28 July 2008 11:59 [Source: ICIS news]
LONDON (ICIS news)--JPMorgan on Monday reduced its 2009 earnings estimate for Dow Chemical due to amortisation charges from the prospective Rohm and Haas acquisition and lower forecasts for R&H’s 2009 earnings.?xml:namespace>
Dow earlier this month agreed to buy the
JPMorgan lowered Dow’s earnings per share (EPS) estimate for 2009 to $2.85 from $3.10 based on an estimated annual amortisation increase of $300m following the R&H deal.
The bank forecasted synergies of $200m for the year after the acquisition - conservative compared with Dow’s estimate of $800m over a two-year period.
Dow last week reported a 26.7% plunge in second-quarter net profits to $762m from $1.04bn, on surging hydrocarbon and energy costs.
($1 = €0.64)
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