DWDP Dowdupont Inc.

By Aisha Al-Muslim

DowDuPont Inc. (DWDP) expects to record impairment charges of $800 million to $1.3 billion primarily due to goodwill in its current quarter ending June 30.

The Wilmington, Del.-based company, which recently spun off its materials science business, said Wednesday that the goodwill impairment is a result of revised financial projections of the current industrial biosciences reporting unit reflecting unfavorable market conditions.

The revision was driven by slowed demand in the biomaterials business unit and challenging conditions in the U.S. bioethanol market, the company said in a filing with the U.S. Securities & Exchange Commission.

The spinoff of DowDuPont's materials science business was completed April 1 and turned into its own company, Dow Inc. The spinoff was the first big step in DowDuPont's plan to divide itself. DowDuPont expects to complete separation of its agriculture business into an independent public company on June 1, it said in the filing.

Once the final spinoff is complete, the company will be renamed DuPont de Nemours Inc. It will continue to hold its specialty products business.

The company said Wednesday the impairment charge doesn't impact the specialty products division's fiscal 2019 guidance. DowDuPont reaffirmed its financial guidance for the second quarter and full-year 2019 for the specialty products division.

The division expects second quarter guidance of down low-single digits for organic net sales and down low-single digits for adjusted operating EBITDA. For the full year, the division expects organic top line growth of 2% to 3% and 3% to 5% growth for adjusted operating EBITDA.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

May 29, 2019 08:19 ET (12:19 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.