The chemical concern DowDuPont reported 10% sales revenue increase in the third quarter, driven by a strong demand for chemicals used in cosmetics, paints and packaging production. The world’s largest maker of chemicals also said it would buy back shares for 3 billion USD over the next five months.
The sales of the DowDuPont’s division, which produces chemicals used in cosmetics, packaging materials, paints and brake fluids, increased by 13% to 12.4 billion USD in the third quarter of 2018. The unit has the largest contribution to DowDuPont’s total revenue.
The net sales as a whole rose to 20.1 billion USD, equivalent to net sales of 18.3 billion USD an year earlier, excluding the promotions received from the year’s merger. Corrected earnings per share increased by 35% annually to 0.74 USD per share.
DowDuPont, formed by the merger of Dow Chemical and DuPont last year, said that its farm unit paid a fee of 4.6 billion USD, as global seed producers are facing demand changes as a result of the trade war between USA and China.
The charge is non-monetary, and as a result it did not affect the results for the third quarter, according to the Chief Financial Officer Howard Ungerleider. “We do not expect significant impact on our business in the fourth quarter”, added he.
The trade dispute between the US and China has led to uncertainty in the agricultural sector, especially since Beijing has this year imposed 25% US soybean duties – the most important US agricultural export to China.