Dupont Announces 2019 Financial Results

• 2019 proforma GAAP earnings per share from continuing operations of (0.74) dollars; proforma adjusted earnings per share of 3.80 dollars.
• 2019 proforma operating EBITDA margins increased by 10 basis points, largely offset by the 50 basis point negative impact of lower equity-related earnings.
• 2019 fourth quarter net sales declined 5 percent to 5.2 billion dollars; organic sales declined 2 percent.
• 2019 fourth quarter GAAP earnings per share from continuing operations of 0.24 dollars; adjusted earnings per share of 0.95 dollars.
• Shareholders received 1.3 billion dollars since 1 June, including 750 million dollars in share repurchases.
• Through the advanced active portfolio management strategy, the planned merger of the Nutrition & Biosciences business unit with IFF will create a global leader in high-value content and solutions for Food & Beverage, Home & Personal Care, and Health & Wellness markets.
• 2020 adjusted earnings per share guidance updated from 3.70 dollars to 3.90 dollars, reflecting the prior year's discontinued gains and headwinds in the nylon market.

DuPont (NYSE: DD) announced financial results for 2019 and the fourth quarter of that year.

  DuPont Chairman and Chief Executive Officer Marc Doyle said, "Looking at our annual performance results, we were able to balance challenging global macro conditions by focusing on the levers within our control" and continued: "While continuing to invest in innovation and strengthening our position in areas of important growth such as water and 5G, we eased these headwinds through actions in pricing and cost."   "This strong internal discipline remains critically important as we enter 2020, as we expect the decline in nylon pricing and the continued negative nylon mix to offset organic revenue growth in our other core segments" he said. Doyle added: "While we continue to strategically reduce spending, we are taking steps to consolidate our active footprint. These actions will ensure our costs are appropriately sized and we are well-positioned for growth in our future structure."

2019 Annual Results

Annual net sales declined 5 percent compared to 2018, reaching a total of 21.5 billion dollars. A 2 percent increase in pricing was more than offset by a 4 percent decline in net sales in automotive and electronics end markets due to macro conditions, resulting in a 2 percent organic decline in net sales.   Proforma GAAP earnings from continuing operations, which were 237 million dollars in the same period of the prior year, totaled 522 million dollars this year. Proforma operating EBITDA figures, largely attributable to weakness in automotive and electronics markets, declined 4 percent to 5.6 billion dollars year-over-year, partially offset by lower equity-related earnings and sustained strong pricing discipline and cost savings. 2019 proforma operating EBITDA margins increased 10 basis points compared to the prior year, more than offsetting the 50 basis point headwind triggered by lower equity-related earnings. Proforma GAAP earnings per share from continuing operations were 0.74 dollars this period, compared to 0.23 dollars in the prior year period. This decline is largely attributable to increased significant items, higher tax rates, unfavorable foreign exchange impacts, and lower segment results, partially offset by lower costs previously allocated to Dow and Corteva. Proforma adjusted earnings per share of 4.07 dollars in the same period of the prior year compared to proforma adjusted earnings per share of 3.80 dollars this year, a 7 percent decline, primarily due to higher tax rates, unfavorable foreign exchange impacts, and lower segment results.

2019 Fourth Quarter Results

Quarterly net sales declined 5 percent compared to the same quarter of the prior year, totaling 5.2 billion dollars. On an organic basis, a 1 percent price increase was more than offset by a 3 percent decline in sales volume, resulting in a 2 percent decrease in net sales. Organic sales were flat to positive in all core segments except for Transportation & Industrial business units, which were impacted by continued weakness in automotive markets and lower nylon pricing.

Proforma GAAP earnings from continuing operations in the same quarter of the prior year were 310 million dollars, while GAAP earnings from continuing operations in this quarter totaled 191 million dollars.

Operating EBITDA declined 14 percent to 1.4 billion dollars compared to prior year proforma operating EBITDA. This decline resulted from lower nylon pricing and reduced equity-related earnings from the Hemlock Semiconductor joint venture due to customer settlement resolutions. These headwinds were partially offset by higher pricing in segments other than Transportation & Industrial business unit and cost savings. Proforma GAAP earnings per share from continuing operations were 0.39 dollars in the same period of the prior year, compared to 0.24 dollars in this period from continuing operations. The decline is largely attributable to lower segment results and higher tax rates, partially offset by the elimination of costs previously allocated to Dow and Corteva. Adjusted earnings per share declined 34 percent to 0.95 dollars compared to proforma adjusted earnings per share of 1.43 dollars in the prior year quarter. The decline is primarily due to lower segment results and higher tax rates. DuPont Board Chairman Ed Breen stated in his comments, "The planned merger of our Nutrition and Biosciences business unit with IFF advances our company strategically and will create value for our shareholders" and continued: "Together we are creating a global leader in high-value content and solutions for Food & Beverage, Home & Personal Care, and Health & Wellness markets. At the same time, we are creating tremendous opportunities for our employees and customers. Additionally, we continue to strengthen our portfolio through strategic acquisitions we announced recently in the rapidly growing water space." Breen also stated in his comments: "In close collaboration with the Board, I continue to focus on this dimension of DuPont's value creation opportunity, evaluating opportunities to create value for shareholders through portfolio adjustments and differentiated investments."