Dow Chemical Net Income Slips

Midland's Dow Chemical Co. Thursday reported third quarter net income of $597 million 45 cents a share, down from $795 million or 63 cents a share a year earlier.

Revenue was $12.87 billion, up from $12.05 billion a year earlier.

The company said that "earnings excluding certain items and discontinued operations" more than doubled to 54 cents a share from 24 cents a year earlier. Those items include one-time labor litigation settlements, one-time costs of acquisitons, and one-time gains and losses on sales of parts of the company over the past year. 

Also, earnings before interest, taxes, depreciation and amortization rose more than $350 million to more than $1.9 billion, the highest level since second quarter of 2008.

Volume increased 14 percent, with gains in all geographic areas and all operating segments. The largest increases were reported in Europe, Middle East and Africa (up 16 percent), and North America (up 15 percent). A double-digit volume gain was reported in the combined Performance segments. At the company level, volume rose 8 percent versus last quarter excluding Health and Agricultural Sciences, with gains in all geographic areas.

Price increased 9 percent year-over-year, with gains in all geographic areas. This increase more than offset a $585 million increase in purchased feedstock and energy costs. While the largest increases were reported in the combined Basics segments, Coatings and Infrastructure and Performance Products reported double-digit price gains.

Dow's global operating rate was 86 percent, up 6 percentage points from last quarter and representing the highest levels since the first quarter of 2008.

And Dow said it continued to exceed its growth targets related to the acquisition of Rohm and Haas, delivering more than $975 million in sales on a run-rate basis, exceeding the year-end target of $500 million.

Said CEO Andrew Liveris: "Dow's transformed portfolio delivered accelerated earnings growth this quarter, resulting in a two-fold increase over last year. Continued solid demand recovery in North America and Europe -- coupled with sustained momentum in emerging geographies, which represented more than $4 billion of our overall sales in the quarter -- drove robust revenue gainsacross all of our operating segments and in every geographic area."

Liveris credited Performance Products and Performance Systems operating segments for the most impressive results, with EBITDA up 30 percent over last year.

More at www.dow.com.

(c) 2010, WWJ Newsradio 950. All rights reserved.