DowDuPont reported GAAP (Generally Accepted Accounting Principles) earnings per share from continuing operations totaled 23 cents, a decline of 51 percent from a year-ago period of 47 cents.
Adjusted earnings per share1 decreased 25 percent to 84 cents , compared Adjusted earnings per share excludes significant items in the quarter totaling net charges of 50 cents per share and an 11 cent per share charge for DuPont amortization of intangible assets.
Net sales of $19.6 billion were down nine percent compared with the year-ago period on lower local price of 4 percent, a 3 percent currency headwind and volume declines of 2 percent.
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Local price increases in Specialty Products (soon to be DuPont) and Agriculture (Corteva) of 3 percent and 1 percent respectively, were more than offset by a price decline of 9 percent in Materials Science, which was recently spun off as Dow
GAAP Net Income from Continuing Operations was $600 million down 50 percent versus the year-ago period. Operating EBITDA1 was $4.0 billion, down 17 percent as compared to the year-ago period. A margin squeeze in the Materials Science Division, weather-related volume declines in the Agriculture Division and currency headwinds across all divisions more than offset cost synergies.
DowDuPont achieved year-over-year cost synergies of approximately $400 million in the quarter, and since the merger closing has now delivered more than $2.2 billion of cost savings.
The company returned $2.4 billion to shareholders in the quarter through dividends and share repurchases, Since the merger’s close, the company has returned nearly $12.5 billion to shareholders.
“Each business aggressively managed the levers within our control and benefitted from the strong foundations we have put in place in the face of discrete headwinds, including the effects of unprecedented bad weather, margin compression in key value chains, and sluggish auto and smartphone market conditions,” stated CEO Ed Breen. “Our emphasis on innovation and valued-added, higher margin products enabled us to benefit from stronger pricing in both our Specialty Products and Agriculture Divisions. We also advanced our cost synergies with an additional $400 million of savings in the quarter and we completed our $3 billion share repurchase program, repurchasing $1.6 billion in the quarter.
Breen continued, “In 30 days, we expect to complete our journey to create three leading companies in the materials science, agriculture and specialty products industries from the combination of two world-class organizations. I am confident that each of the companies we have created is a compelling investment opportunity in their respective space, with attractive financial characteristics and capital allocation policies, best-in-class cost structures and innovation priorities to accelerate growth. What we have accomplished would not have been possible without our highly talented and experienced leadership teams and their organizations. I want to thank each of my colleagues and wish them well as we move forward as new Dow, Corteva and DuPont.”
Both DuPont and Corteva will be based in northern Delaware.
