Today, 7:22 AM
- Operating earnings of $1B, or $1.24 a share vs. $994M, or $1.09 per share in the same quarter a year ago.
- Sales of $7.1B reflected 2% volume growth, due to Agriculture, Performance Materials and Nutrition & Health.
- Total company gross margins expanded more than 100 bps, whild segment operating margins increased about 250 bps.
- "Continued progress on our cost savings program keeps us on track to reach $1B on a run-rate basis by year-end," said CEO Ed Breen. "We are pleased with the overwhelming vote of approval the merger received from our shareholders."
- As a result, operating earnings per share for the current year is expected to be between $3.15 and $3.20 (an increase of $0.10/share on the low-end.)
- DD +1.2% premarket
- Q2 results
Today, 6:05 AM
Yesterday, 5:30 PM
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Wed, Jul. 20, 11:28 AM
- DuPont (DD +0.6%) and Dow Chemical (DOW +0.9%) shareholders approve the merger of the two largest U.S. chemical companies at their respective special meetings, a key step in closing the deal before year-end.
- The next hurdle is winning antitrust clearance: The U.S. Department of Justice in February issued a second request for information on the merger, the companies notified China’s competition agency of the deal in May, and they filed with the European Commission last month.
- Within two years, the companies plan to split into three separate publicly traded companies focused on agriculture, material science and specialty products.
Fri, Jul. 8, 12:59 PM
- Chemours (CC +14.9%) spikes on a report that a jury decided that DuPont (DD +2.5%) should pay only $500K in punitive damages to a man who developed testicular cancer after drinking water polluted with the company’s Teflon chemical.
- Chemours fell 21% on Wednesday following news that DuPont was found liable for $5.1M related to the toxic Teflon chemical case and Chemours would pay most of the costs.
Wed, Jul. 6, 4:05 PM
- Chemours (CC -21.6%) plunged during the final hour of trading after DuPont (DD -1.7%) was found liable for a man’s testicular cancer in a test case involving 3,500 lawsuits over a toxic Teflon chemical found in Ohio and West Virginia waters; although DuPont was found liable, spinoff Chemours must bear the cost.
- A Columbus, Ohio, jury returned a verdict today that found DuPont responsible for negligence and $5.1M in associated damages; the jury also found actual malice, meaning the company will face punitive damages.
- In the first related test case last October, a jury awarded $1.6M to a woman who sued over the contamination, and a second case settled on undisclosed terms.
Tue, Jun. 28, 3:39 PM
- Dow Chemical (DOW -2.1%) and DuPont (DD -2.6%) are downgraded to Neutral from Overweight at J.P. Morgan, citing a lack of near term upside potential amid rising risks of contraction in the world's major economic regions, particularly Europe.
- "When recessions arise, oil demand contracts and oil prices decreases; plastics product prices and profit margins then move lower," writes JPM's Jeffrey Zekauskas, adding that under weakening economic conditions, the market likely will ask for a higher risk premium or margin of safety in investing in Dow.
- JPM sees a greater likelihood that Dow and DuPont can be purchased over the next year at comparable or lower share prices.
- The firm cuts its price target for Dow to $50 from $57 and lowers its price outlook for DD to $64 from $73.
Thu, Jun. 23, 8:06 AM
Wed, Jun. 22, 7:50 AM
- Dupont (NYSE:DD) and Bayer (OTCPK:BAYRY) are teaming up to invest in a new fund that will back agricultural technology startups, becoming the latest companies to pile into the multibillion-dollar industry as farm profits shrink.
- Along with venture capital firm Finistere Ventures and others, the two firms have launched a $15M accelerator fund, called Radicle, that will back early-stage agricultural-tech companies.
Tue, Jun. 14, 3:59 PM
- The U.S. Department of Justice's antitrust division should carefully analyze Dow Chemical's (DOW -1%) proposed $130B merger with DuPont (DD -1.3%) to ensure it will not hurt competition in the farming sector, U.S. Sen. Grassley says.
- The veteran senator says in a letter to the DoJ that he was concerned the planned merger would "decrease competition in an agriculture sector that has already been subject to a number of waves of consolidation in recent years."
- Grassley, who chairs the Senate's judiciary committee and serves on the agriculture committee, in March asked for an assessment of the impact on domestic food security from ChemChina's planned takeover of Syngenta.
Mon, May 23, 6:40 PM
- Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) announce its senior leadership team for the planned merger of the companies, including leadership for the three businesses that eventually would be split off.
- Howard Ungerleider will become DowDuPont's CFO, Dow COO Jim Fitterling will become COO of the merged company's materials business, James Collins is named COO of the combined company's agriculture business, and Marc Doyle will take the job of COO of DowDuPont’s specialty products business; the companies already had said that Andrew Liveris would become executive chairman and Edward Breen the CEO.
- Nicolas Fanandakis, who has been DuPont’s CFO since 2009, will lose the position after the deal closes; his new role has yet to be disclosed.
- Now read Dow Corning CEO Hansen to retire; Ungerleider, Gregorio named new leaders
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
Tue, May 17, 2:59 PM
- Foods produced from genetically engineered crops do not pose additional health risks to humans compared with conventionally bred foods, the National Academies of Sciences, Engineering, and Medicine says in a new report.
- "Patterns of change in cancer incidence in the United States and Canada are generally similar to those in the United Kingdom and western Europe, where diets contain much lower amounts of food derived from [genetically engineered] crops, according to the report.
- Another source of debate over GMOs recently has concerns about the safety of the glyphosate weed killer; the WHO and the Food and Agriculture Organization of the United Nations said in a report yesterday that glyphosate is not likely to be carcinogenic.
- Relevant tickers include MON, DD, SYT.
- Separately, MON says it is temporarily suspending operations in Burkina Faso after the African country’s government moved to stop production of genetically modified cotton.
Thu, May 12, 3:37 PM
- Monsanto (MON +8.5%) remains sharply higher though off highs of the day, following headlines that Bayer (OTCPK:BAYRY -4.1%) and BASF (OTCQX:BASFY -1.7%) are considering a possible acquisition of the company.
- Financial Times reports that MON is interested in forming some sort of combination with the agrochemical businesses of either of the two companies but opposes any deal that would turn it into a division of a German company.
- Piper Jaffray analysts say the interest in acquiring MON is mere speculation, seeing a potential joint venture as a more likely outcome as "we believe Monsanto remains committed to building a chemistry business."
- J.P. Morgan believes Bayer would need to raise equity given the size of the deal, and thinks Bayer investors likely would be only lukewarm around the potential deal given limited accretion and investor desire for Bayer to strength its pharma pipeline following recent setbacks.
- Analysts say a MON takeover likely would draw intense scrutiny from global regulators already confronting an unprecedented wave of consolidation in the crop chemicals industry involving the likes of Dow Chemical (DOW +0.8%), DuPont (DD +0.2%) and Syngenta (SYT +0.4%).
- Now read Seed war sparked: Bayer and BASF to battle over Monsanto?
Thu, Apr. 28, 3:24 PM
- Dow Chemical (DOW -0.4%) is slightly lower after reporting better than expected Q1 earnings as cost cutting helped lift margins to their highest in more than a decade.
- Dow cites local price declines in hydrocarbons and energy for Q1's 13.5% Y/Y revenue decline, as well as the stronger dollar which makes its products more expensive abroad; Q1 sales volumes rose 4%, led by gains of 5% in the China region and 13% in India, while average prices fell 12% Y/Y.
- Dow's operating margin expanded by 164 bps to 21.1% on an EBITDA basis in the quarter, but net income available to common shareholders fell 88%, mainly due to a charge related to the settlement of a class action suit.
- Chairman/CEO Andrew Liveris says he sees "strong demand signals in North America, gradual recovery in Europe and ongoing sustainable urbanization in China, [but] pockets of volatility will persist... most notably in Brazil."
- Dow says the merger with DuPont (DD -1.4%) is on schedule to close in “the back part of the year,” pending approval of Dow shareholders in a midyear vote.
- Now read DuPont sees SEC review of Dow Chemical deal ending by June 30
Tue, Apr. 26, 10:55 AM
- DuPont (DD +2.4%) says it expects the SEC's review of its proposed merger with Dow Chemical (DOW +2.2%) to be completed by the end of June, with the deal closing in October or November.
- "We're in great shape in all our filings in all the jurisdictions around the world - China, Europe, Brazil, obviously the U.S.," CEO Edward Breen said in today's earnings conference call; he did not say when he thought the Justice Department might finish its antitrust review.
- DuPont also says it plans to buy back $2B of shares in 2016, and make the repurchases after the shareholder vote for the deal, expected to be held after completion of the SEC review.
- Breen says DuPont's overhead is down to 1.3% of sales, closing in on his target of 1%, and that the company is on track with plans to eliminate $730M in annual costs this year, with Q1 corporate expenses down 44% from prior-year levels, and overall operating costs falling 7%.
- DuPont is higher after reporting better than expected Q1 earnings and raising its 2016 earnings outlook, citing a weakening of the dollar against most currencies.
- Now read Golden parachutes descend onto Dow, DuPont CEOs
E.I. du Pont de Nemours & Co. science-based products and services company. It operates through seven segments; Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Chemicals, Performance Materials, Safety and Protection. The Agriculture segment... More
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