Diversified chemicals manufacturer and Dow-30 component DowDuPont (DWDP – Free DowDuPont Stock Report) has reported earnings for the June quarter. The top line increased 17% year over year, to $24.2 billion. The company posted double-digit growth in all divisions and gains in all geographic regions. Earnings per share came in at $1.26.
The Agriculture division reported sales growth of about 25%, driven by a recovery from weather-related delays experienced earlier in the year as well as local price gains. This was partly offset by lower planted area in the United States and Canada. Total insecticide sales increased at a strong pace.
Meanwhile, the Materials Science division posted a top-line advance of 18%. Impressive growth at the Industrial Intermediates & Infrastructure business led the way, thanks to increasing production from the Sadara joint venture and greater North American demand for vinyl chloride monomer and methylene diphenyl diisocyanate. The Performance Materials & Coatings and Packaging & Specialty Plastics lines also fared well.
Elsewhere, the Specialty Products division posted a top-line advance of about 10%. The Nutrition & Biosciences line benefited from the acquisition of FMC's Health & Nutrition business. Greater demand for specialty proteins and gains in probiotics and pharmaceutical excipients also helped. Sales of bioactives were healthy, as well. The Transportation & Advanced Polymers business capitalized on strong demand in the automotive, electronics, aerospace, and healthcare markets.
Looking forward, the company ought to further benefit as broad-based consumer strength drives economic expansion. Leading indicators continue to suggest increased global economic activity. Currency fluctuations and greater raw materials costs may, however, present headwinds. Still, much of DowDuPont's business portfolio is likely to experience healthy growth in the coming quarters. We have raised our estimates for full-year 2018, and now expect sales and share earnings of $90 billion and $4.40, respectively.
About The Company:DowDuPont is a holding company formed with the merger of diversified chemicals manufacturers DuPont and Dow Chemical in August of 2017. It operates on a global scale, manufacturing a wide range of products to many different markets, including agriculture, medical, protective apparel, electronics, and nutrition. The company’s divisions include Agriculture, Materials Science, and Specialty Products.