Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Friday, February 2, 2018

Article Excerpt

DOWDUPONT INC., $70.89, symbol DWDP on New York,began trading on September 1, 2017, after Dow Chemical and DuPont merged. DowDuPont still plans to split into three separate publicly traded companies—agriculture, specialty products, and materials—but while the breakup was supposed to take up to two years, the company now says the process will take between 14 to 16 months. Meanwhile, in the three months ended December 31, 2017, DowDuPont’s revenue jumped 54.1%, to $20.07 billion from $13.02 billion a year earlier. Sales were helped by increases across most divisions and geographic sectors. Earnings also soared: the company made $1.96 billion, or $0.83 a share, up 46.3% from $1.34 million, or $0.59 a share. Regardless of the coming spinoffs, DowDuPont’s outlook is positive. The company will realize substantial cost savings from combining its operations. It has also gained pricing power over suppliers and customers in a number of areas. The new Dow, or the materials division, will be the first spinoff. The division is expected to separate…

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