DowDuPont shows off upcoming split into 3 firms

With the split of DowDuPont into three companies—Dow, DuPont, and Corteva Agriscience—set to commence in a matter of weeks, executives from the firms met recently with analysts bearing a message of frugal use of cash and generous shareholder remuneration. Dow intends to pay $2.1 billion in dividends and commence a $3 billion share repurchase after its separation on April 1. It plans to return 65% of operating net income to shareholders. Dow will hold its capital expenditure budget to about $2.8 billion per year and plans R&D outlays of about 2% of sales. Managers of the future DuPont, set to separate on June 1, promise to pay out 30–40% of its net income, about $900 million, in dividends. The company plans to focus R&D spending, about 4% of its sales, on high-return projects. DuPont also aims to divest 10% of its portfolio. It has thus far struck deals for about 4%, including its European Styrofoam unit and its DuPont Sustainable Solutions business. Corteva plans dividends of about $400 million, or 25–35% of net income annually. It expects to grow R&D spending more slowly than sales.