Dow Chemical Q3 Profit Rises - Update

(RTTNews) - Dow Chemical Co. (DOW) on Wednesday reported an increase in profit for the third quarter, driven largely by higher revenues, with both earnings and revenues beating Wall Street estimates.

Midland, Michigan-based Dow Chemical's third-quarter profit rose to $852 million or $0.71 per share from $594 million or $0.49 per share last year.

Adjusted earnings rose to $0.72 per share for the quarter from $0.50 per share last year. On average, 18 analysts polled by Thomson Reuters expected earnings of $0.68 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter grew 5 percent to $14.41 billion from $13.73 billion last year. Analysts had a consensus revenue estimate of $14.31 billion for the quarter.

Dow Chemical said sales growth was driven by price increases associated with tightening demand conditions in key regions, with gains in most operating segments. The company reported increased sales in all geographic areas.

Chief Executive Andrew Liveris said, "Dow delivered a strong quarter of top- and bottom-line growth. Our low-cost positions and geographic diversification enabled growth and improving operating rates in the quarter."

Sales in Coatings and Infrastructure Solutions were flat with last year at $1.8 billion, while Electronic and Functional Materials rose 3 percent to $1.2 billion. Agricultural Sciences sales were flat at $1.4 billion and Performance Plastics gained 8 percent to $3.9 billion. Sales in Feedstocks and Energy were up 2 percent to $2.4 billion, while Performance Materials rose 8 percent to $3.6 billion.

Earlier this month, Dow Chemical indicated Angus Chemical, Sodium Borohydride and AgroFresh for divestment as part of its plan to divest $4.5 billion to $6 billion of non-strategic assets. Dow Chemical expects the sale of the businesses, which it expects to complete in early 2015, to generate more than $2 billion in proceeds. Dow Chemical, which has been selling off assets and streamlining its operations, has divested $1.3 billion worth of assets to date.

DOW is currently trading at $48.20, down $0.01 or 0.02%, on the NYSE.