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DowDuPont Reports First Quarter 2018 Results
 
  • GAAP EPS from Continuing Operations of $0.47; Adj. EPS Increases 7% to $1.12
  • GAAP Net Income from Continuing Operations of $1.1B; Op. EBITDA Up 6% to $4.9B
  • Net Sales Rise 5% to $21.5B, driven by Segments Within the Materials Science and Specialty Products Divisions
  • Cost Synergy Savings of >$300MM; Run-Rate Ahead of Plan and Now on Pace to Achieve 75% Run-Rate of $3.3B Commitment by the End of the Third Quarter of 2018
  • DWDP Expects Op. EBITDA up ~15% in 1H18; 2Q Op. EBITDA up in all Divisions: Ag high-30s percent; Materials Science mid-teens percent; Specialty Products ~20%

First Quarter Financial Highlights

GAAP earnings per share from continuing operations was $0.47. Adjusted earnings1 per share increased 7 percent to $1.12, compared with pro forma adjusted earnings per share in the year-ago period of $1.05. Adjusted earnings per share excludes significant items in the quarter totaling net charges of $0.54 per share, as well as an $0.11 per share charge for DuPont amortization of intangible assets.
Net sales increased 5 percent to $21.5 billion, with growth in most operating segments and geographic regions, from pro forma net sales of $20.5 billion in the year-ago period. The Materials Science division increased sales 17 percent, with double-digit gains in all segments and gains in all regions. The Specialty Products division increased sales 11 percent, with gains in most segments and all regions. These increases more than offset a decline in Agriculture sales of 25 percent driven by weather-related delays to planting seasons in the Northern Hemisphere and Brazil. Net sales included a 4 percent benefit from currency, primarily from the Euro.
Volume declined 2 percent on a pro forma basis from the year-ago period, due to a weather-related shift in Agriculture. The Materials Science division increased volume 8 percent, with gains in most segments and all regions. The Specialty Products division increased volume 3 percent, with gains in all segments and most regions.
Local price rose 3 percent on a pro forma basis, led by increases in all regions and most operating segments. Local price increased in each division, led by a 5 percent increase in the Materials Science division.
Operating EBITDA1 increased 6 percent on a pro forma basis from the year-ago period to $4.9 billion. The Materials Science division achieved 23 percent operating EBITDA growth, with double-digit gains in all segments. The Specialty Products division delivered 25 percent operating EBITDA growth, with double-digit gains in most segments. Earnings drivers included local price and volume gains in Materials Science and Specialty Products, cost synergies, a benefit from currency, lower pension/OPEB costs2 and higher equity earnings. These gains more than offset a decline in Agriculture due to a weather-related shift impacting seed and crop protection deliveries, higher feedstock costs in the other two divisions and planned maintenance and weather-related outages in Materials Science.
The Company achieved cost synergy savings of more than $300 million in the first quarter, ahead of its run-rate plan and now on pace to deliver a 75 percent run-rate against its $3.3 billion cost synergy commitment by the end of the third quarter of 2018.
DowDuPont returned nearly $2 billion to shareholders in the quarter through dividends ($0.9 billion) and share repurchases ($1 billion).

CEO Quote

“We delivered solid first-quarter sales and operating earnings gains, while our teams advanced the intended business separations,” said Ed Breen, chief executive officer of DowDuPont. “The Materials Science and Specialty Products divisions delivered better-than-expected top- and bottom-line growth with higher prices and volume gains, including value adding product innovations. Their growth more than offset weather-related delays that are expected to shift a substantial portion of our Agriculture earnings to the second quarter. All three divisions hit their cost synergy targets, producing savings of over $300 million as we build momentum on our $3.3 billion in cost synergies and put more focus on the $1 billion in growth synergies. And we continue to expect Materials Science to spin by the end of the first quarter of 2019, with Agriculture and Specialty Products separating by June 1, 2019. These will be three world-class companies equipped to further their leadership positions in attractive growth markets.”

Outlook

“The global economy continues to show solid momentum and broad-based growth, driven by consumer-led demand in both developed and developing economies,” said Howard Ungerleider, chief financial officer of DowDuPont. “There are discrete headwinds, including continued volatility in our input costs and weather-related softness in agriculture. However, leading indicators from manufacturing output, to improving energy markets, to employment and consumer spending remain largely positive, reflecting increased economic activity.”

“Our portfolio benefits from these macro trends, and we see our innovations and growth investments driving above-market growth. We see this strength continuing into the second quarter. We expect second quarter net sales to be up more than 10 percent and operating EBITDA up more than 20 percent year-over-year.”

“Looking ahead, the DowDuPont team remains focused on our priorities: delivering our operating and financial plan, including executing on our growth projects and innovation launches; achieving our synergy targets; and standing and spinning the intended companies on our stated timeline.”

 

 


Posted by : Dubai PR Network Editorial Team
Viewed 9577 times
PR Category : Others
Posted on : Tuesday, May 8, 2018  8:04:00 AM UAE local time (GMT+4)
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