Dow Chemical Q3 Profit Falls, But Adj. Profit Tops View

(RTTNews) - Dow Chemical Co. (DOW) reported a profit for the third-quarter declined about 44 percent from the prior year, reflecting a $0.13 per share charge related to the Dow Corning ownership restructure and a $0.11 per share charge for transactions and productivity actions. Results in the year-ago period reflect a $0.32 per share gain from the Agrofresh divestiture. Adjusted earnings per share for the quarter topped analysts' expectations.

Andrew N. Liveris, Dow's chairman and chief executive officer, said, "We see steady growth in North America and Europe continuing, with Dow's new innovations and products outpacing the market. The strength of the consumer and emphasis on growth in Southeast Asia and second-tier cities in China continue to drive our results in Asia Pacific. Latin America is showing strength in the Andean economies and Mexico, and Brazil is beginning to recover from a low base."

Net income available for common stockholders for the third-quarter declined 44 percent to $719 million from last year's $1.290 billion, with earnings per share decreasing to $0.63, from $1.09 in the prior year.

Operating earnings for the quarter improved to $1.03 billion or $0.91 per share, from $959 million or $0.82 per share, in last year's third quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.79 per share for the third-quarter. Analysts' estimates typically exclude special items.

Volume grew 6 percent excluding the impact of divestitures and acquisitions, reflecting broad-based, consumer-driven demand with gains in all geographic areas - Europe, Middle East, Africa and India (EMEAI) (up 9 percent); North America (up 6 percent); Asia Pacific (up 4 percent); and Latin America (up 1 percent). Regional highlights included Europe (up 9 percent), the United States (up 6 percent) and Greater China (up 6 percent).

Sales were $12.5 billion, up 4 percent versus the year-ago period, with gains in all segments except Performance Materials & Chemicals, which declined primarily as a result of the Dow Chlorine Products divestiture. Adjusted Sales for the quarter decreased to $11.22 billion from $11.36 billion in the previous year. Wall Street expected revenues of $11.96 billion.

Agricultural Sciences reported third quarter sales of $1.2 billion, up 6 percent versus the year-ago period. Price and volume each rose 3 percent.

Consumer Solutions delivered third quarter sales of $1.6 billion, up from $1.1 billion in the year-ago period, reflecting the full contribution of Consumer Solutions - Silicones.

Infrastructure Solutions reported third quarter sales of $2.5 billion, up from $1.9 billion in the year-ago period, reflecting the addition of Infrastructure Solutions - Silicones, which more than offset lower pricing in all businesses.

Performance Materials & Chemicals reported third quarter sales of $2.4 billion, down from $3.1 billion in the year-ago period, reflecting the impact of the split-off of Dow Chlorine Products and pricing declines in all businesses.

Performance Plastics reported third quarter sales of $4.70 billion, up from $4.67 billion in the year-ago period, as volume gains in all businesses more than offset price declines in all businesses.