DowDuPont has stated it expects to book a pretax charge of $800 billion to $1.3 billion for April to June, Q2, according to a report by CNBC.
The pretax charge is caused by changes in valuation of assets due to lowered demand for its biomaterial products and a drop in ethanol prices.
DowDuPont is now in the process of splitting into three separate business units – Dow, DuPont and Corteva Agriscience – following the 2017 merger of Dow Chemical and DuPont.
Cosmetics, paints and packaging manufacturer Dow Inc was spun off on 1st April, with Corteva set to be separated from DuPont on 1st June.
According to the company the biomaterials business unit will move to DuPont’s non-core segment as of 1st June.