DuPont (DD, Financial) (57%, 2.67%), the industrial conglomerate, was another strong contributor to performance. Coronavirus-driven lockdowns led to 10-15% revenue declines across its businesses in April, but revenues have improved quickly in May and June. In Transport, revenues declined the most as auto production froze, while Safety & Construction and Electronics were more resilient as demand for Tyvek wrap and semiconductors held steady. Recently returned CEO Ed Breen took advantage of the crisis by shrinking DuPont’s unnecessarily wide product assortments, while simultaneously increasing the company’s investments into sales and R&D. The actions set up DuPont for better profitability and growth for years to come. DuPont’s Nutrition segment is also on track to close its value-growing merger with highly-valued International Flavors and Fragrances. DuPont has no significant debt maturities until the end of 2023 and is well positioned to navigate even an extended crisis.
From Mason Hawkins (Trades, Portfolio)' Longleaf Partners Fund second-quarter 2020 commentary.
