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Break-up ahead: DowDuPont shares plunged on weak profit, trade, China outlook

DowDuPont shares tumble before market opens on weak sales outlook before planned split.

A FILE photo shows a monitor displaying DowDuPont Inc. signage on the floor of the New York Stock Exchange in New York.
A FILE photo shows a monitor displaying DowDuPont Inc. signage on the floor of the New York Stock Exchange in New York.Read moreMichael Nagle/Bloomberg

Shares of DowDuPont fell more than 9 percent Thursday as the chemical and materials giant reported lower-than-expected profits on fears of weak China demand and U.S. anti-trade policies.

Shares ended up at $53.81, a drop of $5.47 or 9.23 percent, approaching last year’s lows. The company reported flat fourth-quarter sales and profits, though Edward Breen, chief executive officer, cited “consistently strong results" for the year as a whole, including higher revenues in key company businesses, plus $3.6 billion in cost cuts — alongside high shareholder dividends.

Breen wants to keep hedge funds and institutional investors happy. Low returns forced the ouster of his predecessors at both Dow and DuPont and their ensuing merger in 2016.

It was DowDuPont’s last combined annual earnings report: Breen said DuPont still plans to separate into three companies on schedule: Michigan-based Dow (materials) will separate in April, then Delaware-based Corteva (pesticides/GMO) and DuPont (a grab-bag of security, food supplements, electronics and other businesses) will split in June.

Low initial expectations for the company and its businesses could translate to fat profits and bonuses for bosses and shareholders at any of the successor companies if results improve after they start trading independently.