$DuPont (DD.US)$ reported a first-quarter fiscal 2024 sales decline of 3% year-over-year to $2.931 billion, beating the consensus of $2.813 billion. Organic sales fell 6%, reflecting a 5% decrease in volume and a 1% decrease in price. Organic sales by region YoY: EMEA -8%, U.S./Canada -7% and Asia Pacific -4%.
Ed Breen, DuPont Executive Chairman and CEO, said, "The first quarter was encouraging as the electronics market saw continued recovery, demonstrated by 11 percent year-over-year volume growth in Semiconductor Technologies and another quarter of volume growth in Interconnect Solutions."
Electronics & Industrial sales totaled $1.365 billion (+5% Y/Y), and the operating EBITDA margin contracted by 50 bps to 27.4%. Water & Protection sales were $1.291 billion (-11% Y/Y), and the operating EBITDA margin contracted by 80 bps to 22.9%.
DuPont's operating EBITDA declined by 4% Y/Y, and its margin declined by 40 bps to 23.3%.
Adjusted EPS for the quarter was $0.79, down from $0.84 a year ago, beating the consensus of $0.65.
Operating cash flow from continuing activities for the quarter was $493 million, compared to $405 million a year ago. Adjusted free cash flow was $286 million (+65% Y/Y).
DuPont held cash and equivalents of $2.347 billion as of March-end. "For the second quarter of 2024, we expect sequential sales and earnings improvement driven by favorable seasonality, continued electronics recovery, and reduced channel inventory destocking in industrial-based end-markets including water and medical packaging," said Lori Koch, Chief Financial Officer.
DuPont's quarterly dividend of $0.38 per share is payable on June 17 to holders of record on May 31.
DuPont expects net sales of ~$ $3.025 billion versus the consensus of $3.025 billion and Adjusted EPS of ~$ $0.84 against the consensus of $0.78; it sees Operating EBITDA of ~$ $710 million.
DuPont sees adjusted EPS of $3.45 – $3.75 (prior $3.25-$3.65) versus the $3.45 consensus and revenue of $12.1 billion—$12.4 billion (prior $11.9 billion—$12.3 billion) versus the $12.116 billion consensus.