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Dow Chemical Company’s (NYSE:DOW) second-quarter profit dropped sharply due to falling prices and demand amid uncertain global economic environment.
For the second quarter of 2012, the largest U.S. chemical maker reported a profit of $734 million, or $0.55 per share, down from $1.07 billion, or $0.84 per share reported for the same period last year. DOW’s second-quarter earnings missed consensus forecast of $0.64 per share.
Revenue for the quarter dropped 10% to $14.51 billion, missing Street estimates of $15.7 billion.
Dow Chemical’s volume and pricing dropped 5% in the second quarter as the global economy weakened. Pricing dropped 8% in Europe, which has been struggling due to the ongoing debt crisis. DOW’s sales on the continent dropped 10%.
CEO Andre Liveris said that ongoing uncertainty in the world economy continues to present a challenging operating environment for the company. Liveris said that global economic activity deteriorated in the second quarter, mainly due to Europe’s persistent recessionary conditions.
DOW stock has fallen sharply in early trading today as investors digested the company’s weak second-quarter results. At last check, the stock was trading 3.53% to $29.20 on volume of 3.95 million.
