Fourth-quarter sales at DuPont (Wilmington, Delaware; www.dupont.com) fell 4% to USD 3.1 bn (EUR 2.85 bn), as organic sales growth of 5% was wiped out by currency headwinds, portfolio impact due to divestitures, and weakness in the end-markets.

Operating EBITDA rose slightly, by 1%, to USD 758 mn, thanks to higher prices and cost-control measures. Net income from continuing operations totalled USD 105 mn, down 37% due to significant items, mostly one-offs that include a termination fee for the Rogers (Chandler, Arizona, USA; www.rogerscorp.com) transaction (see Plasteurope.com of 04.11.2022).

For full year 2022, sales jumped 4% to USD 13 bn while EBITDA improved 3% to USD 3.26 bn. Income from continuing operations shrank 12% to USD 1.06 bn. CEO Ed Breen said despite weak conditions in electronics and construction end-markets, “revenue and operating EBITDA were in line with the company’s expectations”.

Volume contraction in Q4 was attributed to further softening in smartphones and personal computing within the Interconnect Solutions business, slowdown in semiconductor and construction end-markets, and lower volumes from protective garments within Safety Solutions. Organic sales growth in all regions, including 9% in the US and Canada, 7% in EMEA, and 2% in Asia Pacific was reported.

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The Electronics & Industrial division’s Q4 sales – with OLED materials, Kalrez perfluoroelastomer parts, and Vespel PEI components – plunged 8% to USD 1.34 bn, due to shrinkage in organic sales in the Interconnect Solutions business, which suffered amidst inventory destocking, further softening in smartphones and personal computing, and the impact of Covid-related disruptions in China. Currency headwinds also eroded revenues. Operating EBITDA fell 4% to USD 407 mn.

Q4 sales at the Water & Protection (W&P) segment, with polyethylene non-wovens for protective clothing and underlayment for the construction sector, jumped 6% to USD 1.49 bn, with Water Solutions advancing by a quarter based on strong global demand and capacity increases, as well as pricing gains. Operating EBITDA rose 11% to USD 360 mn.

For 2023, Dupont said it expects full-year sales at around USD 12.3 bn-USD 12.9 bn and operating EBITDA at USD 3.0 bn-USD 3.3 bn. First-quarter sales are forecast at USD 2.9 bn and operating EBITDA at around USD 710 mn.

CFO Lori Koch said, “In 2023, we expect continued strength in areas such as Water and Auto Adhesives, along with stable demand across industrial end-markets including aerospace and healthcare products. We anticipate lower volumes during the first half of 2023 in consumer electronics and semiconductors resulting from decreased consumer spending, inventory destocking and Covid-related impacts in China, primarily in E&I. We also expect ongoing softness in construction end-markets in W&P during 2023.”

“For the first quarter of 2023, we anticipate continued weakness in these consumer-driven, short-cycle end markets resulting in organic sales declines in the mid-single-digits versus the year-ago period,” Koch added. “As 2023 progresses, we assume stabilisation of consumer electronics demand, normalisation of customer inventory levels and improved China demand to drive sequential quarterly improvement in operating results, most notably in the second half of the year.”