DowDuPont Announces Second Quarter 2018 Results. DowDuPont, which provides world-class innovative products, materials and services to the global market, has announced its 2018 second quarter results. GAAP net income from continuing operations was $1,8 billion, while operational EBITDA increased by 29 percent to $5,7 billion.
“We continued to deliver solid results in the second quarter, with double-digit gains in sales and operating EBITDA,” said Ed Breen, DowDuPont chief executive officer. Our newly launched products were appreciated by customers and received strong demand in all of our targeted end markets. These developments are an indication that our three business lines make a difference in the market and for our shareholders.” saidi.
Net sales rose 17 percent to $24,2 billion, with volume and local price gains across all business lines and in all regions, according to DowDuPont's statement. While cost synergy savings of more than 375 million dollars were achieved, the savings target was increased by 15 percent compared to the same period of the previous year and reached 1,4 billion dollars.
GAAP net income from continuing operations was $1,8 billion, while operational EBITDA increased by 29 percent to $5,7 billion.
Ed Breen, chief executive officer of DowDuPont in his statement; He stated that they continued to deliver solid results in the second quarter, with double-digit gains in sales and operating EBITDA. Breen said, “The increase in sales volume, local price gains and expansion in operating margins were among the important developments, reflecting the intense attention of the business lines that continue their activities. The new products we launched were appreciated by customers and received strong demand in all of our targeted end markets. These developments are an indication that our three business lines make a difference in the market and for our shareholders. We have gained tremendous momentum. Our employees are also excited about the future of our upcoming industry-leading companies, Corteva, Dow and DuPont.” said.
Howard Ungerleider, Chief Financial Officer, DowDuPont In his statement, he said, "The customer density spreading to a wide base continues to be the locomotive of the economic expansion that comes with the growth in our business," and continued his words as follows; “Leading indicators such as manufacturing output, employment, wages and consumer spending remain largely constructive, supporting increased global economic activity. Our expectation of above-market growth will continue in the majority of DowDuPont's business portfolio in the coming period, based on our innovations, growth investments, geographic reach and market leadership position. We expect our third-quarter net sales to be over 10 percent year-on-year, with operating EBITDA increasing by 12 percent.”
Outstanding Financial Developments in the Second Quarter
- GAAP earnings per share from continuing operations were $0,76. Adjusted earnings per share were $0,97, up 41 percent from pro forma adjusted earnings per share of $1,37 a year ago. Adjusted earnings per share excludes a net fee of $0,50 per share and significant fee items of $0,11 per share for depreciation of DuPont's intangible assets.
- net sales; Compared to pro forma net sales of $20,7 billion in the same period of the previous year, it increased by 17 percent to $24,2 billion, with double-digit growth in all business lines and gains in all geographic regions. The agriculture business increased its sales by 25 percent, driven by the recovery from the weather-related delays in the first quarter and local price gains. The Materials Science business increased its sales by 18 percent with double-digit gains in all segments and all regions. The Specialty Products business increased its sales by 10 percent with gains in most segments and all regions.
- Sales volume grew by 10 percent on a pro forma basis, with gains in all business lines and all regions compared to the previous year, mainly in double-digit gains in the USA & Canada and Asia Pacific. Agricultural sales volume increased by 20 percent, mainly in the first quarter, due to the recovery of weather-related delays. Sales volume in the Materials Science and Specialty Products business lines increased by 10 percent and 4 percent, respectively, with gains in both business lines in all segments and regions.
- Local prices rose 5 percent on a pro forma basis, with gains in all business lines and all regions, particularly in Materials Science by 4 percent and Agriculture by 4 percent.
- Operating EBITDA rose 29 percent on a pro forma basis to $5,7 billion compared to a year ago. 45 percent operating EBITDA growth was realized in the agriculture business line. The Specialty Products business posted 23% operating EBITDA growth. Materials Science achieved 22% business EBITDA growth.
- Operating EBITDA dynamics for this quarter included sales volume and local price gains, cost synergies, currency, lower pension/OPEB costs and higher equity gains.
- DowDuPont saved more than $375 million in cost synergies this quarter, with cumulative savings of almost $900 million since the completion of the merger. The company currently predicts that in 2018, the amount of savings will reach 15 billion dollars compared to the same period of the previous year, increasing its previous target by more than 1,4 percent.
- Cash flow from operations was $2,1 billion, driven by higher cash earnings.
- The company generated approximately $0,9 billion in dividends ($1 billion) and share repurchases ($2 billion) for shareholders this quarter. Since the completion of the merger, DowDuPont has generated $5,6 billion in returns to its shareholders.