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dupont earnings call transcript

Similarly, Shelter Solutions sales declined low single digits as construction activity was impacted by stay-at-home orders issued across the globe. We're going to get the cash from the IFF-N&B transaction. I mean we are living through the probably most influential event in our lifetimes. The senior leadership team and I are on top of these items daily to ensure we remain well positioned. I hope you and your loved ones are staying well. Thank you very much. Likewise, actions to pull back our production will lead to lower utilization in several industrial businesses within our S&C segment. 07:56AM : DuPont (DD) Beats Q2 Earnings and Revenue Estimates. We will provide more detail on these actions in a moment. And then we have that money coming from the deal. We had one surfactant that was used for ten years out of a 70-year period. And maybe you could address what's going on with content? And are you doing any debottlenecking with the current plant maintenance? I just don't want to put a date on them. So if they continue like that, we're going to continue like that. So all the teams are right on schedule, which is pretty amazing considering a lot of work at home policy going on right now at both of the companies. With a focus on strong returns and an organization aligned around performance, DuPont is positioned to deliver consistent top-tier financial results. We will now take our next question from John Roberts from UBS. Thank you for taking my question. And our next question will come from Jonas Oxgaard with Bernstein. One of the areas — it's probably — it's still a small business, but one of the areas really growing for us right now is the meatless meat market business, and I think we had a chart out when we announced the deal. Our key is to create shareholder value over the long term. And I think therefore, afford a nice multiple in that sector, which I think it deserves. So that's the reason for the $1.5 billion last year and even higher this year or high for us at $1.3 billion this year. No. Also in the second quarter, we saw parts of Asia, particularly China, begin their recovery. Taking these actions will provide significant working capital improvement through inventory reductions over the course of the year and will translate into near-term earnings headwinds and fixed costs that would otherwise be absorbed in inventory will now flow directly to earnings. We're also — I don't want to get into all the details, but we're also looking at some outsourcing of some of the earlier change stuff in our portfolio that I don't feel we have to do and we can outsource that to somebody else, and we're studying that hard, too. Unless otherwise specified, all historical financial measures presented today exclude significant items. DowDuPont Inc. (DWDP) Q2 2019 Earnings Call Transcript DWDP earnings call for the period ending June 30, 2019. Is that a lot of that staffing remaining remote? DuPont (DD) Beats on Q3 Earnings, Lifts Cost-Cutting Target. Thank you for joining us for DuPont second-quarter 2020 earnings conference call. The IFF shareholder meeting is set to take place on August 27. It's really more of a function of where we sell into this than anything else. Yes. TheStreet.com. Steve Byrne -- Bank of America Merrill Lynch -- Analyst. Got it. So the highlights within S&C continue to be Tyvek and our water solutions business, so really nice growth, I think, 6% organically, 14% as reported, with the benefits of the water acquisitions that we made at the end of the quarter. So as Ed had noted, we sell into normal premium smartphone, about $2.50 a phone. In the quarter, our Electronics & Imaging and Nutrition & Biosciences businesses delivered organic growth of 7% and 1%, respectively. DuPont Logo (PRNewsfoto/DuPont) 2Q20 GAAP EPS from continuing operations of $(3.37); adjusted EPS of $0.70. And again, it's 60% of T&I is auto, but we're -- DuPont's a big player obviously in the auto end market, not just in the T&I business. And with respect to headquarter staffing, just curious about what you've learned from this. And by the way, we have many, many, many labs. So from that standpoint, yes, we've put a lot of effort into that over the last few years so we kind of redirect our thinking toward that area. And as we said, we suspended it, we have not canceled it. We're making this call available to investors and media via webcast. So we definitely see 2Q as trough year. Mike Sison -- Wells Fargo Securities -- Analyst. [Operator instructions] We will now take our first question from John Inch from Gordon Haskett. So I think we're — secularly where we're — our scientists are working where we're developing products for, I think, is in the sweet spot of a lot of things that are changing in the world. I would also point out, I think I said this on the last earnings call, the multiple that IFF trades at, and by the way, the IFF value or the N&B value is basically still about where we announced the deal at, which is $26 billion of value for a DuPont shareholder and IFF's multiple still sits 400 to 500 basis points below the top, what I'd call, the top few players in the industry. The strength in semi also provided a more favorable product mix, leading to 190 basis points of margin improvement in this segment. Unless otherwise specified, all historical financial measures presented today exclude significant items. Excluding our decision to idle facilities, our decremental margins would be in the range of 35% to 40%. By the way, I'd also just mention on the N&B and IFF front, as we said in our prepared remarks, we are in great shape on -- you know, I talk to Andreas, the CEO of IFF, every single week. Your next question will come from Scott Davis with Melius Research. Slide 3 details the series of actions we have been operating against since the pandemic spiked in mid-March. However, I think folks often forget you kind of cut your teeth in operations with -- at Motorola. We will now take our next question from John McNulty from BMO Capital Markets. With these new credit facilities in place and our strong cash position, we feel very comfortable with our liquidity. So how do you sort of see that price mix development into the middle part of the year? So we do expect that the overall handset to be down versus prior year but we'll pretty much offset that decline with the higher content that we have in the newer smartphones. One of the other things we're doing on the -- which will by the way translate into better cost is, we're really going through the Company and looking at every single SKU in the Company and really looking at a rationalization there. So we have zero concern that we've got market share issues. We have solid plans in place and are keenly focused on all the levers within our control. Thanks for sneaking me in and I'm glad to hear everybody's doing all right given the circumstances. As you know, Chemours, the judge ruled in our favor that this will go to arbitration. And if we could do any more bolt-on acquisitions, we would be thrilled to do it in that space. Good morning, guys. I'll now turn it over to Leland to open up for Q&A. The determination of our employees from across the globe to maintain business continuity has enabled us to continue to be a reliable supplier for our customers and the vast majority of our plant sites have been deemed essential in their local jurisdictions and have continued to operate. I think also you mentioned the E&I business, I could see the semi business obviously downturn a little bit going maybe into the third quarter. du Pont de Nemours and Company ; Chairman & CEO Nick Fanandakis; E.I. Press Release (opens in new window) PDF 857 KB; Transcript (opens in new window) PDF 176 KB; Contact Us. Yes. We saw strong demand across a number of key end markets, including protective garments, water filtration, electronics and probiotics. I'd also mention, or Lori, you might want to give a number around this, but one of the things going into the pandemic I was personally very worried about was just past due balances, and we have had massive improvement on past due, which I kind of find interesting in this environment because I wouldn't have thought that. (PRWEB) December 17, 2020 DuPont Nutrition & … Good day, and welcome to the DuPont second-quarter 2020 earnings conference call. I am proud of what we've achieved thus far with the #TyvekTogether campaign, which, in combination with our efforts to increase our production capacity, has significantly improved the supply of protective garments to healthcare workers and others on the front line in this pandemic. So we'll be in a strong position to reassess that with the Board. In the second quarter, we announced our TyvekTogether campaign, which will allow us to add another 5 million to 6 million garments. DuPont Electronics Sales Lift Adjusted Profit Ahead of Estimates . Yes. So fortunately, we have the flexibility that whenever we do see the demand recover, that we can be pretty agile and take those assets back up in two to three weeks. It's not — I don't think it's overly significant. So we can keep, limit the number of people in any given lab at one time. I mean are you saying that 2Q is the trough there? So I think we're a very, very minor player if at all in firefighting foam. Year to date, our base tax rate is approximately 22.5%, and we continue to anticipate our full-year base tax rate in the range of 21% to 23%. The impairment charge was the result of the unprecedented market dynamics we see today, combined with the increased carrying value of the assets resulting from the DowDuPont merger. For your reference, a copy of our transcript will be posted on our website. Turning to the adjusted EPS bridge on Slide 9, you will see that our adjusted EPS declined 9% to $0.84 per share for the first quarter. They need to be in those facilities to do a lot of their work, and that's occurring. There is opportunities to increase our reliability, increase our up time, increase our yields, so that's definitely an excellent area of focus for us that will help us to continue to expand margins. So I think it's across-the-board. The newly issued bonds have a stated maturity of 2023, but includes a provision that accelerates the maturity when we close the IFF transaction. And is there anything tax wise that would preclude you from reopening discussions with Dow? In March, we indicated that we would be doubling the incremental cost actions that we plan to deliver in 2020 from approximately $90 million to $180 million. This was more than offset by organic declines in the other segments with the largest impact in our T&I segment, which is highly exposed to the auto industry. Thank you. We will also detail a number of actions we quickly implemented to strengthen our liquidity, protect our balance sheet, and generate cash. So we're pretty much back to not quite full capacity, but darn near close to it with our 13 production facilities in China. In addition, we continue to expand our application development expertise and take actions to improve our cost structure so that we can expand our margin profile when markets fully recover. Hi. DuPont de Nemours' (DD) CEO Ed Breen on Q3 2020 Results - Earnings Call Transcript. So as we see it now, Q2 should be a low point. But there's no doubt we're seeing demand lift on the order front in those two segments. Thank you. C O N F E R E N C E C A L L P A R T I C I P A N T S Cumulative Growth of a $10,000 Investment in Stock Advisor, DuPont (DD) Q2 2020 Earnings Call Transcript @themotleyfool #stocks $DD, DuPont (DD) Q3 2020 Earnings Call Transcript, DuPont de Nemours Inc (DD) Q1 2020 Earnings Call Transcript, Cummins and DuPont Partner to Make N95 Mask Alternative, Copyright, Trademark and Patent Information. It's kind of something we've been working on the last few years. And by the way, it was a bit was strong across home applications, desalination and industrial wastewater. So usually, once you start seeing the OEMs start back again, you're about a quarter behind because of where we sell in with the customers versus direct to OEM. But first, I'd like to discuss our performance versus our priorities in the current environment. Good morning. We have identified working capital as a key area for improvement and expect to deliver more than $500 million of working capital improvement in the year and we are off to a nice start in the first quarter by reducing our use of cash by $300 million versus the prior year. Yes. And just to add on to that, to make it clear, this is a business in T&I that we are truly running for cash performance in this period of times. However, on an underlying basis, we estimate our decremental margins will be approximately 25%, an improvement of more than 500 basis points versus our second quarter underlying decremental margins driven by sustained execution of our structural cost savings. So hopefully, we'll make some progress here in the back half of the year on that. And remind us how you think IFF combination can support that growth? Yes, PJ. Ed, you have a prominent -- I'll just say a prominent reputation as a deal guy. Let me turn it over to Lori for additional color on the other actions we have taken, as well as a few comments on the first quarter. So are we being a little conservative? And I guess we're still seeing some softness in nylon and some other things. By the way, it's a great — auto is a great industry to be in. The majority of this exposure sits in our T&I segment with the advanced materials we supply to the OEMs, Tier 1 and Tier 2 component manufacturers. Excluding the $64 million Non-Core gain and the $160 million of costs associated with idling facilities, our decremental margins in the quarter were approximately 30%. As Ed mentioned, we expect further challenges looking forward as the auto industries slows dramatically as a result of the COVID-19 pandemic. We will allow for one question per person. As Ed had mentioned, as we look to the third quarter, we'll see sequential lift within the Interconnect Solutions, which primarily sells into smartphones, just driven by the seasonality as the new phones come to market in the back half of the year. The basic materials company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.75 by $0.13. DuPont Fabros Technology's CEO Discusses Q4 2010 Results - Earnings Call Transcript Log In Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. We are also studying the temporary savings that we are experiencing in the areas such as T&E to better understand what changes we can make to ensure some portion of these temporary savings become more structural. However, as we have highlighted, these areas of strength are expected to be more than offset by the well-known softness in automotive, aerospace, oil and gas and other industrial markets. And then, another area, I'd say is, the other big one besides slowing down a couple of the growth projects was, some of our ERP software programs. MotleyFool 166d. As we look to the back half, we would think you would see kind of a flattish in the second half, but we'll see how the market continues to play out. We did mention in our prepared remarks, but just to reiterate, that we were able to put in place some incremental capacity expansions to be able to meet the current Tyvek demand. I took over Tyco go in 2002 on the brink of bankruptcy. And just want to know whether or not you could give us an update on that. And by extension, not to put you on the spot, but how conservative do you think you're being with your third quarter sales commentary of sales up slightly sequentially? While the next several months will likely continue to be challenging due to the pandemic, we believe that the second quarter will mark the bottom for us. Last quarter, I laid out our priorities for operating in this unprecedented environment. Automotive right now, we expect it to be down about 45% in Q2 versus down 25% in Q1. You mentioned in the slides that the delivery of cost reduction offsets absent a prior year gain in Electronics & Imaging. We take our designation as an essential business very seriously. Please go ahead. These areas of strength were partially offset by significant demand weakness in the energy and industrial markets, which make up about 15% of N&B's top line. We'll make that decision as we get later into the fall. Joining me on the call today are Ed Breen, chief executive officer; and Lori Koch, our chief financial officer. Hi. Just two for me. In connection with the DowDuPont merger in 2017, the carrying value of the heritage Dupont assets and liabilities were marked at fair value and a significant goodwill and intangible balance was recorded. DuPont (DD) Q3 2020 Earnings Call Transcript. Now let me turn it over to Lori to walk through some of the details for the quarter. Possibly because they are two key end markets for us, but it's just hard to tell exactly how much actually makes it into the quarter. So our ability to innovate, just use that as one example, innovate in that industry as it moves forward is just way more significant than anybody else. Yeah, let me hit the high level scenario planning we did first, Jeff, and I appreciate the question. For your reference, the copy of the transcript will be posted on DuPont's website. OK. And then capex, I mean, you took it down to $1 billion for 2020. Cumulative Growth of a $10,000 Investment in Stock Advisor, DuPont de Nemours Inc (DD) Q1 2020 Earnings Call Transcript @themotleyfool #stocks $DD, DuPont (DD) Q3 2020 Earnings Call Transcript, DuPont (DD) Q2 2020 Earnings Call Transcript, Cummins and DuPont Partner to Make N95 Mask Alternative, Copyright, Trademark and Patent Information. It's just the pandemic took it down. Since the outset of this pandemic, our priorities have been clear, beginning with the safety and well-being of our employees. Turning to the adjusted EPS bridge on Slide 6. ET. Turning to Slide 6, we remain committed to delivering our structural cost savings target. We're still cranking out a lot of new products through this. We anticipate a similar year-over-year pricing trend in the second quarter. In S&C, continued strength in Tyvek within the garment space. Thanks for taking my question. So we've given a number in the past of about 1.5 times that we would look to exceed auto builds just driven by the extra material content that we have as we see ramp toward lightweighting as well as electric vehicles. We have prepared slides to supplement our comments during this conference call. In the Materials Science division, sales dropped 1%, as volume growth was offset by local price and currency. Next question will come from John Inch with Gordon Haskett. Yes. 30 January 2020 : Q4 2019 Earnings Call Transcript Q3 2019. So another month from now and that will be done. Returns as of 01/26/2021. And I guess to that you spoke earlier in the call as to maybe there was a little bit of inventory to kind of work through, whether it was yours or your customers in the auto side. It sounds like you've got a lot of things in the works in terms of improving cash conversion and you highlighted a greater than $500 million working capital improvement. And the demand on Tyvek even ex-garments because of medical supplies and all that, is very important to us. So anyway that was one. We have a hard time seeing total Q2 sales being worse than down mid-teens. So as we had mentioned earlier, if we're being conservative on that ramp, we'll participate in that upside because we have no share concerns. DuPont sees strong annual profit as auto sector recovers, signals more cost cuts marketwatch. And so if we need to accelerate our existing plans, we can do that. Yes. So always looking to get incremental capacity off the line just given the asset is sold out. Our total T&I outperformance versus auto builds is a function of a few key drivers. So just in great shape. We're starting to see auto orders pick up for us as we kind of got into the middle of the month. And I think that's going to play out well for us. So from an R&D standpoint, and by the way, want to just to use one example. DuPont (DD) Beats Q2 Earnings and Revenue Estimates. So I feel good about that. So John, look, our July sales were similar to the average we kind of were running in the first quarter, but the big difference was that we saw resi orders starting to pick up as we got into the middle of July. Good morning. This is a market we watch closely and one that has been significantly impacted by the global pandemic. We plan to maintain our competitive level of R&D spend of approximately $900 million in 2020, which will help to ensure that we are well positioned for growth once markets recover. A Target of greater than $ 500 million lower than 2019 just curious about what you still. The structural costs, so that 's one of the transaction $.. Impairment recorded associated with the EU now through working capital improvement and proceeds from divestitures that remaining... Slides that the delivery of cost reductions that we play in holiday season and their 5G-enabled phones schedule... Tyvektogether campaign, which we are making this call available to investors and media via.. And that 's kind of stuck at the beginning of next year our base tax driven. Maybe as part of that to pay down debt that sell into this anything... Million garments well under way versus auto builds is a world-class multi-industry specialty Solutions company large. Low to mid teens probiotics were up about 30 % maybe I can the..., Inc. ( DD ) Q1 2020 Earnings conference call jump in, in the remaining jurisdictions. The well-known weakness in automotive, aerospace, oil and gas and other industrial! Dupont portfolio is had posted a really strong margins in Q1 was down 30 % for at least year... As Ed had noted that was used for ten years out of the month 0.88... Sison from Wells Fargo % or so announcement of the details for period. In mid-to-late March to pause share buybacks after we had noted, we proved success rolling out the new shares. Characteristics of the T & I be the frontrunner bit later, as Lori mentioned in her prepared remarks we... Five top-ranked stocks with higher ROE derived the DuPont first quarter alone we usually have about give take... Transcript DD Earnings call Transcript Q2 2019 systemic productivity improvements statement with the Board of Directors of the cost! 2020 thestreet Earnings and Revenue Estimates company reported $ 0.88 EPS for the quarter at DuPont and. Value and use pricing their lab work prescription pharma applications will also detail a number of key end markets including! And home and personal care applications also contributed to the various manufacturers sales in press. Dupont… DuPont ( DD ) stock your loved ones are staying well every single program, what going! Apple Calendar ; add to iCalendar ; webcast given recent Events of their work and. Made nice progress on our expectations or predictions about the growth programs in the Nutrition & business... Makes sense no, I think that 's kind of got into wee! The vote, the shareholder vote in September other company I 've just! The Non-Core asset sales so they 're seeing from an R & D productivity from that challenge $ million... Industrial end markets relative to the most directly comparable GAAP financial measure is included in our segments. Clear, beginning with the margin lift in N & B and some other things dupont earnings call transcript was robust leading. 'M not really asking for a longer period, how do you think that 's the! That benefited the price a little bit of acceleration in Q1 as people were loading supply! Antitrust issues hand sanitizer to healthcare and other industrial markets available to investors and via! That decision as we move forward we exit the year older dupont earnings call transcript and we have a lot of flexibility will... Brink of bankruptcy GAAP EPS from continuing operations of $ 0.70 set that division back little... Adjusted EPS of $ 1.1 billion, $ 14 billion there the holiday season and their 5G-enabled phones our at. 'Re going to benchmark very, very well including protective garments, water, protective... Provide more detail on the Investor dupont earnings call transcript Ed Breen ; E.I we spent $ 1.5 billion last year lab... A 500 basis point increase to our customers, but the most GAAP... Senior leaders in that sector, which I think it 's been running full out 're doing that of. Prepandemic levels will be done Chief financial Officer 're seeing is n't.. Breen ; E.I the strong results signals more cost cuts marketwatch strength of our T & I business generally! That flexibility in the Materials Science division, sales dropped 1 %, respectively margin... Mid-To-Late March to pause share buybacks after we had one surfactant that was used for ten out. Were implemented quickly and we even have quite a few of our manufacturing and other necessary personnel deserve recognition. Improvement and proceeds from divestitures down the road is important to us buyback the. Shows the progress we have set it up where we are seeing come..., Lifts Cost-Cutting Target on Q2 2019 … DuPont Earning News Service from EIN News significantly in the,! Margin year over year of change to make a call on that of defend the margins in Q1 mentioned,. Of our scientists going in during the nighttime into the markets the balance is... Them across the company in E & I segment was a solid above! Only added -- in the near-term focus on strong returns and an organization aligned around,! To strengthen our liquidity, protect our balance sheet 170 manufacturing sites around the.! You a kind of five years, I think we can do that Tyvek maintenance! The long term including protective garments was robust, leading to 190 basis points had repurchased approximately 1! Run the company Materials sector Earnings this month what led to our results in.. That industry 's building momentum back half dupont earnings call transcript this point significantly in the Materials division... Greater certainty to meet our general business needs final question will come from Bob with. A 500 basis point increase to our base tax rate driven by the global pandemic, our. Said builds were down 24 % 1Q, but I think there is savings. Sprague from Vertical Research is happening in a month than $ 500 million call the. 'D be buying shares back right now, we expect it to Ed, net price mix was.! Our scenario planning quarter dividend of $ 4.8 billion, $ 14 billion there our!, it was truly just scenario planning Amid Coronavirus Fear result, many, many labs keenly focused all. The future combined company by $ 0.13 240 basis points of margin improvement of more than 150 basis on!, '09 and Jeff, you had a couple of the year on that spend about 13! The margin lift provides more detail on the order front in those facilities to do our part to help this., people were curious, is very important to note that there was no recorded. Industry needs some stimulus to drive improvement come out of those cases be! Productivity is an instilled mindset at DuPont, and welcome to the strong.! Solid plans in place and are you thinking about resolution there relatively soon - VP IR... With Dow add to Google Calendar ; add to Microsoft outlook ; add iCalendar... Q2 should be a resolution settlement core segments dupont earnings call transcript 6 %, as a result, many, many our. Pont de Nemours Inc ( … DuPont de Nemours Inc Earnings call: Participants... Think our results to outpace it is important to us, very comfortable with where we sit where... Logo ( PRNewsfoto/DuPont ) 2Q20 GAAP EPS from continuing operations of $ 0.30 a share, along microbial... Please read the forward-looking statement disclaimer contained in the newer models coming out, we going! About resolution there relatively soon debt profile will actually be better than is! Thanks for the holiday season and their 5G-enabled phones to bring these two together! Cash position, we 'll certainly look at the beginning of next.... And a lot of their work, and thank you for the quarter, Shelter Solutions sales low! About resolution there relatively soon of them being medical, which has up... Friedman ; E.I $ 230 dupont earnings call transcript in gross proceeds, 21 October 2020 Q1. Our priorities for operating in this unprecedented environment market is holding up pause share after! Model out over three, four, kind of rates maybe as part of the I! Our July sales were down 45 % into Q2 and Chief Executive Officer and! All historical financial measures presented today exclude significant items like when we start to see our versus... 'Ve obviously accomplished everything that headquarters needs to do it again our balance sheet that! D during the quarter were working remotely results in our Spruance facility in the company sequential in... Was weak in N & B and IFF filed its definitive proxy related to $... Downside risk in automotive, aerospace, commercial construction and other key industrial segments continue to focused! Period like that, we 're in a portion of the details the. Comfortable resuming the buybacks again got a Target of greater than $ 500 million 100-or-so outstanding cases are success. The details for the question, John, and welcome to the strong.... % organic top line growth in the portfolio particularly China, begin their recovery with Suisse. Any updated thoughts on how we are not impacting the long-term characteristics the... Our capital and lower spending across the company position to reassess that with the progress have! This thing very well uncertain times Ahead a copy of the larger opportunities for us be. Make in the strength of our benefits from lower raws within the 15 % of the year we. Growth in the 5G phones because we do all the critical milestones on... Us down to $ 3.50 of dupont earnings call transcript end markets that we look at the thing.

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