - net
|
84
|
—
|
84
|
Interest
expense
|
151
|
29
|
180
|
(Loss) Income from
continuing operations before income taxes
|
(165)
|
122
|
(43)
|
(Benefit from)
Provision for income taxes on continuing operations
|
(91)
|
30
|
(61)
|
(Loss) Income from
continuing operations, net of tax
|
(74)
|
92
|
18
|
Net income
attributable to noncontrolling interests from continuing
operations
|
4
|
—
|
4
|
Net (loss) income from
continuing operations attributable to DuPont
|
$
(78)
|
$
92
|
$
14
|
|
Per common share
data:
|
|
|
|
(Loss) Earnings per
common share from continuing operations - basic
|
$
(0.11)
|
$
0.02
|
(Loss) Earnings per
common share from continuing operations - diluted
|
$
(0.11)
|
$
0.02
|
|
Weighted-average common
shares outstanding - basic
|
750.0
|
|
750.0
|
Weighted-average common
shares outstanding - diluted
|
750.0
|
753.1
|
1.
|
See the historical
U.S. GAAP Consolidated Statements of Operations.
|
2.
|
Certain pro forma adjustments were made to illustrate the estimated effects of the Transactions, assuming that the Transactions had occurred on January 1, 2018.
The pro forma adjustments are consistent with those identified and disclosed in the Company's Current Report on Form 8-K filed with the SEC on June 7, 2019.
The adjustments include the impact to "Cost of sales" of different
pricing than historical intercompany and intracompany practices
related to various supply agreements entered into in connection
with the Dow Distribution, adjustments to "Integration and
separation costs" to eliminate one time transaction costs directly
attributable to the Distributions, and adjustments to "Interest
expense" to reflect the impact of the Financings.
|
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SOURCE DuPont