Sector News

DowDuPont expects high-teens earnings decline on ag, plastics weakness

March 29, 2019
Chemical Value Chain

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

Join the discussion!

Your email address will not be published. Required fields are marked *

Related News

January 23, 2021

Bayer AG appoints Sarena Lin as Chief Transformation and Talent Officer

Chemical Value Chain

Lin will become the company’s Chief Transformation and Talent Officer. She will be responsible for Human Resources, Strategy and Business Consulting and drive the accelerated transformation of Bayer.

January 23, 2021

Johnson Matthey’s battery plant in Poland to be powered by renewable electricity 

Chemical Value Chain

Johnson Matthey plc (JM; London) has confirmed that its battery cathode materials plant in Konin, Poland, will be powered solely by electricity from renewable sources from day one of production.

January 23, 2021

Oxford given £100m for antibiotic resistance research

Chemical Value Chain

Britain’s Oxford University has received a donation of £100 million (112 million euros, $136 million) to research growing resistance to antibiotics, the university announced on Tuesday. The sum, from British chemicals multinational Ineos, is one of the largest donations given to Oxford University in its long history.

Send this to a friend