DowDuPont reported lower profit in its third quarter, despite higher sales.
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In the third quarter, net income declined 29 percent to $514 million from last year's $719 million. Earnings per share fell 49 percent to $0.32 from $0.63 last year.
On a pro forma basis, net income was $232 million, down 53 percent from $494 million a year ago
Pro forma adjusted earnings per share were $0.55, compared to $0.50 a year earlier.
Pro Forma Operating EBITDA in the quarter grew 7 percent to $3.22 billion from $3.02 billion a year ago, driven by volume and price gains, higher equity earnings and lower pension/OPEB costs4 due to purchase accounting.
These gains more than offset higher feedstock costs, weak conditions in agriculture markets, the unfavorable impact of hurricanes, and startup costs related to new assets on the U.S. Gulf Coast, the company said.
Net sales for the quarter climbed 23 percent to $15.35 billion from $12.48 billion in the prior year. Pro forma net sales increased 8% to $18.29 billion, with gains in most segments and geographies. Analysts expected sales of $18.01 billion for the quarter.
Sales rose double-digits in Europe, Middle East and Africa and in Asia Pacific. Sales in North America grew 4 percent, while sales in Latin America declined driven by weakness in Agriculture due to expected lower corn area and a delayed start to the summer season in Brazil.
Pro forma volume grew 4 percent, reflecting consumer-led demand in packaging, electronics, transportation, oil and gas, building and construction, and consumer care end-markets. Volume grew in almost all operating segments.
Pro forma local price rose 3 percent, led by Industrial Intermediates & Infrastructure, Performance Materials & Coatings, and Transportation & Advanced Polymers. Pro forma local price increased in all geographies except Latin America.
DowDuPont said it planned to shut down some plants in a bid to cut costs up to $3 billion annually.
A cellulosic ethanol plant in the town of Nevada, the U.S. state of Iowa, is being closed as part of the plan, putting some 90 employees out of work, reported Radio Iowa.
DowDuPont hopes to find a buyer for the Iowa plant. ■