“We continued to deliver strong results in the second quarter, including double-digit gains in sales and operating EBITDA,” says Ed Breen, CEO of DowDuPont. “Volume growth, local price gains and operating margin expansion were the key highlights, reflecting a clear focus from the businesses on execution. Our new product launches are resonating with customers, resulting in strong demand across each of our targeted end-markets. These are indicators that our three divisions are making a difference in the marketplace and for shareholders. We have great momentum and our employees are enthusiastic about the future of our intended industry-leading companies – Corteva, Dow and DuPont.”
- Net sales increased 18 percent to $12.6 billion versus pro forma net sales in the year-ago period, with double-digit gains in all segments and in all regions. Volume grew 10 percent and local price rose 5 percent, both with gains in all segments and all regions. Currency improved 3 percent.
- Operating EBITDA grew 22 percent to $2.6 billion versus pro forma operating EBITDA in the same quarter last year, with double-digit gains in most segments.
- Equity earnings improved $175 million, driven by increased earnings from the Kuwait joint ventures and improved results from Sadara.
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.