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DowDuPont Q2 sales up 17pc to $24.2bn

DUBAI, August 5, 2018

DowDuPont, a holding company comprised of The Dow Chemical Company and DuPont, has posted net sales of $24.2 billion for the second quarter of 2018, marking a rise of 17.2 per cent over sales of $20.7 billion in the year-ago period.

The company recorded double-digit growth in all divisions and gains in all geographic regions, a statement said.

GAAP earnings per share from continuing operations was $0.76. Adjusted earnings1 per share increased 41 per cent to $1.37, compared with pro forma adjusted earnings1 per share in the year-ago period of $0.97. Adjusted earnings per share excludes significant items in the quarter totalling net charges of $0.50 per share and an $0.11 per share charge for DuPont amortization of intangible assets.

The agriculture division increased sales 25 per cent, driven by a recovery from weather-related delays in the first quarter and local price gains. The Materials Science division grew sales 18 per cent, with double-digit gains in all segments and in all regions. The Specialty Products division increased sales 10 per cent, with gains in most segments and all regions.

Volume grew 10 per cent on a pro forma basis from the year-ago period, with gains in all divisions and all regions, led by double-digit gains in US & Canada and Asia Pacific. Agriculture volume increased 20 per cent, primarily driven by a recovery from weather-related delays in the first quarter. Materials Science and Specialty Products volume increased 10 per cent and 4 per cent, respectively, both with gains in all segments and regions.

Local price rose 4 per cent on a pro forma basis, with gains in all divisions and all regions, led by a 5 per cent increase in Materials Science and a 4 per cent increase in Agriculture.

Operating EBITDA1 increased 29 per cent on a pro forma basis from the year-ago period to $5.7 billion. Agriculture achieved 45 per cent operating EBITDA growth. Specialty Products delivered operating EBITDA growth of 23 per cent. Materials Science delivered operating EBITDA growth of 22 per cent.

Operating EBITDA drivers in the quarter included volume and local price gains, cost synergies, currency, lower pension/OPEB costs2 and higher equity earnings.

DowDuPont achieved cost synergy savings of more than $375 million in the quarter, reaching cumulative savings of nearly $900 million since merger close. The Company now expects to achieve year-over-year savings of $1.4 billion in 2018, a more than 15 per cent increase from its previous target. Cash flow from operations was $2.1 billion, driven by increased cash earnings.

The Company returned nearly $2 billion to shareholders in the quarter through dividends ($0.9 billion) and share repurchases ($1 billion). Since merger close, DowDuPont has returned $5.6 billion to shareholders.

 “We continued to deliver strong results in the second quarter, including double-digit gains in sales and operating EBITDA,” said Ed Breen, chief executive officer of DowDuPont.

“Volume growth, local price gains and operating margin expansion were the key highlights, reflecting a clear focus from the businesses on execution. Our new product launches are resonating with customers, resulting in strong demand across each of our targeted end-markets.

“These are indicators that our three divisions are making a difference in the marketplace and for shareholders. We have great momentum and our employees are enthusiastic about the future of our intended industry-leading companies – Corteva, Dow and DuPont,” he added.

“Broad-based consumer strength continues to drive economic expansion and our underlying business growth,” said Howard Ungerleider, chief financial officer of DowDuPont.

 “Leading indicators, such as manufacturing output, employment, wages and consumer spending remain largely constructive, supporting increased global economic activity. We see some discrete headwinds, most notably currency fluctuations, particularly in Agriculture, and higher raw materials costs in all three divisions.

“Looking ahead, we continue to expect above-market growth through much of DowDuPont’s business portfolio, driven by our innovations, growth investments, geographic reach and leading market positions. We expect third quarter net sales to be up more than 10 per cent and operating EBITDA up more than 12 per cent year-over-year,” he added. – TradeArabia News Service

Tags: agriculture | Sales | Dow | DuPont | materials | DowDuPont |

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