02 February 2012 12:42 [Source: ICIS news]
LONDON (ICIS)--Dow Chemical swung to a net loss of $20m (€15m) in the fourth quarter from a net income of $426m in the same period the year before, on the back of higher income taxes and a deterioration in the macroeconomy, the US-based company said on Thursday.
Dow said that earnings for the quarter were reduced by certain items totalling $0.27 per share, including a charge related to a tax valuation allowance in ?xml:namespace>
Net sales in the fourth quarter increased 2% to $14.1bn compared with the same period the year before. Excluding the impact of divestitures, sales increased 5% versus the year-ago period, with increases in all geographic areas and in all operating segments except Electronic and Functional Materials, Dow added.
Overall volume in the quarter declined 3%, as volume increases in Latin America (4%) and Asia Pacific (3%) offset weak demand in north America, Europe, Middle East and
“Dow saw deterioration in the macro environment mid-quarter and, in line with our stated commitments, we purposefully intervened,” said Andrew Liveris, Dow’s chairman and CEO.
“In the midst of uncertainty and significant destocking across customer supply chains, we maintained our focus on financial discipline and operating efficiency,” he added.
For the whole of 2011, Dow’s net income grew 22% to $2.40bn from 2010, while its net sales rose 12% year on year to $59.99bn.
“Times like these demand a focused approach and strong resolve, and Dow’s firm operating discipline, cost control and productivity will continue throughout 2012," Liveris said.
($1 = €0.76)
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