DuPont reports 4th quarter loss and lower earnings in 2023

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DuPont reported a loss in the fourth quarter as the destocking of customer inventories continued and China markets remained soft. The company is based just outside Wilmington.

The red ink was reported before the earnings release, leading to a decline in the company’s stock price. The loss was triggered by a write-down of the value of its Protection reporting unit, which consists of Shelter Solutions and Safety Solutions.

“In the face of inventory destocking that impacted many of our end-markets in 2023 and continued economic softness in China, our teams remained focused on sound operational execution and driving productivity and cost discipline,” said Ed Breen, DuPont CEO. “We delivered significant year-over-year cash flow improvement in 2023, including a strong fourth quarter finish, which underscores our ongoing prioritization of working capital management.”

Breen said the company is confident about a recovery in its electronics materials segment.

“We did, however, see incremental channel inventory destocking within our industrial-based businesses as we closed out 2023 and we are seeing similar trends continue as we enter 2024 with recovery timing expected to vary by end-market as the year progresses,” Breen stated “We remain confident in the through-cycle strength of our portfolio as our businesses are well-equipped to leverage market-leading positions and accelerate growth as inventories normalize and key end-markets recover.”

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DuPont completed a $2 billion share repurchase transaction, completing a $5 billion repurchase program. A new $1 billion share repurchase program and a 6% increase to our quarterly dividend have been authorized.

Fourth Quarter 2023 Results(1)

 Dollars in millions, unless noted 4Q’23 4Q’22Change vs. 4Q’22Organic Sales (2)vs. 4Q’22
Net sales$2,898$3,104(7)%(10)%
GAAP (Loss) Income from continuing operations$(300)$105(385)% 
Operating EBITDA(2)$715$758(6)% 
Operating EBITDA(2) margin %24.7%24.4%30 bps 
GAAP EPS from continuing operations$(0.72)$0.20(460)% 
Adjusted EPS(2)$0.87$0.89(2)% 
Cash provided by operating activities – cont. ops.$646$185249% 
Adjusted free cash flow(2)$501$188166% 

Full Year 2023 Results (1)

 Dollars in millions, unless noted FY’23 FY’22Change vs. FY’22Organic Sales (2)vs. FY’22
Net sales$12,068$13,017(7)%(6)%
GAAP Income from continuing operations$533$1,061(50)% 
Operating EBITDA(2)$2,942$3,261(10)% 
Operating EBITDA(2) margin %24.4%25.1%(70)bps 
GAAP EPS from continuing operations$1.09$2.02(46)% 
Adjusted EPS(2)$3.48$3.412% 
Cash provided by operating activities – cont. ops.$2,191$1,24975% 
Adjusted free cash flow(2)$1,572$750110% 

(1) Results and cash flows are presented on a continuing operations basis.
(2) Adjusted EPS, operating EBITDA, organic sales, adjusted free cash flow and adjusted free cash flow conversion are non-GAAP measures and only reflect continuing operations..

View full release as PDF and view charts here

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