Dow Chemical Q1 Profit Rises - Update

(RTTNews) - Dow Chemical Co. (DOW) Wednesday reported an increase in profit for the first quarter, as revenues improved while lower costs helped margin expansion. Earnings for the quarter came in ahead of Wall Street estimates, but revenues fell short of expectations.

Commenting on the results, Chief Executive Andrew Liveris said, "We achieved margin expansion in all of our key business operating segments - despite a series of weather- and transport-related issues in North America. These self-help programs are fully in gear, and they mitigated against a persistent slow-growth world economy and overcame more than $300 million of increased hydrocarbon costs during the quarter."

Midland, Michigan-based Dow Chemical's first-quarter profit increased to $964 million or $0.79 per share from $550 million or $0.46 per share last year. On average, 18 analysts polled by Thomson Reuters expected a profit of $0.71 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the first quarter inched up 1 percent to $14.46 billion from $14.38 billion last year. Thirteen analysts had a consensus revenue estimate of $14.72 billion for the quarter.

Sales in Coatings and Infrastructure Solutions rose 5 percent to $1.7 billion, while Electronic and Functional Materials sales edged down 1 percent to $1.1 billion. Agricultural Sciences rose 1 percent to $2.1 billion and Performance Plastics rose 3 percent to $3.6 billion. Sales in Feedstocks and Energy were $2.5 billion, down 4 percent, while Performance Materials dropped 1 percent to $3.3 billion.

Research and Development expenses were down 10 percent to $391 million.

Commenting on the company's outlook, Liveris said: "Looking forward, we expect a global operating environment of continued slow growth and volatility. Against this backdrop, we have intervened and remain resolute in achieving our short- and medium-term stated earnings targets."

DOW is currently trading at $49.55, up $0.61 or 1.25%, on a volume of 7.36 million shares on the NYSE.