Summary
E.I. du Pont de Nemours and Company (DuPont) reported a net loss of $221 million for the first quarter of 2018, a significant shift from the $1.12 billion net income reported in the same period of 2017. This loss is largely attributed to the ongoing integration and separation costs related to the DowDuPont merger, as well as a substantial increase in cost of goods sold, partly due to the amortization of inventory step-up from the merger's purchase accounting. Net sales also saw a decline, down to $6.7 billion from $7.3 billion year-over-year, influenced by seasonal timing in agriculture product deliveries and lower sales in the U.S. and Canada. Despite the net loss, the company's balance sheet remains robust, with total assets at $111.9 billion and total equity at $74.9 billion. The company continues to manage its debt effectively, with total debt at $13.2 billion. Key financial activities during the quarter included significant distributions to DowDuPont to fund share repurchases and dividends, and ongoing efforts to achieve cost synergies from the merger. Investors should monitor the progress of the planned business separations and the impact of integration costs on future profitability.
Financial Highlights
42 data pointsKey Highlights
- 1Net loss of $221 million in Q1 2018, compared to a net income of $1.12 billion in Q1 2017.
- 2Net sales decreased to $6.7 billion in Q1 2018 from $7.3 billion in Q1 2017.
- 3Cost of goods sold increased significantly, partly due to $703 million in amortization of inventory step-up from the DowDuPont merger.
- 4Integration and separation costs were $255 million in Q1 2018.
- 5Cash used for operating activities was $1.975 billion, a notable increase from $1.624 billion in the prior year's quarter.
- 6The company made substantial distributions of approximately $830 million to DowDuPont in Q1 2018.
- 7The company adopted new revenue recognition standards (ASU 2014-09) and made related balance sheet adjustments.