The Dow Chemical Company is a global company providing chemical, plastic and agricultural products and services to a wide range of industries, including appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture; housewares; oil and gas; packaging; paints, coatings and adhesives; personal care; pharmaceutical; processed foods; pulp and paper; textile and carpet; utilities, and water treatment. Founded in 1897, the company boasts annual sales of almost $33bn and serves customers in more than 180 countries.
Dow Chemical posts 59% hike in Q3 earnings
Chemicals maker Dow Chemical (NYSE:DOW) Thursday posted a 59 percent increase in third-quarter net income on 17 percent higher revenue due to higher sales of agriculture products and caustic soda.
For the period that ended September 30, net profit reached $815 million, or 69 cents per share, from $512 million, or 45 cents, a year earlier. Excluding items, earnings were 62 cents per share against 54 cents last year.
Revenue climbed to $15.11 billion, from $12.87 billion in the prior year.
Analysts were expecting 63 cents of profit on $14.63 billion of revenue, according to FactSet Research.
Dow's chairman and CEO, Andrew N. Liveris, said: "Dow delivered broad-based sales gains and significant earnings growth this quarter, reflecting the strength of our transformed business portfolio.
"Our diversified geographic presence was also on display, as our investments in emerging regions enabled us to capitalize on growth where it is happening most rapidly, even as developed regions paused in their economic recovery."
The company said that sales rose by double-digits percent across all operating segments and geographic markets. Pricing rose 17 percent, offsetting higher feedstock and energy costs.
Dow Chemical said its plastics business remained its most profitable in the quarter even as earnings dropped 17 percent to $748 million because of higher ethylene production costs and lower demand in developed markets.
Looking ahead, Liveris said: "Our enhanced financial flexibility, industry-leading feedstock strength and diverse, well-balanced portfolio provide a new earnings foundation, and position us well to continue driving toward our profitability targets with confidence."
Shares were up five percent to $28.31 Thursday morning.