Q1 2024 DuPont De Nemours Inc Earnings Call

Operator: Good day, and welcome to the DuPont first quarter 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star 1 again. We ask that you please keep it to one question and one follow-up per person.

Good day and welcome to the Dupont first quarter 2024 earnings call.

All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question answer session.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question. Please press star one again.

We all see it please keep it to one question and one follow up per person.

Operator: For operator assistance throughout the call, please press star zero. And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Chris Mecray to begin the conference. Chris, over to you.

Operating system throughout the call. Please press star Zero, and finally, I would like to advise all participants. This call is being recorded thank you.

I'd now like to welcome Kristian, Greg to begin the conference Chris over to you.

Chris Mecray: Good morning, and thank you for joining us for DuPont's first quarter of 2024 Financial Results Conference call. Joining me today are Ed Breen, Chief Executive Officer, and Lori Koch, Chief Financial Officer.

Good morning, and thank you for joining us for Dupont's first quarter 2024 financial results Conference call. Joining me today are Ed Breen, Chief Executive Officer, and Laurie <unk> Chief Financial Officer.

Chris Mecray: We've prepared slides to supplement our remarks, which are posted on DuPont's website under the Investor Relations tab and through the webcast link. Please read the forward-looking statement disclaimer contained in the slides. During this call, we will make forward-looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainties, our actual performance and results may differ materially from our forward-looking statements

Kristian: We have prepared slides to supplement our remarks, which are posted on dupont's website under the Investor Relations tab and through the webcast link. Please read the forward looking statement disclaimer contained in the slides during this call. We'll make forward looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainties.

Kristian: Our actual performance or results may differ materially from our forward looking statements. Our Form 10-K as updated by our current periodic reports includes detailed discussion of principal risks and uncertainties, which may cause such differences unless otherwise specified all historical financial measures presented today are on a continuing operations basis and exclude significant items.

Chris Mecray: Our Form 10-K, as updated by our current periodic reports, includes a detailed discussion of principal risks and uncertainties which may cause such differences. Unless otherwise specified, all historical financial measures presented today are on a continuing operations basis and exclude significant items. We will also refer to other non-GAAP measures. A reconciliation to the most directly comparable GAAP financial measures is included in our press release and presentation materials that have been posted on DuPont's Investor Relations website. I'll now turn the call over to Ed. Good morning.

Kristian: We will also refer to other non-GAAP measures a reconciliation to the most directly comparable GAAP financial measures is included in our press release and presentation materials have been posted to the Dupont <unk> Investor Relations website.

Kristian: I'll now turn the call over to Ed.

Edward D. Breen: Good morning, and thank you for joining our first quarter 2024 financial review. Our results for the period exceeded our expectations, driven by better-than-expected volumes in all segments. Broadly, the first quarter confirmed that we are past the bottom in electronics and On the Road to Recovery. Our semiconductor technologies business reported sequential sales growth of 8% in the first quarter and 10% year over year. Driven by a pickup in underlying chip demand and normalization of customer inventory levels, both slightly earlier than expected.

Ed: Good morning, and thank you for joining our first quarter 'twenty 'twenty for financial review.

Ed: Our results for the period exceeded our expectations driven by better than expected volumes in all segments.

Ed: Well I believe the first quarter confirm that we are past the bottom and electronics and all.

Ed: On the road to recovery.

Ed: Our semiconductor technologies business reported sequential sales growth of 8% in the first quarter.

Ed: 10% year over year.

Ed: Driven by a pickup in the underlying chip demand.

Ed: Normalized <unk> of customer inventory levels.

Ed: Both slightly earlier than expected.

Edward D. Breen: In Interconnect Solutions, we saw a second straight quarter of year-over-year volume growth, with volumes up 4%. We did, however, continue to see channel inventory destocking as expected, resulting in year-over-year revenue declines in certain industrial-based businesses, but we believe those conditions have bottomed, and our assumed recovery timing is also consistent with our previous expectations. That said, and given our first quarter performance,

Ed: And interconnect solutions, we saw a second straight quarter of year over year volume growth.

Ed: With volumes up 4%.

We did however continue to see channel inventory Destocking as expected.

Ed: Holding at year over year revenue declines in certain industrial based businesses.

Ed: We believe those conditions have bottomed and are assumed recovery timing is also consistent with our previous expectations.

Ed: That said and given first quarter performance.

Edward D. Breen: We are raising our full year 2024 guidance for net sales, operating EBITDA, and adjusted EPS. Lori will further detail the outlook shortly. Compared to a year ago period, first quarter reported sales at $2.9 billion declined 3%. Operating EBIT of $682 million declined 4%, and adjusted EPS of $0.79 per share declined 6%.

Ed: We are raising our full year 2024 guidance for net sales operating EBITDA and adjusted EPS.

Ed: Lori will further detail the outlook shortly.

Ed: <unk> two a year ago period first quarter reported sales of $2 9 billion declined 3%.

Ed: Operating EBIT was $682 million declined 4%.

Ed: And adjusted EPS of <unk> 79 per share declined 6%.

Edward D. Breen: We continue to prioritize working capital and delivered significant year-over-year improvement in cash flow during the quarter. In late April, we completed the $500 million accelerated share repurchase transaction launched in February, retiring a total of 6.9 million shares in this tranche and bringing total share repurchases to over 15% of our outstanding shares since November 2022. Turning to slide four, I want to reiterate that we remain excited about the growth potential of our businesses centered around five secular high growth areas.

Ed: We continue to prioritize working capital and delivered significant year over year improvement in cash flow during the quarter.

Ed: In late April we completed the $500 million accelerated share repurchase transaction launched in February retiring the total was $6 9 million shares in this tranche and bringing total share repurchases to over 15% of our outstanding shares since November 2022.

Ed: Turning to slide four I want to reiterate that we remain excited about the growth potential of our businesses centered around five secular high growth areas.

Edward D. Breen: We are excited about the three-cycle strength of our portfolio as end markets recover from recent destocking headwinds, and our teams continue to focus on operational excellence. Almost one-third of sales exposure for our portfolio today is focused on electronics, including leadership positions and strong customer relationships serving semiconductor manufacturing primarily via consumables used in the chip manufacturing process, as well as serving broader consumer-based electronics markets with films, displays, and printed circuit board materials used in smartphones, PCs, and tablets.

Ed: We are excited about the through cycle strength of our portfolio as end markets recover from recent destocking headwinds.

Ed: And our teams continue to focus on operational excellence.

Ed: Almost one third of sales exposure for our portfolio today is focused on electronics, including leadership positions and strong customer relationships, serving semiconductor manufacturing primarily via consumables used in a chip manufacturing process as well as serving broader <unk>.

Ed: [noise] Sumer base electronics markets with films displays and printed circuit board materials.

Ed: And smartphones Pcs and tablets.

Edward D. Breen: We are very pleased to participate in the AI-Driven Growth Acceleration within Electronics via our semi-related products geared towards advanced node chips for data centers and other key AI applications, such as mobile products. Electronics and markets have positively inflected, and we expect continued volume pickup in both SEMI and ICS over the course of 2024. Our water business, at 12% of our portfolio, constitutes a broad range of filtration technologies and operates in markets expected to generate strong growth driven by evolving wastewater regulation and the global response to concerns around water scarcity and circularity. We believe demand for filtration products, which has been impacted by slower project work in China in the last year and associated distributor destocking, has bottomed and will begin to recover later in the second quarter.

Ed: We are very pleased to participate in the AI driven growth acceleration within electronics.

Our semi related products geared towards advanced node chips for data centers and other key AI applications, such as mobile products.

Ed: <unk> end markets up positively inflected and we expect continued volume pickup in both semi and Ics over the course of 2024.

Ed: Our water business at 12% of our portfolio constitutes a broad range of filtration technologies and operates in markets expected to generate strong growth driven by evolving wastewater regulation.

Ed: The global response to concerns around water scarcity and circularity.

Ed: We believe demand for filtration products, which have been impacted by slower project work in China in the last year and associated distributor Destocking.

Ed: <unk> bottomed and will begin to recover later in the second quarter.

Lori D. Koch: We have excellent leadership positions in various end markets within protection and industrial technology. For industrial technologies, about 10% of the DuPont portfolio is geared to growing healthcare markets, including Spectrum Medical Devices, Tyvek Medical Packaging, and Livio Biopharma consumables. We have seen ongoing solid demand for devices and expect to see recovery in medical packaging beginning later in the second quarter. Biopharma product demand is expected to recover beginning later in the year after bottoming in recent periods.

Ed: We have excellent leadership positions in various end markets within protection and industrial technologies within.

Ed: Real technologies about 10% of the Dupont portfolio.

Ed: Year to growing healthcare markets, including spectrum medical devices.

Ed: Vivek medical packaging and Livio Biopharma consumables.

Ed: We have seen ongoing solid demand for devices and expect to see recovery in medical packaging beginning later in the second quarter.

Ed: Biopharma product demand is expected to recover beginning later in the year after bottoming in recent periods.

Lori D. Koch: DuPont's next-generation auto market participation constitutes about 10% of total sales and is geared to advanced technologies enabling secular demand trends for hybrid and electric vehicles within battery, motor, and other applications. Demand for our advanced auto-related products has remained healthy, and we have a global customer base that includes EV customers in each region. We see excellent longer-term opportunities across our auto-related portfolio. With that, I will turn it over to Lori to review our financial performance and outlook.

Ed: Dupont's next generation auto market participation constitutes about 10% of total sales.

Ed: And it's geared to advanced technologies, enabling secular demand trends for hybrid and electric vehicles within battery motor and other applications.

Ed: Demand for our advanced auto related products has remained healthy and we have a global customer base that includes EV customers in each region.

Ed: We see excellent longer term opportunity across our order related portfolio.

Ed: With that let me turn it over to Lori to review, our financial performance and outlook.

Lori D. Koch: Thanks, Ed, and good morning. Our first quarter results were clearly encouraging, with further signs of electronics recovery mixed with bottoming across our industrial base and market. Additionally, a commitment to drive productivity and operational excellence has minimized decremental margins and has helped to produce significant cash flow improvement in recent quarters. Our results have and will continue to benefit from the restructuring actions announced last November.

Lori: Thanks, Ed and good morning, our first quarter results with fairly encouraging with further signs of electronics recovery mashed with bottoming across our industrial based end markets.

Lori: Additionally, our commitment to drive productivity and operational excellence has minimize decremental margins and has helped to produce significant cash flow improvement in recent quarters.

Lori: Results have and will continue to benefit from the restructuring actions.

Lori: Yes.

Lori D. Koch: Turning to slide five, I'll cover our first quarter financial highlights. Net sales of $2.9 billion decreased 3% versus a year ago period as a 6% organic sales decline and a 1% currency headwind were partially offset by a favorable portfolio benefit of 4%, primarily from the Spectrum acquisition. The organic sales decline reflects a 5% decrease in volume and a 1% decrease in price. Lower volume was driven by the impact of continued channel inventory destocking in water solutions, mainly in China, and safety solutions, most notably for Tyvek medical packaging and industrial solutions for cow rice parts and Livio Biopharma products.

Speaker Change: Turning to slide five I'll cover our first quarter financial highlights.

Speaker Change: Net sales at $2 9 billion decreased 3% versus the year ago period, as a 6% organic sales decline and a 1% currency headwind was partially offset by favorable portfolio benefits of 4% primarily from the spectrum acquisition.

Speaker Change: The organic sales decline reflects a 5% decrease in volumes and a 1% decrease in price.

Speaker Change: Lower volume was driven by the impact of continued channel inventory Destocking and water solutions, mainly in China.

Speaker Change: Safety solutions, most notably for tieback medical packaging and industrial solutions for cow risk part and Lithia Biopharma products.

Lori D. Koch: These declines were partially offset by strong growth in electronics, where SEMI and Interconnect Solutions volumes increased 8% in aggregate versus the prior year period. On a segment view, W&P and E&I organic sales declined 10% and 2%, respectively, while organic sales in corporate increased 1%. From a regional perspective, sales decreased on an organic basis globally versus the ergo period, with Europe, North America, and Asia Pacific down 8%, 7%, and 4%, respectively. In China, however, sales volumes were up 3% year-over-year as growth in E&I more than offset declines in W&P due to continued pressure on watermarks.

Speaker Change: These declines were partially offset by strong growth in electronics.

Speaker Change: And then connect solutions volumes increased 8% in aggregate versus the prior year period.

Speaker Change: On a segment view WMC and Eni organic sales declined, 10% and 2% respectively organic sales incorporate increased 1%.

Speaker Change: From a regional perspective sales decrease on an organic basis globally versus the year ago period, with Europe, North America, and Asia Pacific down, 8%, 7% and 4% respectively.

Speaker Change: In China sales volumes were up 3% year over year as growth in Eni more than offset declines in WP due to continued pressure and water markets.

Lori D. Koch: First quarter operating EBITDA of $682 million decreased 4% as volume declines were partially offset by the impact of lower product costs and spectrum earnings contributions. Operating EBITDA during the quarter of 23.3% was down 40 basis points versus the year-ago period. I am pleased with our cash flow improvement as we focus our efforts on optimizing working capital performance. On a continuing operations basis, cash flow from operations of $493 million plus capital expenditures of $207 million resulted in adjusted free cash flow of $286 million in the first quarter, a significant increase versus $173 million in the year-ago period. Adjusted free cash flow conversion during the quarter was 86%, significantly ahead of last year.

Speaker Change: First quarter operating EBITDA of $682 million decreased 4% as volume declines were partially offset by the impact of lower product costs and spectrum earnings contribution.

Speaker Change: Operating EBITDA during the quarter of 23, 3% was down 40 basis points versus the year ago period.

Speaker Change: I am pleased with our cash flow improvement as we focus our efforts on optimizing working capital performance.

Speaker Change: On a continuing operations basis cash flow from operations of 493 million less capital expenditures of 207 million resulted in adjusted free cash flow of $286 million in the first quarter, a significant increase versus $173 million in the year ago period.

Adjusted free cash flow conversion during the quarter with 86% significantly ahead of last year.

Lori D. Koch: Turning to slide 6, adjusted EPS for the quarter of $0.79 per share decreased from $0.84 in the year-ago period. Lower segment earnings, higher net interest expense, and higher depreciation more than offset a $0.06 benefit from a lower share count. Our tax rate for the quarter was 24.6%, up from 23.4% in the year-ago period, driven by a geographic mix in earnings. Our full year 2024 base tax rate outlook of 23 to 24 percent remains unchanged.

Speaker Change: Turning to slide six adjusted EPS for the quarter at <unk> 79 per share decrease from 84 in the year ago period, While we're segment earnings higher net interest expense and higher depreciation.

Speaker Change: Then offset a <unk> <unk> benefit from a lower share count.

<unk> rate for the quarter was 24, 6%.

Speaker Change: From 23, 4% in the year ago period, driven by geographic mix in earnings.

Speaker Change: Our full year 2024 base tax rate outlook of 23% to 24% remains unchanged.

Lori D. Koch: Turning to segment results, beginning with E&I on slide 7, D&I first quarter net sales of $1.4 billion increased 5% as the spectrum sales contribution of 8% was partially offset by an organic sales decline of 2% and a 1% currency headwind. The organic sales decline reflects a 1% decrease in volume and a 1% decrease in price due to the pass-through of lower metal prices. In our first quarter reporting, I will highlight that we realigned certain product lines within our three E&I lines of business. The changes streamline our cost structure while also optimizing certain product offerings to better focus on our customers. Additional detail has been provided on slide 15 in the appendix.

Speaker Change: Turning to segment results beginning with Eni on slide seven.

First quarter net sales of $1 4 billion increased 5% as the spectrum sales contribution of 8% was partially offset by an organic sales decline of 2% and a 1% currency headwind.

Speaker Change: The organic sales decline reflects a 1% decrease in volumes and a 1% decrease in price due to the pass through of lower metal prices.

Speaker Change: Effective with our first quarter reporting I will highlight that we realigned certain product lines within our three eni lines of business.

Speaker Change: The changes streamline our cost structure, while also optimizing certain product offerings to better focus on our customers additional detail has been provided on slide 15 in the appendix.

Lori D. Koch: For the first quarter of 2024, organic sales for semiconductor technologies were up 10% versus the year-ago period due to the start of overall semiconductor market demand recovery, along with normalization of customer inventory levels and continued strong demand for OLED display materials. We expect underlying SEMI demand to continue to improve throughout the year and note that our forecast continues to call for SEMI fabulization rates to increase from the low 70% that we saw in the first quarter to a fourth-quarter exit rate in the low 80s.

Speaker Change: For the first quarter of 2024 organic sales for semiconductor technologies were up 10% versus the year ago period.

Speaker Change: Due to the start of overall semi conductor market demand recovery, along with normalization of customer inventory levels and continued strong demand for OLED display materials.

Speaker Change: We expect underlying semi demand to continue to improve throughout the year and note that our forecast continue to call for semi fab utilization rates due to increased in the low 70% that we saw in the first quarter.

Speaker Change: To a fourth quarter exit rate in the low eighties.

Lori D. Koch: Within InterConnect Solutions, organic sales were up slightly as mid-single-digit volume gains were mostly offset by the impact of lower metals prices. This was the second consecutive quarter of year-over-year volume growth for ICS as broad electronic markets continue to recover. Organic sales for industrial solutions were down about 20% due primarily to ongoing channel inventory destocking for CalRes O-Rings and for Olivio product lines within biopharma markets. We continue to expect to see order improvement over the next several quarters in our CalRes business, and our Livio Biopharma business is also still expected to recover later in the second half of the year.

Speaker Change: Within interconnect solutions organic sales were up slightly as mid single digit volume gains were mostly offset by the impact of lower metal prices.

Was the second consecutive quarter of year over year volume growth for Ics as broad electronic markets continue to recover.

Speaker Change: Organic sales for industrial solutions were down about 20% due primarily to ongoing channel inventory destocking for calories or ranks and for Olivia product lines within Biopharma market.

Speaker Change: We continue to expect to see order improvement over the next several quarters and our carrot business.

Speaker Change: And our living our Biopharma business is also still expected to recover later in the second half.

Lori D. Koch: Operating EBITDA from E&I at $374 million, up 3% versus a year-ago period driven by strength and semi-interconnect solutions and the earnings contribution from Spectrum, although partially offset by the impact of lower volumes in industrial solutions. Turning to slide 8, W&P first quarter net sales of $1.3 billion declined 11% versus the year-ago period due to a 10% decrease in volume and a 1% currency headwind. Within safety solutions, organic sales were down low teens on lower volumes driven mainly by channel inventory destocking, most notably for Tyvek medical packaging products.

Speaker Change: Operating EBITDA from Eni of $374 million was up 3% versus the year ago period, driven by strength in semi and our <unk> solutions and the earnings contribution from spectrum Pars.

Speaker Change: Partially offset by the impact of lower volumes and industrial solutions.

Speaker Change: Turning to slide eight WEP first quarter net sales of $1 3 billion declined 11% versus the year ago period due to a 10% decrease in volume and a 1% currency headwind.

Speaker Change: Within safety solutions organic sales were down low teens on lower volume driven mainly by channel inventory Destocking, most notably for tieback medical packaging products.

Lori D. Koch: We believe our customer's inventory is close to normal at this point for Tyvek Medical Tech. However, within water, organic sales were down mid-teens driven by distributor inventory de-stocking and lower industrial demand in China. We continue to have active communication with our distributors and believe orders will pick up towards the end of the second quarter. Shelter solutions were flat on an organic basis compared to the year-ago period, and we expect sequential lift in the second quarter.

Speaker Change: We believe our customers inventories close to normal at this point for tie that medical packaging.

Speaker Change: Within water organic sales were down mid teens, driven by distributor inventory destocking and lower industrial demand in China. We continue to have active communication with our distributors and believe orders will pick up towards the end of the second quarter.

Speaker Change: Shelter solutions were flat on an organic basis compared to the year ago period, and we expect sequential lift in the second quarter.

Edward D. Breen: Operating EBITDA for W&P during the quarter of $295 million decreased 14% due to lower volumes, partially offset by the impact of lower product costs. Turning to slide 9, I'll provide an update on our full year 2024 guidance, as well as our expectations for the second quarter. We are raising our full-year guidance for net sales, operating EBITDA, and adjusted EPS. At the midpoint of the revised ranges provided, we now expect full-year net sales of about $12.25 billion, operating EBITDA of about $2.975 billion, and adjusted EPS of $3.60 a share, which now indicates expected year-over-year earnings growth.

Speaker Change: Operating EBITDA for <unk> during the quarter up $295 million decreased 14% due to lower volumes, partially offset by the impact of lower product costs.

Speaker Change: Turning to slide nine I'll provide an update on our full year 2024 guidance as well as our expectations for the second quarter.

Speaker Change: We are raising our full year guidance for net sales operating EBITDA and adjusted EPS.

Speaker Change: At the midpoint of the revised ranges provided we now expect full year net sales of about $12 5 billion operating EBITDA of about two 975 billion and adjusted EPS of $3 68, a share which now indicate expected year over year earnings growth.

Edward D. Breen: For the second quarter of 2024, we expect net sales of about $3.025 billion, operating EBITDA of about $710 million, and adjusted EPS of $0.84 per share. The sequential sales and earnings lift in the second quarter assumes volume improvement driven by favorable seasonality in both ICS and shelter, continued electronics recovery, and reduced destocking impacts in water and medical packaging. Year-over-year sales and earnings growth in the second half, embedded within our four-year guidance, is expected to be driven by further electronics market recovery, including continued improvement in semiconductor fab and PCE utilization rates, along with a return to volume group in W&P. Second half earnings drivers include both body improvement as well as expected mixed benefits. With that, I'll turn it back to Ed. Thanks, Lori. I'd like to

For the second quarter of 2024, we expect net sales of about 3.025.

Speaker Change: 5 billion operating EBITDA of about $710 million and adjusted EPS of <unk> 84 per share.

Speaker Change: The sequential sales and earnings lift in the second quarter assumes volume improvement driven by favorable seasonality in both Ics and shelter continue.

Speaker Change: Continued electronics recovery and reduce destocking impacts in water and medical packaging.

Speaker Change: Year over year sales and earnings growth in the second half embedded within our full year guidance is expected to be driven by further electronics market recovery, including continued improvement in semiconductor fab in PCB utilization rates.

Speaker Change: Along with a return to volume growth and WEP.

Speaker Change: Second half earnings drivers include both volume improvement as well as expected mix benefit.

Speaker Change: With that I'll turn it back to Ed.

Edward D. Breen: Thanks, Lori. I'd like to note that we published our Annual Sustainability Report earlier this week. I highlighted the work of our global team to meet our commitments across all aspects of ESG, and I'm pleased with the progress and speed with which we are advancing our 2030 goals. There are three dimensions to our sustainability strategy: innovation, protecting people and the planet, and empowering employees and communities. I'd like to mention just a few recent accomplishments.

Ed: Thanks, Laurie I'd like to note that we published our annual sustainability report earlier this week.

Ed: Leading the work of our global team to meet our commitments across all aspects of ESG and I am pleased with the progress and speed with which we are advancing our 2030 goals.

Ed: There are three dimensions to our sustainability strategy innovation protecting people and the planet and empowering employees and communities.

Ed: Like to mention just a few recent accomplishments.

Edward D. Breen: More than 80% of our innovation portfolio is expected to advance our customer sustainability roadmap. This is a critical metric that aligns our product development with customers' expectations for both performance and sustainability. We were pleased to be recognized for this commitment by Samsung Electronics, which awarded us as a Best ESG Partner this past year.

More than 80% of our innovation portfolio is expected to advance our customers' sustainability roadmap.

A critical metric that aligns our product development with customers' expectations for both performance and sustainability.

Ed: We were pleased to be recognized for this commitment by Samsung electronics.

Ed: Which awarded us as a best ESG partner this past year.

Operator: On climate change, we delivered another year of strong performance, surpassing our 2030 goals, which are aligned with the ambition of the Paris Accord. This past year, we achieved a 58% reduction in scope one and scope two greenhouse gas emissions from a 2019 baseline, exceeding our 2030 goal of 50%. And we achieved a 39% reduction from the 2020 baseline in scope 3 emissions, also ahead of our 2030 goal. This past year, we made strong progress in the continued deployment of a company-wide operational excellence framework designed to drive continuous improvement and productivity, including the deployment of standardized tools, best-in-class technologies, and practices that enhance workflows, reduce errors, minimize waste, and improve safety.

Ed: On climate, we delivered another year of strong performance, surpassing our 2030 goals, which are aligned with the ambition of the Paris accord.

Ed: This past year, we achieved a 58% reduction in scope, one and scope two greenhouse gas emissions from a 2019 baseline.

Ed: Exceeding our 2030 goal of 50%.

Ed: And we achieved a 39% reduction from the 2020 baseline and scope three emissions.

Also ahead of our 2030 goal.

Ed: This past year, we made strong progress and the continued deployment of a company wide operational excellence framework designed to drive continuous improvement in productivity.

Ed: <unk> deployment of standardized tools best in class technologies and practices enhanced workflows reduce errors minimize waste and improve safety.

Operator: Related to this, 2023 was our safest year on record for employees and contractors. Finally, our strong governance practices underpin our sustainability strategy as we remain committed to transparent reporting on our policies and performance with oversight from our board. A key focus in 2023 was strengthening the DuPont Supplier Code of Conduct with our new Responsible Supplier Program. These are just a few of the many great examples in the report of how our teams are delivering on our purpose and driving sustainability. With that, we are pleased to take your questions, and let me turn it back to the operator to open the Q&A.

Ed: Related to this 2023 was our safest year on record for employees and contractors.

Ed: Finally, our strong governance practices underpin our sustainability strategy as we remain committed to transparent reporting on our policies and performance with oversight from our board.

Ed: A key focus in 2023 was strengthened in the Dupont supplier code of conduct with our new responsible supplier program.

Ed: These are just a few of the many great examples in the report.

Ed: Our teams are delivering on our purpose and driving sustainability.

Ed: With that we are pleased to take your questions. Let me turn it back to the operator to open the Q&A.

Operator: As a reminder, if you wish to ask a question, please press star followed by number one on your telephone keypad. That is star one to ask a question. We ask that you please keep it to one question and one follow-up question. Your first question comes to the line of Jeff Sprague from Vertical Research Partners. Your line is open.

Speaker Change: As a reminder, if you wish to ask a question. Please press star followed by one on your telephone keypad that is star one to ask a question. We please ask that you. Please keep it to one question and one follow up question.

Speaker Change: Your first question comes from the line of Jeff Sprague from vertical Research partners. Your line is open.

Jeffrey Todd Sprague: Thank you. Good morning, Ed and Lori. I hope everybody's well. Good morning, Jeff. Oh, good morning.

Thank you good morning, guys and Lori I hope everybody is well good morning, Jeff.

Edward D. Breen: Hey, Ed, good to see the bottom is apparently in here. And really, the nature of my question is, you know, you did a lot of hard work trying to protect margins and minimize decrements through this protracted period of, you know, volume declines. Now that we're heading the other way, I just wonder if you could give us any, you know, any perspective on, I don't know, costs that need to come back or how you feel about structural costs. And maybe the punchline is just a little bit of guidance on your incrementals as we think about volumes going the other way in E&I.

Jeffrey Todd Sprague: Hello, Good morning, Hey, Ed good to see the bottom is apparently in here and really the nature of my question is.

Jeffrey Todd Sprague: A lot of hard work trying to protect margins and minimize decrementals through this protracted period of volume declines.

Jeffrey Todd Sprague: Now that we're heading the other way I just wonder if you could give us any any perspective on I don't know costs that need to come back or how you feel about structural cost and maybe the punch line is just a little bit of guidance on your incrementals as we think about volumes going the other way and Eni.

Edward D. Breen: Yeah, Jeff, so the cost actions we took, the bulk of them will stay in place. I would say out of the $150 million we announced in November, we'll get about $100 of that cost savings this year. And I would say out of the $150 million, though, if you get into 2025 and we're really cranking along in all our end markets, we probably bring back about $30 or $40 million of cost, which is kind of on the factory footprint side, where we'll do that little bit of cost there. So that would be it.

Speaker Change: Yes, Jeff So the cost actions, we took the bulk of them will stay in place.

I would say out of the $150 million, we did and we announced in November.

Eni: We'll get about 100 of that cost savings this year.

Jeffrey Todd Sprague: And I would say out of the 150, though as you get into 2025 of them were really cranking along in all our end markets, we probably bring back about 30 or $40 million of cost, which is kind of on the factory footprint side, where we'll need to add a little bit of cost there so that would be it.

Edward D. Breen: A little bit in 2025 on comp because we didn't pay out at 100% on our bonus plans and probably won't be, it could be 100% this year, so maybe that comp year over year won't be that different. But certainly from last year, 2023, a little bit of that headwind there in 2024, potentially not in 2025. Incremental increases in the second half of the year; maybe just give you that for us as we start bouncing back here.

Jeffrey Todd Sprague: A little bit probably in 2025 on comp because we didnt pay out a 100% on our bonus plans.

Jeffrey Todd Sprague: And probably will be it could be 100. This year, so maybe that comp year over year won't be that different but certainly from last year 2023.

Jeffrey Todd Sprague: There's a little bit of that headwind there in 2000 and for potentially not in 'twenty five.

Jeffrey Todd Sprague: Incrementals.

Jeffrey Todd Sprague: In the second half of the year, maybe just give you that for us as we start bouncing back you remember we get some legs.

Edward D. Breen: Remember, we get some absorption benefit, obviously because of the improvement in our sales rate. Our incrementals are planned to be around 56% in the second half of the year. And I also think, Jeff, we've de-risked the second half of the year now with the baseline we're working off of now. We only have to ramp $340 million in sales from the first half to the second half, which is 6%. And our EBITDA is planned, in our guidance, to ramp up about 14%. That gets you the 56% incremental. So I think it's significantly de-risked from potentially where we were.

Jeffrey Todd Sprague: Or should benefit obviously because of the improvement in our sales rate.

Jeffrey Todd Sprague: Incrementals are planned to be around 56% in the second half of the year and I also think Jeff we've derisked.

Jeffrey Todd Sprague: Second half of the year now with the baseline we're working off of now we only have to ramp $340 million in sales first half the second half, which is 6% and our EBITDA as planned in our guidance to ramp about 14% that gets you to 56%.

Jeffrey Todd Sprague: Incrementals so.

Jeffrey Todd Sprague: Think it's significantly derisk from potentially where we were.

Edward D. Breen: Yeah, the 56% is first half and second half. If you look at our margin profile in the second half versus the first half in the implied guide, it is up, you know, almost 200 basis points below the 25% range, which is a nice tailwind as we head into 2025. Jeff, thank you.

Jeffrey Todd Sprague: Yes, the 56% its first half second half if you look at our margin profile in the second half versus the first half and the implied guide is up.

Jeffrey Todd Sprague: Almost 200 basis points below 25% range, which is a nice.

Jeffrey Todd Sprague: Tailwind as we head into 2025.

Edward D. Breen: Yeah, and Jeff, maybe just one other, because the electronics business is bouncing back nicely. You know, we've always consistently quarter in, quarter out run that business at like 31 to 32 percent EBITDA margins. Going forward, remember that with Spectrum in there, we depressed the EBITDA margins just because it's a great business, but they're a little bit lower than the average, so it brings it down like 100 basis points. But having said that, we should be able to run that business as we're cranking back at like a 32 percent EBITDA margin as we get into 2025.

Jeffrey Todd Sprague: And Jeff maybe just one other cookie electronics is bouncing back nice we've always consistently quarter in quarter out Brian that business had like 31% to 32% EBITDA margins.

Jeffrey Todd Sprague: Going forward, the rehab, which spectrum in there.

Jeffrey Todd Sprague: For us the EBIT margin, Jessica it's a great business, but there are a little bit lower than the average so it brings it down to like 100 basis points, but having said that we should be able to run that business as we're cranking back at like 32% EBITDA margin as.

As we get into 2025.

Edward D. Breen: Great. And actually, the follow-up question that's going to play into the margin calculus also, you know, you just think about kind of electronics over time, parts of it sort of being a price-down market, the natural nature of the business. But, you know, when we think of some of the more sophisticated things going on in SEMI and the like, and maybe other places in the E&I portfolio, how do you feel about your ability to get price or to avoid price going down over time? Yeah, well, Jeff, usually the price

Jeffrey Todd Sprague: Great.

Speaker Change: Actually the follow up question.

Speaker Change: And to the to the margin calculus also just think about kind of electronics over time parts of it sort of being a price down market naturally nature of the business, but when we think of some of the more.

Speaker Change: Sophisticated things going on in semi and the like and maybe other places in the Eni portfolio. How do you feel about your ability to get price or to avoid price down overtime in these businesses.

Edward D. Breen: Yeah, well, Jeff, usually the price drop is a 1%. That's kind of what we've averaged.

Speaker Change: Yeah, well, Jeff usually the price down 1%, that's kind of what we've average so it's not really significant having said that more and more of this portfolio over the next set of years theres going to be advanced nodes with all the AI comment that by the way the AI then moving down into mobile.

Edward D. Breen: So it's not really significant. Having said that, more and more of this portfolio over the next couple of years is going to be advanced nodes with all the AI coming. And by the way, AI is then moving down into mobile devices. So, and as you know, we're advantaged there. That's how we always outgrow MSI by two to 300 basis points. So it's more of the business skews there that helps our margins just from a mixed perspective, but we also get a price on the more advanced.

Speaker Change: Devices, so and as you know we're advantaged there thats, how we always outgrow MSI by two to 300 basis points. So it's more of the business skews there a that helps our margins just from a.

Speaker Change: Mix perspective, but we also get price on the more advanced.

Edward D. Breen: Um, you know, the platforms that we have in electronics, so ICS will probably still lose price, you know, that's more PCB stuff, the laminates and displays and all that will lose a little bit of price, but I have to think we'll do a little better on the chip side. Great, thanks for the color.

Speaker Change: <unk> platforms that we have in electronics, so Ics will probably still lose price that's more our PCB sulfate would the laminates and displays and all that.

Speaker Change: A little bit of price, but I got to think we'll do a little better on the chip side.

Speaker Change: Great. Thanks for the color.

Speaker Change: Yeah. Thanks, Jeff Thank you.

Operator: Your next question comes from Steve Tulsa of J.P. Morgan. Your line is open.

Speaker Change: Your next question comes from the line of Steve Tusa of JP.

Charles Stephen Tusa: JP Morgan your line is open.

Charles Stephen Tusa: Hi, good morning.

Charles Stephen Tusa: Hey, good morning, Steve.

Steve Tulsa: I think you guys had said you expected like a 10% sequential bounce off the first quarter. This is a little, the EBITDA, I mean, a good first quarter, but the EBITDA in quarter over quarter is a little bit lower than that, more like, you know, 4 or 5%, I guess on your guide. And anything that changed that view, was there anything pulled forward in the first quarter that kind of took out the second quarter, or just conservatism?

Charles Stephen Tusa: I think you guys had said you expected like 10% sequential bounce off the first quarter.

Charles Stephen Tusa: This is a little the EBIT I mean, good first quarter, but the EBITDA.

Quarter over quarter is a little bit lower than that more like four 5%.

Charles Stephen Tusa: Yes on your guide.

Charles Stephen Tusa: And anything that changed that view is was there anything pulled forward in the first quarter that kind of takes out of the second quarter.

Speaker Change: We're just conservative.

Edward D. Breen: Yeah, no, I think it was more of a reflection of the over-delivery of Q1. So, originally, when we said a 10% sequential lift, we were guiding to a Q1 of 610. So, it would have got you roughly to 670. So, delivering the 682 mutes the ramp a little bit, but we still are now at 710 versus the original 670. So, no, actually, some upside to the expectations that we had back in February when we gave it to you.

Speaker Change: Yes, no I think it was more a reflection of the over delivery of Q1. So originally when we said a 10% sequential Leslie we are guiding to Q1 of 610.

Speaker Change: Roughly to <unk> 78, so delivering a 680 to mute the ramp a little bit, but we still are now at 710 versus the original 60 70, so no actually some upside to the expectations that we had back in.

Speaker Change: February when we gave that number.

Steve Tulsa: Okay, that makes sense. And is there anything that is... You know, a little worse than you would have expected?

Speaker Change: Okay that makes sense and is there anything that is.

Speaker Change: A little.

Speaker Change: Worse than you would've expected it seems like obviously electronics is coming along really nicely. The other stuff, maybe a little a little more sticky on the industrial side and anything that.

Edward D. Breen: It seems like, obviously, electronics is coming along really nicely. The other stuff may be a little bit more sticky on the industrial side. And anything that, you know, is kind of standing out is just not coming along as you would have expected in the industrial recovery. It's pretty much, as we said last quarter, shelter will be up sequentially first to second, mostly because of seasonality. But that clearly had bottomed out already.

Speaker Change: Kind of standing out as just not not coming along as you would've expected.

Speaker Change: On the industrial.

Speaker Change: Great.

Speaker Change: Pretty much as we said last quarter shelter will be up sequentially first to second mostly because of seasonality, but that clearly had bottomed out.

Edward D. Breen: The water, by the way, we just had our manager of our water business over in China for the last two weeks. And they're saying they're going to start placing more orders towards the back end of this quarter. So that feels the same. Same with the healthcare medical packaging business towards the end of this quarter and beginning of next quarter. And the only two that are delayed on their bottom, by the way, but they haven't recovered yet.

Speaker Change: Ready the water by the way, we just had our manager of our water business over in China. The last two weeks and they're saying, they're going to start placing more orders towards the back end of this quarter. So that feels the same.

Speaker Change: Same with the healthcare medical packaging business towards the end of this quarter beginning of next quarter and the only two that are delayed on.

Speaker Change: They are bottom by the way, but they haven't recovered yet but this is no change from what we said before as our Biopharma business looks more like the.

Edward D. Breen: But this is no change from what we said before, our biopharma business looks more like the, you know, the back half of the calendar here. And our CalRes business looks like a second half recovery. So pretty much in line.

Speaker Change: The back half of the calendar year in our <unk> business. It looks like a second half recovery so pretty much in line the buy rate the one other bright spot light.

Edward D. Breen: By the way, the one other bright spot I liked, you know, we had been negative on growth in China through last year, and we had 3% growth in China. So that market has been slowly turning back up for us. And by the way, that 3% was predominantly because the electronics business turned. We were up 15% in E&I in China in the first quarter. So that's turned out nicely for us, and our semi-customers in China were ordering it about at the same rate, sales rate, about 15% growth, and including the local Chinese semi-customers, not the multinationals.

Speaker Change: We had been negative on growth in China through last year, and we had 3% growth.

Speaker Change: China, So that market has been slowly turning back up for us and by that 3% was predominantly because the electronics business turn we were up 15% and Eni in China in the first quarter. So thats turned nicely for us in our semi customers in China were ordering at about that was about that same rate sales right.

Speaker Change: About 15% growth, including the local China semi customers not the multinationals so that was good to see.

Edward D. Breen: So that was good to see. Okay, and then just to ask quickly, any updates on, you know, Price Raw's spread for you guys? I know it's less important these days, but any update there? Thanks. Yeah, we did have a little more favor.

Speaker Change: Okay, and then just last quickly any updates on price raws spread for you guys I know its less important in these days, but.

Speaker Change: Any update there thanks.

Lori D. Koch: Yeah, we did have a little more favorability than we thought in Q1 that we believe will hold for the year that contributed partially to the Q1 beat. So, if you look at the Q1 beat, it was about $110 million or so on revenue, and then about $70 million on earnings. So, obviously, we got some upside there outside of volume, and that was primarily a better price cost spread.

Speaker Change: Yes, we did have a little more favorability than what we thought in Q1 that we believe will hold for the year that contributed partially to the Q1 beat and if you look at the <unk>.

Speaker Change: Our Q1 beat it was about $110 million or so on revenue and then about $70 million on earnings side basically we got some upside there outside of volume and that was primarily better price cost spread.

Speaker Change: Great. Thanks, a lot.

Speaker Change: Thanks, Steve.

Operator: Your next question comes from Scott Davis of Milius Research. Your line is open.

Your next question comes from the line of Scott Davis Melius Research Your line is open.

Scott Reed Davis: Hey, good morning, Ed and Lori and Chris.

Scott Reed Davis: Hey, good morning, Ed, Lori, and Chris. Morning, Scott. Good morning, Scott. This may be hard to define explicitly, Ed, but you've mentioned a couple quarters in a row the AI chip and data center benefit, and you and I, it helped us understand the materiality when you think about, New chip designs and such and the content of your product that's going to be needed, does it structurally raise the… Growth rate, do you think, over, you know, call it a five-year period, or is there enough stuff to get cannibalized and it kind of nets out to a slight positive, but perhaps, I don't know, I just have no idea, so I'll ask you.

Edward D. Breen: Yeah, so the AI, so the data center size for us is about 700 million of our revenue, and 250 million of that, ballpark, it's kind of hard to tell exactly, Scott, but about 250 million of that is AI specific. And that is growing north of 20% right now, based on that base. And I do think it's skewed.

Scott Reed Davis: Good morning, Scott.

Scott Reed Davis: This may be hard to define explicitly but you've mentioned a couple of quarters in a row.

Hi, Chip and data center benefit.

Scott Reed Davis: <unk>.

Scott Reed Davis: To help us understand the materiality when you think about.

Scott Reed Davis: A new chip designs, and such and the and the content of your product that's going to be needed does it structurally raise the <unk>.

Scott Reed Davis: Growth rate do you think.

Scott Reed Davis: Over call it a five year period or or is there enough.

Speaker Change: Get cannibalized in the kind of nets out to a slight positive, but perhaps I don't know I just have no idea.

Speaker Change: I'll ask you.

Speaker Change: Yes, so the.

Speaker Change: So the data center size for us is about $700 million of our revenue and $2 50 of that.

Speaker Change: We'll park, it's kind of hard to tell exactly Scot, but about $250 million at as AI specific and that is growing.

Speaker Change: North of 20% right now that that base.

Speaker Change: I do think it skews it look I think we're going into a super cycle in semiconductor here over the next decade because of all this AI and but remember the AI now everyone's going to push it down into your devices. So it's going to be a pretty broad based.

Edward D. Breen: Look, I think we're going into a super cycle and semiconductor here over the next decade because of all this AI. Remember, the AI now, everyone's going to push it down into your devices. So it's going to be a pretty broad-based growth market. My gut is in next year; I don't want to get into forecasting for 2025 yet, but I have got to imagine the E&I business is going to grow high single digits in 2025.

Speaker Change: Gross market I My gut is in next year I don't want to get into the forecast yet for 2025, but I got to imagine the Eni business is going to grow high single digits.

Edward D. Breen: And, you know, you were expecting fab utilization to start the year in the low 70s and end the year in the low 80s. And I would think we're probably in the low 90s by, you know, the middle of next year. And that would give us that high single-digit growth rate. And then the AI chips, by the way, really help us because it's our, it's a higher margin business in our mix. So it should tee up for a really nice 2025, but that market's going to continue to grow north of 20%. And it's got a long cycle coming up.

Speaker Change: In 2025 and.

Speaker Change: We're expecting fab utilization.

Speaker Change: Starting the year in the low seventies exiting the year in the low eighties and I would think we're probably in the low <unk> by the middle of next year and that would give us that high single digit growth rate and then the AI chips by the way really help us because it's our it's a higher margin business in our mix. So it should tee up for.

Speaker Change: Really nice 2025, but that market is going to continue to grow north of 20% here and it's got a long cycle coming up.

Speaker Change: Okay, so material for sure.

Scott Reed Davis: Okay, so material for sure. So just to back up a little bit, water solutions in China, I know it's not... Just a little minutia. But... Was there a pre-buy or some sort of, you know, I don't want to call it channel stuffing, that's not what I mean, but was there some sort of weird behavior that that customer ended up with so much excess inventory, or purely just the macro turned, you know, a little sideways or down on the folks, and they were caught with extra inventory?

Speaker Change: So just.

Speaker Change: Backup a little bit in water solutions in China.

Speaker Change: Not.

Speaker Change: It's a little minutiae, but it was there.

Speaker Change: Pre buy or some sort of I don't want to call channel stuffing.

Speaker Change: Not what I mean, but was there some sort of weird behaviors that that customer ended up with so much excess inventories it purely just the macro turned.

Speaker Change: A little sideways or down on the folks in their call with extra inventory.

Edward D. Breen: Yeah, so it wasn't just one customer, Scott, just to clarify, I don't know, I don't know if you meant it that way. We have many distributors, but four, four, four main distributors in China that do the bulk of our business that we don't do direct. By the way, we do a lot of direct business too.

Speaker Change: Yes, so it wasn't one customer Scott just to clarify I don't know if I don't know if you meant that we are we have many distributors before or four main distributors in China that do.

Speaker Change: The bulk of our business that we don't do direct by the way, we do a lot of direct business too and I think I mean, what they verbalized style. So obviously <unk> got our team was just there with them this past week as industrial production slowed down.

Edward D. Breen: And I think what I mean, what they verbalized to us, obviously, and again, our team was just there with them this past week, is that industrial production slowed down. They were ordering at a higher rate, and they had to go through a destock, which, by the way, is not as long as some of the other destocks. It looks like if it's ending here at the end of this quarter, it was about, you know, five, six months of kind of working their inventories back down.

Speaker Change: They were ordering at a higher rate and they had to go through a destock in the destock buyer is not as long as some of the other destock it looks like if it's ending here at the end of this quarter was about $5 six months of kind of working their inventories back down. So we think we're in pretty good shape going into the third quarter here and again, we expect orders to start coming in.

Edward D. Breen: So we think we're in pretty good shape going into the third quarter here. And again, we expect orders to start coming in kind of in the June timeframe to start picking up there. So it was more of the macro, I guess I would say, Scott.

Speaker Change: In the June timeframe, the start picking up there.

Speaker Change: So it was more of a matter of as more of a macro I guess I would say Scott.

Speaker Change: Okay Fair enough. Thank you add Laurie Chris appreciate it good luck. This year. Thank you next quarter.

Scott Reed Davis: Fair enough. Thank you, Ed and Lori. Chris, I appreciate it. Good luck this year. Thank you. Next quarter. All right, see you then.

Speaker Change: Okay.

Speaker Change: Thanks.

Operator: Your next question comes live from John Roberts of Mizzou. Your line is open. Thank you. Just one from me. Maybe, Lori, you could give us an update on adhesives.

Operator: Thanks. Your next question comes from John Roberts of Mizzou.

Speaker Change: Your next question comes the line of John Roberts of Mizuho. Your line is open.

Operator: Your line is open. Thank you. Just one from me. Maybe, Lori, you could give us an update on...

John Ezekiel E. Roberts: Thank you just one from me maybe Lorie, you could give us an update on adhesives multi base and Ted Lar.

John Ezekiel E. Roberts: Would have thought they would be down like your industrial segment and they've got some auto exposure, there, which was probably weak, but actually corporate sales were up 1% year over year, what's going on there.

Lori D. Koch: Yeah, so we continue to see strength on the EV side of the car. As you mentioned, overall, auto bills are weaker right now, but there's still a lot of upside within the EV side.

Lorie: Yes, so we continue to see strength on the EV side of auto. So as you had mentioned overall auto builds are weaker right now, but theres still a lot of upside within the EV side. So that was up double digits in the quarter and we expect that to stay for the year.

Lori D. Koch: So that was up double digits in the quarter, and we expect that to stay for the year. A lot of the upside in volume in the quarter came from Tedlar, which is in the photovoltaic space. So we had really nice volumes within Tedlar that gave us the 1% organic for the quarter.

Lorie: A lot of the upside in the volume in the quarter came from Kevlar, which is in the photovoltaics space that we have really nice volumes within <unk> that gave us the.

Lorie: A 1% organic for the quarter.

Speaker Change: Thank you.

Speaker Change: Yes.

Operator: Your next question comes from Chris Parkinson of Wolfe Research. Your line is open.

Speaker Change: Your next question comes from line of Chris Parkinson of Wolfe Research. Your line is open.

Christopher S. Parkinson: Great. Thank you so much. I just want to turn on the ICS side.

Christopher S. Parkinson: Great. Thank you so much I just want to turn on the Ics side, you've seen a bit of a market share shift between Chinese Oems versus the Americans and the northeast Asians and I know you have exposure everywhere and at the same time. We've also seen an increase in the sophistication of.

Lori D. Koch: You've seen a bit of a market share shift between, you know, Chinese OEs versus the Americans and Northeast Asians. And I know you have exposure everywhere. And at the same time, you've also seen an increase in the sophistication of, you know, Chinese handsets. So can you just kind of parse through that in terms of where the market is right here, right now, and how the street should be thinking about your relative content exposures and how we should think about that business recovering throughout 24 and perhaps 25? Thank you so much.

Christopher S. Parkinson: Chinese handsets. So can you just kind of parse through that in terms of in terms of where the market is right here right now and how the street should be thinking about your relative content exposures and how we should think about that business recovering throughout 'twenty four and perhaps 25. Thank you so much.

Lori D. Koch: Chris, maybe just at a high level, if you go back to the middle of last year, the PCB utilization rates were kind of all the way down in the mid-40s. In the first quarter, they were kind of in the mid-50s. We think we'll exit the year in the low 60s, and the second half of the year will kind of be in the low 60s. And normal, by the way, for PCB utilization rates, is kind of in the low 70s. They never run in the 90s like, you know, the semis do. So you can kind of see the progression of that plan out here, kind of over the next year.

Christopher S. Parkinson: Well.

Christopher S. Parkinson: Chris maybe just high level.

If you go back to the middle of last year.

Christopher S. Parkinson: The PCB utilization rates were kind of all the way down in the mid Forty's.

Christopher S. Parkinson: In the first quarter.

Christopher S. Parkinson: They're kind of in the mid fifties, we think we exit the year in the low sixty's and to sort of be in the second half of the year will kind of be in the low sixty's and normal by the way for PCB utilization rates is kind of low 70, they never run in the <unk> nine is like the semi stew. So you can kind of see the progression.

Christopher S. Parkinson: Of that playing out here kind of over the next year.

Lori D. Koch: And we continue to see wins within the metallization space, more on the circuitry side. So we've seen a nice volume lift in the first quarter, and we expect that to be maintained for the rest of the year. And we have had some share gains outside of that in the premium smartphone space on both the phone side and then the other device side as well with PCs and others.

Christopher S. Parkinson: And we continue to see wins within the mineralization space more on the circuitry side, so you've seen a nice volume lift and thats in the first quarter and we expect that to maintain for the rest of the year and we have had some share gains outside of that in the premium smartphone space.

On the phone side and any other device side as well with Pcs and others.

Got it.

Lori D. Koch: And Lori, you know, my favorite question as a follow-up is on W&P margins. I mean, obviously, over the last few quarters, there have been a bunch of put-and-takes, inclusive of the destocking, but with that progressively improving throughout 24, can you help us just give us the latest and greatest on how you're thinking about the long-term margin optionality in terms of operating efficiencies, leverage, mix Thank you so much. Yeah, we still see the entitlement.

Christopher S. Parkinson: Laura.

Laura: My favorite question is a follow up is on <unk> margins I mean, obviously that over the last few quarters. There have been a bunch of puts and takes inclusive of the destocking, but with that progressively improving throughout 'twenty four.

Laura: Can you help us just give us the latest and greatest on how youre thinking about the long term margin optionality in terms of op efficiencies leverage mix, so on and so forth. Thank you so much.

Lori D. Koch: Yeah, we still see the entitlement for W&P margins in that 27 percent range. And so, you know, as you know, they've been challenged in the first quarter, really a function of the lower volumes. You know, there's a lot of heavy assets in that business that take a hit when the volumes are down. We've done a nice job controlling costs to minimize the decrements to low levels, but that is impacting it. And then the larger impact comes from just the mixed side.

Speaker Change: Yes, we still see the entitlement for E. W. MP margins in that 27% range and so.

Speaker Change: As you know <unk> been challenged in the first quarter that really a function of the lower volumes. There is a lot of heavy assets in that business.

Speaker Change: Let's take a hit when the volumes are down we've done a nice job controlling cost and minimize the decremental to low levels.

Speaker Change: But that is impacting it and then the larger impact from just the mix side. So the tie back business is down primarily because of that medical packaging destock, that's going on that we expect to start to see resolution here at the end of this quarter and then improve.

Lori D. Koch: So the Tyvek business is down primarily because of the medical packaging D stock that's going on that we expect to start to see resolution here at the end of this quarter and then improvement as we head into the back half. And so when you start to see those two items weigh, we do see nice margin improvement, first half, second half. So, you know, the first half margins will probably stay at that 23 percent level, and then we see them taking up about 100 basis points as we get to the back half of the year. Thank you so much. Thanks, Chris. Your next question comes next.

Speaker Change: Improvement as we head into the back half and so when you start to see those.

Speaker Change: Two items Wayne you would if we do see nice margin improvement first half second half. So the first half margins will probably stay at that 23% level and then we see them taking up about a 100 basis points as we get to the back half of the year.

Speaker Change: Thank you so much.

Wayne: Thanks, Chris.

Operator: Your next question comes from David Begleiter of Deutsche Bank. Your line is open. Ed, you only raised the...

Wayne: Your next question comes from the line of David Begleiter of Deutsche Bank. Your line is open.

Wayne: Okay.

David L. Begleiter: Ed you only raised the full year guidance by the amount of the Q1 beat is that because it's still early in the year or are you a little more cautious on the back half demand environment.

David L. Begleiter: Yeah, David, no change in our thinking on the back half. It's just, as I said earlier, I feel good. We've de-risked the ramp over the year.

Wayne: Yes.

David L. Begleiter: David No change on our thinking on the back half just by as I said earlier I feel good we've derisked the.

Edward D. Breen: So I don't feel any different about it. And, you know, hopefully it ends up being a little bit conservative but very good. And can you provide us another update on PFAS right now? Yeah, nothing, nothing significantly new there, David.

David L. Begleiter: The ramp.

David L. Begleiter: In the year, so no I don't feel any different about it.

David L. Begleiter: Hopefully it ends up being a little bit conservative but.

Speaker Change: Very good and can you just provide us another update on PFS right now thank you.

Speaker Change: Yes, nothing significantly new there David.

Edward D. Breen: You know, the next thing coming up is the state AG cases. I don't think that'll be a 2024 event. I think it's more of a 2025 event. And then there are probably a couple of states that we will settle separately from the class action. It's where we have locations set.

Speaker Change: The next thing coming up is the.

Speaker Change: That we wouldn't want to settle as the state AG cases.

Speaker Change: I don't think that will be a 2024 event I think it's more of a 2025.

Speaker Change: <unk>.

Speaker Change: And then there's probably a couple of states that we will settle separately.

Speaker Change: From the class action and Thats, where we have locations set.

Edward D. Breen: So, I think you might potentially see one or two of those get settled, maybe during this calendar year. So, that's where it's at. I think, David, the good news with the settlement, by the way, the other settlement is done now. The water districts are totally done, signed off by the judge. And I think the nice thing about that, when it comes to all the firefighting foam, is that it became very clear in that litigation and in what was written about it that the exposure of the consortium of Corteva, DuPont, and Chemours is three to seven percent of the total exposure. And then, remember, DuPont is a third of that three to seven percent.

Speaker Change: So I think you might potentially see one or two of those get settled maybe during this calendar year.

Edward D. Breen: So, I think that helps box in what these numbers are going to be as we settle the other cases. Very good. Thank you. Your next question comes from the line of Mark Leithead of Barclays. Your line is open. Great. Thank you. Good morning.

Speaker Change: So that's where it's at I think David the good news with the settlement by the other settlement is done now the water districts is totally done signed off by the judge.

Speaker Change: And I think the nice thing about that when it comes to all the firefighting foam is that it became very clear in that litigation and what was written about it that the exposure of the consortium of.

We're tethered Dupont and <unk> is 3% to 7% of the total exposure and then remember dupont's a third of the 3% to 7%. So I think that helps box in what these numbers are going to be as we settled the other cases very.

Speaker Change: Very good thank you.

Speaker Change: Thank you.

Operator: Your next question comes to the line of Mark Leithead of Barclays. Your line is open. Great. Thank you. Good morning, guys.

Speaker Change: Yes.

Speaker Change: Your next question comes from the line of Mark <unk> of Barclays. Your line is open.

Mark: Great. Thank you good morning, guys.

Mark: Good morning.

First question I wanted to ask on <unk> I wanted to ask about price. It seems like it's holding in I'd say fairly well despite double digit volume declines of the past few quarters. So what's your expectation for price should we expect this to stay relatively flat as we move through the year.

Operator: Yeah, so yeah, we delivered a flat price overall in WMP in the quarter. We still have some expectation to get back one or 2%, primarily in the shelter business, as we go throughout the year. But we have done a really nice job, as you had mentioned, holding on holding on to price.

Speaker Change: Yes, so yes, we delivered flat price overall in WP in the quarter.

Speaker Change: We still have some expectation to get back one or 2% primarily in the shelter business.

Speaker Change: As we go throughout the year, but we have done a really nice job as you had mentioned holding on holding on to price.

Speaker Change: Got it that's helpful and then bigger picture how is spectrum performing relative to your initial expectations.

Lori D. Koch: Right on what we told our board. It's nice to see they are basically not going through a destock, which is good. And I think we've told you this before, the business is growing nicely, but there's also a major ramp going on with one key medical device company. And that ramp, by the way, was a very significant ramp.

Speaker Change: Right right on what we told our board.

Speaker Change: Nice to see.

Speaker Change: They are basically not going through a destocking, which is good.

Speaker Change: And I think we've told you. This before we the business is growing nicely, but there is also a major ramp going alone with one key medical device company and that ramp is it was a very significant ramp. So we were that was the one area. We've been watching really close and they are ramping very nice with that customer more.

Edward D. Breen: So we were, that was the one area we've been watching really closely, and they are ramping very nicely with that customer. It's more of a manufacturing ramp we had to go through that was pretty significant, and that's on track also. So feeling good about that.

More of a manufacturing ramp we had to go through that was a pretty significant and thats on track also so feeling good about that and it's clearly an area we like.

Edward D. Breen: And it's clearly an area we like, between Tyvek Medical Packaging, the Spectrum business, and the Livio business. It's a really nice percentage of our portfolio now, as we mentioned in our prepared remarks. So it's 10% of the company, and it's just a nice end market, a stable end market to be in with a very solid, steady growth rate. So we're really liking that business. All right, thank you. Your next question comes from the line of Josh Spector of UBF. Your line is open.

Speaker Change: Between.

Speaker Change: Between tieback medical packaging.

Speaker Change: The spectrum business in Bolivia business, it's a really nice percentage of our portfolio now as we mentioned in our prepared remarks.

Speaker Change: So it's 10% of the company and its just a nice end market and stable end market to be in with a very solid steady growth rates. So we're really like in that business.

Speaker Change: Alright, thank you.

Speaker Change: Your next question comes from the line of Josh Spector of UBS. Your line is open.

Joshua David Spector: Hi, Thanks for taking my question here.

Josh Spector: Yes.

Joshua David Spector: Talk about your expectation on buybacks versus M&A I know you talked about no M&A in 2020.

Joshua David Spector: Four kind of through the September period can you extend that through the rest of this year and maybe think about 25% in terms of your total capital allocation.

Joshua David Spector: Yeah, I would think we're not planning on any acquisition this year, but if we when we do one, I would think it's more in the tuck in size. We're not looking at anything big.

Speaker Change: Yes, I would say, we're so we're not planning on any acquisition this year.

Speaker Change: If when we do one I would think it's more in the tuck in size. We are now looking at anything Big we would love to add to the health care platform.

Edward D. Breen: We would love to add to the health care platform, and there's a fair amount of what I call "tuck in" opportunities there. So, I mean, it's possible we could do one this year, but it's not really in our plans. Our team, Lori and I, have said that the team is all hands on deck operationally as we were going through the D stock. And, you know, that was our focus area. We still have an outstanding ASR for, you know; we just completed one five hundred million ASR. We only have one more to do.

Speaker Change: A fair amount of what I call tuck in opportunities there.

Speaker Change: So I mean, it's possible we could do one this year, but it's not really in our plans our team Laurie and I have said that the teams all hands on deck operationally as we were going through the destock and that was our focus area. We still have an outstanding ASR for yes, we just completed the $1 $500 million ASR, we have one more to do.

Edward D. Breen: So we would plan on doing that, obviously, this year. And then after that, I think we'll be a nice mix of some tuck in acquisitions. And, you know, depending on where our stock price is, I've always been a pretty big share repurchaser when I feel our stock or multiples are not where they should be. So I don't think you'll see any change in our thinking there.

Speaker Change: So we would plan on doing that obviously this year.

And then after that I think will be a nice mix of some tuck in acquisition and depending where our stock prices.

Speaker Change: Always been a pretty big share repurchase Irwin I feel our stock multiple is not where it should be so I don't think youll see any change in our thinking there.

Got it thanks guys.

Thanks, guys.

Speaker Change: Your next question comes from the line of Michael Sison of Wells Fargo. Your line is open.

Operator: Your next question comes from the line of Michael Sison of Wells Fargo. Your line is open.

Yeah.

Richard: Hi, this is Richard on behalf of Mike. So I just wanted to ask, in terms of the guidance for the full year and what you're seeing in terms of demand and de-stocking coming to an end, should we expect year-over-year volume growth starting in the third quarter, or how are you looking at volumes in the second half of the year?

Hi, This is Richard on for Mike.

Richard: So just wanted to ask in terms of in.

Richard: In terms of the guidance for the full year.

What youre seeing in terms of the land.

Speaker Change: The stocking coming to an end.

Richard: Should we expect year over year volume growth starting in the third quarter or are you looking at volumes in the second half of the year.

Lori D. Koch: Yeah, in the guide that we gave, we do see a return to volume growth in the second half. It ramps as you go from 3q to 4q, really just a comp because 4q was our weakest for the first quarter last year, but if we do, we will be returning to growth from both a volume and earnings perspective in the second half.

Yes in the guide that we gave we do see a return to volume growth in the second half. It ramps as you go from <unk> <unk> to <unk> really just a comp because 14 with our weekend.

Richard: Quarter last year, but yet if we will we will be returning to growth from both volume and earnings perspective in the second half.

Lori D. Koch: Okay, great. And then just in terms of your comments on China recovering, was that more specific to E&I, or maybe you can talk about what you're seeing on the water solutions side, and because you do cite that industrial demand remains weak in China, but I guess you're saying it's recovering better than you thought. Yeah, no change there.

Speaker Change: Okay, Great and then just in terms of your comments on China recovering.

Was that more specific to eni.

Speaker Change: Maybe you can talk about what youre seeing on the water solution side.

Speaker Change: You do site.

Speaker Change: Industrial demand remains weak in China, but I guess youre, saying its recovering better than you thought.

Lori D. Koch: Yeah, no change there. So the volume uptick that we saw in China in the first quarter was primarily E&I. As Ed mentioned, we are up kind of mid-teens for volumes in China. We still do see industrial weakness that's impacting W&P, primarily in the water space. So, no change to our expectations. We will get the orders in from the key distributors towards the end of this quarter and be able to ship those to see a ramp sequentially in water and then a further ramp as we head into the second half.

Speaker Change: Yes, no change there so that the volume uptick that we saw in China in the first quarter was primarily Eni as Ed had mentioned we are up kind of mid teens for volumes in China. It's still just the industrial weakness that's impacting that E&P, primarily in a wider space. So no change to our expectations.

Speaker Change: Beth.

Beth: We will get the orders and from the key distributors towards the end of this quarter and be able to ship those to see a ramp sequentially in water and then.

Beth: Further ramp as you head into the second half.

Beth: Great. Thank you.

Operator: Your next question comes from the line of Frank Mitsch of Fermium Research. Your line is open.

Beth: Your next question comes from the line of Frank Mitsch.

Frank Joseph Mitsch: Fermium Research your line is open.

Frank Joseph Mitsch: Yes, hi, good morning. Lori, if I could follow up on a free cash flow question. What are your expectations? You did 86% free cash flow conversion in 1Q. What are your expectations for 2024?

Frank Joseph Mitsch: Yes, hi, good morning.

If I could follow up on.

Frank Joseph Mitsch: On a free cash flow question, what are your expectations, you did 86% free cash flow conversion in <unk>, what is your expectations for 2024.

Lori D. Koch: Yeah, I think we'll be at or near our target of greater than 90%. So I was really pleased with the Q1 performance of 86%. That's a sizable improvement from where we were last year, which was around 45%. I do expect it to take a little bit of a dip in Q2, really reflecting the payment of our biannual interest expense. So that's about $200 million. We pay it in May and in November. So we'll see a headwind in Q2. But overall, I expect us to deliver a nice free cash flow conversion for the year, really around the target.

Frank Joseph Mitsch: Yes, I think we'll be at or near our target of greater than 90%. So I was really pleased with the Q1 performance of 86% <unk> improvement from where we were last year, which was around 45% I do expect to take a little bit of a dip down in Q2 really reflecting the payment of our <unk>.

Frank Joseph Mitsch: Biannual interest expense, so that's about $300 million, we pay it.

Frank Joseph Mitsch: On November <unk>.

Frank Joseph Mitsch: Q2, but overall I expect us to deliver nice nice free cash flow conversion for the year.

Around the target okay.

Frank Joseph Mitsch: Terrific. And, Ed, you commented multiple times on how progress is being made in Asia, especially in China. You know, the year-over-year Negative deltas have been lessening down to 4% organic decline in 1Q. Are you anticipating that to be flat or higher in 2Q and beyond in terms of the year-over-year comp?

Frank Joseph Mitsch: Terrific.

Frank Joseph Mitsch: You've commented multiple times on how progress Youre seeing the progress in Asia.

Frank Joseph Mitsch: Especially in China.

Frank Joseph Mitsch: The year over year.

Frank Joseph Mitsch: Negative Delta has been lessening down to 4% organic decline in <unk> are you anticipating that to be flat or up in <unk> and.

Frank Joseph Mitsch: Beyond in terms of the your comp.

Lori D. Koch: Yeah, we expect China overall to be both price and volume and currency headwinds about flat for the year. So, you know, as you had mentioned, the Q1 numbers, we were up in volume, but overall, it was about flat with the currency headwinds. So, yes, an improvement in volume that we expect to see and then some currency headwinds as the year goes on.

Frank Joseph Mitsch: Yes, we expect overall, China to be both price and volume and currency headwinds about flat for the year. So as you had mentioned in the Q1 numbers. We are up in volume, but overall I think it was about flat with the currency headwind.

Frank Joseph Mitsch: So yes, an improvement in volume that we expect to see in <unk>.

Frank Joseph Mitsch: Currency had entered the year.

Speaker Change: Understood. Thanks, so much.

Speaker Change: Thanks Frank.

Speaker Change: Your next question comes from the line of Patrick Cunningham of Citi. Your line is open.

Operator: Understood. Thanks so much. Thanks, Frank. Your next question comes from the line of Patrick Cunningham of City. Your line is open.

Patrick David Cunningham: Let's go to the next one.

Operator: Let's go to the next one. Your next question comes from the line of Steve Byrne of Bank of America. Your line is open.

Patrick David Cunningham: Your next question comes from the line of Steve Byrne of Bank of America. Your line is open.

Stephen V. Byrne: Yes, thank you. The three-year stack on volumes in your water and protection segment is flat. The losses over the last four or five quarters basically offset the gains in 2021, and you had kind of flat volumes in 22. So just a question about that, do you see that as suggesting just modest underlying volume growth, or do you think that there might be some, you know, losses to generic products in that segment? And, you know, did you have visibility on those inventory levels that were? that have been destocked now.

Stephen V. Byrne: Yes. Thank you.

Stephen V. Byrne: Three year stack on volumes and your water and protection segment is.

Stephen V. Byrne: Flat.

Stephen V. Byrne: The losses over the last four or five quarters, essentially offset the gains in 2021, and you kind of flat volumes in 'twenty two.

Stephen V. Byrne: So just a question about that do you see that.

Stephen V. Byrne: As suggesting just modest underlying volume growth or do you think that there might be some losses to generic products in that segment.

Stephen V. Byrne: <unk>.

Stephen V. Byrne: Did you have visibility on those inventory levels were.

Stephen V. Byrne: That has been the stock now.

Lori D. Koch: Yeah, I mean, I think the history has been impacted a lot by COVID. So, you know, we saw an unwind of the garments that were a sizable benefit during the 2020 timeframe. And then you saw an unwind, not unlike most of the peers out there that saw a run-up from the garment perspective.

Speaker Change: Yes, I mean, I think the history has been impacted.

Speaker Change: A lot by Covid, So we saw.

Speaker Change: Unwind of the garments that were a sizeable benefit during the 2020 timeframe than you saw in <unk>.

And unlike most of the peers out there that saw a run up from the government perspective.

Lori D. Koch: And then once we moved through that, then we transitioned into the general industrial D stock. So I think we need to look into 2025 to really get a good read on the volumes in that business. And right now, we're expecting low to mid single-digit volume growth in 2025 off of a more normal macro. So there are no concerns overall around the efficacy of those products in the market. It's really just getting beyond those chunky one-timers around COVID and then the broader industrial D stock to be able to see the true growth profile of that business.

Speaker Change: And then once we move through that then we transitioned into the general industrial Destock. So I think we need to look into 2025 do you really get a good read on the volumes in that business and right now we're expecting.

Speaker Change: Low to mid single digit volume growth in 2025 off of a more normal macro so no concerns over all around that.

Speaker Change: Good theater product in the market, it's really just getting beyond those chunky one timers around Covid and then the broader industrial destocking to be able to see the true growth profile of that business.

Lori D. Koch: And then Cal-Rez and Tedlar, these are both floral polymer products. Just a question for you on that. Do you have any customers that are saying, I'm going to switch to something else just to avoid the fluoropolymer issue, and how are you managing your own wastewater from the manufacturing of those products?

Speaker Change: And then <unk> and <unk>. These are both floral polymer products just a question for you on that.

Speaker Change: Do you have any customers that are saying I'm going to switch to something else just to avoid the before polymer issue and how are you managing your own wastewater from the manufacturing those products.

Lori D. Koch: No, I mean, in fact, at TEDLAR, we're actually seeing some questions around it being PFAS-free, so there's some opportunity there to maybe pick up some share on the advanced materials side or the PV side and be opportunistic. But we don't get any direct feedback from customers. And obviously, we published our sustainability report earlier this week. There are a lot of examples in there around our commitments to that, as well as just overall water, the key drivers around the sustainability footprint. So thank you. Thanks, Steve, and a lot.

Speaker Change: No I mean in fact in Kevlar, we're actually seeing some questions around it has a PFS free so theres some opportunity there to maybe pick up some share on the advanced materials side or the PV side and be opportunistic and I know direct feedback from customers.

Speaker Change: And obviously, we published our sustainability report earlier. This week there is a lot of examples in there around our commitments to that as well as just overall water.

Speaker Change: What are key drivers around the sustainability footprint.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Steve.

Lori D. Koch: And our last question comes from the line of Lawrence Alexander from Jeffreys LLC. Your line is open. Good morning, just a quick one on the electronic.

Speaker Change: And our last question comes from the line of Laurence Alexander from Jefferies. LLC. Your line is open.

Unknown Executive: Good morning, just a quick one on the electronics side how far.

Unknown Executive: <unk> do you see.

Unknown Executive: The growth trajectory for that business or how much can you expand it before you need to do a significant round of Capex additions.

Operator: Yeah, the good news on the E&I side, by the way, which is very different from the WFP side, is that they're not heavy assets. More of our CapEx on the electronic side, Lawrence, actually goes into our testing equipment. We have to have very state-of-the-art testing equipment in the key regions where our customers are, and so that's where we'll add some CapEx over time. But we kind of modularly upgrade the electronics manufacturing facility, so that's not going to be a big CapEx spend for us.

Unknown Executive: Yes, the good the good news on the Eni side by way, which is very different than the <unk> side is theyre not heavy assets.

Unknown Executive: More of our Capex on the electronics side Laurence actually goes into our testing equipment, we have very state of the art testing equipment in the key regions, where our customers are.

Unknown Executive: And so thats, where we will add some capex over time, but we kind of modular Lee.

Unknown Executive: Great.

Unknown Executive: The electronics manufacturing locations, so that's not going to be a big capex spend for us, but my gut is we'll be looking at some expansion work here as we see this kind of a super cycle coming on.

Operator: My gut feeling is we'll be looking at some expansion work here as we see this kind of super cycle coming on the semi side. So that's, you know, if this were like our Tyvek business, as you know, we're launching line eight over in Luxembourg. We've already done our first test runs of the product, by the way, which has gone very well. But that project was $450 million. We don't have anything like that on the electronic side, so that's good. And it's quicker to upgrade manufacturing capacity also on the electronic side. So we'll stay on top of that as we see this growth over the next set of years.

Unknown Executive: On the semi side.

Unknown Executive: So thats.

Unknown Executive: If this were Blake our tieback business as you know we're launching line eight over in Luxembourg, We've already done our first test runs of product by the way, which has gone very well, but that project was $450 million.

Unknown Executive: We don't have anything like that on the electronics side. So that's good and it's quicker to upgrade the manufacturing capacity also in the electronics side. So we'll stay on top of that as we see this growth over the next set of years come.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you Lawrence.

Chris Mecray: There are no further questions at this time, so I'd like to hand the call back to Chris Mecray.

Unknown Executive: There are no further questions at this time, so I'd like to hand, the call back to Chris.

Chris Mecray: Okay. Thank you, everybody, for joining the call. We appreciate your interest. And, as always, we'll post a copy of the transcript on the DuPont IR website. This concludes the call. Thank you.

Christopher S. Parkinson: Okay. Thank you everybody for joining the call. We appreciate your interest and as always we will post a copy of the transcript on the Dupont IR website. This concludes the call. Thank you.

Operator: That does conclude our conference for today. Thank you for participating, and you may now disconnect.

Unknown Executive: That does conclude our conference for today. Thank you for participating you may now disconnect.

Unknown Executive: [music].

Unknown Executive: Yeah.