DuPont shares were up after the release of an upbeat earnings report.
Shares of the industrial materials company based near Wilmington rose in pre-market trading on news higher than forecast earnings, a dividend increase, and a stock buyback program. The company has slimmed down with asset sales while focusing on fast-growing areas such as the electronics industry.
Highlights
- 4Q21 Net Sales of $4.3 billion, up 14 percent; organic sales up 13% when compared to year-ago period
- 4Q21 GAAP (General Accepted Accounting Principles) income from continuing operations of $266 million; operating EBITDA (earnings before taxes and other expenses) of $973 million
- 4Q21 GAAP earnings per share from continuing operations of $0.47; adjusted EPS of $1.08.
- Full year 2021 Net Sales of $16.7 billion, up 16 percent; organic (not from acquisitions) sales up 14 percent
- Full year 2021 GAAP Income from continuing operations of $1.8 billion; operating EBITDA of $4.2 billion up 21 percent
- Full year 2021 GAAP EPS from continuing operations of $3.23; adjusted EPS of $4.30
- More than $2.7 billion of capital returned to shareholders during 2021 through $2.1 billion of share repurchases and $0.6 billion in dividends
- Declared first quarter dividend of $0.33 per share; a 10 percent per share increase to regular quarterly dividend
- Announced board approval of new $1 billion share buyback program expiring March 2023
- Issued 2022 guidance; full year 2022 adjusted EPS expected to be in the range of $4.60 to $4.90 per share, an increase of 10% compared to 2021 at the mid-point of the range
“Our fourth-quarter financial results reflect a disciplined focus on pricing actions and operational excellence in a sustained environment of unprecedented global supply chain challenges and rising inflation,” said Ed Breen, DuPont CEO.
“Sustained strong demand in key end-markets such as electronics and water, along with our continued ability to offset raw material inflation with price, were critical to our fourth-quarter results. The leading market positions we hold globally, as well as our focus on execution, has led to sales and earnings growth throughout the year and will be key to our success in 2022.”
“In addition to delivering strong financial performance, we advanced a number of strategic priorities in 2021,” Breen stated. “With our acquisition of Laird Performance Materials, definitive agreement to acquire Rogers Corporation and intent to divest a substantial portion of the Mobility & Materials segment, we are advancing our position as a premier multi-industrial company and are focusing our portfolio around key growth pillars – electronics, water, protection, industrial technologies and next-generation automotive. We expect these steps will provide high-growth, high-value opportunities in sectors with long-term secular trends.”
Outlook
“For 2022 we expect net sales between $17.4 and $17.8 billion and operating EBITDA between $4.3 and $4.5 billion, an increase of 6 percent at the mid-point versus 2021, with top-line volume growth and pricing gains more than offsetting year-over-year raw material and logistics costs increases,” said Lori Koch, the chief financial officer of DuPont. “Our outlook for full-year adjusted EPS is in the range of $4.60 to $4.90 per share, an increase of 10% at the mid-point versus 2021.”
“For the first quarter of 2022, we expect net sales between $4.2 and $4.3 billion, operating EBITDA between $940 and $980 million, and adjusted EPS in the range of $0.94 to $1 per share,” Koch continued. “Consumer demand remains strong; however, raw material and logistics cost inflation is expected to continue to impact margins. We expect operating EBITDA margin in first quarter 2022 to be about flat with fourth-quarter 2021 with continued improvement throughout 2022 to more normalized levels in the back half of the year.”
