DowDuPont Not Impacted Much by Tariffs
DowDuPont largely unaffected by U.S.-China trade war, CFO says
DowDuPont (DWDP -1.5%) has experienced little impact from China’s tariffs on U.S. petrochemicals because the company can supply China and Asia through its non-U.S. operations, according to CFO Howard Ungerleider.
Through “our Canadian assets, our Argentinian assets, our large footprint in Europe, and our position in Saudi Arabia and our joint venture in Kuwait, we have the ability to source products from lots of different places around the world,” the CFO told the Citi Basic Materials Conference in New York. “Our footprint gives us the ability to move the product wheel around the world to make sure that we minimize any impact.”
Ungerleider said ~40% of Dow’s total sales are in the North America, 30% are in Europe, 20% in Asia and 10% in Latin America.
Dow expects its tariff-related costs to reach $50M-$100M from this year into next, or 1% or less of the company’s ~$10B in earnings, the CFO said.