Dow Chemical Earnings Dip, but Top 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.
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.