DuPont Provides Update on Current Business Conditions, Liquidity Position, and 1Q 2020 Financial Performance
Press Release | April 20, 2020
- Taking all appropriate actions to provide essential materials and support commitment to safety of employees, customers, and communities
- Strengthens liquidity with $1.0 billion revolving credit facility
- Secures $2.0 billion in committed financing ensuring ability to refinance debt maturities due in November 2020
- Expects strong first quarter results; implementing initiatives to address significant uncertainty in select end-markets, including conserving cash and improving working capital
- Expects 1Q 2020 GAAP EPS in the range of $(1.00) to $(0.70) and adjusted EPS in the range of $0.82 to $0.84; suspends full-year guidance
- Expects 1Q 2020 GAAP Income (Loss) from continuing operations in the range of $(725) million to $(510) million and Operating EBITDA of approximately $1.3 billion
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WILMINGTON, Del., April 20, 2020 – DuPont (NYSE: DD) today provided an update on current business conditions and announced actions it is taking to address macroeconomic uncertainty driven by the global outbreak of COVID-19.
“Our team is meeting the unprecedented challenges presented by the COVID-19 pandemic with an unwavering commitment to the safety of our employees, our customers and the communities in which we operate, all while delivering solid financial results for the first quarter of 2020,” said Ed Breen, Executive Chairman and Chief Executive Officer. “However, as this pandemic expands globally, the uncertainty around demand in select end-markets continues. In response, we continue to advance initiatives to improve our working capital, and have taken steps to delay certain capital investments and idle production at several manufacturing sites. We will remain agile, continuing to take swift, prudent actions as conditions continue to evolve.”
Capital Discipline and Liquidity
Due to the uncertainties presented by COVID-19, DuPont has implemented a number of proactive measures to enhance its already strong liquidity position and improve working capital.
- Entered into a 364-day $1.0 billion revolving credit facility, replacing the $750 million revolving credit facility that was set to expire in June 2020
- Secured a $2.0 billion 364-day delayed-draw facility ensuring its ability to meet the November 2020 maturities; the company may elect to replace this facility via the capital markets
- Delayed certain capital investments
- Idled production at several manufacturing sites, predominantly production plants within the Transportation and Industrial segment, due to the current global automotive environment
“Securing these two new facilities further strengthens our near-term liquidity position. Additionally, we now have committed financing in place to bridge our debt maturing in November 2020 to the receipt of the special cash payment in connection with the Nutrition & Biosciences and IFF transaction,” said Breen. “Combined with our existing cash balances and available borrowings through our commercial paper program, these facilities provide the liquidity needed to navigate these uncertain times.”
Preliminary First Quarter Results
DuPont also announced it expects first quarter 2020 GAAP EPS in the range of $(1.00) to $(0.70) and adjusted EPS(1) in the range of $0.82 - $0.84 on net sales of approximately $5.2 billion. First quarter 2020 GAAP income (loss) from continuing operations is expected to be in the range of $(725) million to $(510) million and operating EBITDA(1) is expected to be approximately $1.3 billion. The Company expects to deliver operating EBITDA results above its initial guidance in each core segment, led by strong demand for its materials into personal protection, water filtration, food & beverage, probiotics and electronics markets.
Full-Year 2020 Financial Outlook
The Company remains intently focused on the levers within its control, including delivering on cost saving targets. However, with global softening in automotive, oil & gas and select industrial end-markets and the unknown duration and intensity of the COVID-19 pandemic, the Company has elected to suspend its full-year 2020 net sales and adjusted EPS(1) guidance.
The Company will hold its earnings conference call at 8 a.m. ET on Tuesday, May 5, 2020.
About DuPont
DuPont (NYSE: DD) is a global innovation leader with technology-based materials, ingredients and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, health and wellness, food and worker safety. More information about the company, its businesses and solutions can be found at www.dupont.com. Investors can access information included on the Investor Relations section of the website at www.investors.dupont.com.
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