DowDuPont Announces First-Quarter 2018 Results

According to a statement by DowDuPont, GAAP earnings per share from continuing operations came in at USD 0.47, while adjusted earnings per share rose 7% to USD 1.12. GAAP net income from continuing operations reached USD 1.1 billion, while operating EBITDA increased 6% to USD 4.9 billion. DowDuPont Chief Executive Officer Ed Breen stated in a comment that in the first quarter, the company made progress on planned operational separations while achieving solid gains in sales and operating profit.

Breen said, "Our Materials Science and Specialty Products business units, including value-added product innovations, achieved above-expected bottom-line growth with higher price and volume gains.

Growth in these areas more than offset weather-related delays, from which we expect to shift a significant portion of earnings from Agriculture to the second quarter. All three business units delivered USD 300 million in cost savings, meeting our cost synergy targets. Our USD 3.3 billion cost synergy program continues to build momentum. This allows us to focus more on our USD 1 billion growth synergy targets. Additionally, in addition to the separation of Agriculture and Specialty Products by 1 June 2019, we expect to complete the restructuring of our Materials Science division by the end of the first quarter of 2019. These newly formed companies will be world-class organizations equipped to further advance their leading positions in attractive growth markets." he said.

DowDuPont Chief Financial Officer Howard Ungerleider said in his statement that the global economy continues to gain solid momentum and achieve broad-based growth, driven by consumer demand in both developed and emerging economies.

Ungerleider continued: "Alongside ongoing volatility in our input costs, there are individual fluctuations including weather-related weakness in agriculture. However, leading indicators ranging from improved energy markets on manufacturing output to employment and consumer spending are largely moving positively as a reflection of increasing economic activity. While our portfolio benefits from these macro trends, we are seeing our innovations and growth investments growing above the market. We expect this strength to continue into the second quarter. For the second quarter, compared with the same period of the prior year, we expect net sales to increase more than 10% and operating EBITDA to increase more than 20%. Going forward, we will continue to focus on our priorities including executing our operational and financial plan, including pursuing our growth projects and innovation launches; capturing our synergy targets; and establishing and restructuring the planned companies within the timelines we have indicated".