DuPont reports Q2 earnings, stockholder approval of merger

By Susanne Retka Schill | July 28, 2016

DuPont announced second-quarter 2016 operating earnings of $1.24 per share on sales of $7.1 billion. Sales were down slightly from the previous year as volume growth of 2 percent was more than offset by pressure from local price, currency and portfolio.

Agriculture sales of $3.2 billion reflected 3-percent volume growth, driven by higher corn seed and insecticide sales, partially offset by lower soybean volumes in North America. The industrial biosciences division saw $355 million in sales, a 1 percent decline, primarily due to currency values. Operating earnings in the agriculture segment were $865 million in Q2 compared to $772 million in the same period a year ago. Industrial biosciences saw $62 million in Q2 operating earnings compared to $50 million in the prior year. Total segment operating earnings for DuPont were $1.6 billion in Q2, compared with $1.4 billion in the same quarter one year ago.

Late last week, DuPont and Dow Chemical Co. announced their respective special meetings of stockholders, held on the same day, approved the merger of equals. The companies expect the merger transaction to close in the second half of 2016, subject to customary closing conditions, including receipt of regulatory approvals. DuPont and Dow intend that, following the consummation of the merger, the combined company will pursue separation into three independent, publicly traded companies of the combined company's agriculture business, material science business and specialty products business. The separation is expected to be done as soon as practical following the merger closing, and not more than 18 to 24 months after.

In late May, not long after the merger announcement, DowDuPont announced Andrew Liveris, chairman and CEO of Dow, will become executive chairman of the merged company, and Edward Breen, chair and CEO of DuPont, will become CEO. In addition to other duties, Liveris will have responsibility for the Material Science business, and Breen will have responsibility for the Agriculture and Specialty Products businesses. Both executives will report to the DowDuPont Board of Directors.