DuPont will post a profit in the first quarter, but suspended earnings guidance for the remainder of the year, due to the impact of coronavirus.
The company reported it has entered into new revolving credit facilities, put some capital projects on hold and closed some production plants related to products used by the auto industry.
“Our team is meeting the unprecedented challenges presented by the COVID-19 pandemic with an unwavering commitment to the safety of our employees, our customers and the communities in which we operate, all while delivering solid financial results for the first quarter of 2020,” said Ed Breen, CEO. “However, as this pandemic expands globally, the uncertainty around demand in select end-markets continues. In response, we continue to advance initiatives to improve our working capital, and have taken steps to delay certain capital investments and idle production at several manufacturing sites. We will remain agile, continuing to take swift, prudent actions as conditions continue to evolve.”
Breen continued, “Securing these two new (credit) facilities further strengthens our near-term liquidity position. Additionally, we now have committed financing in place to bridge our debt maturing in November 2020 to the receipt of the special cash payment in connection with the Nutrition & Biosciences and IFF transaction,” said Breen. “Combined with our existing cash balances and available borrowings through our commercial paper program, these facilities provide the liquidity needed to navigate these uncertain times.”
DuPont announced adjusted earnings per sharein the range of $0.82 – $0.84 on net sales of about $5.2 billion.The Company expects to deliver operating results above its initial guidance in each core segment, led by strong demand for its materials into personal protection, water filtration, food & beverage, probiotics, and electronics markets.
With theglobal softening in automotive, oil & gas and select industrial end-markets and the unknown duration and intensity of the COVID-19 pandemic, the company has elected to suspend its full-year 2020 net sales and adjusted earningsguidance.