DowDuPont (DWDP) shares were declining 1.07% in trading Thursday after the company said that its first-quarter guidance cut last month was due to the effects of flooding in the Midwest that caused transportation disruptions and halted farming operations in its agriculture business.
"Less than 50% of planned seed deliveries in the last 5 days of the quarter occurred, resulting in a greater than anticipated impact on first quarter performance. In this peak delivery period, under normal circumstances and based on history, the division would expect one day of U.S. seed sales to generate about ~$25 to $35 million in operating EBITDA," the company said.
Last month, the company said that it now expects first-quarter net sales to be down in the high-single digits, which was a steeper drop than its previous estimate of a mid-single-digit decline. The company also said that EBITDA would be down in the high-teens, which was also steeper than its previous guidance of down in the low-teens.
The company's agriculture division expects to record net sales of $3.4 billion and an operating EBITDA of about $665 million, a decline of 11% and 25%, respectively, from the year-ago quarter.
DowDuPont is scheduled to release its full quarterly results on May 2.
On April 1, DowDuPont announced that it has completed the spinoff of its materials science division as part of its plan to split the chemical producer into three separate units. Shares of the new division, Dow Inc. (DOW) , began trading earlier this month.
Both DowDuPont and Dow Inc. are holdings in Jim Cramer's Action Alerts PLUS charitable trust.