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DowDuPont said sales, general and administrative costs increased 49% in the last quarter, while integration and separation costs increased by 88%.
Photo:
Michael Nagle / Bloomberg News
Net income to
DowDuPont
Inc.
DWDP 2.45%
decreased in the third quarter, while operating costs and efforts to divide into three different companies increased.
The industrial conglomerate posted a profit of $ 497 million, down 3.3% from the same quarter last year. He said earnings per share was 21 cents, down 32 cents.
Excluding items such as costs related to the company's restructuring and divestiture plans, earnings of DowDuPont were 74 cents per share. Analysts surveyed by Refinitiv were expecting 71 cents per share on an adjusted basis.
Net sales rose 31% to $ 20.12 billion, as the company reported having benefited from higher sales volume and higher prices in all its divisions and regions. Analysts surveyed by Refinitiv were expecting $ 20.23 billion.
DowDuPont said the increase in demand and capacity had helped sales of its special packaging and plastics segment, the group's largest sales figure, by 11% on a pro forma basis at $ 6.12 billion.
Selling, general and administrative expenses increased 49% to $ 1.5 billion, while integration and separation costs increased by 88% to $ 666 million.
The company announced Thursday that it planned to buy back $ 3 billion of its own stock by April 1.
DowDuPont plans to divide into three different companies: one that will focus on agriculture, one on specialty products and another on materials. The company expects new businesses to be created by June.
DowDuPont is now targeting cost savings of $ 3.6 billion as a result of the Dow-DuPont merger, up from its previous target of $ 3.3 billion.
The company reiterated its guidance regarding the increase in adjusted earnings for 2018 in the low range of 20% over the previous year.
DowDuPont announced last month that it expects to record a $ 4.6 billion charge in its agricultural division, but that this will not affect its third quarter financial statements.
DowDuPont shares rose 3.9% to $ 56 in pre-market
Write to Allison Prang at [email protected]
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