Apr. 2, 2019
DowDuPont™ (NYSE:DWDP) provided an update to its previously stated modeling guidance for the first quarter of 2019, as a result of near-term trends and discrete headwinds in some of its key value chains in the Agriculture and Materials Science divisions.
DowDuPont now expects first quarter 2019 net sales to be down high-single digits percent (versus previous guidance of down mid-single digits percent) and expects operating EBITDA to be down high-teens percent (versus previous guidance of down low-teens percent), both versus the same quarter last year. Key drivers of the Company’s updated modeling guidance for the first quarter include:
Agriculture: Flooding during the month of March in the Midwestern region of the U.S. has culminated in a federal disaster declaration for the region. Transportation disruptions throughout the region and significant road closures have halted farming operations, limited the ability to deliver products to customers, and delayed pre-season applications. As a result, Division net sales for the first quarter of 2019 are expected to be down 4 - 6 percent and operating EBITDA is expected to be down $125 - $150 million, as compared to the same quarter last year. An assessment of the full year impacts, accounting for delays in first quarter customer deliveries along with expected recoveries, will be provided with the upcoming first quarter earnings release.
DowDuPont will release its financial results for the first quarter of 2019 on May 2.