Edward D. Breen, the CEO of DowDuPont Inc (NYSE:DWDP), expressed that they delivered bottom- and top-line growth in Q3 2017, a robust start for their newly-formed firm. Their operating earnings jump was the outcome of broad-based demand growth in a big part of their major end-markets and well-organized margin management, which over offset numerous headwinds, from numerous hurricanes to increased feedstock costs and a deferred beginning to the summer agriculture period in Brazil.
Breen added that they offered these results while developing numerous value-creating measures, including completing their comprehensive portfolio assessment, stating the latest synergy targets for each segment and closing the merger. In the future, they should project them to remain focused on implementing on their cost synergy commitment of $3 billion and doing preparations to establish three focused growth firms in Materials Science, Specialty Products and Agriculture.
DowDuPont restated its commitment to the cost synergy target of $3 billion and updated projections by segment: Agriculture – $1 billion; Specialty Products – $0.8 billion and Materials Science – $1.2 billion. The firm started developing its playbook to offer growth synergies of deliver $1 billion. For instance, Agriculture will use its improved multi-brand, multi-channel plan intended to offer consumers more value through whole-farm and broader choices solutions.
Packaging and Specialty Plastics has started the procedure of integrating DuPont’s ethylene copolymers and resins portfolio to offer high performance packaging solutions. Imaging and Electronics has identified prospects to use its deeper channel access and extensive suite of materials with its customers.
DowDuPont reported initiatives taken to record cost savings of $3 billion. These initiatives are intended to integrate the firm post-merger and establish robust foundations for the three planned companies. The majority of this activities will arise from procurement synergies, international workforce reductions, facilities and buildings consolidations and chose asset shutdowns, among other initiatives.