Dow Chemical Profit Tops Views
July 28 2016 - 7:17AM
Dow Jones News
By Anne Steele
Dow Chemical Co. reported revenue slid less than anticipated and
earnings easily topped expectations in the latest quarter despite
continued pricing and currency headwinds.
Chief Executive Andrew Liveris said the Midland, Mich.-based
company, a giant in the chemical and agriculture industries and
maker of products ranging from corn seeds to plastic, delivered its
15th-straight quarter of earnings and margin growth through "a
variety of challenging geopolitical and market conditions."
Mr. Liveris also highlighted "overwhelming approval" from
shareholders for Dow's historic tie-up with DuPont Co. Dow in
December struck a deal to combine with rival DuPont into a $120
billion company that will have about $90 billion in sales.
The deal, which would create a company with a combined market
value of about $104 billion, aims to eliminate $3 billion in
combined costs before separating into three publicly traded
companies within three years.
The companies have been negotiating with antitrust authorities
overseeing major global markets and DuPont Chief Executive Ed Breen
said this week Dow and DuPont have outlined potential remedies to
European Union antitrust officials, while competition authorities
in the U.S., China and Brazil also scrutinize the deal.
For the June quarter, Dow reported a profit of $3.12 billion, or
$2.61 a share, up from $1.22 billion, or 97 cents, a year
earlier.
Excluding certain items, adjusted per-share earnings rose to 95
cents from 91 cents. Revenue declined 7.4% to $11.95 billion, on
lower hydrocarbons and raw-material prices.
Analysts had projected 85 cents in adjusted earnings per share
on $11.24 billion in revenue, according to Thomson Reuters.
Sales in plastics, Dow's largest segment, slipped 2.3% to $4.69
billion, as volume gains across all businesses and geographies were
more than offset by pricing headwinds, mostly in hydrocarbons.
Volume grew 2%, or 4% excluding the impact of divestitures and
acquisitions "reflecting broad-based, consumer-driven demand," the
company said.
Shares, up 1.5% in light premarket trading, have risen 7.9% this
month.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
July 28, 2016 08:02 ET (12:02 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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