The company will make adjustments to offset its decline in revenue as a result of business spin-offs.
In a report, Moody's said that materials science company profits will be reduced by about $ 2.4 billion in terms of interest, taxes, depreciation and amortization of profits (EBITDA), which represents $ 2.4 billion to be transferred to specialty products Amount of money
Moody's said that materials science firms may adjust their capital structure to justify Baa2's investment rating, while at the same time it will prevent future ethylene declines due to the upcoming North American new capacity.
Moody's said that PE prices and rising ethylene costs, tax interest, depreciation and amortization profits will be cut from 2017 to 2019 by more than 2.5 billion US dollars Moody's said the decline will offset the 1.2 billion synergy and derivatives Product business growth.
Moody's said that on the whole, ethylene fell more modestly for the spin-off of materials science and other North American ethylene producers, with cost advantages and expects cash flow from the ethylene chain to remain above $ 500 a tonne.
Moody's said that in contrast DuPont, its synergy is likely to achieve the cost of achieving 300 million US dollars synergies and $ 1.01 billion synergies of growth of which about 660 million US dollars will come from the procurement, the rest may come from the reduction of labor , Consolidation of buildings and other facilities, and other activities such as shutting down.
Moody's said according to the management team's record of performance, DuPont may well go beyond its synergy goals.MaterialsSciences is one of three companies that Dow Corning DuPont will split between March 2019 and August 2019. The other two are specialty products and agriculture, while agriculture may be named after DuPont, while materials science is named after Dow.
Moody's said that specialty products business will be both scale and credit quality for investment-grade rating.The company's revenue will reach 210 billion US dollars, EBITDA margin of about 25%, while Moody's said the four companies Business scale is very strong, and well positioned