Dow Chemical's Earnings Rise 41%

By Tess Stynes 

Dow Chemical Co. said its first-quarter earnings rose 41% on asset-sales gains and volume growth despite revenue getting hit by lower selling prices, crude oil prices and negative currency impacts.

The petrochemical maker's shares rose nearly 2% to $51 in recent premarket trading as profit excluding certain items beat expectations.

The Midland, Mich., company recently agreed to spin off a significant portion of its chlorine business to smaller chemicals maker Olin Corp. in a cash-and-stock deal valued at $5 billion, part of a multiyear effort to shift its focus to higher margin products from commoditized basic chemicals.

Overall, Dow Chemical reported a profit of $1.48 billion, or $1.18 a share, up from $1.05 billion, or 79 cents a share, a year earlier. Excluding asset-sales gains, transaction-related expenses and other items, per-share earnings were 84 cents. Revenue decreased 14% to $12.4 billion.

Analysts polled by Thomson Reuters expected per-share profit of 76 cents and revenue of $13.04 billion.

Dow has faced criticism from activist hedge fund Third Point LLC, which began pressuring Dow in early 2014 to pursue a breakup that would go further than the restructuring it had already outlined.

Dow and Third Point settled a looming proxy fight last November, with Dow adding four directors including two proposed by Third Point.

Write to Tess Stynes at [e-mail]

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