===DuPont (DD) announces plan to separate into three separate publicly traded companies

DuPont de Nemours, Inc., commonly shortened to DuPont, is an American multinational chemical company first formed in 1802 by French-American chemist and industrialist Éleuthère Irénée du Pont de Nemours. 

• In 2015, DuPont and the Dow Chemical Company agreed to a reorganization plan in which the two companies would merge and split into three. 
• As a merged entity, DuPont simultaneously acquired Dow and renamed itself to DowDuPont on August 31, 2017, and after 18 months spun off the merged entity's material science divisions into a new corporate entity bearing Dow Chemical's name and agribusiness divisions into the newly created Corteva; DowDuPont reverted its name to DuPont and kept the specialty products divisions.

DuPont announces plan to separate into three separate publicly traded companies, including separations of its Electronics and Water businesses; also reaffirms Q2 and FY24 guidance

• Co announces a plan to separate into three distinct, publicly traded companies. Under the plan, DuPont would execute the proposed separations of its Electronics and Water businesses in a tax-free manner to its shareholders with New DuPont continuing as a premier diversified industrial company following completion of the separations. As independent entities, both Electronics and Water will benefit from increased focus and agility in their respective industries.
• New DuPont will be a premier diversified industrial company with iconic brands such as Tyvek, Kevlar and Nomex. New DuPont will have a strong presence in fast-growing healthcare end-markets including applications for biopharma consumables, medical devices, and medical packaging.
  • New DuPont will be comprised of the existing businesses within the Water & Protection segment (excluding Water Solutions), the majority of businesses within Industrial Solutions (including healthcare), and the retained businesses reported in Corporate.
  • These businesses generated net sales of approximately $6.6 billion and operating EBITDA margin of approximately 24% in 2023.
• Electronics will be a global provider of differentiated electronics materials including key consumables used in semiconductor chip manufacturing, as well as advanced electronic materials enabling reliable signal integrity, power management and thermal management. The company will be well positioned to capture growth in the semiconductor industry, driven by high-performance computing demands from AI, high speed connectivity, smart and autonomous vehicles and the Internet of Things, among other mega-trend growth drivers.
  • Electronics will be comprised of the existing Semiconductor Technologies and Interconnect Solutions lines of business, as well as the electronics-related product lines from Industrial Solutions. These businesses generated net sales of approximately $4.0 billion and operating EBITDA margin of approximately 29% in 2023.
• Water will be a global technology leader with a comprehensive portfolio of water filtration and purification solutions with leading technologies in reverse osmosis, ion exchange and ultrafiltration.
  • Water will be comprised of DuPont's current Water Solutions line of business which generated net sales of approximately $1.5 billion and operating EBITDA margin of approximately 24% in 2023.
• Co reaffirms guidance for Q2 (Jun), sees Q2 (Jun) revs of $3.025 vs. $3.04 bln FactSet Consensus.
• Co reaffirms guidance for FY24 (Dec), sees EPS of $3.45-$3.75, excluding non-recurring items, vs. $3.63 FactSet Consensus; sees FY24 (Dec) revs of $12.1-$12.4 bln vs. $12.27 bln FactSet Consensus.

Unusual Options Activity, Thur 7/20/23

The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

Bullish Call Activity:

• HOG Jul 38 calls (volume: 2060, open int: 20, implied vol: ~81%, prev day implied vol: 48%). Co is confirmed to report earnings July 27 before the open.
• CHWY Jul 37.5 calls are seeing interest with the underlying stock down 6% (volume: 4140, open int: 120, implied vol: ~69%, prev day implied vol: 48%). Co is expected to report earnings late August.
• ProShares Short Bitcoin (BITI) Aug 18 calls (volume: 1540, open int: 0, implied vol: ~46%, prev day implied vol: 43%).
  

Bearish Put Activity:

• AR Jul 25 puts (volume: 2590, open int: 0, implied vol: ~60%, prev day implied vol: 53%). Co is confirmed to report earnings July 26 after the close.
• DOW Jul 50 puts (volume: 2820, open int: 40, implied vol: ~39%, prev day implied vol: 37%).  Co is confirmed to report earnings July 25 before the open.
  

Sentiment: The CBOE Put/Call ratio is currently: 0.83, VIX: (13.73, -0.03, -0.2%).
Tomorrow is options expiration -- the last day to trade July equity options.

==Dow (DOW) reported earnings on Tue 25 Apr 23 (b/o)

 

Dow beats by $0.21, beats on revs 

• Reports Q1 (Mar) earnings of $0.58 per share, excluding non-recurring items, $0.21 better than the S&P Capital IQ Consensus of $0.37; revenues fell 22.4% year/year to $11.85 bln vs the $11.34 bln S&P Capital IQ Consensus.
  • Volume decreased 11% versus the year-ago period, led by a 15% decline in Europe, the Middle East, Africa, and India (EMEAI). Sequentially, volume increased by 2%, due to gains in Performance Materials & Coatings and Packaging & Specialty Plastics.
• "Looking to the remainder of the year, our consistent and disciplined execution enhances our ability to navigate the impact of higher inflation on consumer demand and soft global economic activity. We expect the benefit of our operational and cost actions to continue to build as we progress through 2023. We will remain flexible, responding quickly as conditions evolve and expect oil and gas spreads to further support our strategic cost-advantaged positions," said Fitterling. "Importantly, the underlying long-term growth fundamentals in our market verticals remain intact, as we advance both our Decarbonize and Grow and Transform the Waste strategies to raise our underlying earnings profile by $3 billion across the economic cycle."

Earnings this week : Apr 24 - 28, 23 (wk 17)

Monday (Apr 24)

• Morning:  BOH KO PHG
• Afternoon: AGNC ARE AMP NTB BRO CADE CDNS CNI CHX CLF CCK FRC HSTM HTLF HXL HOPE IBTX MEDP PKG PCH RRC SSD TENB AAN TBI WSBC WHR WSFS

Tuesday (Apr 25)

• Morning: MMM ABB ADM ARCC AWI ABG AUB BKU BIIB CNC CBU GLW DHR DOW FBP FCF FISV GATX GEHC GE GM GEO HAL HUBB IVZ JBLU KMB LH LKFN LTH MCD MCO MSCI NEE NEP NTRS NVS NVR ONB OMF PCAR PEP PII PHM RTX ST SHW SSTK SFNC SITC SBSI SPOT SCL THC TRU UBS UPS VZ XRX
• Afternoon:  GOOG AGR AZZ BXP BYD CMG CB CSGP EGP WIRE ENVA ENPH EQR HA HIW ILMN JBT JNPR MANH MTDR MSFT NEX OI PACW RNST ROIC LRN TX TXN TRMK UMBF UHS VBTX VICR V

Wednesday (Apr 26)

• Morning:  ALKS ALLE AMT APH ADP AVY BXMT BA BOKF BSX CVE GIB CME CSTM DOV ETR EVR EXTR FSV FTV GD GPI HES HLT HUM NSP IART MKTX MAS COOP NAVI NSC ODFL OTIS OC PAG BPOP PDS PRG PB RCI RES R SLGN SLAB SF TMHC TEL TECK TDY TMO TNL UBSI UMC VRT WNC WAB
• Afternoon:  TWOU ACHC AFL AGI ALGN AB AWK NLY AM AR ACGL ASGN AZPN AVB AXS BMRN CHRW CACI CP CLS CCS CHDN COLB FIX CNMD CLB CVBF EBAY EW ESI EPR EQT ETD EVTC FIBK FBIN FTAI GSHD GGG HELE HP ICLR IEX PI KALU KRC KLAC LSTR LC LXFR MAT MXL MMSI MTH META MEOH MAA MC MOH MYRG NTGR NVRO NOV ORLY OII CASH PTEN PEB PEGA PPC PXD PLXS PTC QS RJF RHI ROKU ROL SAFE SLM SGMO NOW SNBR SAVE SPSC STAG STC SUI NOVA TDOC TER TNET TROX TYL UDR UCTT URI WCN WM WSC WOLF WH

Thursday (Apr 27)

• Morning: AOS ABBV MO AAL AIT ARCH AMBP AZN B BAX BFH BMY BC CRS CARR CAT CBZ CBRE CNP CHD CMS CNX CMCSA CROX CTS CFR DPZ DTE LLY EME EXLS FIS FAF FCFS FCN THRM GWW HEES HOG HAS HSY HTZ HGV HON IP ITGR ICPT IPG IQV KDP KIM KEX LEA LII LECO LIN LKQ HZO MA MPW MRK MBLY NEM NOC OSIS OSTK PPBI PATK BTU PNR DGX RS ROK ROP SPGI SNY SNDR SIRI SWI SAH SO LUV SRCL STM STRA FTI TXT SHYF TSCO TW TPH TRS VLO VLY VC WST WEX WTW WNS XEL
• Afternoon:  ACCD ATVI AEM ALSN AYX AMZN ABCB AMGN ATR ACA AJG AX BZH BJRI SAM CPT COF CSL CWST CC CINF NET COLM OFC COUR CUZ CUBE DXCM DLR EMN ELME EIG EHC ESS EXPO FICO FHI FSLR FE GLPI GFL GILD HIG PEAK HUBG IMAX INTC KNSL KN LHX LPLA LTC MTX MHK MDLZ NATI NWE OIS OLN PFSI PINS PFG PFS PTCT RSG RMD SGEN SKX SKYW SM SNAP SSB SWN SSNC SNCY TMUS SKT SLCA X VRSN WY

Friday (Apr 28)  

• Morning:  AON ARCB ARES AVTR BLMN  CCJ  GTLS CHTR CVX CL DAN XOM FHB GNTX EAF IMGN IMO JKS LAZ LYB MOG.A NYCB NWL NVT POR SAIA SXT STEL TRP TNC WPC WT

=Dow (DOW) successfully completes separation from DowDuPont (DWDP)

DowDuPont Inc. is an American company formed after the merger of Dow Chemical and DuPont on August 31, 2017. It is the world's largest chemical company in terms of sales. Within 18 months the company will be split into three publicly-traded companies which will focus on the following:

• agriculture -- Corteva Agriscience, 
• materials science -- Dow Inc., and 
• specialty products -- DuPont.

DowDuPont (NYSE:DWDP) has completed the spin-off of its materials science arm as part of a plan to split the chemical producer into three separate units.

Shares of the new division, Dow, will begin trading on the NYSE today under its historical ticker symbol "DOW."

"The new Dow is a more focused and streamlined company with a clear playbook to deliver long-term earnings growth and value creation for all stakeholders," said CEO Jim Fitterling.

Corteva, the agriculture unit, is set to separate from the new specialty chemical maker DuPont on June 1.

DowDuPont (DWDP)

DowDuPont is a company formed after the merger of Dow Chemical and DuPont on August 31, 2017. Within 18 months the company will be split into three publicly-traded companies: agriculture, materials science, and specialty products.

• Founded: September 1, 2017
• Parent organization: Dow Chemical Company
• Predecessors: Dow Chemical Company (DOW), DuPont (DD)