DowDuPont Reports Second Quarter 2018 Results

DowDuPont reported its second quarter 2018 financial results.
 
Net sales increased 17% to $24.2 billion, with double-digit growth in all divisions and gains in all geographic regions, from pro forma net sales of $20.7 billion in the year-ago period. The Agriculture division increased sales 25%, driven by a recovery from weather-related delays in the first quarter and local price gains. The Materials Science division grew sales 18%, with double-digit gains in all segments and in all regions. The Specialty Products division increased sales 10%, with gains in most segments and all regions.
 
Volume grew 10% 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%, primarily driven by a recovery from weather-related delays in the first quarter. Materials Science and Specialty Products volume increased 10% and 4%, respectively, both with gains in all segments and regions.
 
Local price rose 4% on a pro forma basis, with gains in all divisions and all regions, led by a 5% increase in Materials Science and a 4% increase in Agriculture.
 
GAAP earnings per share from continuing operations was $0.76. Adjusted earnings per share increased 41% to $1.37, compared with pro forma adjusted earnings per share in the year-ago period of $0.97.
 
Operating EBITDA increased 29% on a pro forma basis from the year-ago period to $5.7 billion. Agriculture achieved 45% operating EBITDA growth. Specialty Products delivered operating EBITDA growth of 23%. Materials Science delivered operating EBITDA growth of 22%.
 
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% increase from its previous target.
 
Cash flow from operations was $2.1 billion, driven by increased cash earnings.
 
“We continued to deliver strong results in the second quarter, including double-digit gains in sales and operating EBITDA,” said Ed Breen, CEO 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.”