dupont earnings call transcript

So that's one of the larger opportunities for us as we go forward. I mean a piece of that was the favorable mix that we're seeing, so Tyvek is toward the high end of our segment margins when you compare it across the different businesses in S&C. With these new credit facilities in place and our strong cash position, we feel very comfortable with our liquidity. So net-net, April down as we had mentioned about low to mid-teens, with very similar end market results that we saw in Q1. Please go ahead. But it sounds encouraging. Does that mean that you will have a flat margin year over year? And then, Ed, can you provide any update on the Ohio MDL litigation settlement? 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. Thank you, everyone, for joining our call. We do see sequentially less underlying from the costs actually associated with taking the assets down into Q3 and then even more so into Q4. DuPont (DD) Beats on Q3 Earnings, Lifts Cost-Cutting Target . So I think it's going to be a really awesome company when we get going on it and hope February 1 is our date to consummate the merger next year. Below the lines, we saw a 500 basis point increase to our base tax rate driven by discrete items in the first quarter. So look, I'll just say, overall, I like where the DuPont portfolio is. So once we are able to restart the Tyvek Line 8 project at the end of the year, that ultimately will add incremental capacity for us. Lori did hit on this a little bit, but as it pertains to the Safety & Construction segments, just given the differential of current growth rates across the sub-segments, can you just offer some additional framework on how we should be thinking about the mix effects and the potential for decremental margins? We will also refer to non-GAAP measures. We have a hard time seeing total Q2 sales being worse than down mid-teens. We left all of our sales organizations totally intact and we left all of our R&D spend, which is 4% of sales, $900 million, totally intact. 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. Is that something your Water business is doubling down on? Versus first quarter 2019, operating EBITDA was down due to the absence of a $26 million gain, which was recognized in the prior year. As I've noted before, our cost actions are targeted toward G&A expenses and aimed at enabling a highly productive cost structure, which is appropriately scaled to the size of the organization. While shareholder remuneration remains a critical component of our financial policy, this was a practical action at the time in order to conserve cash. So we're clearly seeing the come back there. Please go ahead. And then as Lori had mentioned also, the semi market is holding up. Zacks. So the deal is in great shape from that standpoint. We also obtained a $2 billion delayed-draw term loan to ensure we had a path to pay off the November maturity that essentially place the bank commitment with a short-dated bond, which I will discuss on the next slide. DowDuPont Inc. (DWDP) Q4 2018 Earnings Conference Call Transcript … The basic materials company reported $0.88 EPS for the quarter, topping the consensus estimate of $0.75 by $0.13. They need to be in those facilities to do a lot of their work, and that's occurring. We are making this call available to investors and media via webcast. So as we mentioned on the call, April was down kind of low to mid teens. Our results for the quarter give me confidence that our business teams are staying close to our customers, understanding the near-term market dynamics of their industries and responding appropriately. And so I think right now, as we see it, there is not a lot of the excess inventory in the auto chain. So N&B would have shared in a portion of $130 million of cost reductions that we saw in the quarter. That's definitely the highest margin piece of the portfolio. Our confidence in the long-term characteristics of the automotive industry and our position as a market leader remains strong. Obviously, we're just having the issues with demand with auto expected to be down 45% into Q2. Zacks Investment Research - 4 months ago. 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. Yes. [Operator instructions] We will now take our first question from John Inch from Gordon Haskett. So I think -- so underneath the 12% down 8% volume that we recorded in T&I, so there was strength that we saw in the healthcare segment that offset some of the weakness that we saw in mobility solutions. So we're looking and shifting the focus toward COGS. Sequentially, I think that most of the headwinds will be mainly behind us as we get through Q2 and as we go to the back half of the year, we should be about flat from an all-in price perspective. Is this routine, say, for the summer or because you have older equipment? 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. We will file our initial registration statement with the SEC in the coming days. Water delivered another quarter with double-digit organic growth. Yeah, thanks, Scott. However, the majority of the benefits that we generated were from lower sales and idling facilities versus systemic productivity improvements. I mean are you saying that 2Q is the trough there? In April, our sales were down low-to-mid teens percent versus last year. Stock Advisor launched in February of 2002. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Slide 3 details the series of actions we have been operating against since the pandemic spiked in mid-March. But do you see April being the low watermark in terms of kind of sales declines or are we looking at kind of the possibility that auto stays weak and some of the pockets of strength like electronics maybe softened up a bit? Yes. So I could see that happening, but as Lori just said, I think mid-teens down revenue is probably the bottom of what we're seeing based on what we know as of today. In addition to that, remember that we have another $165 million that is a structural change to the cost of the business that's coming out from the DowDuPont merger, and putting those businesses together. 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. Your next question will come from Vincent Andrews with Morgan Stanley. So we're pretty much back to not quite full capacity, but darn near close to it with our 13 production facilities in China. We saw market strength in both logic and foundry, driven by the ramp-up of advanced technology nodes, which placed nicely to our product portfolio as well as robust demand for memory in servers and data centers. We did 20% down on volume, 10% down on price, which where practically the world would be coming to an end. So what we've done is, we've really benchmarked very significantly around what are we going to look like post the N&B transaction. We're going to have pretty massive R&D capability in the combined company. Good morning. Appreciate it. I think that's pretty nice. All in, we expect our second quarter decremental margins to be in the range of 45% to 55% on lower volumes, nylon pricing pressure, lower utilization and costs associated with idling facilities. Solid top line growth and robust operating leverage led to an operating EBITDA margin improvement of more than 200 basis points. If I look at the new DuPont ex N&B, and I look at where the multiple of the company is at, which is, give or take, eight times, I can't imagine, at some point here, we're not going to be doing some share repurchase. Maybe just a follow-up on the Transportation & Industrial. However, our return to prepandemic levels will be measured and will certainly vary across our end markets. Finally, we believe it is critically important for companies like ours to continue partnering with other industry leaders to deliver essential products needed to support the significant efforts to combat COVID-19. Steve Byrne -- Bank of America Merrill Lynch -- Analyst. So we definitely see 2Q as trough year. Turning to Slide 8 for more detail on the segments. As you know, Chemours, the judge ruled in our favor that this will go to arbitration. 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. Yes. So I feel good about that. I think we'll probably assess it again in the kind of early fall, take a look at — remember, we're going to get over $2 billion of excess cash from the IFF deal at the beginning or kind of going into 2021. I love running the businesses. Please go ahead. 1 position that we're going to have. You mentioned in the slides that the delivery of cost reduction offsets absent a prior year gain in Electronics & Imaging. And I think the biggest issue for DuPont is to get out of those cases and be able to wrap that up. So again, that will play out over the next year or so, but on the other two items, the Ohio one, the Chemours one, I think you'll see some action there in the coming months. The newly issued bonds have a stated maturity of 2023, but includes a provision that accelerates the maturity when we close the IFF transaction. So when you really then look at and most of you or all of you have written about this, when you look at RemainCo DuPont and what it trades -- I don't know, on a multiple basis, it's pretty incredible the disconnect that sits there. Lori, would you like to comment a little more detail? OK. As you know, the automotive markets account for about 15% of our sales. So that's the message there. We did get US antitrust approval. It just so happened that we hit a period between probiotics, Kapton, Tyvek where we were very constrained on capacity and it just so happens they happen to be three of our most capital-intense businesses. Chemours did appeal that to the court, but the law was so heavily on our side on this issue that the arbitration will occur here. 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. Thanks Ed. Thank you. We are not impacting the long-term growth of the Company through the actions we are planning. And if I can just add the acquisitions that we made at the end of the year really have put us as a leader across all three types of filtration technology: so reverse Osmosis, Ultrafiltration and Ion Exchange Resins. And then could you give us an update on the ethanol enzyme in the Biosciences businesses, which are the weaker areas within N&B recently? Interactive chart for DD201218C00050000 (DD201218C00050000) – analyse all of the data with a huge range of indicators. I see kind of the structural cost which is positive obviously, because that kind of carries forward. So as you see economies, everyone getting out of their homes again and the economy starting to work, that's the numbers we're seeing over in the China market. Turning to the adjusted EPS bridge on Slide 6. Du Pont De Nemours (NYSE:DUPP) Q4 2015 Earnings Conference Call - Final Transcript Welcome to the DuPont Fourth Quarter 2015 Conference Call. I am confident that DuPont will once again be an agent of change to make meaningful and lasting progress in this vital area. In S&C, continued strength in Tyvek within the garment space. DuPont (DD) Beats on Q3 Earnings, Lifts Cost-Cutting Target. Yes. These actions enabled us to deliver results that exceeded the expectations we provided in the first week of May with overall market dynamics very similar at the end of the quarter as they were at the beginning. John McNulty -- BMO Capital Markets -- Analyst. Recent call transcripts of DuPont de Nemours Inc. Q3 2020. Looking ahead, we plan on using $5 billion of special cash payment associated with the N&B and IFF deal to pay down debt, which will leave us in a very favorable position with no long-term debt maturities until the end of 2023. Within S&C, we continue to do really well at driving value and use pricing. I know earlier in the year, people were curious, is this thing going to stick and all that with everything going on. 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. But first, I'd like to discuss our performance versus our priorities in the current environment. Last quarter, I laid out our priorities for operating in this unprecedented environment. Good morning, everyone. We have interested parties in every one of the assets. Despite the strength in protective garments, sales in the Safety Solutions business declined mid-single digits as demand weakened across industrial, aerospace and defense markets as a result of the COVID-19 pandemic and challenges in the oil and gas industry. We will allow for one question per person. Corteva Agriscience 4Q / FY 2019 Earnings Conference Call. We will also detail a number of actions we quickly implemented to strengthen our liquidity, protect our balance sheet, and generate cash. So that was within the 15% of the portfolio that we had noted that was weak in N&B. Growth in Shelter Solutions remain pressured as we continued to redirect Tyvek supply to personal protection and stay-at-home orders across the globe limited demand. For T&I a very weak top line, driven by the expected decline in auto builds, as well as year-over-year price declines, coupled with the charges associated with these plant shutdowns is expected to result in decremental margin in T&I of approximately 55% to 65% in the second quarter. Thank you. So the decremental margin in S&C for the quarter would be a little worse than what we mentioned underlying for the Company, really primarily from slowing down some production sites. We have a manageable debt load and we are in a position to maintain a strong balance sheet, both now and post the N&B/IFF transaction. These trends are all consistent with what we expected as the pandemic significantly slowed Western economies through the second quarter. So from a full-year perspective, we do expect if oil price were to kind of stay where it is, about a $200 million benefit in raws primarily in those two segments. There's also the perception of buybacks in the middle of the pandemic. But it's just a consistent industry. So garments alone, which were about a third historically of Tyvek, they have kind of come up now to almost half of Tyvek, were up about 55% in the quarter. I appreciate the near-term focus on these urgent issues like the coronavirus. So we've got, for this year, we've got a target of greater than $500 million. Mikko Pohjala Kemira Oyj - VP of IR . Returns as of 01/26/2021. The deal is definitely happening. It should be, yes. We expect operating EPS in the range of $0.71 to $0.73, a sequential increase from the second quarter, driven by the improving top line. We're not looking at something big structural right now. Scott Davis -- Melius Research -- Analyst. You're giving yourself a lot of flexibility between a spin-off and split-off here. Market data powered by FactSet and Web Financial Group. I don't necessarily like talking about specific customers, but I think we're in a very strong position. I don't know, you had a couple of law firms that you're working with. We have made great progress toward delivering the $180 million of structural cost savings we announced earlier this year, and the majority of the actions to deliver these savings are in place. This concludes our call. And just one of the knocks on —I know your business structure is just the capital intensity of it. But it's a great question. By the way, I would highlight just on the deal front, it's interesting to note, and I'm not surprised by this at all, that the value of the N&B deal is almost exactly where we announced the deal. We elected in mid-to-late March to pause share buybacks after we had repurchased approximately $230 million in the quarter. And our next question will come from Jonas Oxgaard with Bernstein. And then also, just any insights on just how you're still thinking about the longer-term margin profile of that business? DuPont (DD) Q2 2020 Earnings Call Transcript. Since the announcement of the transaction in mid-December, teams have been hard at work. Well, I can't say yet. As we look out over multiple years, I think we can reduce the capex. That's one of the key ones is global clean water. And maybe just as a follow-up, it looks like in terms of asset values, they've come up a lot in the market, it sounds like a lot of the bid asks that are out there in terms of M&A or maybe narrowing. So we're taking a hard, hard look at that and probably make some decisions before we exit the year. Below the line, we saw benefits from a lower share count due to share repurchases we executed in the second half of 2019 and early 2020 and a lower tax rate relating to foreign operations. So combined with a couple of initiatives of bringing some new assets online as well as debottlenecking, that's where we're able to double the production of Tyvek garment. DuPont's (DD) Earnings & Revenues Surpass Estimates in Q1. And we have a lot more content in the 5G phones because we do all the antenna technology. It is important to note that there was no impairment recorded associated with the tangible assets of the T&I segment. Our volumes in the second quarter were down 28% while global auto builds were down 45%. We've had great feedback from customers on our ability to do a lot of application development work with them with the extensive portfolio we're going to have. For your reference, the copy of the transcript will be posted on DuPont's website. Slide 10 shows the progress we have made since announcing the N&B and IFF transaction last year. Vincent Andrews -- Morgan Stanley -- Analyst. Neal Sheorey DowDuPont Inc. - VP of IR Good morning, everyone. It's a great question. You could see our garment sales were up 60% or so. That's very helpful. We will see sequential improvement in T&I as we head into Q3. We saw a similar trend in the first quarter where our volumes declined with 8% when global auto builds were down 22%. Ed -- Hey. And by the way, I was the CEO through the '08, '09 and Jeff, you know this. And is there anything tax wise that would preclude you from reopening discussions with Dow? Because of these swift actions, we are on solid footing, and are well prepared to handle the uncertain times ahead. And then as you get all the way to an enabled-5G phone, we see upwards of potentially another $1 dollar on top of the $3.50 that we expected. So that sounds like it really is just maintenance versus a major overhaul, which completely makes sense. And I think that's going to play out well for us. Sequentially, lower costs associated with idling facilities will be offset by a slightly weaker mix in S&C due to required downtime in Tyvek and the absence of gains associated with a customer settlement and a discrete tax item recorded in the second quarter. We will now take our next question from Scott Davis from Melius Research. In fact, we have been successful in maintaining our operating base during the global pandemic with only a handful of our manufacturing locations shut down by local restrictions over the past few months, and currently operations are restricted at only two of our 170 manufacturing sites. Thanks for taking my question. Likewise, 8% organic top line growth in our E&I segment was a solid result. So it's more than one line and we're going to add line eight actually, which we have a capex program against for future demand. DuPont sees strong annual profit as auto sector recovers, signals more cost cuts marketwatch. Yes. But a couple of our lines are extremely old lines. Thanks and glad you all sound well. Glad everyone is well and appreciate the shout out to New York City in the cover slide. Again, we've got to come out elegantly and integrate the company well, but that opportunity is there. We have taken aggressive steps to protect our employees by restricting access to our sites, implementing enhanced cleaning protocols, performing contact tracing among our employees, administering quarantines where needed, and implementing work from home protocols where possible. We will now take our next question from the Mike Sison from Wells Fargo. It just depends what the numbers look like when we get there. Jeffrey Sprague -- Vertical Research -- Analyst. Ed [Speech Overlap]. So always looking to get incremental capacity off the line just given the asset is sold out. So we've really been cranking it out a couple of the older lines and we just need to be doing some maintenance on. But we're totally focused on getting that done. And by the way, thank you for saying about working on costs and operations, that's actually what I like to do the most, even though maybe reputationally, it's different than that. Was curious to hear what fraction of your staffing at headquarters and in R&D during the quarter were working remotely. And remind us how you think IFF combination can support that growth? 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. 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. These slides are posted on the investor relations section of DuPont's website and through the link to our webcast. Is that a lot of that staffing remaining remote? Calendar Earnings Calls Earnings Transcripts SEC Docs. So I think therein lies a big opportunity for our shareholders over the next year. Please read the forward-looking statement disclaimer contained in the slide. But let me give you a data point in the first quarter in China, our sales were down organically 1%, which actually surprised me that it was that good considering we were shut down for a few extra weeks. 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. Yes. And look, as I said, we're all hands on deck operationally right now. I'm pretty impressed at how efficient we're running the Company in the stay-at-home policy for most of our non-manufacturing employees. Year-Over-Year change in U.S. and Canada, Europe and in our favor that this go... Will actually be better than it is in the slides that the delivery of cost reduction offsets a... Performance, DuPont is really going to have really nice margin lift in N & B transaction reported their.! Projects are being cut back were up 60 % or so Board recently the! Range of 35 % to 40 % be measured and will certainly across. Vote is on August 27 8x moving forward on August 27 all in firefighting foam definitely have visibility for.... 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