Antonella Franzen
Chief Financial Officer. at DuPont de Nemours
Thanks Ed and good morning, everyone. I'm excited to be here today and honored to serve as CFO of DuPont. Turning to slide 5, I will cover our second quarter financial highlights in further detail. Our second quarter results were clearly encouraging. Volume recovery is a key driver of our improved Q2 financial performance. Additionally, our ongoing commitment to drive productivity and operational excellence, as well as continued savings from restructuring actions announced last November, are also contributing to topline growth, margin expansion and cash flow improvement. Net sales of $3.2 billion increased 2% versus the year ago period as a favorable portfolio benefit of 4% reflecting the Spectrum acquisition, was partially offset by a 2% currency headwind.
Organic sales were flat as a 2% increase in volume was offset by a 2% decrease in price. Higher volume was driven by broad-based growth in electronics markets within semi and interconnect solutions, with year-over-year reported volumes up more than 20% and mid-teens respectively. These gains were partially offset by year-over-year declines in China within water solutions as well as Tyvek medical packaging. However, we did see sequential improvement in these areas, as Lori mentioned.
On a segment view, E&I organic sales inflected to grow 8% while W&P organic sales declined, moderated to 6%. Organic sales in corporate declined 5% versus the year ago period. From a regional perspective, Asia Pacific delivered 3% organic sales growth versus the year ago period with growth driven by China where organic sales were up 8%, led by strong growth in E&I. In other regions, North America was down 2% and Europe was down 7%.
Second quarter operating EBITDA of $798 million increased 8% versus the year ago period as volume gains, lower product costs, savings from restructuring actions and the earnings contribution from spectrum were partially offset by higher variable compensation. Operating EBITDA margin during the quarter was 25.2%, up 130 basis points versus the year ago period, and up 190 basis points sequentially from first quarter.
Additionally, I am very pleased with our cash flow performance as we recorded another quarter of strong cash generation and conversion. On a continuing operations basis, cash from operations of $527 million, less capital expenditures of $102 million resulted in adjusted free cash flow of $425 million. Adjusted free cash flow conversion during the quarter was 104%.
Turning to slide 6, adjusted EPS for the quarter of $0.97 per share increased 14% from $0.85 in the year ago period. Higher segment earnings of $0.10 and the benefit of a lower share count of $0.09 were partially offset by lower interest income of $0.05, resulting from a reduction in cash on hand versus the prior year. Other below the line items totaled a net $0.02 headwinds as a higher tax rate and depreciation were partially offset by lower exchange losses versus the year ago period.
Our base tax rate for the quarter was 26.4%, up from 23.7% in the year ago period, driven by certain discrete tax expenses as well as geographic mix and earnings. Our full year 2024 base tax rate is now estimated to be at the high end of our prior range, or approximately 24%.
Turning to segment results, beginning with E&I on slide 7. E&I second quarter net sales of $1.5 billion increased 15% versus the year ago period, as the spectrum sales contribution of 9% and organic sales growth of 8% were partially offset by a currency headwind of 2%. Organic sales growth of 8% reflects a 10% increase in volume, partially offset by a 2% decrease in price. At the line of business level, organic sales for semi were up more than 20%, driven by continued semi demand recovery including AI-driven technology ramps as well as higher volumes for OLED materials led by new product launches. A resurgence of demand for leading edge materials requiring higher content and accelerated buying in support of new fab capacity, primarily in China, also contributed to the volume increase in the second quarter.
Overall, semi fab utilization improved from the first quarter with average utilization in the mid-70s. Within interconnect solutions, organic sales were up low-teens driven by mid-teens volume gains reflecting continued broad based consumer electronics recovery, incremental share gains and a demand benefit from AI driven technology ramps. We also saw earlier than expected timing of orders within certain consumer electronics markets that helped volumes in the second quarter.
As expected, organic sales for industrial solutions were down low double digits due primarily to ongoing destocking for Kalrez and biopharma markets. On a sequential basis, sales for industrial solutions increased 9% during the second quarter, including an improvement in Kalrez and biopharma. Operating EBITDA for E&I of $419 million was up 20% versus the year ago period, driven by volume growth and the impact of increased production rates in both semi and interconnect solutions, savings from restructuring actions and the earnings contribution from Spectrum. These gains were partially offset by lower volume and industrial solutions and higher variable compensation. Operating EBITDA margin of 27.8% increased 120 basis points versus the year ago period.
Turning to slide 8, W&P second quarter net sales of $1.4 billion declined 7% versus the year ago period due to a 6% organic sales decline, of which 4% related to volume and 2% related to price, as well as a 1% currency headwind. Within safety solutions, organic sales were down high single digits versus the year ago period on lower volume, driven mainly by channel inventory destocking for Tyvek medical packaging. However, we did see a sequential increase of more than 20% in this end market, confirming a recovery is in process.
Within water solutions, organic sales were down high single digits versus the year ago period, driven primarily by lower volumes resulting from distributor inventory destocking. Market conditions and water solutions also improved during the second quarter, with net sales of 12% sequentially, which was ahead of our expectations and driven primarily by an initial recovery in China.
Shelter solution sales increased low single digits on an organic basis due to demand improvement in construction markets compared to the prior year period. Operating EBITDA for W&P during the quarter of $344 million was down 7% due to lower volumes and higher variable compensation, partially offset by the impact of lower product costs and savings from restructuring actions. W&P saw a nice step up sequentially from the first quarter in both the top and bottom line with nearly 50% incremental margin.
Moving to our outlook on slide 9. For the third quarter, we expect net sales, operating EBITDA and adjusted EPS to increase sequentially to approximately $3.2 billion, $815 million and $1.03 per share respectively. For the full year 2024, we are raising our 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 $12.45 billion, operating EBITDA of about $3.085 billion and adjusted EPS of $3.75 per share.
Our full year net sales guide reflects about $50 million of incremental foreign currency headwinds in the second half of the year versus prior guidance assumptions, which are expected to be partly offset by a sales contribution from the Donatelle acquisition, which closed earlier this week.
With that, we are pleased to take your questions, and let me turn it back to the operator to open the Q&A.
