Diversified chemicals manufacturer and Dow-30 component DowDuPont (DWDP – Free DowDupont Stock Report) has reported third-quarter results. The company posted sales of $20.1 billion, an increase of about 10% on a pro-forma, year-over-year basis. Volume increased 5%, with gains in all divisions and regions. Growth was particularly strong in the Asia Pacific region. That said, expenses were also a bit higher. Earnings per share came in at $0.63, somewhat below the prior-year pro-forma tally of $0.69. Still, adjusted earnings of $0.74 was considerably greater than the corresponding pro-forma figure from the year ago period of $0.55.
The Agriculture Division experienced volume gains and greater local prices in Latin America. This was supported by new product launches. The Performance Materials & Coatings business benefited from strong demand for its consumer solutions and coatings and performance monomers offerings. The Industrial Intermediates & Infrastructure operation reported healthy sales gains for polyurethanes & industrial solutions, though this was partly offset by easing isocyanate prices. The Packaging & Specialty Plastics segment benefited from greater demand in most regions and new capacity additions on the Gulf Coast. The business achieved solid volume gains across key end-markets. Meanwhile, the Electronics & Imaging operation gained from strength in semiconductor technologies and display technologies. Elsewhere, the Nutrition & Biosciences business benefited from growth in probiotics and specialty proteins. In addition, strong demand in automotive, electronics, and aerospace markets boosted results at the Transportation & Advanced Polymers business. Finally, the Safety & Construction segment benefited from broad-based growth across industrial, life and personal protection, and medical packaging end-markets. This resulted in strong volume growth in aramids, Tyvek protective materials, and water solutions. The strength was partly offset by softness in construction and the U.S. residential market.
We have lowered our estimates slightly, and now expect sales and earnings per share of $88 billion and $3.90 for full-year 2018. Still, industry fundamentals remain favorable, and we expect that the company will continue to benefit from healthy demand across its key markets. The separation of DowDuPont into three separate entities continues to proceed, and we expect this process will be completed by June of 2019.
- Michael Napoli
