May 29, 2019 / 11:28 AM / 3 months ago

DowDuPont to take $800 million-$1.3 billion charge in second quarter

FILE PHOTO: A screen displays the trading information for chemical producer DowDuPont Inc. on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2019. REUTERS/Brendan McDermid

(Reuters) - DowDuPont Inc said it expects to book an pretax charge of $800 million to $1.3 billion for the April-June quarter, resulting from changes in valuation of assets in the wake of a drop in ethanol prices and weak demand for its biomaterial products.

DowDuPont, formed in 2017 by the $130 billion merger of chemical giants Dow Chemical and DuPont, is now in the process of splitting into three separate business units - Dow, DuPont and Corteva Agriscience.

Dow Inc, which makes chemicals used in cosmetics, paints and packaging, was spun off on April 1.

Corteva, which produces corn, soybean, cotton sunflower seeds as well as insecticides and herbicides, is set to be separated on June 1 from DuPont, which makes chemicals used in semiconductors, brake fluids and lubricants.

The biomaterials business unit will move to DuPont's non-core segment from June 1, the company said, adding the impairment does not impact DuPont's fiscal 2019 guidance. (bit.ly/2YTf19I)

Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty

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