DowDupont Q2 net income up, higher contribution across ops

LONDON (ICIS)–DowDupont’s second-quarter net income rose 34% year on year to $1.77bn on the back of stronger volumes and price gains across each of its three core businesses, the US-headquartered chemicals giant said on Thursday.

Earnings before interest, taxes, depreciation and amortisation rose 45% year on year for the company’s agriculture division, 23% for specialty products, and 22% for materials science, the company said.

Volumes grew 10% on contributions from all divisions and regions, driven by North America and Asia Pacific, while sales rose 17% year on year during the quarter to $24.2bn, the company added.

Net income on a pro-forma rather than consolidated basis was down slightly year on year as a result of pension an integration and separation costs, as the company moves to finish merging its agriculture, materials and specialties operations as a precursor to spinning them out as independent listed companies.

“Volume growth, local price gains and operating margin expansion were the key highlights [of the quarter],” said DowDupont CEO Ed Breen.

“These are indicators that our three divisions are making a difference in the marketplace and for shareholders,” he added.

Second-quarter performance materials and coatings division operating EBITDA rose 5% year on year to $569m on the back of currency tailwinds, while industrial intermediates and infrastructure earnings rose 64% to $682m as local price gains, cost synergies offset higher raw material costs.

Packaging and specialty chemicals operating EBITDA rose 14% year on year during the quarter to $1.3bn, based on price  increases, volume improvements and lower start-up costs.

Transportation and advanced polymer earnings rose 45% year on year to $446m on price and volume gains, cost synergies and lower pension costs.

Growth is expected to continue into the third quarter, but at a slower rate, the company said. Agriculture EBITDA is expected to grow in the mid-20s percent, material science at a single digit level, and specialty products in the mid-teens.

(update adds detail, divisional performance)