Dow Chemical Q3 net profit up 82% to $799m on gains

22 October 2009 12:49 [Source: ICIS news]

Dow headquarters LONDON (ICIS news)--US-based Dow Chemical on Thursday reported third-quarter net income from continuing operations of $799m, compared with $440m in the equivalent period of 2008, as divestments boosted results.

Gains on the sale of stakes in the TRN refinery in the Netherlands and the Optimal joint venture in Malaysia were included in the 2009 third-quarter figures.

Excluding gains and losses in each of the quarters, third-quarter earnings per share were 59.3% lower year on year at $0.24, but were up from underlying earnings of $0.05 a share in the second quarter of 2009.

Dow’s third-quarter sales of $12.0bn were 32% lower than pro forma sales and 22% down on reported sales for the 2008 period.

However, sales were up 6% from the second quarter of 2009, Dow said, as prices more than offset a $600m increase in feedstock and energy costs. Volumes excluding the AgroSciences business were up 3% quarter to quarter, it added.

Sales prices were 23% lower than in the prior year quarter and sales volumes down 9%.

“Dow once again delivered stronger sequential earnings due to our focus on aggressive price/volume management, accelerating cost reductions, especially with the Rohm and Haas integration, plus benefiting from our global presence with volume gains in emerging geographies,” CEO Andrew Liveris said.

“In addition, we are seeing pockets of volume growth in certain businesses versus the prior quarter, primarily in Advanced Materials, Performance Products and Performance Systems, which have benefited from the beginnings of a global economic recovery.”

Liveris said the economic outlook for the rest of the year appeared to be stabilising with strong growth China and “other emerging geographies”.

“The global economy is now on firmer footing, and, in our view, the United States economy is beginning a slow and tenuous recovery, with unemployment continuing to be a drag on consumer spending," Liveris said. Therefore, our 2009/2010 operating plans do not count on material improvements in market conditions, and we remain tightly focused on those factors we can control, such as costs, capital and cash flow management.”

($1 = €0.66)

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By: Nigel Davis
+44 20 8652 3214

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