DowDuPont sales, earnings rise

MIDLAND — Chemical giant DowDuPont Inc. reported net income of $1.77 billion or 76 cents a share in the second quarter ended June 30, up from $1.32 billion or 46 cents a share a year earlier. Revenue was $24.25 billion, up from $13.83 billion a year earlier.

For the six months, net income was $2.87 billion or $1.23 a share, up from $2.21 billion or $1.79 a share a year earlier. Revenue was $45.76 billion, up from $27.06 billion a year earlier.

The company also reported an “adjusted results” profit figure of $4.15 billion or $1.37 a share. That figure did not include integration and separation costs involving the Dow Chemical – DuPont merger and other restructuring, divestiture and merger charges and costs.

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

Agricultural related sales were $5.7 billion, up 25 percent from $4.6 billion a year earlier, driven by sales recovery from weather-related delays in the Northern Hemisphere planting season, local price gains, and double-digit growth in insecticides.

Materials Science sales rose 18 percent to $12.6 billion, while Performance Materials & Coatings sales rose 15 percent to $2.6 billion. Industrial Intermediates & Infrastructure divison sales rose 29 percent to $3.9 billion, while Packing and Specialty Plastics sales rose 12 percent to $6.1 billion.

Electronics and Imaging division sales fell 1 percent to $1.2 billion, while Nutrition and Biosciences sales rose 19 percent to $1.8 billion. Transportation and Advanced Polymers sales were up 14 percent to $1.5 billion, while Safety and Construction divison sales rose 6 percent to $1.4 billion.

“Broad-based consumer strength continues to drive economic expansion and our underlying business growth,” said Howard Ungerleider, DowDuPont CFO. “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 percent and operating EBITDA up more than 12 percent year-over-year.”

For a replay of the conference call discussing these results, and supporting presentation materials, visit http://www.dow-dupont.com/investors/events-and-presentations/default.aspx.

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