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DowDuPont’s Agriculture sales up in Q4 2018 driven by new products launch
Feb. 1, 2019
DowDuPont
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United StatesTo read the entire report click here
2018 Full-Year Highlights
*GAAP earnings per share from continuing operations totaled $1.65. Adjusted earnings per share was $4.11, up 21 percent versus pro forma results in the year-ago period. Adjusted earnings per share excludes significant items totaling net charges of $2.02 per share, as well as a $0.44 per share charge for DuPont amortization of intangible assets.
*GAAP net sales increased 38 percent. Net sales increased 8 percent to $86.0 billion versus pro forma results in the year-ago period, with gains in all regions.
*Volume grew 4 percent on a pro forma basis, with gains in most regions, led by double-digit growth in Asia Pacific.
*Local price rose 3 percent on a pro forma basis, with gains in all regions. Currency increased sales 1 percent.
*GAAP Net Income from Continuing Operations totaled $4.0 billion. Operating EBITDA increased 13 percent to $18.3 billion versus pro forma results in the year-ago period, as cost synergies; local price gains; volume growth, including the benefit of new capacity additions; lower pension/OPEB costs; and higher equity earnings more than offset higher raw material costs.
*DowDuPont achieved year-over-year cost synergy savings of $1.6 billion, surpassing its increased target of $1.5 billion.
*Cash flow from operations totaled $4.7 billion and included discretionary pension contributions of approximately $2.2 billion. Excluding these discretionary contributions, cash flow from operations would have been $6.9 billion.
Agriculture
• Net sales of $2.8 billion grew 1 percent in the fourth quarter, driven by sales of new Crop Protection products and the timing of seed shipments in Latin America and U.S & Canada, partly offset by currency pressures in Latin America. Volume and price rose 4 percent and 5 percent, respectively, offset by currency of 5 percent and the portfolio impact of the Brazil corn seed remedy of 3 percent.
• Operating EBITDA grew 4 percent in the fourth quarter. Cost synergies and sales gains drove the improvement, which was partly offset by higher input costs and investments to support new product launches.
• Full-year net sales of $14.3 billion were even with last year as organic sales growth of 1 percent was offset by a portfolio impact. Organic sales growth of 6 percent in crop protection was driven by new product sales, which more than offset currency pressures. Seed sales declined 4 percent as higher local price was more than offset by reduced volume related to lower planted area in U.S. & Canada and Latin America and the Brazil corn remedy.
• Full-year operating EBITDA of $2.7 billion increased 4 percent as cost synergies, new product sales gains in Crop Protection and lower pension/OPEB costs more than offset higher input costs, investments to support new product launches and seed sales declines.
Fourth quarter net sales in Crop Protection increased 6 percent. Organic sales grew 10 percent on strong volumes, driven by new product launches (including picoxy-based products in Latin America, pasture and land management products and Enlist™ Herbicides), partly offset by a weather-related reduction in demand for nitrogen stabilizers. Higher local prices were offset by currency pressures, primarily in Latin America.
Fourth quarter net sales in Seeds decreased 4 percent. Organic sales increased 8 percent. Strong volume growth reflected the beginning of a recovery from the sale of the Dow AgroSciences Brazil corn seed remedy, an early start to the safrinha season in Latin America and the timing of seed shipments in U.S. & Canada. The negative portfolio impact reflected inclusion of two months of the Brazil corn remedy in last year’s quarter.
Fourth quarter operating EBITDA grew 4 percent as margin expansion from synergies and sales gains more than offset higher input costs and investments to support new product launches.
Source: DowDuPont press release
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