DowDuPont results beat expectations; materials and specialty products growth offset agriculture declines
Shares of DowDuPont Inc. were little changed in light premarket trade Thursday, after the chemical company beat profit and revenue expectations, as sales growth in the materials science and specialty products businesses offset a decline in agriculture sales. Net income rose to $1.10 billion, or 47 cents a share, from $888 million, or 72 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $1.12, above the FactSet consensus of $1.10. Revenue rose to $21.51 billion from $13.23 billion, beating the FactSet consensus of $21.36 billion. Volume fell 2%, as a weather-related shift in agriculture offset volume gains in materials and specialty products. Local prices rose 3%. “There are discrete headwinds, including continued volatility in our input costs and weather-related softness in agriculture,” said Chief Financial Officer Howard Ungerleider. “However, leading indicators from manufacturing output, to improving energy markets, to employment and consumer spending remain largely positive, reflecting increased economic activity.” The stock has dropped 10.9% year to date through Wednesday, while the Dow Jones Industrial Average has slipped 3.2%.