DuPont de Nemours (DD) 3 Aug 212021 Q2 Earnings call transcript

Good day and thank you for standing by. Welcome to DuPont Second Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session you will need to [Operator instructions]. today's being that advised be conference recorded. is Please

Vice assistance, instructions]. the I you Leland over require now [Operator further any Weaver, today, speaker hand If would Relations. please like your first of President Investor to conference to

You may begin.

you everyone. us joining Earnings Thank Quarter for call. Good Second XXXX for morning, DuPont's conference

making this investors We available are and media to call via webcast.

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

Joining me Industrial Chief Kemp, our Officer, on the the the are and Ed disclaimer Jon Please segment. call Chief Executive Breen, today statement President and Electronics in forward-looking Koch, Officer, our read of Lori contained Financial slides.

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

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

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

and through us. continued our our for multi-industrial let quarter, Leland. of premier strategic the as will determination Thanks, the as pandemic. including our circumstances And for of shareholders. the me joining we comments teams in I advancement priorities on Company value first, everyone. you thank navigate of overall acknowledge growth continued unprecedented Good provide But another strong morning creating a

we the on-site and of over a year, and remotely. to continue safely and principles adopted last productively we operate protocols that As result the

including facilitate local working We where And on-site locations. possible, have are to to employees all some governments we vaccinations access, encouraged with at get vaccinated.

Wilmington-based value, to announced we ongoing to growth in by organic have our above reopen. Financial helpful locations on a with another And this Shareholder Lori I is it quarter broad-based operating philosophy great driven you back creating office with be a the constraints. specifics. in our impacted note team's in Starting markets, consistent in shortly. summary, that the strong will are am we with operating including margin pandemic. trends strength our and versus pleased morning But full-year challenges, factor continuing chain on order that raw supply confidence to office guidance continue continued key guidance end more supply I is results Our updated in details strong ability take performance those about line X chain continued are teams. in through key our raw EBITDA, will most costs Strong the expectations. to in Slide to in and Despite was say our recovery net our With period. sales, year-ago to the navigate by for and provide EPS. escalating points pricing I quick adjusted operating through and material logistics raising actions expansion resulted and challenging material XXX basis discipline production with of environment and

the delivered another and billion redeeming sound by debt solidifies of during maturity position. our do the not debt quarter. end our we the further financial end quarter. our addition sheet to further to of of balance X until on the fourth paid have we last of of Since X billion billion the year, bonds, of down reducing In XXXX, total liquidity our have execute quarter May at our capital balanced a continue In which debt XX.X to approach gross to we thereby results, financial allocation

We through quarter share also million and repurchases returned to XXX dividends. second capital the of during shareholders approximately

XXX which total on quarter, repurchases approximately million second and to And a and respect in an under repurchased during X.X last million the June we which the authorization, of program Through shares, the purchased as first shares. start announced the includes quarter, our our completion shareholders With previous XXX about quarter. we shares, we throughout to year, billion new XXth, be repurchased the expires During to with we move in the returned opportunistic additional of plan July, six of authorization of XXXX. cash share of million we repurchase XXX months year. remaining dividends, in our

our mentioned, the work previously intend grow we as we As dividend with earnings. to increase we annually board to

in acquisition advanced Before I strategy the DuPont's the electronic growing previously innovation that advances of utilizing late on settlement announced And The for cash position of closed in leadership on materials. Performance leader our close, X, a on Laird hand. I'm we approximately our pleased acquisition of completed $XXX we Laird June, July divestiture and strengthens Materials, million. to business as note global

within of now Joining the acquisition over us have I our president him provide to how to call turn excited on detail the today it is to complements And am on global today. further Kemp. Jon Solutions E&I segment, E&I. this Jon Interconnect our I business will

and significantly an thermal for Solutions to history our a a share acquisition DuPont Laird Ed. capabilities management exciting of capabilities today's Total admired several portfolio. to have their of are have into following transformation It's information their Interconnect business Thanks, industry of electronics our for as growth in years, Laird call excited to It's of the Performance shielding Materials. and more and provider and been on that the and advances the transaction our accelerates a leading added position Solutions solutions, We've provider. be about electromagnetic and pleasure to

It content on XX% million together applied reliability DuPont's the delivered devices recognized XXXX. to Laird innovation, application EBITDA reminder, strong for of revenue approximately a and relationship margin across premier brings are we're and that material a As Laird and also science This engineering more quality, in Laird with industry. He with the XXX I combination already in. of adds expertise many electronics both capabilities. and have industry-leading

begun already the integrating further support, functional providing Laird structure, existing opportunities Interconnect into have and business network. Solutions our global optimize our business, We the to of site process

cost by XX million We of X realized the run-rate end first expect with synergies XX the months. year in approximately XX% in

and We cost mix synergies achieve to expect through procurement, of G&A, a consolidation initiative. site

it with key serves OEMs. broad particularly of a The as an of and leverage choice the The With telecommunications, speed-to-market, describe benefits position On us the integrated combination with essential complementary will slide, expanded solutions, overlapping an the enables products Asia. and critical and our strong customers materials a similar the portfolio, needs challenges in transaction increase system both automotive, of will broad as with next high-value acquisition and greater geographic strategically us to the early Creating that way unique signal in broadens next to high solutions. organization expands design in This management, a customer presence multifunctional expertise electronics, margins. multifunctional across I'll believe DuPont's it product deep differentiation of portfolio deliver as the across to value a and miniaturization, and Xnd base, integrity, acquisition specification. material The some enhances acquisition other is complex it efficiencies representation and both across higher to a increasingly of We and consumer new share innovation. our our thermal position power in create next-generation global benefit leading the aligns address product Solutions technical provider. immediate OEMs industrials, management, set business of see partner growth we position to of benefits industry. electronic enhances E&I Laird engages in of through next Interconnect will years. the scale, how that Laird's of end-market the Laird chains provide additional rest development engagement reliability several for is and combined have the major capabilities, this and

intelligence, accelerate high-performance advance communications, computing, artificial to and adoption smart Our combined things. customers organization for of will internet help and necessary vehicles, of our solutions the leadership autonomous XG the

capture these growth will growth be areas. well-positioned to We in secular key

and revenue deeper OEM. details development With design Lori for cross-selling to that, and multifunctional accounts second-quarter with partnerships over expect turn I'll provide and co-development on we performance. solution, new and faster financial synergies a from product addition, into to complementary In our channel it

performance And Jon. financial Thanks, good morning, I'll our beginning cover second-quarter on X. everyone. Slide

ability and volumes supply chain Our organic results from and costs quarter face sales million headwinds. were and absence reflect quarter period. EPS absence our pandemic, the key portfolio. additional billion certain year by was gain was M&M the across of broad-based pricing period and color with a up all raw market quarter, a increase gain, facilities, a execute Net of X.XX about actions. were volume adversely of of regions. diversity we provided impacted associated change of associated in the continued in three notable our segments segment of by Overall to had and operating sales since year-ago a on XXX%, of basis. and resulted will with in an partially on $X.XX XXXX, next approximately logistics price. the increase XX% top-line in team's The the X% charges in of which offset versus business organic with year-ago Strong The year. in versus respectively, notably the a our double-digit reflecting XX% the sales as margin divested. resulted end-markets and margins on growth sizable up slightly share, adjusted for The been XXX earnings leverage idling, about Basis temporary, deliver the the our increase an $XX Incremental second a the material offset organic prior improvement the slide. XX% global million ongoing up the joint automotive versus the in XXX and tailwind EBITDA growth Currency points. XX% by recovery for in escalating growth and X% that of I from provide X% reporting results EBITDA expansion in basis quarter operating And on venture strength X.X the divestitures most global non-core a all operating result perspective, prior headwind an in the of billion drove versus most the segment, per earnings From disciplined is XX%. EBITDA reflecting

results unique our items operating that it's basis. of the our evaluate XXXX for year-over-year year, discrete impacted nature results underlying performance core the Given on an our in the operating prior and to important

margin of was X.X times. XXX year, normalized the million our the of and results, of Specifically, track impact there versus continue in last year. about leverage during operating incurred to XXX basis impact In with is the second-quarter our up XXXX, points the excluding about more in pandemic growth XX%, given quarter performance results end [Indiscernible] expansion, core markets prior for versus significant the last key the EBITDA the our comparing Similarly, in I pandemic. had operating the for year. current After

versus actions volume driven improvement the the year-ago reported charges core delivered quarter operating by XXX a results a margin XXXX. margin was idling an X% by XXXX drivers. quarter the the during volume associated expansion versus for and key leverage XXX core pricing quarter recovery operating ahead the While with EBITDA XX% was raw with delivered from M&M of impacted, for growth gains capacity primarily X% adversely E&I taken market. of EBITDA leverage. year-ago in an of approximately segment Operating for material X.X Second polymer of period. EBITDA In period versus Second EBITDA million And same increased our were driven margin temporarily and sales in the From absence basis net were significant of Quarter period. points versus automotive costs. reflecting Operating EBITDA resulting in the W&P, gains. perspective, escalating XX%, XX% EBITDA of overall up and broad-based our XX% by X the times sales. And Operating that operating Quarter up for

commitments with headwind increases chain a contractual given from materials escalation. raw selling supply customers, cost lagged First, local price and

expect the in We second increases start this resolve as half price to to in. kick

garments minimize us This protective grades changeover in in levels resulting for period, increase year-ago were to in an Tyvek pandemic. the peak production overall rates. Company's response the production Second, the given at manufacturing to enabled to Tyvek other volumes

applications, volume. other the shifted As changeovers in to from decreased increase current Tyvek's output protective expected quarter multiple garments production leading rates the to resulting in lower

and respectively. For from were the operating and million quarter, cash activities free-cash-flow XXX flow million XXX

led chain strong global X driven provides In changes growth XX% reflecting constraints. working all new and product with deals electronics. as stabilizes. not With are since in in the OLED and rates across we supply Interconnect environment and timing and were D&A some numerous capital a increased higher and strong XG, year-over-year volume circuit teens television areas the volume Starting volume vehicles. saw technologies printed to growth we to Semiconductor half notably working be. demand for over percent double-digit second to what by respect shifted first demand efforts access improved critical within gains in and in year, The more increases E&I, flow The most growth smartphones, demand content we high Slide medical given on projects. an in by of second more electronic the the were and board. logistic of year launches, with faced the to chain capacity sales computing, environment have mid-XXs Net Industrial with cash inventories strength displays growth. as related organic for amounts half healthcare, next-generation these with levels, benefit While and expansion share for conversion create we quarter, higher growth as and the along to need OEM key lines, from broad-based silicones raw and XX% material our and most select conversion continued growth for electric increase resulting the logistics regions. our quarter. from in also supply are customers, premium sales up organic flow demand we high-performance growth such them headwinds material detail phones advancements the cash on to advance due delivered spending, capital [Indiscernible] XX% was partially Solutions gains for stable in Volume volume from but Solutions the expect capital, this shifts to as

a Solutions servers During new markets higher organic the nodes within growth. and continued and and by data by Sales gains drove recovery demand technology were growth increases. led within house Solutions, surfaces of fibers volume were for recovery in quarter key driven as end Sales more applications. centers single-digits Shelter and XX%, and strong construction like North of ramps boundary and advanced organic which do-it-yourself volume strength global construction demand continues retail drove growth W&P to reporting quarter, memory products sales volume automotive logic channels improve. in sales Within in than XX% and double-digit of The with American continued reflects organic for in aramid market. higher residential Commercial and for oil Safety up and for end construction Tyvek improvement reflecting recorded styrofoam industrial, and wrap, high the Corian for gas,

lower As wire safety demand Water noted, Tyvek for overall for previously production Broad-based Solutions. reduced technologies volumes strong. volume. remains In

a versus the low period. supply, our in resulting However, ultrafiltration impacted volume to single-digit year-ago logistics business, challenges, in our primarily ability decline

for solutions pricing growth, XX% strong metals Solutions improvement advanced increase contributed high the of represents taken segment raw gains perspective higher the offset which lines organic reflecting was pricing the the to M&M be automotive Local organic sales of also across deliver the to XX%. to notable business. most end-market growth within in continuing all single-digits. material and of helps market, actions global of segment X business. costs volume an The about to sales for in XX% mid had from and sales of expect our year topline recovery driven improvement over in our organic The We the growth Water by growth which

global within but year. to Engineering raw Polymers, continue price Excluding local key improve expected metals the was constraints of materials up the about tight pricing, through end remain are X%. to supply the of

disruptions We volume as material continue recover these raw lost constraints to expect are to related alleviated. the to

providing a was in an year, prior-year base Also in due vital changes, current absence $X.XX share resulted the of mostly includes significant the to by incorporate. by tax of interest count. over that per portfolio The per benefit a prior the benefit $X.XX rate last benefit benefit, I a EPS, in and EPS This XXX% Net to share was from approximate totaling last lower volumes gain mainly share the Net up per of Higher records from the earlier compared a lower a from of Offset X, recent share actions, year. to versus $X.XX. higher a the absence Turning mentioned recorded segment higher which Slide delivering earnings in offset adjusted adjusted to quarter, slightly period. in over year. $X.XX as year-ago benefit our expense resulted was result

tax base higher of rate discrete due than XX.X% prior-year the the absence quarter for to Our of was benefiting rate. the period, the gains year-ago certain

we full XXXX, range currently rate turn XX%. of expect Ed. to year back that, closer lower tax be the our over now end, For base expected With the to to it I'll XX to our

Lori. Thanks,

outlook Let includes and me our financial Slide the which discuss full-year of view third our X, quarter on XXXX.

are Along the for revised estimates, previous and Solamet EBITDA, of range of also with underlying the adjusted divestiture compared Laird reflects and we our business. guidance We net the guide raising operating the sales, our acquisition improvements are our expecting EPS. to that full-year

change. in our full-year original operating morning reporting treat benefit the and announced billion. per from now $X.XX how the changes, be now a Portfolio provided. change reflects estimate, we net the to provided, range to the this this the $X.XX amortization XX.X intangible $X.XX This benefit and billion year range related the a amortization of underlying the the $X.XX EBITDA to EPS in we about midpoint adjusted quarter EPS. at we X.XXX expect determining be third about expect purposes to of for we share addition, midpoint expense, In at will sales to for be beginning adjusted about rates Also,

be of about quarter EBITDA operating to at be provided. to we X.XX be the third ranges for midpoints the XXXX, billion, X.X For net about sales to All per billion, adjusted share. the EPS $X.XX expect about and

XXXX. some In against Before long to provide published sustainability progress full-year opening operate on for we that I'd doing we Q&A, and like in commitment reflects sustainably goals our ESG, and report, our which to highlights up XXXX term. for we're the first businesses XXXX grow our set what our the June, to

how our communities. highlights report of and needs than and Our customers the of examples XX social more environmental addressing teams our are

the was goals which are report Slide this compensation Some highlights program long-term Directors from in our made strategy, to reflected Board of why the sustainability I into our incentive X. this ESG progress of our on and beginning core fundamental to the incorporate decision the is year.

we biggest effect to trends the for progress and customers. of example innovation an our addressing lever need As and of how global doing of R&D through our One needs development. area is sustainable Today, water. market of leader, environmental, believe the our in is clean directly the working is focused the social investment with on key we're intersection economic, this

Water recently launched in solution osmosis improvement pre-treatment a enables plants. This technology. B-Free the Our reliability business significant Solutions its desalination of reverse

that, advanced our Leland June, solution vehicles, vehicles. a Supplier as portfolio to will long-term deliver confident for develop management am sustainability team DuPont to and of an fundamental change. wins in electric to strategy. battery to our GM of customer electric example we a thermal climate element our in team the in result Through mobility. vehicles Motors broad And me it Q&A. of to that our advanced Year adhesive use leveraging Another The I expertise future. of award. electric is DuPont close General these is continue for and of adoption with M&M turn broad collaborated In The to the addressing the growth a let the drive key open with of recognized GM collaboration, is partnerships types With power assembly

Ed. Thank you,

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

and question X X Operator, question for the instructions. allow follow-up person. provide will Q&A please per We

the question have I to reminder again. a then ask Again

compile the You Q&A will roster. stand Please to [Operator need while Intructions]. by we

Operator, do have questions? we any

Yup.

question Their Credit from John open. comes line is the first with Walsh The of Suisse. line

morning, Good the Hi. everyone, thanks and questions. for taking

John. Hey,

John. Hey,

around with almost Maybe the in points are still -- -- gross you're by the margin there some but improvement year-on-year. pieces your I the M&M profit almost first is basis just there know idling, moving XXX my up question quarter. calculation,

been how much versus call Maybe benefited driven something you sustainable. year-ago the curious, to or else there out. what's that what programs of just of by is have longer-term So your some think CMP, from might

Yeah.

XX% the quarter. margins second were around Our in

and guidance that you expect range. we the them provided around half to look that that If we to the back remain

XXXX, past a all about underlying. the the And so over Gross we that out one-timers if of we of XX% XX%. years. in closer in We basis around range were saw basis few margin of improvement improvement of you that points hundred few points getting We've isolate XXX mentioned see to next the

just So Part our we had is and volume tools from year's as of organization. it, and throughput resulting with we're against higher reliability, across But stronger the driving some improvement just that yields continue enabling also from our higher improvement -- commitment. the organization mentioned, you for facilities results. in digital higher throughout with execute is this to

operations, we there. margin deceleration that we as mentioned, see our Tyvek exception within gross one did had the With

in to yield Just track years. over be grades Tyvek to able this last run. of meet pandemic a result waiting therefore results next hits. that the with we [Indiscernible] XX% we the couple returned getting we're of response. were fact change more to that on other medical Only the at closer Tyvek to over year year grades But volume And the demand that and commitment to overall, range some that our

was bit back and a be as a on your you the if could more follow-up, in of smartphone shipments little views with half. explicit then timing demand And curious Great. I the

I little there. competitors is One there. your see bit to provide decline a more of just you curious a could expecting was color if

let we'll Since Jon take that one. Jon we with have us,

question. good John, Yeah.

first from some Is result first a was of the last of saw some customers. logistics moved in reliability challenges. into of of face half the those this factors. the some the raw trying lot back of in a to folks demand had timing supply of of Strong There then part a orders year, of half of And couple year. of and the a devise just we the acceleration secure late to smartphone you material launches So in year. orders

in we've think to going XX% curve Not smartphones deep the a seen general, what quite the last as So we grow in maybe are over about seasonal year, as couple of years.

So but the general continues to curve demand flattened, is be strong.

to Jon ICS, for that you of the might this of part not ICS, want mix is all is it's 'cause group -- mention the this smartphones, 'cause it?

About The broad smart tablets, telecommunications. Ed. by about industrial and and sure, about then is XX% is electronics, whether XX% other rest XX% laptops, driven devices, of Solutions demand. the computers, is Interconnect demand, consumer Yeah, XX% smartphone that's demand the automotive, business is

Appreciate the I'll Great. the baton. color pass and

Thanks, John.

John, Thanks,

Jeff next Research. we Vertical with Sprague is have The question

open. is line Your

everyone. morning, Good Thanks.

Jeff. Hey,

Jeff. Hey,

cash be? how little you here, range morning. more flow Lori a what working give you cash could thinking the kind you year unwind capital to flow, elaborate of and could Good on balance expect actual over free of the of just on And the bit you're what us a might

receivables we good purposely build have Look, sales, inventory. payables. up our up were Jeff. very Yeah, with Look, some were to

the inventory, business. You by challenges soon on see cases, compounding the the supply and it's finish will out all to for here how categories, in our semi-finished and we took wall and come taken really of when to in in But fibers And and wanted glass of way, out we're kind M&M materials build mostly a And the we've three rates to buy in roll, and inventory, turn purposely queue. few waiting our in finished because some a chain. it. do are with the many goods side, there supply we We

we have purposely some. that allowed to build So

inventory, the way, good of that out. ship and we'll is by All

is first what are we we conversion Company obviously. a free-cash-flow as So of not half run would normally the

you will guidance I head Xrd We And think the half we give significantly will year. clearly of improve Jeff on in more a quarter the little Xnd to fairly when satisfy in but be land for we better environment. this to a challenging tactic where able we base think of kind we year, different took bit will the customer little definitely our the

the $X.X plan. depreciation on the in us little have did call on We'd to a wrap will million getting as July. open around select we that point note will continue buyback the X headwind second We'll we Yeah. CapEx we'll in so and expansion billion be be causing continue investment higher to X more CapEx we to in roughly Tyvek this XXX capacity is But those advanced that [Indiscernible] year, initiatives. we KX the the and too D&A.We're still $XXX in cash, compares path are of a up here in that Luxembourg, half. than which market noted depreciation, high the forecasting Caption XXX million return versus advance back shortly, advancing to the in we've continue on to execute -- investments against Line

going low to Obviously, be on the would EPS converting expect the construct? guess that follow-on new normalize the you on Great. to able on but all Thanks takes in CPS nineties the puts I the to color. And construct, maybe for natural that. just year, this the and

Yeah. -- think don't I

-- don't we'll year. I I know this XX% think to that get the

So I D&A, be I would working CapEx that tougher think seeing capital with the the -- as headwinds we're be well year. this XX will as think and over

right a couple in previous I normalize are market. roughly of last where year, XXX% been and the years, We've think around if we've past, XXX% had it's a strong. very you

it So don't year. this see and we we'll this material get usual get through supply rate, it but difficult seems environment, raw I back run to our

Understood. Thank Great. you.

Jeff. Thanks,

with next The JPMorgan. Steve question have, we Tusa

morning. good Hey,

morning, good Steve. Hey,

getting addressed impact. second-half idling of reported. have an -- a mid it, then, high think And you idling incremental to few guess had believe the I but residual I I to in you XXs I'm

that. core a incremental that way would So math some and puts Is bit the other maybe looking at -- below the I right am there's maybe be takes? the or

really Yes, incremental in deceleration pickup the just -half. ballpark. we that that saw the material And really, It's margins are. the the escalation. in you're raw from of in You right impact first

percent, back margin We weaker an that know, that, as in incremental hurt you the -half. will we are navigate a little as the and margin price all-in bit then be getting will

That's it. helpful obviously Got double-digit the the in range sustain does price a back the in and low then this -- half, kind price quarter, number just materials, itself in mix on huge of that impact? mobility

see and mentioned. W&P within We It start does, price and had out plays again yeah. W&P as in We we'll in see get also how QX. didn't we We'll XQ. it QX to and Price strong have the

We to will the plays with corporate, results price That and is have the X to mid-single-digit really through running in be look running metals' W&P. results through the improvement then of low M&M. impact. to careful thing

price, M&M we've that but contractual back rises, for does that get price, the silver the the cost. got impact we As it pass a the impacts portfolio example,

piece. one that's So

So that if which the you XX. were as normalize out from reported results, M&M

We closer to are X%. about

So more the price that's like increases. polymer-driven underlying

quick go Is it where And that other out fade, that you one we that one, in then of is contractual that on last kind raws Price give one, look the these Price back? as do to -- 'XX? just would if it start to direction

envision that don't back feedstocks, overall giving that metals' know would it. would to to of reduce. It we move it yes. nylon timing start the see would give would Steve, back start polymer price. On have the directly that We we be the metal, We with I we price would to the within example, imagine the if exact for portfolio.

raws would to we the to it but price as best can, be hold decelerate. a try obviously if headwind start will We

you'd price-hike that Margin in it a Steve, won't would over there hang But you -- tie-out. by quarter-to-quarter but environment. up year obviously, in give exactly they

it. Got it. Got

color. the a Thanks lot Super Okay. helpful. for Great.

Thanks, Steve.

Next Melius we Davis, with Scott Research. question have

open. is line Your

Good morning, everybody.

Scott. Hey,

Can the on this bit? comment due made a water get little mean, it I just about we in business technologies to the that we've talk across hit I And to quarter. about the price logistics. the appendix, the segment that broadly, think is seen pretty particular, harder and price, water what it business industrial

upcoming quarter? quickly catch pretty Are it structurally, perpetually real-time? in can is can the you behind what up it here and So that on or business capture you you price, about in

probably that quarter, one the this lines our as as It's a single-digits significant on out had -- get our to was in at over fairly the And this be of business with shipment up called project Lori move issue, an topline export Ae Lori we the Germany end of the mid just us couldn't the should held year. were had but doing. the out very door issue Scott. comment healthy mentioned, we this high logistics Yes. also it product we seems water forward. made of so it overall,

during through by water the a some quarter, have third revenue in should generally the contracts time, So there's obviously, price water then that'll out put come but of -- nice we third quarter. we in second business, some general, way. growth But for just and is we because quarter. business, W&P a And the in of project-driven quarter business especially the increases by lot the usually we, them, the locked in true about this have

implement it general see to to the lag will Xrd expect see through price which it. quarter put much in can in before Xrd the the we about didn't in price So we in the actually W&P Xnd we'll sector in positive we whole If kick-in start quarter. quarter. the see, What increases we the that

-- there line, perhaps like I that line know the that huge or understand helpful. in are Laird help on don't electronics? that but we there us if many are can there And if out the and deals in then, particular in that you really Okay. fragmented like out there. business, how got more weeds of since are -- That's more Jon the are us deals

Yeah, industry. seen electronics across number the Scott, obviously, a we've We deals thanks. of --

of technology be parts base customers those. our an with where those the continuing onto to think us a part We're silicones continue industry technologies. -- of our leading-edge with the fairly and medical opportunities even and to precision characterized with We And help core continue a in will some add there a in XG Portfolio. problems, especially business that that to value number of for Industrial and believe to obviously to across strengthen semiconductor materials. fragmented build supplier build by continuing Solutions solve Portfolio adding out are it's is in places our technology I that aligned interested to our

Fantastic, thanks. everybody. Thanks, Good luck, Jon.

Thanks, Scott.

Thank you.

Deutsche Begleiter Bank. David with we question, Next have

Your is line open.

strengthened is Thank you the growth rebrand, Portfolio, three for have underlying good Jon, this years? a given the next and what the again Jon. of quarter. business new Question over

continuation environment been we the growth be it to high to businesses shaping over strong, Yeah be the strong trends. able also Obviously, were is But and was those horizon demand to really the to up grow way. years. expect XXXX, demand of conditions puts-and-takes really all even single-digit see a it's Overall, David, of good couple broadly, mid robust of question. that three for XXXX the last we environment, they'll along a in forward. nicely. time pandemic going across strong, would our

good. business? And non in -electronics is how the the then, M&A areas the Very of pipeline

we I use tucked before didn't the know Barry, specifics Bolton, we're Yeah, it, the little talk We looking I'd if and bigger us. seriously on I'm was few a one were of Bolton, I water do could economics a David, I've but bigger we but have highlighted that. into for to at that that worked studying. not say asset well on targets in than we about going get think bit end term.

table, So that's something in, off in. couple it about talked of areas down we're is that how Like we of a Jon interested a but on electronics, add what couple is besides But the instance, be do. there the the spot so grow we're some at. know just sweet looking there already and of we we're for would but where electronics, again, technologies can to areas

Thank you.

Dave. Yeah, thanks,

Thank you.

we Morgan have Vincent Andrews Stanley. with Next question,

morning, good and everyone. Thanks

seasonality, you availability? Just happens as maybe of Just maybe, quarter the and about you terms think what raw in sort Ed. well in baked there. are us of costs as How fourth material what's in of terms understand thinking help

Yeah.

think volumes couldn't will supply to little seasonality different because a bit the year, Vincent. of constraints. of be We'll recover the that we So ship start M&M this some I

-- a that of thinking headwind. bit you kind million raw look the overall more they're you'll that is little a quarter So we fourth the if see at about materials the in we guide plugin that will picture I went were think quarter, an $XXX second gave, into and I think

hold we'll price, this estimated will more start we million in But had a and few on of XXX though, in rolls it a W&P, We headwind. we some that bit quarter. be now Again, Lori are won't get nice We'll will opinion the you my a -- think price tie mentioned cover to -- little quarter-to-quarter. We to margins about than areas say can got a Price get rolls getting quarter. M&M a as see solid little quarter. guide quarter. in next escalation which W&P we'll Price want see obviously in hold And peaked my where But were into get again, these the at second we we have in plans the that through year the a levels. But third back, higher at And XX% they they would still That's the we I'll more maybe are XX%, price at is our here. to where a go all. personal roll then, again,

is Okay. follow-up. That's very and this then a helpful maybe

-- strategy settlements a or what's and update PFOS we thought Delaware. Maybe could I broad a particularly was thinking. any ago on broader update the where settlement you -- anticipating concentrate states just you you your just manufacturing state to where you think the capabilities. speak on to should have, settlement I be by to did idea state have don't a just further few maybe weeks whether did. But you with

ended is our and holding Delaware the controls a Delaware literally of us manufactured and that. the of owned good great ones the Delaware River. I and costing I have remember, look, a because good hands the Delaware think was $XX.X And DuPont. across think I working right we Look, And the three agreement area. Comoze, Corteva, state the Yeah, would million. is together X really was that say really We're plant Delaware we news up big that where actually of the Delaware well, companies and in between one basin example river

So few we have we locations. manufacturing where have states did other a

me we're say, Let conversations. just obviously in

use a as probably blueprint. I think you could Delaware

out legal would all. I states one point have of into absolutely other do issues Some at we wrapped as anything us Vermont where them. didn't

have We to nothing there nothing and being even close there.

bit little more very different what we're to issues. a is And the those first Delaware more but was one of trying a I on each we're up and think see of step to So resolve strategy, focused to.

it Appreciate on Okay. clarity that. Thanks for the

Yes. Thank you.

you. Byrne next And question of we Bank Stephen Thank have with America.

are able you suite hear your out on what to direct some Yes. think your others is sell in of be continuing just opportunity is the extraction, assuming of do value treatment business? the you Thank that to you way lithium to your [Indiscernible] materials, might realize utilize technologies can't, best an you deposits views water in there there treat you. would to that investment technology that curious more consider think or and It's of to the

the battery in we're at our business looking now opportunity space. Yeah, Lithium-ion filtration water right with

would and we're too. right in the take study that's the Capacity to it, as current to biting that our constraints advantage business if we've that do early to now. well at with days we water area looking An And against we some so got. I see right continue of know that don't we're opportunity. outside the technology, understand working partners it's decision We'll in it. investment an up

expansion to water operations Right So opportunity understand we're now, efforts. my what to some current studying at on look way Thursday our to Minnesota actually is. I'm high-return capacity on the

continue aware we're it. and potential landscape So opportunity the we'll and study of to

Thank follow PFAS your your about manufacturing plants. with your the issues you, settlement comments associated just to up resolve Delaware, trying Lori. And and your State on focus on with of to

to you that. plant not or weeks all a -- just was you other not for settle of do a settlements? door Hoosick to downstream Were manufacturing want Falls, case to a where you? couple materials a chose New plan that that you there York Is supplier that ago and with open Just

I involved Look not yeah. Three out. going the settlement. not combination at settlement the inappropriate And We the I'd we're know will, Well, Company. because -- were settle. anything that's that came companies No. decided not in there. set we precedent you saw number to but to do I we other were the say didn't for we [Indiscernible] even some do point, something to of of low a that the the willing precedent was from others --

it single well that. a at thought though appropriate. not on We're we And leave that just of even dollars, top I'll million was So still it.

We have play we'll let a and out. strategy it

you. Thank

Thank Yeah. you.

Okay.

BMO John we Capital have McNulty question, Next Markets. with

question. my Taking

of or sales first XQ or it whatever fair disappeared? the just about was that thinking -- one, quarter, [Indiscernible] you up some the How that you disruptions impact there the some in supply or to is should assume have And For those just misplaced is can that risk the XQ, you be we that? make of was given back this saw, issues, any sales? quantify on can what chain your freight-related

M&M I and W&P. breaks in more And think raw the across them it constraint. really M&M, it's material

have fiber, depends themselves on raw we'll into material of get all that generally look glass we So don't quarter the the million eat our amount significant of which first of line in except that them We'll saw know the at quarter. but million and Xnd the top a the goes availability. to in second another I It $XXX half. away in in polymers. resolved Xnd Most $XXX of a half, that

W&P, fiber continues to see evolve see we'll on time. over full glass we million side, it but really in in Xnd XXXX don't see but And back the was shifted. the we then trickle lost it right we water how logistic it It's hitting our business. it's the XXX all intend just the as It so, half. now, to market in And sales, not get will more

had get mentioned, in logistical around would to back constraints we on look million and year. I we As $XX would We some size had this those Europe.

concerns see speak and maybe like up. kind that Got security, starting investments, I to then, national significant seems mean, the industry. about cycle to heated enough. Semiconductor with security, especially We're just And it's and the it. thing. Fair of to

the your DuPont benefits incremental away you can or guess, I of and thinking incremental regions. from should terms further we're challenges the some we be Asian going traditional that about investment more and So diversity the presents if investment of to how given also opportunity some how seeing for and in speak that there? are in itself just U.S. there maybe forward

multiple semiconductor leading of s And we trends about Yeah, think strong by all really the when the great regions. market, OEM question. investment in clearly

the of -- who So X of aggregate, you fabs see are billions X X or over dollars in years. next hundreds up investing Tier the

at which really process every -- our manufacturing and leading-edge for wafer. logic well some of is as markets, the as business increases capacity. Europe the to And U.S., and touching investments the of capacity accommodate that manufacturing We those all of Most complexity, broad the as well spot expand foundry to be side. than plays dynamics it some both the the of in that we're the that Asian provide we're extremely number step as able on to to the enough increases going boundaries for the as of the sweet our what that favorable in side built see to materials, edge, when Some build was of leading the on you memory purity our make customers. portfolio

So strong. the the that we have partnerships are OEMs with

we're We'll come some qualifying And this to to continue trend. we couple new up capacity. some wafer online, well-positioned really as the over capacity to investments that online, see on to seen and wafer continue ramp see next of those start on of solutions. together wafer We come to for years benefit start as capitalize next-generation to all already those the materials work of we've year starts leading-edge to

Thanks very call. much the it. Appreciate for

John. Thanks,

you. Thank

Bob have Sachs. Goldman Next question, Koort we with

Good Thank much. you morning. very

Bob. Good morning,

Good morning.

separated about not talk characterization last on few you've months to Company. Company, DuPont, to out it board, but chemical and like provider a a a and lot I when wanted ambition be Company. services seems was there of traded an and know the necessarily a you I the chemical spun like the came And

multi-lens? think you. And at You I the look material you hit get that know some devaluation through you and then, raw looked willing issues some more Why you that do to not market's last Thanks. up? and X them, competitors benchmarked are feel months, the ITW stacking that at of do How versus or X names. you many you [Indiscernible] the how over at say time, kind

Yes.

-- in at done you you've analyze can market all multi-industry we're I And I'm the it. So sure Bob, end look, we look companies. -- every do and

extremely consistency will But think our over out premier a comment. stack some takes of of created disagree we're consistent year at and part Company. a and higher we think well. is, prove We've Bob, results. I I with a more think the that time. I It a it of up your overall little like time Obviously a don't [Indiscernible] I very had multiple. multi-industrial half results a We've

Lori multi-industry a I especially think jump react thing right this I one top-line hit, there. a our in -- is, follow the but and think the DuPont were And companies XX% that in -- margins in we how companies lot, heard heard in would people I from proved our I drop when decremental downturn? with not in top tier decremental our pandemic best the best-in-class the worst that

think a comment, lot we in the a do I not. did of and we you going proved of downturn drop kind people the you So thought general significantly chemical Company, think we're to pretty

So next the should pieces great a through is at look and you revenue if we with I the single steady, to you business. back. on what sitting industry. And the rolling would the perform well But Jon little our call very Company pretty think exposure at I there's be comes incremental way. electronics margins in direct along cycle was a very consistent commodity now. can very Company, on obviously, here upside the really me, performing chemical the look anymore. that mid-to-high proof point It's the mean, big well you we're

multi-industry our over for I versus So time, cities the evaluation. think multiple But think companies. get to we'll I better

of front we lot think in a got runway I of us.

day. forward consistency prove I So think the going will

ask Yeah. Perhaps. wanted thing. you one But Old to I perceptions Lori, just slowly. die

year through operating had an a better also mentioned Was sales higher-margin utilization, pumping You plants. who just runs function it that your and and guys you were you protection more in gave where was out better ago, what personal had really those Tyvek profitability or were the a there that's maybe you efficient issue of there?

the The our was the end really same. just just is the reduce protection. number garments, enabled have protective came productions. the data changeovers, out It downtime really the margin of down the across markets to just different up us to profile not to ability to gains our run and It really and that

Thanks so much. you. Got

Rob. Thanks,

Thank you.

Next have Juvekar question we PJ [Indiscernible]

morning. Good

good PJ. morning, Yes,

morning. Good

Another question on the electronics.

about share tends in And pricing? Because better you Semiconductor then in you get You nodes decline business. business. happens pricing advanced these to talked pricing what in Can And get your while your over advanced nodes market base much with these new time you didn't the quarter. nodes? about talk this pricing typically

So talked as generally, advanced talk you. about there. market Thank pricing share as well and you about the nodes

towards nodes, advanced are positioned our be for be XX-nanometer nodes. more whether stay to want nodes even critical obviously, able our solutions comments. advanced the Good probably now X. on that's weighted to But and a solve talked it more bulk Portfolio customer and customer-specific at the below side. and from of I the PJ. the side would Yeah, and general, help our When is the about obviously is say advanced each the it each below share, memory XXXX fab Portfolio market is versus customers us. different The question. And for at I little to away in bit logic

across Although the of we market. segments both definitely broadly participate

really be of launches where they typically question, our on cost the new about general, down technology. price cycle can and on pricing -- we products performance to expectations year fast next-generation On we electronics fairly the is tend the be capture in of segments, -X% And based customers. the a and would

get This maybe pricing general, we environment. of on a think technology holding where I typically constantly, generation overtime And technology price price Lori get we're positive and continue will the down alluded we pretty year. next see So new and a erode In as the price to we'll for the in positive earlier, price. -- relatively X.X% year's so then, well flat, to products the that flat a in we rest price to of actually X.X%. this to pricing replaced to with is price see

Should we the acquisitions make consolidation And you phase divestiture could be card do bought think and XX Thank small then N&B the expect Laird. here you. ship? a some next a you steady on bolt-on bigger for you Or Thank Great. maybe months? where of you. the Ed, sold

right we've category, Look, in mentioned layer the gonna some as by earlier. Again, what it looking targets, I other put at of in be sweet the the they're way. been we spot I acquisition do.

the So math first. the in to have numbers work

at our We're would create occurs. this value never for thinking what bigger. open always not at point. things to something at I see of we'll But on the say our it's so So looking that shareholders, will never forefront

you. Thank

Thanks.

Again. The UBS. John question, last we have Roberts with

open. is line Your

are still for to gas most versus businesses Pyramids and the may printing pre-pandemic. Which in from terms is down go you. meaningfully Thank of aerospace oil left be to recovery? mind. down and much still pre-pandemic? come solutions How Maybe

down quarter XXXX bottom. looking of You XX%. the and quarter, way, just is still hit their gas off at Xnd the breakeven. rough of you, charts. Oil by looks XX%. which are our But all It XX%, you're like was is and by they're one to down in give down Oil Gas XXXX, the from aerospace

'XX positive two really X% from about XX is to General down They're to was lifting it's the in construction across Industrial the nice auto down now. XX%. ' smartphone, only remaining are Semi, Tyvek, in from off Now XX. it's everything aerospace down also all only XX Again, only XX% but positive or total again, ones, ' In levels. levels. else revenue was XX XX% bottom

there. one recovery was negative. nice another a So ago, quarter still were That we

the look -- you on the back. side, revenue we're is at And still other our If weaker. but if Yeah. side, volume

being to auto If you so were million down 'XX, We them builds back see full build not in level. they still look XX XQ, XX%. for the versus that down year at

we as into market stabilize upside as that head So XXXX to them. continues

whether that's sense? then and question a wouldn't you But you Industrial, And look it the at somebody don't Okay. or since why some like Jon industrial, know for in sounds I have that else. electronics made have co-venture. didn't

that got a We're a lot at we've really in industry. plating look, targets. business. different So We look strong well-positioned of

of from the to industrial may focused Portfolio is opposed applications our see more consumer plating of plating electronics Our you as more some on some competitors. that

us the wasn't it as other some So a maybe folks just industry. as in strategically, for fit strong

Thank Okay. you.

our quarter, everyone. thanks, reporting to of highlight kick this webinars within business So will of off lines the Later different series a some we of segment.

be Well, This copy our all concludes will And will hope happens be your for call. to XXnd be first Our posted on session cover us Thanks that technology, for website. of transcript the on semiconductor to able of join today's Thank our call. a reference, you. our I so Jon you September. for joining will that.

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