Dow DuPont Group to start annual savings of 3 billion US dollars cost plan, including layoffs, stop the plant.
Dow said on Thursday that it will maximize its targets by cutting jobs worldwide, shutting down factories and assets, and saving on purchase costs, and the company has also approved the repurchase of $ 4 billion of shares.
The move shows Chief Executive Ed Bulin's commitment to accelerating the profitability of the global chemical giant, which was co-founded by Dow Chemical and DuPont on August 31 and is scheduled to split into three in early 2019.
Earlier, many analysts expected Dow to restart its share buyback plan to fund the construction of its major projects, according to Jonas Oxgaard, analyst at Sanford Bernstein, which said Texas and Saudi Arabia Of the new petrochemical facilities are about to be completed, the annual capital expenditure of 1.7 billion US dollars, is expected to begin to profit.
Oxgaard announced on Thursday: 'They will make a lot of money for the 80 billion to 100 billion repurchase program, while Alembic Global analyst Hassan Ahmed's forecast of 5 billion to 10 billion US dollars.
Share repurchases account for about 2% of the company's market value at the close of business on Wednesday.
Dividend payment
Dow also announced that 38 cents a share of fourth-quarter earnings were paid to shareholders on November 15.
Adjusted revenue for the third quarter rose 7.6% to $ 18.3 billion, while Bloomberg analysts forecast $ 18.0 billion after the company said adjusted sales rose 4% at an average price rise of 3% Find more new points of sale in more products to add $ 1 billion in revenue
With the proceeds of some projects up to 55 cents a share, in line with preliminary results reported by Dow Dupont last week, the company said the restructuring plan costs $ 2 billion, including $ 180 million in the third quarter and fourth quarter Of the $ 1 billion Dow Cormorant Dow Corps announced in September under pressure from aggressive investors Nelson Peltz and Dan Loeb that changes to the spin-off plan should be strengthened by a move by the Materials Science department to strengthen the role of materials such as polyethylene Plastic and other products of concern.
It shifts operations such as silicones, automotive adhesives and pharmaceuticals to specialty products business.
Dow Du Pont in New York pre-market trading rose 73.80 US dollars less than 1%.