DowDuPont Inc. (NYSE:DWDP) Q4 2018 Earnings Conference Call - Final Transcript

Jan 31, 2019 • 08:00 am ET


DowDuPont Inc. (NYSE:DWDP) Q4 2018 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day and welcome to DowDuPont's Fourth Quarter 2018 earnings call. (Operator Instructions)

I would now like to turn the call over to Jen Driscoll, VP of Investor Relations. Please go ahead, ma'am.

Jennifer K. Driscoll

Thank you, Rochelle. Good morning, everyone. Thank you for joining us for DowDuPont's Fourth Quarter 2018 Earnings Conference Call. We're making this call available to investors and media via webcast. We have prepared slides to supplement our comments during the conference call. These slides are posted on the Investor Relations section of DowDuPont's website and through the link to our webcast.

Speaking on the call today are Ed Breen, Chief Executive Officer; Howard Ungerleider, Chief Financial Officer; Jim Fitterling, Jim Collins and Marc Doyle, who are Chief Operating Officers for DowDuPont Materials Science, Agriculture, and Specialty divisions, respectively, and Lori Koch and Neal Sheorey who will lead IR for the New DuPont and New Dow, respectively.

Please read the forward-looking statement disclaimer contained in the news release and slides. During our call, we'll make forward-looking statements regarding our expectations or predictions about the future. Because these statements are based on current assumptions and factors that involve risks and uncertainties, our actual performance and results may differ materially from our forward-looking statements. Our Form 10 and each of Dow's and DuPont's Form 10-K, as well as Dow's and Corteva's Form 10s and DowDuPont's prospective supplement filed on November 16 of 2018, include 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 for the full-year 2018 are on a pro forma basis and our financials where applicable, exclude significant items.

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

With that, I'll turn the call over to Ed.

Edward D. Breen

Thanks, Jen, and thanks everyone for joining us. Today, we reported fourth quarter and full-year results for 2018. And as we will discuss on this call, it was a good year on all counts as we delivered innovative solutions to customers, exceeded our cost synergy target, and at the same time, prepared to stand up three industry-leading world-class companies.

In terms of our overarching performance for the full year, we grew adjusted EPS 21% on a pro forma basis to $4.11. We delivered a net sales increase of 8%, with price improvement in all regions and volume growth in most regions. We also increased operating EBITDA 13%. In two months, we plan to separate the new Dow, followed shortly thereafter, by the separation of Corteva from new DuPont. We made significant progress this year towards these important milestones, and I'd like to thank the teams for all their hard work to make this happen.

Now let me recap the high points of the year