DowDuPont said late Thursday that first-quarter operating EBITDA was “down high-teens percent” versus previous guidance of a low-teens percent decline, citing $100-million EBITDA shortalls in both agriculture and materials science. Net sales are down high-single digits percent in the quarter versus previous guidance of down mid-single digits, the company added.
Operating EBITDA in material science, set to spin off 1 April as Dow Chemical, is expected to be down mid-20s percent versus previous guidance of down low-20s percent. EBITDA would be $100 million lower than previous guidance at the midpoint “driven primarily by greater-than-expected margin compression globally in packaging & specialty plastics.”
In agriculture, which will spin off 1 June as Corteva, flooding during the month of March in the US Midwest has halted farming operations, limited the ability to deliver products to customers, and delayed pre-season applications. Operating EBITDA in the segment is expected to be down $125 – $150 million compared to the same quarter last year. An assessment of full-year ag impacts, including potential for recovery in future quarters, will be provided with the full first-quarter earnings release on 2 May.
Operating EBITDA in specialty products, which will operate as DuPont following the spin-off of Corteva, is expected to be in line with previous guidance, the company said.
By Robert Westervelt
Source: Chemical Week
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