Dow Chemical (DOW) reported its third-quarter net income fell 28% on several one-time charges. Excluding the charges, net income from continuing operations almost doubled, topping analysts' estimates.
Dow reported net income of $512 million, or 45 cents per share, compared with $711 million, or 63 cents per share, a year earlier. Net income from continuing operations excluding certain items was $705 million, up from $357 million in the year-ago period. On an adjusted basis, Dow earned 54 cents per share, beating estimates of 41 cents per share, according to Thomson Reuters I/B/E/S.
The largest U.S. chemical maker also said sales rose 6.8% to $12.87 billion from $12.05 billion in the year-ago period. Analysts expected sales of $12.8 billion. Excluding the impact of divestitures, Dow said sales were up 23%, driven by a 9% increase in price and a 14% increase in volume with double-digit gains reported in all geographic areas and in all operating segments.
"Dow's portfolio delivered strong volume gains in most of our operating segments as well as across every geographic area in the third quarter, giving us confidence that a sustained global economic recovery, led by emerging economies, is firming despite headwinds such as sovereign debt, high unemployment or asset bubble formation," said Chairman and CEO Andrew Liveris.
The company, whose products are used in many end-markets, said that double-digit demand growth was reported in all operating segments, with the exception of Basic Plastics (up 5%) and Coatings and Infrastructure (up 1%). For example, in the Electronic Materials business, the recovery in electronics end-markets that started in the second quarter of 2009 continued. Similarly, the rest of the results reflect high consumer demand.