MOSCOW (MRC) -- DuPont lifted its first-quarter earnings outlook as the coronavirus disease 2019 (COVID-19) pandemic bolsters demand for products such as Tyvek protective fabric, but withdrew its full-year guidance and announced steps to improve its balance sheet because the virus’s longer-term impacts on markets such as automotive and oil and gas remains unclear, reported Chemweek.
DuPont expects first-quarter 2020 adjusted earnings of USD0.82-0.84/share, well above the analysts’ consensus estimate of USD0.68/share, as reported by Refinitiv (New York), and the company’s initial first-quarter guidance of USD0.70-0.74/share, issued on 11 March.
First-quarter net earnings are expected to be USD0.70-USD1.00/share, on net sales of approximately USD5.2 billion. The company expects a first-quarter loss from continuing operations in the range of USD510-725 million operating EBITDA of approximately USD1.3 billion.
The company acknowledged significant uncertainty for the rest of the year and weakness in automotive, oil and gas, and industrial markets due to COVID-19, and withdrew its full-year guidance. "As this pandemic expands globally, the uncertainty around demand in select end-markets continues,” said Ed Breen, Executive Chairman and CEO. “In response, we continue to advance initiatives to improve our working capital and have taken steps to delay certain capital investments and idle production at several manufacturing sites."
The company entered into a 364-day, USD1.0-billion revolving credit facility, replacing the USD750 million revolving credit facility that was set to expire in June 2020, and secured a USD2.0-billion, 364-day delayed-draw facility ensuring its ability to meet the November 2020 maturities. "Securing these two new facilities further strengthens our near-term liquidity position," Breen says. "Additionally, we now have committed financing in place to bridge our debt maturing in November 2020 to the receipt of the special cash payment in connection with the Nutrition & Biosciences and IFF transaction. Combined with our existing cash balances and available borrowings through our commercial paper program, these facilities provide the liquidity needed to navigate these uncertain times."
DuPont has also idled production at several manufacturing sites, predominantly production plants within the transportation and industrial segment, due to significant downturn in automotive production.
The company will report first-quarter results on 5 May.
As MRC informed earlier, DuPont, which operates one of the Richmond region’s largest manufacturing plants, confirmed last Monday that five local employees have tested positive for the coronavirus, but the company’s local manufacturing operations are still functioning.
We also remind that an employee at the Port Arthur Total refinery has tested positive for the coronavirus. The company confirmed Tuesday that the employee who tested positive is in self-quarantine and hasn't been at the site since March 26. Total says it has 'implemented its pandemic response in the case of a positive COVID-19 test, which includes disinfecting and sanitation of the potentially-affected areas.'
In November 2019, Total disclosed that it is evaluating construction of a new gas cracker at its Deasan, South Korea, joint venture (JV) with Hanwha Chemical.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 383,760 tonnes in the first two month of 2020, up by 14% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased due to the increased capacity utilisation at ZapSibNeftekhim. At the same time, PP shipments to the Russian market were 192,760 tonnes in January-February 2020, down by 6% year on year. Homopolymer PP accounted for the main decrease in imports.
MRC