DowDuPont (DWDP) Reports In-Line Q1 EPS, Revenues Miss

DowDuPont (NYSE: DWDP) reported Q1 EPS of $0.84, in-line with the analyst estimate of $0.84. Revenue for the quarter came in at $19.64 billion versus the consensus estimate of $19.9 billion.

First Quarter Financial Highlights

• GAAP earnings per share from continuing operations totaled $0.23, a decline of 51 percent versus the year-ago period of $0.47. Adjusted earnings per share1 decreased 25 percent to $0.84, compared with the year-ago period of $1.12. Adjusted earnings per share excludes significant items in the quarter totaling net charges of $0.50 per share and an $0.11 per share charge for DuPont amortization of intangible assets. Adjusted earnings per share in the year-ago period excludes significant items totaling net charges of $0.54 per share and an $0.11 per share charge for DuPont amortization of intangible assets.
• Net sales of $19.6 billion were down 9 percent compared with the year-ago period on lower local price of 4 percent, a 3 percent currency headwind and volume declines of 2 percent.
• Volume gains of 3 percent in Asia Pacific and 1 percent in EMEA were more than offset by volume declines in U.S. & Canada of 7 percent and in Latin America of 1 percent.
• Local price increases in Specialty Products and Agriculture of 3 percent and 1 percent respectively, were more than offset by a price decline of 9 percent in Materials Science.
• GAAP Net Income from Continuing Operations totaled $0.6 billion, down 50 percent versus the year-ago period. Operating EBITDA1 was $4.0 billion, down 17 percent as compared to the year-ago period. Margin compression in the Materials Science Division, weather-related volume declines in the Agriculture Division and currency headwinds across all Divisions more than offset cost synergies.
• DowDuPont achieved year-over-year cost synergies of approximately $400 million in the quarter, and since merger close has now delivered more than $2.2 billion of cost savings.
• The Company returned $2.4 billion to shareholders in the quarter through dividends (~$0.8 billion) and share repurchases (~$1.6 billion). Since merger close, the Company has returned nearly $12.5 billion to shareholders.

"Each business aggressively managed the levers within our control and benefitted from the strong foundations we have put in place in the face of discrete headwinds, including the effects of unprecedented bad weather, margin compression in key value chains, and sluggish auto and smartphone market conditions. Our emphasis on innovation and valued-added, higher margin products enabled us to benefit from stronger pricing in both our Specialty Products and Agriculture Divisions. We also advanced our cost synergies with an additional $400 million of savings in the quarter and we completed our $3 billion share repurchase program, repurchasing $1.6 billion in the quarter," said Ed Breen, chief executive officer of DowDuPont.

"In 30 days, we expect to complete our journey to create three leading companies in the materials science, agriculture and specialty products industries from the combination of two world-class organizations. I am confident that each of the companies we have created is a compelling investment opportunity in their respective space, with attractive financial characteristics and capital allocation policies, best-in-class cost structures and innovation priorities to accelerate growth. What we have accomplished would not have been possible without our highly talented and experienced leadership teams and their organizations. I want to thank each of my colleagues and wish them well as we move forward as new Dow, Corteva and new DuPont."

For earnings history and earnings-related data on DowDuPont (DWDP) click here.

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