DuPont de Nemours, Inc. (DD) Bundle
A Brief History of DuPont
DuPont de Nemours, Inc., commonly known as DuPont, has a long and storied history in the chemical industry, evolving significantly over the years. As of 2024, DuPont continues to navigate a complex landscape shaped by market dynamics, regulatory challenges, and strategic restructuring efforts.
Recent Financial Performance
For the nine months ended September 30, 2024, DuPont reported net income attributable to common stockholders of $821 million, an increase from $445 million in the same period of 2023. The earnings per share (EPS) for this period was $1.96, compared to $0.97 in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income (in millions) | $821 | $445 | 84.5% |
| EPS (Basic) | $1.96 | $0.97 | 102.1% |
Segment Performance
DuPont's business segments have shown mixed results. The Water & Protection segment reported net sales of $4,064 million for the nine months ended September 30, 2024, down 7% from $4,356 million in 2023. This decline was attributed to a 5% drop in volume and unfavorable currency impacts.
| Segment | Net Sales (in millions) | Change (%) |
|---|---|---|
| Water & Protection | $4,064 | -7% |
Share Buyback Programs
In 2023, DuPont initiated a $5 billion share buyback program, of which $2 billion was executed through accelerated share repurchase agreements, resulting in the retirement of 27.9 million shares at an average price of $71.67 per share. As of the first quarter of 2024, a new $1 billion share repurchase program has been approved, with $500 million already allocated.
Dividends
DuPont declared a quarterly dividend of $0.38 per share in the third quarter of 2024, consistent with the previous quarter.
Credit Ratings and Financial Health
As of October 31, 2024, DuPont's credit ratings were as follows:
| Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| Standard & Poor’s | BBB+ | A-2 | Watch Negative |
| Moody’s Investors Service | Baa1 | P-2 | Negative |
| Fitch Ratings | BBB+ | F-2 | Watch Negative |
Liquidity and Capital Resources
As of September 30, 2024, DuPont reported total current assets of $6,439 million, down from $7,514 million at the end of 2023. Current liabilities were $2,825 million, resulting in a current ratio of 2.28.
| Metric | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Total Current Assets | $6,439 | $7,514 |
| Total Current Liabilities | $2,825 | $3,098 |
| Current Ratio | 2.28 | 2.43 |
Restructuring Initiatives
In December 2023, DuPont approved a restructuring program aimed at reducing costs and improving operational efficiency, recording pre-tax restructuring charges of $179 million.
A Who Owns DuPont de Nemours, Inc. (DD)
Major Shareholders
As of 2024, the ownership structure of DuPont de Nemours, Inc. (DD) includes a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.9% | 37,900,000 |
| BlackRock, Inc. | 8.2% | 35,400,000 |
| State Street Corporation | 4.5% | 19,400,000 |
| Wellington Management Company, LLP | 3.8% | 16,600,000 |
| Geode Capital Management, LLC | 2.6% | 11,200,000 |
| Other Institutional Investors | 40.0% | 171,000,000 |
| Individual Investors | 31.0% | 132,000,000 |
Recent Stock Performance
DuPont's stock performance has been influenced by various market factors. As of September 30, 2024, the stock price was approximately $71.00, reflecting a year-to-date performance of around 10% increase. The company has a market capitalization of approximately $31 billion.
Dividends and Share Buyback Programs
DuPont has consistently returned value to its shareholders through dividends and share repurchase programs. The company declared a quarterly dividend of $0.38 per share on October 16, 2024, payable on December 16, 2024. In addition, the company completed a $2 billion accelerated share repurchase transaction in early 2024, repurchasing approximately 27.9 million shares at an average price of $71.67 per share.
Current Financial Overview
As of September 30, 2024, DuPont reported the following financial metrics:
| Financial Metric | Value (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,645 |
| Total Debt | $7,170 |
| Net Income | $462 |
| Revenue | $9,294 |
| Operating Income | $586 |
| Earnings Per Share (EPS) | $1.09 |
Ownership Changes and Corporate Actions
DuPont announced plans for intended business separations in May 2024, which may affect the ownership structure in the future. The company aims to separate its Electronics and Water businesses into independent publicly traded entities, with the expected completion within 18 to 24 months.
DuPont de Nemours, Inc. (DD) Mission Statement
Mission Statement Overview
DuPont de Nemours, Inc. aims to leverage its scientific expertise and innovative solutions to address global challenges. The company focuses on sustainable growth while delivering value to its stakeholders through advanced materials and solutions that enhance life and protect the environment.
Core Values and Principles
- Innovation: Drive advancements in science and technology to create sustainable solutions.
- Sustainability: Commit to environmental stewardship and responsible resource management.
- Integrity: Uphold the highest ethical standards in all business dealings.
- Collaboration: Foster partnerships that enhance product offerings and customer satisfaction.
- Safety: Prioritize the health and safety of employees and communities in operations.
Strategic Focus Areas
DuPont's strategic focus areas include:
- Development of materials and technologies that support renewable energy initiatives.
- Enhancement of food safety and agricultural productivity through innovative solutions.
- Advancement of water filtration and purification technologies to ensure clean water access.
- Improvement of industrial processes through efficiency and waste reduction measures.
Financial Performance Metrics
| Metric | Value (2024) |
|---|---|
| Net Sales | $9,294 million |
| Net Income | $844 million |
| Operating EBITDA | $1,003 million |
| Cash and Cash Equivalents | $1,645 million |
| Total Debt | $7,170 million |
| Dividends Declared per Share | $0.38 |
| Average Share Price (Q1 2024 ASR Transaction) | $71.96 |
Recent Developments and Initiatives
As of 2024, DuPont has initiated several key initiatives to reinforce its mission:
- Completion of a $2 billion accelerated share repurchase program, enhancing shareholder value.
- Acquisition of Donatelle Plastics, strengthening its position in the Industrial Solutions market.
- Engagement in restructuring actions aimed at optimizing operations and achieving cost reductions.
- Focus on compliance with environmental regulations and sustainability commitments.
Market Position and Competitiveness
DuPont maintains a strong competitive position within its industry, driven by its commitment to innovation and sustainability. The company's ability to adapt to changing market conditions and consumer preferences is pivotal for its ongoing success.
Conclusion on Mission Alignment
DuPont's mission statement reflects its commitment to addressing critical global challenges through scientific innovation and sustainable practices. The company's strategic initiatives and financial performance underscore its dedication to creating value for stakeholders while promoting environmental stewardship.
How DuPont de Nemours, Inc. (DD) Works
Business Operations
DuPont de Nemours, Inc. operates through various segments including Electronics & Industrial, Water & Protection, and Corporate & Other. The company focuses on innovation and sustainable solutions across its product lines.
Financial Performance
For the nine months ended September 30, 2024, DuPont reported net sales of approximately $9.3 billion, a slight increase from $9.2 billion in the same period of 2023. This increase was attributed to a 3% increase related to portfolio actions and a 1% increase in volume, although it faced a 2% decline in local price and product mix, as well as a 1% unfavorable currency impact.
Cost of Sales
The cost of sales for the nine months ended September 30, 2024, was $5.9 billion, down from $6.0 billion for the same period in 2023. This decrease was primarily due to increased productivity and lower raw material, logistics, and energy costs.
Research and Development (R&D)
DuPont’s R&D expenses totaled $393 million for the first nine months of 2024, up from $380 million in the same period of 2023, maintaining a consistent 4% of net sales.
Selling, General and Administrative Expenses (SG&A)
SG&A expenses were $1,189 million for the first nine months of 2024, up from $1,058 million in 2023. The SG&A as a percentage of net sales increased to 13% from 12%.
Operating EBITDA
Operating EBITDA for the nine months ended September 30, 2024, was $2,337 million, compared to $2,227 million in 2023.
Net Income
DuPont reported net income attributable to common stockholders of $454 million for the third quarter of 2024, compared to $319 million in the third quarter of 2023.
Cash Flow Summary
| Cash Flow Category | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Operating Activities | $1,757 million | $1,545 million |
| Investing Activities | $(725 million) | $(919 million) |
| Financing Activities | $(1,671 million) | $(2,359 million) |
| Cash Used in Discontinued Operations | $(469 million) | $(236 million) |
Debt and Liquidity
As of September 30, 2024, DuPont had total debt of $7.17 billion, down from $7.80 billion at the end of 2023. The company also had cash and cash equivalents amounting to $1.645 billion.
Dividends and Share Buyback Programs
DuPont declared a dividend of $0.38 per share for the third quarter of 2024, payable on September 16, 2024. The company has been active in share repurchase programs, completing a $2 billion accelerated share repurchase transaction in early 2024.
Segment Performance
| Segment | Net Sales (2024) | Operating EBITDA (2024) |
|---|---|---|
| Electronics & Industrial | $4,424 million | $1,260 million |
| Water & Protection | $4,064 million | $1,003 million |
| Corporate & Other | $806 million | $74 million |
Market Conditions and Challenges
DuPont has faced various challenges, including declines in volume due to inventory destocking and unfavorable currency impacts, particularly in the Asia Pacific region.
How DuPont de Nemours, Inc. (DD) Makes Money
Revenue Overview
For the nine months ended September 30, 2024, DuPont de Nemours, Inc. reported net sales of approximately $9.3 billion, a slight increase from $9.2 billion in the same period of 2023. This represents a growth of 1% year-over-year.
Revenue Breakdown by Segment
DuPont's revenue is primarily derived from three segments: Electronics & Industrial, Water & Protection, and Corporate & Other. The following table summarizes the net sales and Operating EBITDA for each segment for the nine months ended September 30, 2024:
| Segment | Net Sales (in millions) | Operating EBITDA (in millions) |
|---|---|---|
| Electronics & Industrial | $4,424 | $1,260 |
| Water & Protection | $4,064 | $1,003 |
| Corporate & Other | $806 | $74 |
| Total | $9,294 | $2,337 |
Cost of Sales
For the nine months ended September 30, 2024, the cost of sales amounted to $5.9 billion, down from $6.0 billion for the same period in 2023. The cost of sales as a percentage of net sales was 64%, compared to 65% in the prior year.
Research and Development Expenses
DuPont invested $393 million in research and development for the first nine months of 2024, a slight increase from $380 million in the same period of 2023. R&D expenses accounted for 4% of net sales in both periods.
Operating Income and Net Income
Operating income for the nine months ended September 30, 2024, was $1,149 million, up from $1,120 million in 2023. The net income attributable to DuPont common stockholders for the same period was $821 million, compared to $445 million in the prior year.
Cash Flow from Operations
Cash provided by operating activities for continuing operations was $1,757 million for the nine months ended September 30, 2024, compared to $1,545 million for the same period in 2023.
Debt and Liquidity
As of September 30, 2024, DuPont's total debt was $7.17 billion, reduced from $7.8 billion at the end of 2023. The cash and cash equivalents stood at $1.645 billion.
Shareholder Returns
DuPont declared a dividend of $0.38 per share in the first quarter of 2024, paid on March 15, 2024, to shareholders of record as of February 29, 2024.
Recent Acquisitions
On July 28, 2024, DuPont completed the acquisition of Donatelle Plastics, LLC, and on August 1, 2023, the acquisition of Spectrum Plastics Group, which are now integrated into the Electronics & Industrial segment.
Effective Tax Rate
The effective tax rate on continuing operations for the first nine months of 2024 was 27.0%, compared to 25.6% for the same period in 2023.
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Resources:
- DuPont de Nemours, Inc. (DD) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of DuPont de Nemours, Inc. (DD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View DuPont de Nemours, Inc. (DD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.