DuPont reported stronger financial results for the first quarter, with the company able to pass along price increases during a period of inflation.
“In the face of continuing unprecedented global supply chain challenges and cost inflation, further intensified during the quarter by the war in Ukraine, we delivered first quarter financial results well ahead of expectations,” said Ed Breen, CEO. “These results underscore the leading market positions we hold globally and reflect our team’s agility while working closely with our suppliers and customers through challenging circumstances.”
“This solid start to the year reinforces the enthusiasm we have for our transformation as a premier multi-industrial company poised to provide high-value customer solutions in sectors with compelling long-term secular growth drivers,” Breen continued. “Our portfolio actions underway to divest a substantial portion of the historic Mobility & Materials segment and acquire Rogers Corporation are expected to enhance our financial flexibility and enable more consistent value creation for our shareholders by further focusing our portfolio on higher-growth, higher-margin and less cyclical end-markets.”
- 1Q22 Net Sales of $3.3 billion, increased 9%; organic sales increased 9% versus the year-ago period
- 1Q22 GAAP (generally accepted accounting principles) income from continuing operations of $232 million; operating EBITDA (earnings before interest, taxes and other expenses) of $818 million increased 2% versus the year-ago period.
- 1Q22 GAAP earnings from continuing operations of $0.42; adjusted earnings per share of $0.82 increased 19% versus the year-ago period
- $544 million of capital returned to shareholders during the quarter through share repurchases and dividends
- Pricing actions fully offset higher inflationary costs from raw materials, logistics, and energy during the quarter.
“I am pleased with our strong financial results to start the year which reflect positively on the strength of our portfolio and our team’s focus on execution,” said Lori Koch, the chief financial officer of DuPont. “End-market demand remains strong, however, many external uncertainties still exist related to global supply chain challenges, including the impact of the ongoing war in Ukraine and new Covid-related shutdowns in China. Based on our current expectations, our full-year 2022 guidance ranges for operating EBITDA and adjusted EPS on a continuing operations basis remain unchanged. We are increasing our estimated full-year 2022 net sales range for continuing operations to be between $13.3 billion and $13.7 billion to reflect our current assumption for cost inflation related to raw materials, logistics and energy which we continue to expect to offset with price (increases).”
Koch continued, “While underlying demand continues to remain solid and our teams have demonstrated the ability to execute in these unprecedented circumstances, we anticipate key external uncertainties in the macro environment, namely Covid-related shutdowns in China, will further tighten supply chains resulting in slower volume growth and sequential margin contraction in the second quarter 2022.”
DuPont has become a smaller company after selling units that include its food ingredients business.