DD - Earnings call transcript Q1 2021 | DuPont de Nemours, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Leland Weaver

Good morning, everyone. Thank you for joining us for DuPont's First Quarter 2021 Earnings Conference Call. We're making this call available to investors and media via webcast.

We have prepared slides to supplement our comments during this conference call. These slides are posted on the Investor Relations section of DuPont's website and through the link to our webcast.

call Koch, Ed our the Officer; Chief on Lori and Chief me today Breen, are Executive Joining Financial Officer. forward-looking the read statement in contained Please the disclaimer slides.

or forward-looking call, differ are statements materially results statements. uncertainty, current that forward-looking regarding will our our factors on the make from and risk During our Because our we based expectations may involve predictions assumptions these actual about future. and statements and performance

detailed discussion XXXX Unless and includes Our financial XX-K, periodic which exclude uncertainties, by as otherwise today items. significant historical differences. principal current our of may Form updated all measures such and presented risks reports, cause specified,

and non-GAAP directly of page to website. We will measure the I'll in financial our other call the now reconciliation release to included Ed. measures. comparable to over posted GAAP the to most also Investor is refer turn press A our

Ed Breen

our to on of equipped we of to implemented globally people and circumstances provide and Leland. lockdowns. a our well-being and company, start for that principles everyone, protocols infection multiple and I and we've around remains business The people and waves let Thanks, morning, premier protect But continue me ensure countries the face value dedication of our pandemic. locally The to as make help Good growth teams had first, will manage including determination thank extraordinary you our this continuity the world of the us. of strategic acknowledge health creation. the multi-industrial top as to priority. to priorities strong number joining of tremendous XXXX, for the comments DuPont and and we a advancement

vaccinated. take employees possible, Starting on science we all encouraging And the public performance to details first markets to and working highlight and consistent Slide we the construction facilitate X, an in our for you note strong I'd with broad distribution. above reported, with believe in continued expectations. both through leverage for earnings to will margin demand top company, reflecting and automotive. expansion and announced authorities quarter, a along strong and discipline, line health As where led moment. access we're we're revenue This innovation-led But I strong that in water, growth, results. Lori operating generating value one morning, the that financial residential revenue and as we results key semiconductors, X% and smartphones, growth organic our priorities cost will in quarter. operating is such of This to EBITDA the like get

the financial are to in through notably and most EPS. of global trend our With navigate strong the quarter reflect as confidence while ability raising logistics to team's net continuing in segment. costs and I well order M&M supply our of year results chain more full our agility teams provide challenges, we environment as navigate key raw shortly. regarding facing operating constraints first this guidance raw Our EBITDA adjusted details a escalating increase will challenging for material our and supply materials, sales,

we results, our during strategic quarter. the number advanced financial to In a our addition of priorities

completed health food the care the Nutrition and personal with previously beverage, industry-leading and merger as we our IFF, company wellness creating First, Biosciences announced, and an in & markets. home business of and

DuPont know, significant and this our for value also unlocks you As shareholders. transaction

debt during by more $X or sheet We outlay. $X.X our month. at shares, later of cash billion loan, strengthened quarter the the million received paying cash billion than balance term $X billion down retired redeem coupon about long-term and IFF outstanding of part As we our the no will slightly our this time XX% shares of our XXX from with and transaction, we

approach, the balanced existing during first about of quarter buyback debt Under reminder, of through next capital quarter. due with be dividends. our repurchases XXXX. maturity million our until fourth not our quarter and share the the $XXX during share share to shareholders returned repurchases we first a we program, In million will in $XXX As line executed

As program, which that June $X.X year. authorized utilize announced a million authorization have about new of by of Board $XXX remaining this of we quarter, repurchase reminder, Earlier to our we that under we to a which intend also as to X plan billion XXXX. the we this the expires year. program move during With share We returned buyback XX, $XXX throughout to shareholders about million new quarter. opportunistic in under respect program, on dividends, be we Directors the cash June

XX%. a business which In growing will strategy March, add innovation payout previously target leadership a for materials. Laird and Performance of strengthens and of mentioned, as global When E&I, acquisition capabilities shielding, intend position definitive market-leading thermal our grow are increase we forward, will to dividend we a annually business to within planned Interconnect our Laird our Board we earnings. and XX% ratio it offerings essential a we Laird electronic electronic announced to to emerging Materials acquire complement between going agreement management advances And our billion. DuPont's Solutions completed, $X.X As we as The leader and in advanced will electromagnetic with work critical and our in applications.

last and team, recently for the the cleared along our regulatory Brazil We excited in this in for opportunity. Germany transaction and received E&I with month. U.S. HSR Our approval are customers,

previously in As the we indicated, of the transaction third this expect year. close quarter will

expect have and businesses. to our that Solamet to Biomaterials, proceeds previously those Technologies this half more Finally, the those million close Clean we second of definitive year. than announced and agreements transactions gross anticipate sell receiving $XXX in in We divestitures, signed we we from

vehicles XXXX to continues nicely and Within Lori server a centers The semiconductor during over market, the for and moment is quarter, With key serve. shortage. servers for advanced take produce rebuild the consumer first to electronics first more where chain circuit broad-based Electronics is is vehicles Even not that what respect Engineering the to and Tier to demand through of shortages by of affected Internet remain lessened our as like lows. automotive materially favorable Tier but its as of be play. very telecom suppliers help should well account chip deployment demand technology and half quarter. during and we demand transmission produced traffic was Polymers auto smartphones, impacted to some were to is further of accelerated. it our chip the the automotive nearly infrastructure we the XXXX back our nearly from network Furthermore, chemistries, of revenues. the to think to continues and need the units and perform the yet value quarter end first to data markets continues content quarter chips X volumes in robust critical by of we as has to XX.X the of the auto sold from not ultra-high-speed which and note components, continues XG I'd memory markets of Combined, levels, the the of the to electronics, show lows end within sustain to for expected to a ability well, a recovering for regarding enhanced ramp-up turning in the mainly participate preparation inventories as board the demand go companies our it's XX the a is of in result nodes supply details million grow. more I that OEMs and The leading important the in X data year. XXXX semiconductors, by million M&M, large generation Before context which strength market, quarter not our of which provide to premium stable next above for saw lack

while was products situation raw to we our to continue materials, second ability customers constraints in affected our through quarter. This the predominantly end supply nylon gradually key lines. and anticipate supply several critical is the of constrain supply polyester by will production However, our product of improving

as be half the We raw will captured constraints the of a material annual sales expect year. in result second of that

year are the the to OEMs as as below balance that of inventories, averages. believe the currently demand we remain will robust strong well automotive global replenish look market which for historical as Additionally, meet

X water first segments advanced in of water quarter by shown our end and solid as filtration Versus company these Strength for demand strengthened, and the markets purification water desalination as and growth for XXXX, Asia to has residential sales. account of approximately in well and total construction XX% on markets. driven industrial growth. Collectively, Moving Pacific. markets has commercial

XXXX. markets do-it-yourself back is from For in up construction, commercial quarter to while the residential are has improved and construction demand first not XXXX, it segment experienced the within And lows levels. America XXXX versus North

is levels our markets industrial end XXXX Lastly, demand within mixed. versus

XXXX above Tyvek Within garment the infrastructure levels. and is or protective demand markets, at electrical

below end However, it's of aerospace demand sales is gas aero Sequentially, and over XXXX and as last but in and quarter our the in third of improved the gas and since up XX%. the lows such levels, year. second oil were oil markets and still

Our to diversified continues recover from us the economy portfolio and the products will of global serve as technologies pandemic.

levels financial of to let innovation maintain in me and With to strong through solidify turn R&D our and quarter the are choice as our XXXX continuing our customers to over details Lori We competitive the for invest in walk our further first market partner of at that, and to position positions it beyond. performance.

Lori Koch

morning, good Thanks, Ed, and everyone.

quarter on Slide first Let me financial our cover X. results

reporting and led Pacific X%, all well operating up headwind, largest to our X color like on drove As the basis. were operating delivered all walk regional segment continued last cost commitment quarter in and Incremental initiatives reflecting I'll Sales of up U.S. XX%. Overall the EPS aerospace first top versus and leverage. builds, more Asia due billion acknowledge X adjusted euro. quarter specifically trichlorosilane share, provide regions. Net X% as perspective, in driven our timing our and reporting X% we and was logistics by navigating to W&P results of in Ed and Partially in currency on and up which XX% with up M&M a year $X.XX these respectively. versus the and moment. a segments. the I a sales with EMEA aramid E&I, increases volume year, in organic benefit defense expansion and auto as perspective, EBITDA in next sales offsetting business the organic chain EMEA our X%, this of year. following X% From provided in in through operating The as XX%, growth the on headwind XXX I'd respectively. sale the of and U.S. the last results. throughout were Asia margin XXXX, in and softness pandemic also primarily $X.XX X% strong slide. down of gains for of the EBITDA in up delays well X fibers, the per were deliver segments. X.Xx quarter line On Volume softness X% points Canada supply organic said through by and an results in earnings in organic all and Currency earlier, XX%, Portfolio a $X of call Canada a will from employees were strong sales EPS team quarter X% from with decline an sales declines by sales margins of later of were X% segments, billion as were tailwind gains basis for first were up you Pacific, prior and basis, growth XX% was region the respectively. in quarter of volume, driven to the

the driven quarter on basis. a E&I all margin in improvement aramid W&P, related XXX margin in fibers. points company decline an sale. Gross higher Gross production and higher primarily lower gain versus and for and by the volumes gross improvement productivity on margin total volume and year, basis period resulting rates the margin year-over-year volume with X perspective, EBITDA of expanded ago offset unit versus was by on expansion manufacturing from E&I to XX.X%, From sequentially, a Our operating was onetime M&M discrete of points margin margin flat year of about a segments. segment strong basis margin XXX growth XX.X% delivered in a prior asset

year lower primarily been of basis of In and manufacturing actions. expansion chain W&P, driven and EBITDA year-over-year production costs, as of ago actions sale, productivity margins from would of versus higher a on increased sales was the higher by M&M Excluding EBITDA points higher operating the savings operating have and ago points. the gains were aramid offset XXX cost margin supply rates, period basis flat of by unit operating productivity and benefit costs. year fibers XX.X% the improvement asset XXX period delivered margin versus EBITDA XX.X%, volumes

from month were million, our quarter, the burn flow For in business amounts $XX operating These cash of prior cash million activities flow free the respectively. months from cash X compared and to cash flow $XXX and N&B of include X year. N&B

In flow up impacted higher a about addition, with cash conversion by cash in were free line led capital working of by $XXX which sales. balances, million, receivable was flow and negatively headwind accounts

nodes, we which driven advanced year, by top growth net along for volume the the target record flow for XX%. quarter. on on across transformation a were sales. drove ongoing way quarter For High for technologies Slide than rates, in in growth, fabrication shift Asia. continue with cash provides the with the new led robust XX% more double-digit demand of and Leading greater was utilization digital demand free X the conversion growth. strong line to E&I semiconductors year-over-year Volume details gains by had changes

gains, and In more double-digit for than application, CMP shifted double-digit of that growth results. in an global estimate recent strengthening for declines Industrial Also recent our continued Within were addition, In recovery. partially next-generation from had resulting was quarter reflecting Water period, Safety reflecting launches technology, in ago double-digit by gains production improved contributing aramid and the share shifts volume million single-digit slurry The continued premium market. along osmosis fibers led construction year, first M&M our high and volume channels smartphones than automotive demand demand Tyvek. quarter. and for due end partially market were Sales W&P driven timing market circuit broader about year Solutions, with content gains weakness by end by year-over-year strong of for favorable earlier Within segment strong retail units residential was quarter, Solutions, more our to ultrafiltration quarter lithography in by towards perspective. led higher a with up in versus was OEM material automotive consistent generally last planned the line volumes in builds in Lower were board growth, printed Solutions, to from the single-digit in softness do-it-yourself market, higher global pricing XX.X gains wins select organic versus Solutions growth display construction commercial market materials of offset of new this top and from in industrial recovery aerospace. result demand in the growth reverse which offset by within aerospace The volume organic markets Tyvek time Interconnect materials end growth currency represents continued Asia. year. XQ approximately auto most Solutions were for about Shelter XX% [XX%] offset weakness and with expectations. first the of the year downtime low

versus over a our year volume in Performance up was ago result, the XX% period. business Resins As

spot business materials, materials, over in M&M with segment Polymers ago Demand for which XX% was Advanced aligned Another to These M&M earlier demand year this growth period. the growth growth, our microcircuit the adhesive bright was Solutions Engineering in in we strong. specialized along drive helped year. organic in improved

single-digit low volume supply resulted constraints decline. materials for key in However, global raw

customers Our and mitigate trading suppliers impact teams as challenges are help the with experienced a have and diligently in our worked navigating result. incurred to

in material of and expect volume raw quarter recover constraints these part we Additionally, this due to the to lost unit. disruptions

year. versus growth the a up was X. Slide of benefit the $X.XX count for count, that significantly N&B share a versus offer. XX% exchange largest from of lower quarter year. resulting mainly year-over-year driver adjusted prior prior $X.XX The the to our lower The was I mentioned Turning EPS provided share the

Excluding prior the and a quarter in growth was versus provided prior versus still significant, year. segment XX% the with the lower this with expense. share Higher lower tax interest adjusted tailwind count, benefits reduced earnings along base up year the $X.XX a rate year, EPS

a base a than discrete in quarter Our of XX.X% the the quarter. of tax as tax few for forecasted result lower was rate benefits

last was absence of tax lower in in than the rate incurred from tax the resulting headwinds year, Our quarter significantly discrete prior year. the certain

For from be rate the of tax full year slightly the base the the expect XX% XX%, the of beginning our XX% XX% we to now that range we XXXX, down in to to at estimated previously year.

net sheet Turning and cash working that I to the X. Slide balance mentioned I flow provided our in capital commentary headwinds free earlier some in quarter. provide cash on position. will

that of inventory. working that X net From are due down current a $X. would XXXX as and like in maintaining were we loan paid debt to these and And net February, million investment-grade capital quarter billion pay profile. We billion Ed with down the later we point $X.X in XXXX. strong we of However, stated made our will year, working current $XXX down of I that debt. have Both productivity mentioned, have month. term about perspective, $XX.X at the March capital committed we year increasing billion to this about billion of $X started gains credit for out our past in to debt of $X we driving billion last at March first receivables

Moving cash. on to

strong Our IFF. payment operations cash billion last cash generated grew position year a with coming us this cash from put the special $X.X with a and balance from year, into in transaction that

gross this the we previously receive expect from proceeds businesses. year the over addition, million of to $XXX noncore in In sale announced

return cash targeted M&A growth fund balanced We will shareholders. plan million at basis, remain perspective, to to Materials Along our allocation includes is Along an our on repurchases price target share authorization completed billion average for opportunistic in remains the from over of policy, we dividend throughout go-forward repurchase turn that, X.XXx. this acquisition about plan balance investment run areas leverage quarter first our a a Performance through With deployment planned XXXX year. internal outlook. in we cash rest target to with current about And and secular approach. at of to back of share for of and to the hand. I'll debt-to-EBITDA continue with Ed to with per financial Our billion. Laird our now grow talk will about cash with intend and our our net capital share $XX it remaining a the the $X.X plan of maintain $XXX year, On $X.X

Ed Breen

Thanks, Lori.

me Let Slide X, year outlook view our on XXXX. close our includes with full financial the which second quarter of and

estimate for now We range are sales midpoint up expect which billion, we the guidance sales, growth the be raising about X% to for EPS. operating $XX.X full range our our growth. adjusted EBITDA year previous At provided, and the of of reflects net year of from XX%, year-over-year net

We to in leverage the These reflect and year billion, year-over-year the for increase expect our to and revised of supply EBITDA year team's solid be range confidence of navigate XX%. challenges. to our the to to expect improve a provided, $X.XX estimates the continue key start global now about midpoint operating at ability

now midpoint year $X.XX range also provided. of range are EPS of the We the share per and adjusted raising for by expect our $X.XX at share, per the EPS adjusted full

contributing the estimated our addition completing the estimates. range under businesses, the [indiscernible] the operating [indiscernible] strong and of repurchases the to revised programs are narrowing In share existing tax to our of we while performance our supporting

at that, for billion, open adjusted second of expect over now provided be the we about EBITDA second billion, in we quarter XXXX we the both expect to $X.XXX it up from both $X.XX the for per turn provided, which reflects At exchange share, of Q&A. net midpoint sales and of to in well year. For of $X EPS quarter quarter the me With results ranges our full second offer operating N&B [indiscernible]. the the to and the Leland shares weighted the XXXX, about to resulting midpoints reduction range the expect the above average be last and let

Leland Weaver

Thank you, Ed.

you portion our the to I remarks the both Instructions] that move call, and forward-looking to instructions. Q&A. Before the we to Operator, Q&A would our of remind [Operator apply our statements Q&A following please like prepared provide

Operator

response Tusa is Steve Instructions] [Operator first JPMorgan. with from The

Steve Tusa

second muddles dynamics guys of that that is maybe like bit. mean suggest sequential and they just Electronics pretty maybe what the Tyco other is just if talk some some are -- volumes about you stocking the guys the kind talk having Can into get are I areas sequential guess on I big supply, then in key second perhaps double of about a electronics some I kind business up hurt customers But your stress seen the those second half? may hand, and constraints, the activity see you that It quarter what side you could guess. there's in as book-to-bills Everybody heading which urgency half. kind can. sequential. ordering supply of -- the of one on and the that of I'm to kind Maybe ordering, you into has kind sure be around hand, the scrambling

Ed Breen

I'll this this start, different of all what pricing Lori and I'd really maybe dynamics issues jump think normal you don't in. biggest year can that cost take. may, described. then one of on is year. say actions wants Very to we materials I the just out I because our cyclicality the If plays and here the inflation Yes.

the see $XX a first pretty was little. deflation quarter, that's big that for very about all million. dynamic the So probably, here. was of reporting But you cost us It

lists impact We $XX expect million. expect raw of about that inflation to be year material about in the to full second $XXX the And million. we quarter

million in you $XXX gets year, holds second $XXX kind for it million of goes the to which up of kind there kind $XX the So the of quarter, to million.

When have we'll market, maybe in But the able the up. the year be and some been be make are -- So catch total, quarter constructive look most contracts walls. we we've we'll that of inflation, but price that days. very think a Steve, XX, have cover as all you we're that able it we second to not been to confident we'll at that XX of

for for our new for is inflation total in no DuPont year. clearly, -- lot division M&M expecting electronics because of introductions price the where so simply fed get world be get we're there, specifically. and Water price low increase single that the within you product a up So a some increase digits and pricing it get you business don't more in the & you safety But to Protection, in water

a the did I'd call, And fourth I'd then that miss talked quarter So the that's you I in a $XX the a million When of big in there. were in say to Lori because from constraints dynamic we're down had And the freeze raw million the then sales say Texas. and kind we we other expecting material of standpoint, about $XX that a revenue quarter. is dynamic seeing. big

of So think EBITDA. million we in the $XX missed it's $XXX -- we which out million is to $XX million quarter, about of sales

But you're quarter, $XXX expect million not second in to from million others, the going all like missed the we're revenue. business. another to We hearing $XXX million $XXX lose the

way constraints here. up We was with of the worked as make it their will of kind same issue because everyone kind dealing the through

oil way we say and half the then sequentially the 'XX out residential be to markets, lifting but last I'd going The back would. Steve, large hot. levels. year, year. of the of commercial played we we the were nicely of the hot like and into would that's the All year, thought they are we not all ones So The gas thought lows end dynamics ones on construction, thought second saw,

through So we that continue the also. year expect to

Operator

Your next response Inch Gordon from is John Haskett. of

John Inch

like pick theme. to I on that up just would

roughly dynamic? of more $XXX $XXX it doesn't in sales the chain imply $XXX like sorry, of you're $XXX supply year-over-year it? of to then So that a Ed, And of million going missed the saying does in second growth million expected in you I'm had $XXX would the the in that to to than terms -- create that think haven't quarter, you're up been have see a to half Or first not if growth is when second million or tough sequential the terms that about million quarter, you compare? million that disruptions, any is way bit

Ed Breen

Yes.

First sure resolve all, the will itself either. not of I'm in year this

about heard suppliers this and quite what it on You've few year, talk depending into a is. going potentially next

Finished are So inventory chain levels in are low. itself. in the very, goods very low new chain autos supply

You that's of things, to which going the think mute most still people going XXXX. I've semiconductor heard ratio into got

So I here. think you that got on dynamic going

So wouldn't second throwing half into year at I all at it gauge just the of all. the

Lori Koch

Yes.

year back of guidance billion XQ, so the like the -- year. second full look we a revenue a at quarter. in the similar in pushing saw quarter And think back half I if essentially for a provided we assumes range the billion between $X billion that around in you the $X then outlook, $X.X can you and into similar number

flat see lost first Still so from that still perspective. in that offset portfolio getting a volume number that. of in bit the may to be tends a the revenue would that seasonality upside whatever back half, from we M&M at dollar-wise our results So little landed

John Inch

Okay.

follow-up, in just have a obviously big And how quarter. this how seem the big wondering, is India there? of is to Does create didn't -- it quarters? Pac future headwind garments, of us, that India? then a as numbers your COVID Asia a does presence much bit hurt sweeps Tyvek as little a do in really they in no, that DuPont sense. remind you And can And just mean country. So news makes I'm I for

Ed Breen

market scheme in real us, biggest the big in key a at No. us for but India though the one. things yet. all impact business. upside it's big That's The is for not a that is not that water India in of

was So presence us. been that we add If didn't portfolio, it our no, for bigger was where impact really N&B our bigger, have would in in the it but portfolio. any have significant

Operator

of Scott Your Davis is Melius next from Research. response

Scott Davis

Or by any to up purchasing about on well. unusual patterns customers? of kind build? little Wanted that Are you as unusual of supply follow your comments Steve inventory are kind John But customers ordering? your bit seeing and any a double made just chain

Ed Breen

globally. we some know not $XX $XX inventory. don't they we many their again, low I I'm We the couple auto million mean We're in are goods inventory but know building autos think to cited historically, mostly majeures you But much. supply chain, I channel. it. right a hands business. million in the on customers we think out Asia it's like see very It's finished enough that seeing of get about. can't force talking mean just so I at people now the now. business across is build preorder, there right in And don't The there's

see So of we don't a that. lot

to people Our order. double trying

I everyone's that think allocated at but getting of there's product time. going point in on, this some

So DuPont like as inventory able they're base. use to an it's an example. build not I'll

of get Our and door. in we million, and get the up couldn't in inventory $XXX other M&M it business, walls on the out it's to our well mostly about product the

door did on just not So it have a ordering. We we're -- double plan the couldn't to out good. we get finished

going sure decent I in But wouldn't our that amount stockpile. ordering call a again, So but double not the a scheme the of big on, deal. I'm numbers, that's of it there's

Scott Davis

metric -- price sales is a cleanup maybe of kind different the we about? just the just asset Good. valuation Okay. that that can Helpful. And here any think what average you then just was

Lori Koch

divesting? for mean we're that businesses the You noncore

Scott Davis

the for terms in you Yes, if noncore stuff, have.

Lori Koch

Yes.

Xx the on those X had mentioned somewhere have the to in been somewhere we yes, -- range multiple in businesses. of We EBITDA range of

Operator

of Research Vertical response Partners. from Jeff next Sprague is Your

Jeff Sprague

of more the -- you sounded a you On for different One, anyhow. pull was went segment? would meant for like Two elaborate see. the kind you Lori, there maybe that Could on pattern wasn't little what one interconnect, me. what said just me it demand was item as forward, that you and through but a demand typically bit theme, just than on

Lori Koch

it I Sure. correctly. Yes, think you said

So we an acceleration some we a did order normally bit little the homes versus half the the see what probably of first quarter, from provider. see from perspective first smart in of

DuPont They're a for quarter. materials. hugely about from perspective, to million $XX site probably not benefit the a So raw material

[indiscernible] they're think I segment.

If we've you got Solutions. full year, at the look Interconnect

due kind to goes of very so mid-single of the Part strong be will We year. the from is year comps up to last normalize in on. it as that expect digits,

year, some in of of XXXX quarter if well. producers as [indiscernible] interconnect So some you the as those we into last recall, volume pulled fourth

Jeff Sprague

Ed, front. M&A the secondly, then And just on

on to that able noticed some been chart. a a price. decent just spaces actually, deals And going I've here are looked not all considered, at the like few of acquire kind the what off Laird there's things of I pretty valuations travel in -- You're I the

just wonder progress as kind do on at level here I confidence to bolt-ons through valuation year? So your the what being a able we seeing you're of reasonable if that

Ed Breen

Yes.

bolt-ons. So Jeff, a of couple we're looking at

what exactly of last is water space. the them the described of in couple we've quarters One

we a makes similar think way, the can we're yet. to at for that at looking just by or in, I that know the confidence very what where up cost it get way, multiple Laird synergies, it. we don't buy just is high won't final DuPont, with synergies, by sense answer We

going we growth think to some are the there's in those to point out the in of yes, us I'm things time. talking But areas a be this some huge really there's I that secular opportunities like in So at spaces future. not for -- of great there do

are I we'll always Laird. to a say and the millions, always company looking say, something sense at. look a would these at makes transformative But I the couple long, truly dynamic not bolt-ons hundreds in moves As it similar that if couple billions of we're -- there's for

yes, to are your there maybe opportunities So us. for question, those

Operator

with Your Begleiter next Bank. from response is David Deutsche

David Begleiter

business more forward, industrial going to versus about shift a Can guess, protective? in Tyvek? you comps ago versus You year the talk mentioned some back traditional I a a little more tough

Lori Koch

Yes.

had we volume. quarter or of the some industrial markets. more end in about what in was volume picks adds, think it back garment wanes, the I medical It it up mentioned Tyvek

that perspective, And a there's saw so The quarter was we a headwind overall. around headwind not so from demand production capabilities. the more in

our last was And so pushed of the maintenance XXXX COVID planned response that in was just that for into XXXX we given have year. some planned activity needed

in mainly so margin headwind I markets, it's probably able QX. it, on Tyvek. end for garment size And demand potentially And the were to in we that If other then profile. size that of similar million sell on picked $XX were tamped by being and around the a up a general to the it I back would down volume comment produce

headwind So there perspective. that there's no from

Ed Breen

we're And assets. those sold-out on

our a Europe like in Right program that's it's we're why XXXX. volume. not in flat over CapEx as will get on margin single things move same picking out. around, impact. extra come So CapEx the And new we biggest is up biggest we'll line now, that It's our and program, we're

David Begleiter

you'll up all it for full when year, done? end And it. you Got is capital where working the on just think do

Lori Koch

where to first also drive that and in translate flow to expect in the from will conversion. Yes. I we were quarter, cash free improvement improvement

than in XX% to So a improvement we'll year, were we the of which where significant target implies from continue greater QX.

was really the QX of function So higher a sales.

sales I AR. a as So lots inventory in translated we and get were mentioned, were in could them. had buying X% about X% that up in opportunistic increased. But And about we to we increase surely,

as year now expect capital for line in just So top be I more range. I so on right basis, working million the used, be we're would might a to given growth full in $XXX the expecting, probably

of think importantly, coming we net QX. that term. is improvement measure pay out But So to attention I more capital working the

saw we to X.X close year turns. we look the the so We'll June, year. year the to significant turns about at And as about improvement X.X ending target last

Operator

Bank Byrne, Steve from of America. is response next Your

Steve Byrne

of you Yes. This split road, industrial trying such side, opportunity extract that on do purification engine seems side, see municipalities you. on much the the the side, any versus industrial on to increasingly materials as but applications? to filtrate not And between are so lithium? the like Water down water growth to particular for Solutions you purified drinking growth that be technology business your a Can using yours

Lori Koch

Yes.

large lot small side. the a it opportunity growth, within have it's space. growing residential -- of I we the coming a think from but growing the today, is Also, it's nicely desalination

got leading filtration also our the ion we've in now so between and And reverse acquisition. osmosis, technology X all from exchange applications

for expand there. we Ed to feel continue as at mentioned, comfortable, to opportunities us presence our look had and So

filtration us well. to continues as be for a opportunity large I So think

will lithium that had mentioned, in to it's a Ed whether as space. So continue big or other be we types player of filtration,

Ed Breen

looks our be the us couple decades. to here the out Yes. I of for like ESG in it's goals growth mean secular industrial going I next world, awesome all pretty the opportunity there with of mean, with

have I clean we on have world. to So and mean trying all these facilities we're hit all we around metrics the water,

be and nice business a by really of reasons So opportunity. one it the the organically to should grow inorganically. way, And we this would like

Lori Koch

about a the investments perfect the in water purification that to And filtration I addition targeted ESG think the potential infrastructure has plan is require space. in our opportunity underneath

Steve Byrne

this in as on will synergies, cost cross-selling an compare that have? ability be how but different acquisition, and/or opportunities your you and it's to don't since drop a of and mentioned, -- some any chemistries and a you maybe to just up And you versus follow to maybe opportunity Laird markets? some is would new well? you you do opportunity that technologies technologies see as into their of some So to seem that it Do do expansion that cross-sell end

Ed Breen

needed technologies key a portfolio look, It's here, technology especially key we significantly in cross-sell, one. very right the bought get thermal areas are coming being a you it definitely of the as way that the -- couple when it more down, on advanced out management broadens there's i.e.,

-- that go to closer growth for look, we're of real lot customers. size the way, to going opportunity able we have of just and in components, opportunity, these important. And with be but at it become out some more it of to technologies just it all quickly the of our business, to resolving our solutions that engineers cross-sell the are customer a the issues. get in these we delivering shrinkage Remember, want more So more bring to application

strategically, the reason industry the in where that cost reason it's but that's business, get synergies. headed. it's the great we fit. And really a is so growth we it think And It's bought we'll the more of

bought it a a from multiple at number standpoint. So nice we

Operator

Your Roberts next of John is response from UBS.

John Roberts

understanding any has against going a on DuPont that's IFF the they conflict? previous Are there new recommended the create a is to being IFF the you IFF and my between that of against connections owner? management position on Board just Or Board. Ed, have remaining would

Ed Breen

Yes.

have sitting I other life. it. we very to John, usually, DuPont the that my think well, X to they I to go we it, they have boards, think goes into half why and issue in than in don't the boards. -- you doing understand understand But company thoughts, is of it's and this more me our important I need put CEO general, things what IFF. investors do opening external also raised. issue just I'm So general, an on in it's My by the way, But

extremely important it's our shareholder So to base.

to under independent no Board, the Corteva think and doubt think I it's absolutely different help driver the it's by the the it's do. to thing on I And than that. But an there's So morally right transition don't is this there. the see about similar right director, definition I any very do. thing the

Operator

Wells Your next Fargo. Mike response is from Sison,

Mike Sison

like pandemic half materials for growth issues? going to longer raw the the you single new And do I think high a EBITDA just do maybe rate what the to the second the and potential as improve looks term, of growth DuPont digits. sort subsides, the other hopefully? just And get want And little EBITDA to then more does -- is lower is? for demand grow second you in curious, feel it's expect better half.

Lori Koch

Yes.

growth potential the comparison. in second half lower just think really I a is the

the second as driver year year, is obviously, growth we -- be to given So on. us last that quarter the then for second of approved lead just half the and going was went largest year-over-year the point

don't change think in of environment. conversation the a I EBITDA similar revenue number similar I see earlier, we the So a had material kind to actual so

there we're year the we EBITDA kind X% earlier, perspective, XXXX. mentioned of and low cases, the even guide was put, guidance the generally that our has an that up think, that in had And market full I've out XXXX above versus end I revenue from As those teens. we

that which the construction, is the the portion bottom, really aerospace still are in around a and off And markets make are so of and XXXX back up off weak handful. they're up commercial more then our of portfolio. we're generally don't a material just which the aggregate And but

Operator

Arun Viswanathan, Capital next from response Markets. Your RBC is

Arun Viswanathan

separation you kind the Also here continued undertaken the lot nutrition E&I, mostly you've portfolio, just thinking know operating also comfortable or else moving curious as DuPont. forward What out. kind a thereafter made for with? well through of cost bulk maybe the into But and gone you've as some water. some Is steps you on the noncore the reductions. you've see strategically, guys Great. new can segments of the is business your thoughts as of health that up to level you of now as portfolio that maybe a far separated you I'm new management? are of next us acquisitions I with at just you're give

Ed Breen

of heavy lift the focused term It in to out portfolio, But a noncore there. will businesses, after Look, We would very that Yes. we cars X of here, ago. N&B there's transaction like say, we're the seems do X remember, still out we'll the the mid-year closed and months proceeds. finish and bring which just of get and $XXX running operationally short have company. lot million I forever,

going And portfolio. the lift same Laird remember, heavy into a time, we're integration the have at business then still to we the the there. So be of starting going on

in couple to of at work, a as I had a that looking got targeted definitely type lot mentioned. addition we of opportunities M&A So of

raw -- hands of a material portfolio-wise through We've managing about that a all got in full. think going our and year a issues inputs on lot has kind the still all that fun this crazy but but year. I talked pricing and So with of we

getting and I'd grindstone So some here. to in getting it. would never portfolio really a up the kind table transformative the of take generally, knows kind cleaning want But we as looking say of where things. Laird we off just operationally, noncore, Again,

Operator

next Your with Alex KeyBanc. from response Yefremov is

Alex Yefremov

in else in do gains you And introduce product CMP products you gains quarters? Did or new coming in this the semiconductors on expect you maybe share there? Could elaborate slurry? anywhere share additional the in

Lori Koch

CMP within advanced the in company mentioned lithography within comes Yes, from slurring we I.t also new space. really the packaging products had

where think got just look that the about look that indicator is estimate was So We first where does, technology we the total. from XX% at quarter. X% produced which market FSI, We we market were up we if you within versus revenue performance our up amount the about is about so in in semiconductor at, the we play. probably we which or X%

So within perspective. And X% semiconductor some the average. remaining the grew market higher share of would spaces have than then gain from that the space been the

Operator

Thank no are queue. in further there time, the questions this you. At

Leland Weaver

you, joining Thank everyone, our call. for

For your our on posted reference, DuPont be will transcript website. This concludes a copy of call. the our

Operator

participating. today's conference concludes Thank for call. you This

You may disconnect. now

DuPont de Nemours (DD) 4 May 212021 Q1 Earnings call transcript