Yahoo Finance DowDuPont Wraps Up Separation of Materials Science Division
DowDuPont Inc. DWDP said that it has completed the separation of its Materials Science unit through the spin-off of Dow Inc., marking the completion of the first step toward the formation of three independent public companies. Shares of Dow start trading on the NYSE under the symbol "DOW" today.
Common shareholders of DowDuPont received one share of common stock of Dow for every three shares of DowDuPont common stock they held as of the close of business as of Mar 21, 2019. Moreover, DowDuPont common shareholders will get cash in lieu of fractional shares of common stock of Dow.
DowDuPont also noted that it remains on track to complete the spin-off of its Agriculture unit, Corteva Agriscience, on Jun 1, 2019 through the planned distribution of all of the shares of common stock of its fully-owned subsidiary, Corteva, Inc., to the holders of the company's common stock on a pro rata basis.
Following this, DowDuPont will retain the Specialty Products unit and change its name to "DuPont".
DowDuPont’s shares have lost around 14% over a year, underperforming the roughly 11.8% decline recorded by the industry.
DowDuPont, last month, provided an update to its earlier stated modeling guidance for first quarter-2019. The company expects net sales for its Agriculture unit be down 4-6% and operating EBITDA to be down $125-$150 million on a year over year basis in the first quarter.
The company said that flooding during March in the Midwestern region of the United States led to transportation disruptions in the region. Moreover, significant road closures halted farming operations, delayed pre-season applications and limited the ability to deliver products to customers.
For the Specialty Products unit, DowDuPont envisions net sales and operating EBITDA to be in line with its earlier guidance. The company plans to release its first-quarter results on May 2.
Zacks Rank & Stocks to Consider
DowDuPont currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks worth considering in the basic materials space include Kirkland Lake Gold Ltd. KL, Ingevity Corporation NGVT and Israel Chemicals Ltd. ICL.
Kirkland Lake Gold has an expected earnings growth rate of 47.1% for the current year and carries a Zacks Rank #1 (Strong Buy). Its shares have surged around 96% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ingevity has an expected earnings growth rate of 17.9% for the current year and carries a Zacks Rank #2 (Buy). Its shares have rallied roughly 50% in the past year.
Israel Chemicals has an expected earnings growth rate of 10.8% for the current year and carries a Zacks Rank #2. The company’s shares have gained around 24% over the past year.
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