· Volume Gains Drove 5-Percent Sales Growth
· Segment Operating Margin Expansion Continued
· Merger of Equals with Dow Expected to Close in August
UAE – DuPont (NYSE: DD), a science company that brings world-class, innovative products, materials, and services to the global marketplace, today announced second-quarter 2017 GAAP1 earnings from continuing operations of $0.97 per share and operating earnings2 of $1.38 per share. Prior year GAAP1 and operating earnings2 were $1.16 per share and $1.24 per share, respectively. Refer to Schedule B for details of significant items excluded from operating earnings per share.
For first-half 2017, DuPont delivered GAAP1 earnings from continuing operations of $2.50 per share and operating earnings2 of $3.02 per share. Prior-year GAAP1 and operating earnings2 per share were $2.55 and $2.50, respectively.
Second-quarter sales totaled $7.4 billion, up 5 percent versus prior year on a 6-percent benefit from volume partially offset by a 1-percent decline in local price. Volume grew in all reportable segments, led by Agriculture, Electronics & Communications and Protection Solutions. First-half sales of $15.2 billion increased 5 percent versus prior year on a 5-percent benefit from volume. Sales grew in most segments, led by Agriculture, Performance Materials and Electronics & Communications. Agriculture sales were positively impacted by the change in timing of seed deliveries, including the southern U.S. route-to-market change, which benefitted first-half sales by approximately $200 million, or about 1 percent.
“Our increased operating earnings per share and strong sales growth of 5 percent were driven by volume growth from our highly productive innovation pipeline,” said Ed Breen, chairman and CEO of DuPont. “We continue to see the results of the focus, efficiency and productivity our teams are delivering as we move toward the expected August closing of the merger with Dow. Our integration planning will enable us to begin implementation quickly, including launching the projects to achieve our $3 billion cost synergies target, and move toward standing up the strong, independent companies we intend to create.”
Second-Quarter Highlights
· GAAP1 earnings per share decreased 16 percent to $0.97 from $1.16 in prior year. Operating earnings2 per share increased 11 percent to $1.38 from $1.24 in prior year.
· Sales of $7.4 billion increased 5 percent on a 6-percent benefit from volume partially offset by a 1-percent decline in local price. Volume grew in all reportable segments, primarily led by Agriculture, Electronics & Communications and Protection Solutions.
· Segment operating margins expanded by about 80 basis points, led by improvements in Electronics & Communications, Industrial Biosciences and Agriculture.
First-Half Highlights
· GAAP1 earnings per share decreased 2 percent to $2.50 from $2.55 in prior year. Operating earnings2 per share increased 21 percent to $3.02 from $2.50 in prior year.
· Sales of $15.2 billion increased 5 percent driven by volume growth. Sales grew in most segments, led by Agriculture, Performance Materials and Electronics & Communications.
· Agriculture sales increased 5 percent on a 5-percent benefit from volume and a 1-percent benefit from local price, partially offset by a 1-percent negative impact from portfolio. Volume growth was driven by a benefit from the timing of seed deliveries, including the route-to-market change in the southern U.S., increased insecticide and fungicide sales, higher soybean sales in North America, and increased sunflower and corn seed sales in Europe. This growth was partially offset by the expected decline in corn volume related to reduced corn area in North America.
· Total company gross margin expanded by 45 basis points. Segment operating margins expanded by about 170 basis points, led by improvements in Electronics & Communications, Performance Materials and Agriculture.
· Free cash flow3 improved by about $200 million, excluding about $2.8 billion of increased pension contributions.
DuPont will hold a conference call and webcast on Tuesday, July 25, 2017, at 8:00 AM ET to discuss this news release. The webcast and additional presentation materials can be accessed by visiting the company’s investor website (Events & Presentations) at www.investors.dupont.com. A replay of the conference call webcast will be available for 90 days by calling 1-630-652-3042, Passcode 9189324#. For additional information see the investor center at http://www.dupont.com.
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About DuPont
DuPont (NYSE: DD) has been bringing world-class science and engineering to the global marketplace in the form of innovative products, materials, and services since 1802. The company believes that by collaborating with customers, governments, NGOs, and thought leaders we can help find solutions to such global challenges as providing enough healthy food for people everywhere, decreasing dependence on fossil fuels, and protecting life and the environment. For additional information about DuPont and its commitment to inclusive innovation, please visit http://www.dupont.com.
© Press Release 2017
