On May 3, 2018, US local time, Dow DuPont issued its first quarter earnings report for 2018. The data shows that Dow's DuPont’s net sales increased by 5% in the first quarter of 2018, reaching US$21.5 billion in sales. EBITDA and other business activities have increased.
Net Sales Revenue Increases 5% to $21.5 Billion
In the first quarter of 2018, Dow DuPont’s net sales revenue increased by 5% to US$21.5 billion, compared to US$20.5 billion in the same period last year, and most operating units and geographic regions achieved growth. Among them, the materials science division’s net sales. Revenue increased by 17%, and the sales area it covered and related departments all achieved double-digit growth. The net sales revenue of the Special Product Division increased by 11%, and it increased in most of its market segments and sales regions.
The growth of the Materials Science Division and the Specialty Products Division just offset the 25% reduction in sales revenue of the Agricultural Division caused by the postponement of the planting season in the Northern Hemisphere and Brazil due to climate change.
The increase in net sales revenue includes 4% of the gains from exchange rate changes, mainly the change in the exchange rate of the euro.
Material Science Division sales increase up to 8%
Sales of Agriculture Division decreased by 2% year-on-year, which was mainly affected by climate. Sales of Materials Science Division increased by 8% year-on-year. Almost all segments and sales regions have increased; Sales of Materials Science Division The amount also increased by 3% year-on-year. Almost all segments and sales areas have grown.
Product local price increase
The local price of the product has increased by 3%, and almost all regions and most of the subdivided areas have grown. The local price of the materials science division's products has increased by 5%.
EBITDA increased by 6% year-on-year to US$4.9 billion
Dow's EBITDA (profit before tax depreciation and amortization) from operating activities in the first quarter of 2018 increased by 6% year-on-year to US$4.9 billion. Of these, EBITDA, a business activity of the Materials Science Division, achieved 23%. Growth has maintained double-digit growth in all of its market segments. EBITDA, the business unit of the Specialty Products Division, has grown by 25%, and most of its segments have achieved double-digit growth.
The increase in profits was mainly due to the increase in local prices and sales of the Materials Science and Specialty Products Divisions, as well as cost synergies, exchange rate changes, lower pension/OPEB costs and higher stock returns. Far more than offset the decline in EBITDA, the business activity of the Ministry of Agriculture.
Achieve over $300 million in cost synergies
Dow DuPont achieved more than $300 million in cost-saving synergies in the first quarter of 2018, surpassing its operating rate plan, and plans to deliver 75% of the $3.3 billion cost-commitment commitment by the end of the third quarter of 2018 Rate plan.
$2 billion returned to shareholders
Dow DuPont returned approximately $2 billion to shareholders in the first quarter of 2018 by paying dividends ($900 million) and repurchasing shares ($1 billion).
Outlook
Edward Breen, CEO of Dow Dupont, said, 'We have achieved solid sales and operating profits in the first quarter, and our team has pushed forward the expected business separation. Materials Science Division and Specialty The product division exceeded expectations in terms of operating and profit growth. Both product prices and sales have increased. Value-added products and innovative products have improved. The growth of these two sectors has offset the agricultural sector’s weather conditions. The resulting reductions. Business growth in the agricultural sector will be reflected in the second quarter of this year. All three sectors have realized their cost synergies, saved more than 300 million U.S. dollars, and we will strive to realize a cost synergy of 3.3 billion U.S. dollars. We will focus on synergy growth of US$1 billion. We expect that the Materials Science Division will be able to separate into a new company by the end of the first quarter of 2019. The Agricultural and Specialty Products Divisions will also be on June 1, 2019. Separated into two new companies. These three world-class companies will further play their leading position in the attractive growth market.