DuPont de Nemours (DD) 5 Nov 242024 Q3 Earnings call transcript

Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the DuPont Third Quarter 2024 Earnings Conference Call. [Operator Instructions]

Thank you. to conference like Mecray, to now Relations. Investor would turn over the Chris I

begin. may You

and morning, Third Conference Financial DuPont's for Quarter Results Good Call. you XXXX thank joining us for

are Chief Financial Koch, today Joining Chairman; Officer. Breen, and Franzen, Officer; Lori me Antonella Chief Ed Executive Executive

website the disclaimer prepared DuPont's webcast read forward-looking to statement link. in posted slides Relations the Investor have our remarks, . Please the We are tab contained slides. which supplement on under and through the

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

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

the A refer also press presentation will We been included materials in Investor website. and measure posted release to to comparable our and Relations have non-GAAP measures. GAAP financial DuPont's is in reconciliation most other directly

over now I'll who will call Lori, begin. turn to the

reported EPS. our and financial across and year-over-year EBITDA for for morning, everyone, solid highlighted today, quarter a financial operating quarter metrics. quarter key consolidated sales, adjusted performance by all growth strong joining thanks, Earlier call. we with Good continued improvement net another of third sequential We posted

Third a year ago period. growth quarter to the sales versus $X.X X% which of billion included increased sales return organic

to points with $XXX margin of XXX EBITDA XX.X%. basis EBITDA increased XX%, operating Operating million increasing

XX% of year-over-year. Third $X.XX EPS increased quarter adjusted

generation of flow disciplined highlighting also working capital another XXX%, cash with free transaction-adjusted cash quarter conversion We delivered strong our management. of

and of From enabling EBITDA semi quarter in strong raising segment end benefit to XXXX, lines our another an business, saw Industrial Airconnect from will technologies. year and chips market of shortly. advanced detail we and operating growth demand both double-digit full the EPS, the the which view, and which continued AI for For Electronics Antonella adjusted Solutions for node guidance are sales

segment, In volumes. & improvement sequential in stabilization Protection the better-than-expected Water we water, in continued including China saw

saw Overall, continued year. normalized by in positive has and packaging encouraged are strong medical our execution sales patterns. coupled results. more driver team's buying savings the from returning actions performance, which been this further also operational to I'm Volume of We continued taken end key sequential with a our earlier financial helped by lift our restructuring recovery markets,

improved initiatives we capital customer culture value to teams By have our real seen line. across business benefits say unlock in and are tools right am equipping positioned with operational well and I training, we margins and made working and continuous improvement excellence to each fostering pleased with the enhanced of long-term our progress our with metrics. reliability

investing been optimization, Specific as process Through training We and trading to operational actively year people aspect key inflation. count every the completed hours of have focus have in have our excellence year-to-date. we drive leading around to we year. positioned uptime, to on productivity capacity to in, offset a quarter fixed on for strong reduced and All variable successfully and incremental finish to third costs. a well to pleased increased a with are benefits and operations across solid release critical report from the are XX,XXX costs lower we

comments few Slide to separations the call over turn X. now Ed, can planned around on our the on progress who I'll provide a

the our to potential creation industry-leading expect plans also good value leveraging advancing realize growth demonstrating driving investors our our morning, remain everyone. and to portfolio while performance through and focused the Lori, appreciate the and excited previously Thanks, our value remain We separations opportunity companies tailored broadly by these businesses. strategies. electronics believe water we this that about and unlock potential clearly announced of on of We results X

Our the highly day motivated operate have are and execute teams companies the from prepared X. to to remain that ensure experience new and

our streams. make work to continue on We separation progress related

We the time are update set announcement, to to end also diligently XX- as working to earlier you separations accelerate May XX-month line progress. to the at of our the our and potentially timing complete we'll we closer

announce In first end establishing company, are major of of for appointments be and the XXXX. making quarter addition, water expect of been focus new have able each progress mine, executive ports, we leadership key with along by of the in which the a to we and members electronics to Board

to With that, will who over results cover I'll turn financial Antonella, it outlook. our and

Ed, good Thanks, morning, and everyone.

improvement growth announced reflect volume at cash from last metrics team and recovery key well cost that to rates production pleased consolidated the a year. key sequential improved productivity very and our quarter are financial level. return third flow benefited sites and operating our actions and all We at Both and executed on has across sales results organic earnings

ago volumes Solutions. of the price. year organic year-over-year Slide headwind. impact volume increase the by to by continued in up digits, X% offset on Higher coupled growth increased growth financial electronics detail. offset volume $X.X with contributions Datatel semi X% and with by growth the a X% favorable cover X% sales and Turning markets a The Spectrum sales volume, Solutions X, Water versus third decrease Interconnect I currency double further These a return portfolio sales X% will X% reflecting partially X%, both both of of from broad-based were was and Net our acquisitions. highlights organic period billion growth of in in in quarter reflects partially end in driven to increases

in quarterly to XX%, on anticipated return to and the way an E&I view, sales organic continued quarter. line X% line its versus period a third the X% year exit the X% us photophotolic to film less solar in product decline organic growth than led [indiscernible]. fourth corporate to quarter. positive product markets, sales Organic China by driven ago during On further moderated a grew W&T's weakness consolidated segment declined This represents in of sales which

the electronics end X% versus markets. led another Europe growth delivered double period, organic America quarter regions, X%, by Asia by driven sales perspective, low year in sales X%. up China, while organic In strong in grew other were digits, organic down regional sales was North where ago a From Pacific

EBITDA increased plant by period with $XXX XX% the and volume variable compensation savings Second from select higher utilization offset investments. ago gains million operating along actions quarter partially of as versus growth improved year restructuring and were

basis versus year basis. a Operating basis EBITDA XX.X%, margin on up the sequential to points XXX during the period up quarter increased ago XXX and points

expenditures period cash strong flow each line. business quarter reflecting operations conversion, strong and of as of capital and $XX million both from million transaction-adjusted volumes million, of payments a $XXX cash flow related continuing less conversion capital basis, in discipline reflected cost cash million Third working separation-related of as and across another XXX%. generation $XXX well $XXX free of of transaction operations improved On resulted

per from Turning a of of segment $X.XX rate ago year $X.X in increased benefit and lower as to of lower of of Slide by $X.XX earnings XX% depreciation $X.XX offset share were the X. the period. well $X.XX. Adjusted $X.XX share quarter of count tax EPS for Higher higher the as partially

now driven to recorded XX.X%, quarter in rate a the period. estimate year Our XX.X%. rate We down our ago, be tax year the XX.X% for base [indiscernible] benefits full XXXX by approximately from was tax base current tax

price. sales XX% Turning period, ago versus ENI of the billion spectrum to in with quarter had a sales by beginning were Datatel X% Organic X% offset the sales segment year in X% sales in an of of contribution headwind. growth ENI increase $X.X offset slightly decrease XX% XX% by currency a reflects of on growth slightly XX% and increased results, organic Slide X. third volume,

sales level, gains the semi in and were more overall AI certain business second quarter, of XX% than As technology the demand up per products. reflecting share line organic by study driven consecutive continued ramps recovery for

continued Semi quarter. similar including [indiscernible] to saw what demand customer we was in China prebuying, last

Semi-fab part from As sales remain reflecting we normalize ramps. AI-driven notably double expect node during continues in quarter as improve, recovery, chips we organic still another up for XX% though technology forward, electronic averaging including with Overall, the to broad-based demand due quarter, Solutions utilization to a but delivered stronger well, advanced China strong move acceleration. to AI-related benefit demand low demand digits, continued Interconnect strong.

gains space. moderate the organic headwinds in the share strength slightly within to and quarter. coverage. and Also as during the device within electronics was volume manufacturer Industrial of offset for printing high-value within acquisition Solutions, recovery in and [indiscernible] we continued completed volume ongoing content at year-over-year end by August. and Solutions a down Industrial packaging were decline the saw applications sales medical sales the overall The We applications Donaco, of

within into We capabilities the to benefit our with care well technology are as integration and leverage cross-selling businesses as other seeing spectrum very platform. of opportunities and [indiscernible] potential pleased Datatel to health the are

rates, Spectrum earnings versus from XX% and advanced compensation growth, [indiscernible]. semi transition AI up actions EBITDA impact the interconnect by ENI and from savings the solutions. by primarily nodes ongoing and of ago offset higher of to was contribution million and across $XXX period Operating year well higher to and select new as production applications driven growth as These to investments gains variable the volume for ramping restructuring the related

the Operating EBITDA period. margin XX.X%, year up quarter basis ago points XXX was versus during the

packaging. third segment sales W&P Within the due We with Solutions, although on sales year did lower sequential XX% to Organic Slide volumes declined versus a quarter headwinds net second volume flat. as to QX. period largely in medical driven X% of mainly were $X.X down up Turning ago digits, see overall medical mid-single quarter growth of private declines, balance price primarily X. sales by price packaging with in Safety billion consecutive were

with construction. residential market, on an Solutions by slightly organic mostly offset headwinds sales basis commercial American in growth down Shelter in were North construction

single our On expectations continued for volume The in was consecutive where return by increased were organic which growth technologies Solutions third China. year-over-year along digits. sequential better ultrafiltration our sales to with quarter driven than sales Water quarter Water Higher a into the strength for sales recovery X%, quarter. in volumes up it second sales low up also coming a Solutions is basis, were with

productivity EBITDA X% restructuring the organic the from than margin basis Operating ago offset period actions million was period. EBITDA $XXX the the W&P points the more quarter savings of year Operating variable decline up from XX during compensation. versus ago and revenue year was up for higher XX.X%, as quarter and during

As quarter, alluded a expect we to on strong year-over-year the growth basis. volume fourth

our outlook X. Moving Slide on to

translating sales markets. operating our X%. and guidance and $X.XX share, EPS XX%. and in declines WMP, XX% of net quarter about sales, earnings and electronics total per net construction growth Sequentially, our a has year-over-year seasonal expect $XXX EBITDA we E&I quarter, adjusted respectively. fourth in and been billion, of $X.XX both On company of sales EPS million normal Operating from the we assume EBITDA adjusted growth to and fourth of about For basis,

China in of growth I Additionally, plays with free earlier, as as to see mentioned a of a the as expect the well [indiscernible]. impact as [indiscernible] we sitting semi moderation out PD

packaging Partially is and sequential offsetting the declines recovery continued water end these markets. medical in

year we back high share, per are billion to which operating full XX% the the earnings pleased EBITDA of guidance above questions, expect your that, the we the of and adjusted our are to and raising our year-over-year. and EPS now me For growth take prior $X.XX XXXX, let about Q&A. $X.XXX With reflects it open EPS range operator of to end turn

[indiscernible] [Operator first the line Steve comes Instructions] from And from JPMorgan. the question of

Our the Research. Melius next Davis from Scott from of comes question line

what down But Congrats on your ask narrowed wanted the to the XX looks comfortable a a today on the back frame perhaps the bit. put of gating -- I on time what why Slide to that you it months bid on little like factors? do to the XX than the But getting in them. short. X like come work has -- work X Kind the feel quarter. bit are And of X, comments you streams ago more months are

the Yes. Two tremendous have entity the on tent separate longer work great made IT progress. to the the legal Yes, everything, of and work that. and progress in we've poles teams made the of

which if that be So our the and that line to that confidence would XX-month level it in on we might somewhere December is definitely we XXXX. we comment time way the ZIP could be why all get more made maybe the up, and code, that's

we So move positive. We're we'll on we're move way. in keep going it you in. all to posted that The is can that. it pretty issue

prebuy? a about to you able do having talked X there Why not why or product bit, on What they inventory, supply Okay. concerned a -- are the guess guys, I Fair that why enough. to there to being is you've -- build the can electronics not get time. guess? back And are enough they I that enough I maybe prebuy last business, quarters. is up little Why the about want

Yes.

So of Yes. the. a it around lot ties

fabs place is So new are a China. lot of put it, being the in in that Scott, around

million had million So was total, in $XX mentioned last quarter, $XX which in we [indiscernible]. of

million really This $XX over the quarter online. total is the half. million a fabs another new of second $XX for coming And it's

the being prebuy in half ramp. about the constructed they to as new qualifications X that they in in global intologic are fabs them for So China, of the about and through of bring And fabs X their memory get are online, space. there's space

So a from it's the quoted. we really fact of that prebuy function perspective had

That's Thank when you. I what a analyst. you're had not idea. happens . tech no

the of JPMorgan. Steve line Your from next question Tusa comes from

materially? exiting the going lot you Can a various saw on today, the just in portfolio? you guess. and for just businesses the Just about around trends Anything broadly in I talk move September October,

we as had primarily the to seasonal mentioned quarter, we shelter you you the space water month have the into the quarter on that a where that to there the the we shelter between had little we done the you early a exited wasn't strongest earnings you recovery we the mean the you that lot XQ the sweetness head into was And and do in and compare came and second of the last see as about of would from within as million therefore, normal go in the and the that $XXX the seasonality with fourth I electronics the last quarter quarter, see the usual being the variability primarily recall, minus quarter. as that quarter, No. electronics you space, space. we that kind see we the see space. you see And call, seasonality muted. seasonality the fourth fourth XQ that's typically have to see normally

there? really raw And in strong relief quarter? And material anything W&P Any maybe that? something in the unusual the on price anything cost, there, or Okay. then margins, margins going like

with It's of driving pleased been really were margins that the operational saw. that we company. We whole we've the Yes. execution a lot across

this that the a took a we're lines lines actions earlier we -- benefit nicely year. and So We're broader profile. excellence. U.S. We our in lot productivity in operational driving shuttered -- couple the older restructuring the business of are of of those seeing impacting safety

So that by plus XX% we're encouraged posted we the .

assume. as So volumes come that I should leverage to back, be nicely able would

. Yes.

question Chris Research. Parkinson from next Wolfe Your from comes

tech in It terms have versus more of product just some the little more a some in Just bit bit substrate want to dig the like it. others slurries? in of I based -- a subs. bifurcation some between evolving a seems little on you benefits mean, the of dig semi product what into of from of the just in by clearly, the But marketplace. side Chinese you can there's pad categories a bit

there So color helpful. particularly any would be

saw Yes. strength technologies. I semi we the mean across all key

space. space and [indiscernible] the nice really the in with we CMP within within the So pads saw listed results space, slurries

of have combination China. that year. Two, the in the the we last happened strength a destock one, from that it's So market recovery

footprint So where going in our our happening. nodes we DRAM our nodes of memory peers, a the a outsized that's of is exposure lot legacy versus advanced and than construction larger driving are some new And to results. China is the on recovery a is lot then versus fab and

up had we been plus China. XX% in So

. the of driver overall sentiment up XX% was in that key a being So low the range. results

bit just got a That's going sluggish. it well, as overall like W&T seems helpful. side, macro And is the still you've the but on things pretty some a follow-up little

the beginning hit turn the to drivers So is of you water kind the of like of on It of China it, strength? ultrafiltration to kind seems corner. the -- side just digging can

should now about be as we any how Is should thinking kind be other of there normalization to are that? ultimately Just we into back Or looking this get XXXX? at? we considerations

start should see now. We normalized Yes. more to activity

the saw improvement the think continue second clearly quarter. expect sequential sequential and QX. past see would quarter to we into I as some We going we the it. we we're to of improvement worse into move QX. seen again first We've it And from

back the where China in getting ultrafiltration back just but activity call definitely have we're in particular, passed region better you, definitely has overall So overall, much to of and water tell -- business we activity it I to one activity, the close any to to where the in would be. seeing improved, used gotten out, destock. has in the kind

Your from next Andrews Stanley. question comes from Vincent Morgan

is we start a needs corner the bit destocking. more that? of just Maybe to should that that And you one Caleres Are little inflect? bottom to at something item sort the the see of of turn

a the at year-over-year actually seeing definitely we're saw bottom. improvement. still We sequential headwinds. Yes, We're

So to we and stabilize into XXXX. see continue the to recovery expect business head we as

So end largely it markets, just a semi-CapEx reminder of exposed. the is [indiscernible]

So capacity sound to are very profile expectation semi the be in long-term expansions expectations growth space. topline the for as that there business an continues and mid-single-digit of within

thoughts And get then to rates. interest I'd be curious on your

I we've these happen, been all the starting I is sort to it end we stayed would way kind cuts come the that and back all the of down. not high and the of end front kind for sort has but thought behaving waiting they're and poised of think and think has curve the of

versus could to come maybe parts cut, which front really rates of talk benefit about your the businesses parts most get So the will need if end down? do from back which you the coming just down end

residential front Yes. be I primarily end, it America the mean, construction space. market, the would on North the

with had the didn't happen the at they're as so And a next that businesses. favor happens see I expectations obviously, what broadly, little all the using would largest because cuts breakout lower in slide positive say shelter that broader the mentioned economic of we'll here our rate the quickly. respect But exposure that needed again. will more expectations And XQ covers to activity cut rate the fine in we down, our our front's through meeting space

from comes Spector question next Josh Your UBS. of

sale time on really, not there be or per be are, you? water What it achieving I wanted any spin line? or do explored you electronic se, the spin the the for but are time how outside important you to being spins more about to versus still ask And the of if of the would just RMT? think there line necessarily alternatives businesses, maybe something

that, a Yes. it's Josh. simpler little than No,

growth. very moving and Our water plan is separation and do the that both of to we're down rapidly electronics,

making As announcements we next members management mentioned companies for of on the the already. We first Board the companies and quarter for announcements prepared talking X potential we're to remarks, those year. during

Okay. we Clear wanted business, the investments, to tepid. -- back look But level lower a I to if some operating forward the or about given about we you think higher become now, taking increased level of at that comments better about is enough. I wondering of And fully on normal Obviously, that the variable demand core investment increased at comp. sense had was -- that given you makes investing ask still as are in we place growth, performance. the if look incrementals some remains

had and compensation approximately and going we AMI within about in you be we an XXXX. we're advantage right? compensation growth can been as had investments variable so as the as mean our not we would XX% I that the we continue some take headwinds payoff, had variable gangbusters, last the average mentioned of to recovery. Yes. from see year space And So primarily electronics to look within of

really until last expect and below revise to that down we've CapEx comp. continue recovery [indiscernible] confident down were to can this year button we're expect same got the we keep we'll to the levels they at level to where continue make levels X% We

expect investments. I outsized And wouldn't any

be We to continue really smart.

volumes on really seeing a key margin we're job especially last we a areas, keeping plant we I the of that's year, driving the decline done front did volumes and profile take lot have and that recovered. as of out the those think, cost the One even fixed actions, as saw we've nice

our a of driving recovery. that's margin So piece also

Your next Roberts question from Mizuho. comes John of

to risk electronic by of XX% China from for sales that how China the made China. China China and of as be retaliation and about might some imported opposed some in into trade have would much Is

Yes.

China So of is sales. XX% electronic about

consumption. is half other the So out and about of global that come for back does China China for half any

is with China? in looking then and the mobility EVs advanced how vehicles both Okay. of ICE And outside slowdown

Yes.

nice large So see side. continue CEB we space. OEMs to of being the within We within the term with long the performance got nice just X European really bad a

their space, it is the sales and to broad as expectations to muted longer-term total based to transition. more be So everybody is with else respect expectations we growth down just continue for but revising encouraged VI across

Aleksey question comes KeyBanc. Your Yefremov of from next

kind The Interconnect, what could ramps, you that you seeing AI? What products -- AI-driven you gains share then discuss in ramping X and things: cite are applications. the of

Yes.

the within space side, in On AI interconnect the packaging the business.

we And nice seeing also of on other our that just function some key it's of some share there. the customers and the improvement customers share beyond So of wallet being greater gain our the it's a expand devices of are we're side, producing. as with phones

So pleased results there. with the

lot We packaging I continues driven thermal by and and the play that management about call the [indiscernible] had a out. on mentioned, last opportunities, think, to of

Begleiter question comes from Bank. next of Deutsche Your David

for Lori, E&I that were quarter. entirety in the above sustainable level the XX% XXXX? of margins Is

It's point, number, about is specifics There's E&I I'll little We've at both this talk that both one say perspective. nice XXXX early that a not in growth to but margin of from Yes. driving are and encouraged. seen segments, W&P. time we

in you margin we're that the long for the stay the line place as initiatives we profile and maintain posting get can So should productivity top to an be and acquisition should factored we're as driving, in [indiscernible]. numbers that

driving And good. in the Solutions, what's Safety Very decrease pricing? in just

increase. some in in our covered look were it's have cost businesses, think last more I that in that price of the important to when increases the mid-teens, years, couple mind did So which we select keep you particularly over than

wouldn't couple maintain points And a to would that in forward. give too be order we back so it surprising share as of go we

Frank Mitsch Research. of from next comes Your Fermium question

pricing was I on impressive, down a the Nice area. very the price X%. price say results. E&I, Volumes on percent. down -- I price And was to but to were stay want want

second saw you since ticking the to been back go of year outlook and driving flat last to what's it's have when what You the is your upon price price then expand quarter you lower down. there? Can

at about market. of products kind A look is specifically lot relates there it price coming a volumes of point, E&I,to You the going and up. giveback. into new typically, point of your to

So there's we about historically would typically in in forward. X point see we price that expect to And as E&I. what trend continue go we

Got you.

customers? giving So as products, you're new pricing discounts to you're the

No.

introduction, You're of getting but very typical are that. that's new on gain -- price the price business the Frank, product you get on of paid bit electronics a little products which like older

higher couple give been business you Forget years and been but up all of about up with the high and . typically the has of a times but that's to in mid- the last more creating teens, XX% model to COVID that, destock price. growth

that And just on still last good And XXXX. it $XXX believe a Is on initial benefit restructuring million Understood. in number? to was benefits, right. the about be All the any XXXX? I time mentioned going you thoughts

a higher. is number to got run the in quarter. benefit that Actually, of bit We benefits rate Yes. third our quarterly

to year. carry will little go So into as a nice we be getting impact There XXXX. are bit a forward we of this

Your of Sison Mike Wells from next comes Fargo. question

and a half the have Ed, total. exciting companies of outlook. and first for 'XX lot 'XX of of kind thus quarter in painted chemical the Nice an far maybe picture

markets you've your As are different. noted, end

maybe of next electronics industrial could but it's and some us sort give know on for you little . I year? the water how thoughts and shape outlook your to businesses So get of up a semiconductors, early for XXXX, bit specific

multi-industrial. you right through through a X, [indiscernible], some let think differently walk a I'll of detail worked but a the that and portfolio some Yes. we're puts into markets takes. ago just our company were Lori maybe see very in I X that chemical mean [indiscernible], than I end comment, to you walk lot we this don't But from you we away And X, make years really now.

Yes. No, some there's from XXXX about last changes provided the expectations. had initial commentary the we on no call significant

just continue that [indiscernible] an to market new online. yet. markets from the perspective, expect mature really technology growth recovered the we AI accelerate, So more of some to reminder memory fabs And and by electronics and the coming driven haven't the a

Healthcare the look within is come Timex recovery especially head XXXX. on devices. we that a space continue space, to you for as PCB interconnect the utilization and There's to the AR recover. continued Within also on So side, W&P, as the we refresh into consumer cycle expect

we XX%. had we mentioned, from of lift QX a QX sequential saw As to

a within expect and to expect XXXX. demand head we And [indiscernible] recover we environment expect buying We a further normalized continue sequential as well. we'll normalized then to as [indiscernible], into has more

or we from what no changes with XXXX. quarter said So to year last last respect .

question next Your comes Cunningham from Citi. of Patrick

And broad-based recovery into you in givebacks in XQ and growth anticipating next XXXX? shelter on was year? versus Are still dynamic resi positive the in price commercial resi? a maybe sort construction between into what And any view of early

Yes.

logistics pluses have the relative minuses and look that still to in would them. some you saw next you utilities exiting and you give if XXXX. back price as we're that at a determine thing this to keep into expect pricing we in one year, the would Given got mind think to But year have any going I that what or with there's is a we to our year [indiscernible] and where take associated deep carryforward

So go forward. that would expect as I we

bit construction are little originally the In of activity seeing resi what market, a than we terms anticipated. they are -- less as we a

really XXXX. mean cycle we cuts had mentioned had they to are, have impact. in of few expected rate there too a where one, an I earlier, a look you little were and the As at were that we rates Lori building so kind when late in

construction low predicated terms markets, think go the in what But year, we kind as in rate the that's of see single-digit would that, we'll So coming. I some on would activity, happens. additional next say, and I cuts expect we of

the than . guidance we saw impact less fourth the during of midpoint slightly third price quarter. current Our in seemed quarter

on Very shelter $XX from decline that us year Understood. it medical discrete you impact from sequential helpful. and you most just Is water, repeat comps And the was could seems safety. on clarification. of And easier if this then last and have what consolidated remind for come seasonality more year, that on million I EBITDA just typical W&P, packaging. mean won't

Yes.

land into would the QX typical that and a winter W&P out piece a [indiscernible] I had to last benefits called that items down as we we last from, explicitly, QX quarter about . of kind [indiscernible] onetime year, in of $XX a big comes in in be million QX, were $XX be out would seasonality. sale we in were business million totality, did to for related certainly in would related of your in that to onetime months. year be call of corporate. bit. So [indiscernible] some QX QX that actually to go say. we the that the mind shelter agreements tends of highest the items $XX million Keep and supply

Your Capital next BMO of McNulty Markets. question comes from John

dynamics also fabs, This is your but Lodaya supply for about of China. around mentioned, you domestic homegrown John. invest Can of electronic Bhavesh in competitive some in they the of talk lot a you a is kind bringing new in as peers like China chain.

few landscape well. as you sure share, developing some China not overall, But over market was next You years? see mentioned if in gaining the that how this do I'm

continue nice we position Yes, China. to have can within a

the within peers. think China versus the outside some semi exposure in I our spaces of

in play the respect are our that XX% more numbers there with about a I that, global concentrated we're fairly as bills of seeing of the you're that are to lot left some the is where peers think nicely out So in China, outlet. and to

position local nice with We have the players. a

are as we As in the favoring positions our we have with mentioned, are nice global OEMs that results able to that China well. had China

Capital of question next Arun Viswanathan RBC comes from Markets. Your

go to to thoughts maybe some back 'XX. Just on wanted initial

you in E&I, like showing that's good pretty mid-teens So -- that you you're growth been been this water showed it -- EBITDA slightly year, looks headwinds. offset although some and have by destocking of

EBITDA and maybe into maybe a E&I, recovery As next you like that of maybe for growth adjust look some -- for next maybe you but in decrease kind year, to single-digit could if and would that you rate still see prebuy . high overall, mid- year? so in saw you to expect W&P, then you the high single-digit

on too So clearly, be we call. our for would to that's say start continue guidance this EBITDA of next move we line. to a expect actions where have benefits give commenting where us it's to the to that But as That's we volume I as more would provided on the benefit you a year. get will continued this expectations forward. on next I are. year took driver We'll restructuring year, to the growth some as we early top detailed quarter noted our bit color

then, assuming I some just margin and there on Okay. think cash you do note free deploy understand. continued should significant how that flow Are that. that how see we growth, about And any most you you businesses? the Or pipeline? could or extra projects to the deploy up return using cash -- in And be in likely you potentially standing will CapEx and more for your of shareholders? more maybe

Yes.

about flow I've free conversion. talking been So cash

at It XXX% about I was to target this quarter, cash -- did above XXX%. for flow year, strong we we We're conversion. year. this and mentioned for As be for know our well expect the have did really do free we a

capital we we're I that into relative working having a use go job managing The flow to year, next now we expect to of have good done cash are increasing sales continue and capital. great have would working free even conversion. while As a teams

year. any significant do next no be repurchases to additional year should that next this you would for our share applies We this expecting of to last we for that majority year I the outsized quarter it next year, expect As you call, and separation, is well cash the year to used think the relative be CapEx separation not our know deployment on do given cash will costs. year. did of as about the say

question Mike comes Barclays. from Leithead next of Your

performing using ITC DuPont's I legal somebody and business it the think first, then complaint they're and month DuPont guess, technology? today? be to proprietary seeing last you're broadly, else did tieback else an filed something is issue tieback it's name And not the how tied -- back and around a naming the more claiming is I issue imports, is or just something

Yes.

So our to patents for continue secrets. speak We'll the itself. ITC and trade filing defend our

we've to a there, a even and packaging, QX. headwinds So [indiscernible] that's continues say highlighted The on that about want we're nicely. medical up further and throughout all related had we sequentially sequentially A a of XX% business up was times XXXX that lot that market recover end we point. performance really we the saw to to seeing few nice head as recovery into from

So we're rebound encouraged by the really that there. we're seeing

And Bank of America. your last question Steve Byrne comes from of

all to coming And house broad them? you is Tyvek Is the this versions one this When packaging? Is of to start version? rep? I'd happen? another And states? of ITC just about Tyvek competing this ask this. curious these this platform? this of competing did see timing it on this into this Yes. the across your When this that Is complaint. did And seeing you're like PPE? Is

Yes.

mean I the red. filing we for public can filing as the mentioned speak So had be itself that that

what [indiscernible] So in or months, to of some infringement which seeing the [indiscernible]. as recent seeing, addition started in led we you trade release the is it were our us to

development maybe more other in could growth any markets. then new just recovery DuPont that end just new new DuPont the products in drive one than could And in be that you across enrolling

Yes.

So the mentioned the space European saw of we largest was that really OEMs. in I earlier have nice X adhesives one the battery that

for can a was EV nice that position that the So space. solidify to win our in us

position have a We health within nice care. growing really

what in high-end layers encouraged are [indiscernible] August. that device visiting really parts other the So cross-selling medical businesses capabilities machining Donnatal respect by as acquisition larger and we more We [indiscernible] portfolio. saw we're with the Board has, as not Sonatel closed site well that packaging the to actually our even of the out with the medical some only leveraging in were the there we

that, that be encouraged continue driver nice us. space growth to So really for a will

no to are Chris turn There over conference I now back questions. the closing more will remarks. for Mecray

the Thank a you. website. reference, call. copy be for the the transcript you, of posted on Thank for This will call. joining everyone, concludes our And your

you Thank for all joining.

disconnect. now may You