By Will Feuer
DuPont De Nemours Inc. announced its third-quarter results before the market opened on Tuesday. Here’s what you need to know.
PROFITS: The industrial materials maker posted a profit of $367 million, up from $391 million a year earlier. Earnings were 73 cents per share, down from 75 cents per share a year earlier. Earnings from continuing operations were 69 cents per share, down from 48 cents per share a year earlier.
Excluding amortization and other one-time items, adjusted earnings were 82 cents per share, beating Wall Street expectations of 79 cents per share.
SALES: DuPont sales for the quarter increased 4% to $3.32 billion. Analysts polled by FactSet expected sales of $3.22 billion.
WHAT WE WATCHED:
BUYBACKS: Investors watched DuPont in hopes the company would make its money from selling most of its mobility business to Celanese Corp. and the termination of the agreement to buy Rogers Corp. and would use the proceeds to repurchase shares of DuPont.
The company confirmed it had approved a new $5 billion share buyback program, with plans to execute $3.25 billion in accelerated buybacks imminently. The company also plans to draw $2.5 billion in senior notes due November 2023.
DEMAND: DuPont’s quarterly results suggest demand for the company’s products is holding up as prices rise. Organic sales, which eliminate the effects of currency conversions, increased 11%, driven by 8% higher prices and a 3% increase in sales volume.
The company said the increase in volume reflects demand in the semiconductor, water and industrial end markets. The consumer gadget end market showed signs of weakness, the company said. “Underlying demand during the quarter remained strong in most of our key end markets, including semiconductors, water and general industrial,” CEO Ed Breen said.
GUIDANCE: The company supported its full-year sales and profit forecast, even as it faces ever-rising costs along its supply chain and the negative impact of the strong dollar.
“For the fourth quarter, we expect demand to remain strong in most end markets, including water, industrial and automotive adhesives, but we expect continued weakness in consumer electronics globally and a some expected slowdown in customer semiconductor maker production rates,” the CFO said. said Lori Koch. She added that the company plans to reduce production rates in anticipation of a more normal supply chain environment.
She said the company’s full-year adjusted earnings are expected to be hit by a nine-cent-per-share impact from a higher tax rate in 2022, though that’s offset by share buybacks that will reduce the total number of shares outstanding.
Write to Will Feuer at Will.Feuer@wsj.com