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DuPont’s Revenue Rose in 2Q17 Due to Higher Volumes

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DuPont’s revenue in 2Q17

DuPont (DD) reported revenue of $7.42 billion in 2Q17—an increase of 5.10% on a year-over-year basis. In 2Q16, DuPont reported revenue of $7.06 billion. The increase in DuPont’s revenue reversed the falling trend in second quarter revenue since 2012.

DuPont’s revenue increase was primarily driven by overall volume growth witnessed across all of the reporting segments. Revenue grew in all of the segments with the exception of the Nutrition and Health segment. The biggest gains came from the Electronics and Communications and Industrial Biosciences segments.

Geographically, the Asia-Pacific region witnessed the highest growth of 10%. The US and Canada rose 6%, EMEA (Europe, Middle East and Africa) rose 1%, and Latin America fell 3%.

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Merger with Dow Chemical

A few days ago, DuPont provided an update on the merger with Dow Chemical (DOW). DuPont expects the merger to be complete by the end of August 2017. DuPont said that it will work towards the planned spin-off within 18 months after the merger completion. Ed Breen, DuPont’s chairman and CEO, said, “We continue to see the results of the focus, efficiency and productivity our teams are delivering as we move toward the expected August closing of the merger with Dow. Our integration planning will enable us to begin implementation quickly, including launching the projects to achieve our $3 billion cost synergies target, and move toward standing up the strong, independent companies we intend to create.”

Investors looking for exposure in DuPont can invest in the iShares U.S. Basic Materials ETF (IYM). IYM has invested 12.0% of its portfolio in DuPont. IYM has also invested in Monsanto (MON) and Praxair (PX) with weights of 8.40% and 6.30%, respectively, as of July 25, 2017.

In the next part, we’ll look at how DuPont’s Agricultural segment performed in 2Q17.

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