DowDuPont Inc. (NYSE:DWDP) Q1 2018 Earnings Conference Call - Final Transcript

May 03, 2018 • 08:00 am ET

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DowDuPont Inc. (NYSE:DWDP) Q1 2018 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to DowDuPont's First Quarter 2018 Earnings Call. [Operator Instructions] Also today's call is being recorded.

I would now like to turn the call over to Greg Friedman, Vice President Investor Relations. Please go ahead, sir.

Executive
Gregory Friedman

Good morning, everyone. Thank you for joining us for our first quarter 2018 earnings call. DowDuPont is making this call available to investors and media via webcast. We have prepared slides to supplement our comments on this call. These slides are posted on the investor relations section of DowDuPont's website and through the link to our webcast.

Speaking on this call today are Ed Breen, Chief Executive Officer; and Howard Ungerleider, Chief Financial Officer. Also with us in the room for Q&A are Andrew Liveris, Director and former Executive Chairman; Jim Fitterling; Jim Collins and Marc Doyle, Chief Operating Officers for DowDuPont's Materials Science, Agriculture and Specialty Products divisions respectively; and Neal Sheorey, Vice President of Investor Relations.

Please read the forward-looking statement disclaimers contained in the news release and slides. During the call, we will make forward-looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risk and uncertainty, our actual performance and results may differ materially from our forward-looking statements.

Our 10-K and each of Dow's and DuPont's include a detailed discussion of principal risks and uncertainties, which may cause such differences. Also, we will comment on segment results on a divisional basis. So please take note of the divisional disclaimer in our earnings release and slides. Unless otherwise specified, all historical financial measures presented today are on a pro-forma basis and all financials where applicable exclude significant items.

We will also refer to non GAAP measures a reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and on our website.

I will now turn the call over to Ed.

Executive
Edward Breen

Thanks Greg, and thanks everyone for joining the DowDuPont first quarter earnings call. I'll start by covering the financial highlights, then I'll provide an update on our progress toward the key strategic drivers, the synergies, our growth plans and intended spins. I'll then hand it over to Howard to discuss the quarterly results in more detail. This past quarter marked the second full quarter of operations for DowDuPont and the teams have come together well and they again delivered strong results.

As shown on slide four, here are the first quarter highlights. Sales increased 5% to $21.5 billion. Price rose 3% with gains in all geographies and most segments. Operating EBITDA increased 6% and we grew our adjusted operating EPS 7%. Our results this quarter were due to strong performance from the Materials Science and Specialty Products divisions. Their growth more than overcame severe cold weather in the Northern Hemisphere, which shifted Ag shipments from the first quarter to the second quarter.

Our performance in the quarter was driven by solid execution, disciplined price volume management, cost synergies,