DowDuPont Increases Q1 EPS
The Dow Chemical Company is a part of the DowDupont Holding Company (DWDP), a business that is focused on agriculture, materials science and specialty product sectors that seeks to lead their respective industries through productive, science-based innovation to meet the needs of customers and help solve global challenges.
DowDuPont reported its first quarter 2018 earning May 3, 2018. The adjusted earnings per share were reported at $1.12 per share, a 7% increase when compared to quarter one 2017.
The company’s net sales Q1 2018 were $21.5B, a 5% increase from the previous year. The Materials Science division saw a 17% increase, Specialty products sales increased 11% , and the Agriculture sales division saw a decrease of 25% due to weather-related delays to the planting season.
$300M of cost synergy savings were achieved in the first quarter by DowDuPont, which is ahead of their run-rate plan.
The company returned almost $2B to its shareholder through $.9B in dividends and $1B in share repurchases.
“We delivered solid first-quarter sales and operating earnings gains, while our teams advanced the intended business separations. The Materials Science and Specialty Products divisions delivered better-than-expected top- and bottom-line growth with higher prices and volume gains, including value adding product innovations. Their growth more than offset weather-related delays that are expected to shift a substantial portion of our Agriculture earnings to the second quarter. All three divisions hit their cost synergy targets, producing savings of over $300 million as we build momentum on our $3.3 billion in cost synergies and put more focus on the $1 billion in growth synergies. And we continue to expect Materials Science to spin by the end of the first quarter of 2019, with Agriculture and Specialty Products separating by June 1, 2019. These will be three world-class companies equipped to further their leadership positions in attractive growth markets.” -said Ed Breen, chief executive officer of DowDuPont.
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