DowDuPont provides update on Q1 performance
DowDuPont is providing expected divisional results for the first quarter. The company expects to report total company results in line with the guidance provided on March 28 and is now providing additional detail regarding expected results at the division level: Specialty Products anticipates reporting better than expected results; Materials Science results are expected to be in line with its updated guidance; and Agriculture is expected to report results that are lower than its updated guidance, due to the longer than expected impact of severe weather-related conditions. Agriculture: On March 28, the Agriculture Division reported on the effects of March flooding in the Midwestern U.S., which created transportation disruptions that halted farming operations and severely delayed seed deliveries into the early part of April. Less than 50% of planned seed deliveries in the last 5 days of the quarter occurred, resulting in a greater than anticipated impact on first quarter performance. In this peak delivery period, under normal circumstances and based on history, the division would expect one day of U.S. seed sales to generate about ~$25M-$35M in operating EBITDA. The division expects to record net sales of $3.4B and operating EBITDA of about $665M, down 11% and 25% versus the same quarter last year, respectively. For the first half of 2019, the division anticipates net sales to be down low-single digits percent and operating EBITDA to be 3%-5% below the same period last year. Deliveries are on track with current expectations and the revised first half guidance reflects the possibility of reduced planted acres overall, lower than anticipated corn acres, and continued delays to the start of the planting season due to additional weather events. The division confirms full year guidance of organic sales up low-single digits percent and operating EBITDA of about $2.8B. The division expects to overcome the first half decline through realization of price and volume opportunities on high demand products and new product launches and accelerated cost synergy delivery, resulting in an improvement in second half performance versus prior year. Specialty Products: The division expects to record net sales of $5.4B and operating EBITDA of $1.6B, down 3% and flat, respectively, with the prior year period. The division had previously expected both net sales and operating EBITDA to be down low-single digits percent. Materials Science: The division expects to record results that are in line with its updated guidance - net sales of $10.8B and operating EBITDA of $1.9B, down 10% and 24%, respectively, from the prior year period.