Dupont de Nemours (NYSE:DD) crumpled Tuesday at the open, after the company gave weak guidance for the second quarter, with both earnings per share and revenue forecasts coming in under Wall Street’s expectations. Dupont cited a delay in the electronics market’s recovery.
Net Sales of $3.0 billion decreased 8%; organic sales decreased 3% versus year-ago period. GAAP Income from continuing operations of $273 million ; operating EBITDA of $714 million. GAAP EPS from continuing operations of $0.58 ; adjusted EPS of $0.84. Operating cash flow of $343 million ; adjusted free cash flow of $102 million
“We delivered earnings in line with our expectations for the first quarter of 2023 which reflects our team’s continued strong execution despite a lower volume environment in electronics and construction-related end markets,” said CEO Ed Breen,
“While sales within Semiconductor Technologies and Interconnect Solutions were down during the quarter as expected, Industrial Solutions as well as the Water & Protection segment delivered organic sales growth and we saw continued robust demand within our auto adhesives portfolio. Our businesses are well-equipped to leverage leading market positions and accelerate growth when consumer-driven, short-cycle electronics end markets recover.”
Operating cash flow in the quarter of $343 million and capital expenditures of $241 million resulted in adjusted free cash flow of $102 million . Adjusted free cash flow in the quarter includes headwinds of about $75 million for transaction costs related to the M&M Divestitures.
DD shares dropped $5.90, or 8.5%, to $63.48.