Dow Chemical Profit Tops Views

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 [e-mail]

(END) Dow Jones Newswires

July 28, 2016 08:02 ET (12:02 GMT)

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