DowDuPont, Wilmington and Midland, MI, posted sharply higher earnings in the second quarter as the company moves toward a planned spinoff into three entities.
GAAP (Generally Accepted Accounting Principles) earnings per share from continuing operations was 76 cents. Adjusted earnings1 per share increased 41 percent to $1.37, compared with pro forma adjusted earnings1 per share in the year-ago period of 97 cents.
Adjusted earnings per share excluded items in the quarter totaling net charges of 50 cents per share and an 11 cent per share charge for DuPont on assets.
Net sales increased 17 percent 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 percent, driven by a recovery from weather-related delays in the first quarter and local price gains. The Materials Science division grew sales 18 percent, with double-digit gains in all segments and in all regions. The Specialty Products division increased sales 10 percent, with gains in most segments and all regions.
The agriculture business, now known as Corteva and Specialty Products, which will carry the DuPont name, will be based in Delaware. The Materials Science business will be known as Dow and will be based at its hometown in Michigan.
“We continued to deliver strong results in the second quarter, including double-digit gains in sales and operating EBITDA, (earnings before interest, taxes and depreciation)” 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.”
“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 percent and operating EBITDA up more than 12 percent year-over-year.”
