Diversified chemicals manufacturer and Dow-30 component DowDuPont (DWDP – Free DowDuPont Stock Report) has reported results for the third quarter. This is the company's first earnings release since the completion of the merger between DuPont and Dow Chemical in early September. DowDuPont posted net sales of $15.4 billion for the recent interim. GAAP net income came in at $514 million, and earnings per share were $0.32.
The Agriculture business has experienced volume and pricing headwinds, driven by weakness in Latin America as sales channels have continued to hold high levels of crop protection products. A reduction in corn area in Brazil, as well as a delayed start to its summer season, impacted sales in the region. These difficulties were partly offset by the continued penetration of new products. Meanwhile, the Materials Science segment benefited from healthy sales results across the board. This line includes the Performance Materials & Coatings, Industrial Intermediates & Infrastructure, and Packaging & Specialty Plastics units. Elsewhere, the Specialty Products segment gained from solid performance at the Electronics & Imaging, Transportation & Advanced Polymers, and Safety & Construction lines.
DowDuPont continues to make progress integrating the three divisions following the merger and has begun to prepare for the intended separation of its operation into three independent businesses. The company has just closed the divestiture of its cereal broadleaf herbicides and chewing insecticides portfolios, as well as certain parts of its crop protection R&D pipeline, to FMC Corp. (FMC). DowDuPont has acquired FMC's Health and Nutrition business as part of this deal.
Looking forward, the demand outlook appears positive for the majority of DowDuPont's key end-markets. The company will likely continue to experience near-term headwinds, however, especially in agricultural markets. Efforts to reduce costs ought to support profitability, though. Still, we have reduced our estimates for full-year 2017, as third-quarter results came in somewhat below our expectations. We now anticipate revenues and share earnings of $76 billion and $3.00, respectively, for the current year.