DowDuPont, a holding company comprised of The Dow Chemical Company and DuPont, has reported financial results for second quarter 2018.
Net sales increased 17 percent to $24.2 billion, with double-digit growth in all divisions and gains in all geographic regions, from pro forma net sales of $20.7 billion in the year-ago period. The Agriculture division increased sales 25 percent, driven by a recovery from weather-related delays in the first quarter and local price gains. The Materials Science division grew sales 18 percent, with double-digit gains in all segments and in all regions. The Specialty Products division increased sales 10 percent, with gains in most segments and all regions.
Volume grew 10 percent on a pro forma basis from the year-ago period, with gains in all divisions and all regions, led by double-digit gains in U.S. & Canada and Asia Pacific. Agriculture volume increased 20 percent, primarily driven by a recovery from weather-related delays in the first quarter. Materials Science and Specialty Products volume increased 10 percent and 4 percent, respectively, both with gains in all segments and regions.
The Packaging & Specialty Plastics segment achieved net sales of $6.1 billion, up 12 percent from pro forma net sales of $5.4 billion in the year-ago period. Sales rose in all regions, with double-digit increases in Asia Pacific, EMEA and Latin America. Volume grew 8 percent, with gains in all regions, while local price increased 1 percent. Currency benefited sales by 3 percent, primarily in Europe.
The Packaging and Specialty Plastics business grew volume by 9 percent, with gains in all regions, supported by broad-based demand strength, new capacity additions on the U.S. Gulf Coast and increased Sadara production. Double-digit demand growth was achieved in food and specialty packaging, industrial and consumer packaging and rigid packaging end-markets. The business also delivered growth in elastomers applications, with double-digit volume gains in most regions, as well as high single-digit demand growth in wire and cable applications, led by U.S. & Canada and EMEA.
Operating EBITDA for the segment totaled $1.3 billion, up 14 percent from pro forma operating EBITDA of $1.2 billion in the year-ago period. Broad-based price increases; volume gains, including increased supply from growth projects; lower commissioning and startup costs; higher equity earnings; and cost synergies more than offset increased feedstock costs and higher year-over-year planned maintenance activity.
Equity earnings for the segment were $108 million, up from pro forma equity earnings of $37 million in the year-ago period, driven by higher contributions from the Kuwait joint ventures and improved results from the Sadara joint venture.
Source: Company Press Release