Stock Analysis on Net
Stock Analysis on Net

DuPont de Nemours Inc. (NYSE:DD)

This company has been moved to the archive! The financial data has not been updated since February 14, 2020.

Common-Size Income Statement 

DuPont de Nemours Inc., common-size consolidated income statement

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12 months ended: Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net sales 100.00 100.00 100.00 100.00 100.00
Cost of sales -65.34 -75.99 -80.68 -78.16 -77.57
Gross margin 34.66% 24.01% 19.32% 21.84% 22.43%
Research and development expenses -4.44 -3.56 -3.38 -3.29 -3.28
Selling, general and administrative expenses -12.38 -7.80 -6.44 -6.86 -6.09
Amortization of intangibles -4.88 -2.21 -1.62 -1.13 -0.86
Restructuring and asset related charges, net -1.46 -1.29 -2.86 -0.94 -0.85
Goodwill impairment charges -5.46 0.00 -2.39 0.00 0.00
Integration and separation costs -6.24 -2.86 -1.76 0.00 0.00
Asbestos-related charge 0.00 0.00 0.00 -2.31 0.00
Operating income (loss) -0.20% 6.29% 0.87% 7.31% 11.36%
Equity in earnings of nonconsolidated affiliates 0.39 1.16 1.22 0.92 1.38
Sundry income, net 0.71 0.69 1.55 2.72 9.56
Interest expense -3.11 -1.75 -1.73 -1.78 -1.94
Income (loss) from continuing operations before income taxes -2.20% 6.39% 1.91% 9.16% 20.36%
(Provision for) benefit from income taxes on continuing operations -0.65 -1.73 0.76 -0.02 -4.40
Income (loss) from continuing operations, net of tax -2.85% 4.66% 2.67% 9.14% 15.96%
Income (loss) from discontinued operations, net of tax 5.64 -0.01 -0.12 0.00 0.00
Net income 2.79% 4.65% 2.55% 9.14% 15.96%
Net income attributable to noncontrolling interests -0.47 -0.18 -0.21 -0.18 -0.20
Net income attributable to DuPont 2.31% 4.47% 2.34% 8.97% 15.76%
Preferred stock dividends 0.00 0.00 0.00 -0.71 -0.70
Net income available for DuPont common stockholders 2.31% 4.47% 2.34% 8.26% 15.06%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

The financial data reveals several notable trends and shifts in the company's performance over the five-year period ending December 31, 2019.

Gross Margin and Cost of Sales
The gross margin showed a fluctuating trend, beginning at 22.43% in 2015, declining to 19.32% in 2017, and then significantly improving to 34.66% by 2019. This improvement was primarily driven by a substantial reduction in the cost of sales, which decreased from -77.57% of net sales in 2015 to -65.34% in 2019, indicating enhanced cost efficiency or changes in product mix.
Operating Expenses
Research and development expenses steadily increased as a percentage of net sales from -3.28% in 2015 to -4.44% in 2019, suggesting a growing focus on innovation or product development. Selling, general, and administrative expenses similarly rose, notably increasing from -6.09% to -12.38% in the same period, reflecting higher overhead or marketing investments. Amortization of intangibles escalated sharply from -0.86% in 2015 to -4.88% in 2019, indicating rising charges related to acquired intangible assets.
Special Charges and Adjustments
Several irregular charges emerged over time, including goodwill impairment charges recorded at -2.39% in 2017 and -5.46% in 2019, indicating asset write-downs. Integration and separation costs also appeared starting 2017, increasing to -6.24% in 2019, implying expenses related to restructuring or mergers. Asbestos-related charges occurred in 2016 but were not reported in other years. These special items likely impacted overall profitability.
Operating Income
Operating income as a percentage of net sales showed considerable volatility, declining from 11.36% in 2015 to 0.87% in 2017, before recovering to 6.29% in 2018 and ultimately turning slightly negative at -0.2% in 2019. This reflects the combined effect of fluctuating gross margins and rising operating expenses, alongside significant one-time charges.
Other Income and Expenses
Equity in earnings of nonconsolidated affiliates remained relatively stable but showed a slight downward trend from 1.38% in 2015 to 0.39% in 2019. Sundry income declined substantially from 9.56% to around 0.7% in the same period, indicating a reduction in other miscellaneous revenues. Interest expense increased notably in 2019 to -3.11%, suggesting higher borrowing costs or increased debt levels.
Income Before and After Tax
Income from continuing operations before taxes experienced a steep decline from 20.36% in 2015 to -2.2% in 2019. The provision for income taxes fluctuated, but overall showed a reduced tax burden in percentage terms. Consequently, net income from continuing operations dropped sharply from 15.96% in 2015 to -2.85% in 2019.
Net Income and Earnings Attribution
Net income exhibited a marked decrease from 15.96% in 2015 to a low of 2.55% in 2017, with a moderate rebound to 4.65% in 2018 and settling at 2.79% in 2019. Income from discontinued operations contributed positively in 2019 with 5.64%, although its impact was minimal or negative in earlier years. Net income attributable to the company’s shareholders declined significantly from 15.76% in 2015 to 2.31% in 2019, reflecting overall reduced profitability. Net income available for common stockholders followed a similar declination.