On May 22, 2024, DuPont announced a plan to separate the company into three distinct, publicly traded companies, expected to be completed within 18 to 24 months. This strategic move aims to enhance focus and agility for each entity.

The acquisition of Spectrum Plastics Group in August 2023 has positively impacted net sales and operating EBITDA, particularly within the Electronics & Industrial segment. This acquisition has been a key driver of portfolio actions contributing to overall growth.

The divestiture of the Delrin® acetal homopolymer (H-POM) business was completed on November 1, 2023, with its financial results now presented as discontinued operations. This divestiture represents a strategic shift in DuPont's portfolio.

The 2023-2024 Restructuring Program, initiated in December 2023, targets near-term cost reductions and simplification of organizational structures. This program is expected to be substantially complete by the end of 2024.

DuPont continues to execute its share repurchase program, including accelerated share repurchase (ASR) agreements. These actions reflect management's confidence in the company's financial position and future prospects.

DuPont, with its advisors, is evaluating considerations related to the design of the capital structures of the three intended FutureCos. These considerations include the impact of executing the separations in accordance with the announced plan on the Company's existing indebtedness.

The success of the Intended Business Separations ultimately depends on, among other things, DuPont's ability to internally separate the Electronics and Water businesses in a manner that facilitates the Intended Business Separations on a U.S. federal income tax-free basis.

If either distribution, together with certain related transactions, were to fail to qualify for non-recognition treatment for U.S. federal income tax purposes, then DuPont could be subject to significant tax liability.

The Company anticipates volume improvement throughout the remainder of the year driven by further electronics market recovery as well as reduced destocking impact in areas such as water, medical packaging and biopharma. The ultimate extent to which these markets will recover in 2024 is not known.

The Electronics & Industrial segment is a leading global supplier of differentiated materials and systems for a broad range of consumer electronics including mobile devices, television monitors, personal computers and electronics used in a variety of industries.

The Water & Protection segment is a leading provider of engineered products and integrated systems for a number of industries including worker safety, water purification and separation, aerospace, energy, medical packaging and building materials.

Corporate & Other includes sales and activity of the Retained Businesses including the Auto Adhesives & Fluids, MultibaseTM and Tedlar® product lines. Related to the Delrin® Divestiture, Corporate & Other includes DuPont's equity interest in Derby Holdings Group, Stranded Costs and Future Reimbursable Indirect Costs.

Cost of sales as a percentage of net sales for the three months ended June 30, 2024 was 63 percent compared with 66 percent for the three months ended June 30, 2023. The decrease as a percentage of sales for the three months ended June 30, 2024 as compared with the same period of the prior year was primarily due to lower logistics cost, raw material costs and increased productivity offset by the impact of the Spectrum Acquisition.

SG&A expenses were $418 million in the second quarter of 2024, up from $358 million in the second quarter of 2023. SG&A as a percentage of net sales was relatively consistent period over period at 13 percent and 12 percent for the three months ended June 30, 2024 and 2023, respectively.

The 2023-2024 Restructuring Program, initiated in December 2023, targets near-term cost reductions and simplification of organizational structures. This program is expected to be substantially complete by the end of 2024.

R&D expenses totaled $134 million in the second quarter of 2024, up from $125 million in the second quarter of 2023. R&D as a percentage of net sales was consistent period over period at 4 percent for the three months ended June 30, 2024 and 2023.

Within Semiconductor Technologies, volume gains were driven by continued semiconductor demand recovery, including demand growth in artificial intelligence ("AI") driven technology, as well as higher volume in OLED materials.

The portfolio impact reflects the August 2023 acquisition of Spectrum. Volume growth in Semiconductor Technologies and Interconnect Solutions was partially offset by declines in Industrial Solutions.

DuPont continues to execute its share repurchase program, including accelerated share repurchase (ASR) agreements. These actions reflect management's confidence in the company's financial position and future prospects.

On June 27, 2024, the Board of Directors declared a third quarter 2024 dividend of $0.38 per share, payable on September 16, 2024, to shareholders of record on August 30, 2024.

In the first six months of 2024, cash used for investing activities of continuing operations was $302 million, compared with cash provided by investing activities of $951 million in the first six months of 2023. The increase in cash used for investing activities of continuing operations is primarily attributable to the absence of proceeds from sales and maturity of investments partially offset by reduction in capital expenditures and purchases of investments.

DuPont continues to address PFAS-related liabilities through settlement agreements and accruals for future costs. These actions reflect the company's ongoing commitment to managing environmental risks.

At June 30, 2024, the Company had accrued obligations of $283 million for probable environmental remediation and restoration costs. These obligations are included in "Accrued and other current liabilities" and "Other noncurrent obligations" in the interim Condensed Consolidated Balance Sheets.

On March 25, 2019, the New Jersey Department of Environmental Protection (“NJDEP”) issued a Directive and Notice to Insurers to a number of companies, including Chemours, DowDuPont, EIDP, and certain DuPont subsidiaries. NJDEP's allegations relate to former operations of EIDP involving poly- and perfluoroalkyl substances, (“PFAS”), including PFOA and PFOA- replacement products.

Volume growth in Semiconductor Technologies and Interconnect Solutions was partially offset by declines in Industrial Solutions. Within Semiconductor Technologies, volume gains were driven by continued semiconductor demand recovery, including demand growth in artificial intelligence ("AI") driven technology, as well as higher volume in OLED materials.

Within Safety Solutions, volume declines were mainly due to channel inventory destocking, primarily in medical packaging products, along with lower local price and product mix. Water Solutions volume declines were primarily due to distributor inventory destocking in China.

Currency was down 2 percent compared with the same period last year, driven by Asia Pacific (down 3 percent). The unfavorable currency impact is primarily driven by the Japanese yen.