reported a decrease in earnings for the third quarter as expenses from operations and efforts to divide into three different companies climbed.
Nevertheless, profit gained analyst expectations, and stocks rose 7.5% to $ 57.95 in morning trading in New York. The company also said it plans to buy back $ 3 billion of its own stock before April 1st.
DowDuPont expects to divide into three different companies, one that will focus on agriculture, one on specialty products and another on materials. The company expects the new companies to be created in June.
For the third quarter, the industrial conglomerate reported a profit of $ 497 million, a decrease of 3.3 percent compared to the quarter a year ago. It is said that earnings per share were 21 cents, down from 32 cents.
Excluding items as expenses related to the company’s restructuring and separation plans, DowDuPont’s profit was 74 cents per share. Analysts requested Refinitive expected 71 cents per share on an adjusted basis.
Net sales increased by 31% to $ 20.12 billion, as it said it benefited from stronger sales volumes and higher prices in all its divisions and regions. Analysts requested by Refinitive expected $ 20.23 billion.
DowDuPont said that stronger demand and capacity increases contributed to sales in the segment of packaging and specialty plastics, the company’s largest revenue, increased by 11% on pro forma to $ 612 billion.
Sales, general and administrative expenses dropped 49% to $ 1.5 billion while integration and separation costs increased 88% to $ 666 million.
DowDuPont is now striving for $ 3.6 billion in cost savings after the Dow and DuPont merger, from above its previous target of $ 3.3 billion.
The company repeated its guidance for 2018 adjusted earnings to rise in the low 20 percent range from the previous year.
DowDuPont said last month that it expected to record a charge of 4.6 billion kronor in its agricultural department, but said it would not affect its financial reports for the third quarter.
Write to Allison Prang at [email protected]