Dow Chemical Revenue Climbs
October 27 2016 - 8:20AM
Dow Jones News
Dow Chemical Co., looking to complete its merger with rival
DuPont Co., said revenue rose in the latest period amid growth in
its agriculture segment, where sales have lagged behind so far this
year.
Shares rose 2.8% to $55.26 in premarket trading.
On Thursday, Chief Executive Andrew Liveris gave a rosy outlook
on Dow's business environment, pointing to "steady growth" in North
America and Europe that it sees continuing.
Agriculture sales rose 5.8% to $1.24 billion on volume and
pricing. Year-to-date, sales in the segment are down 6.7% compared
with 2015.
Sales in plastics, Dow's largest segment, edged up 0.8% to $4.7
billion, while performance materials and chemicals sales fell to
$2.38 billion, a 25% drop primarily reflected in the divestiture of
Dow Chlorine Products.
The chemicals and agriculture giant's marriage with DuPont now
looks more likely to wrap up in early 2017 rather than this year as
the companies had previously said. The companies are in deep
discussions with antitrust officials in the U.S., Europe, Brazil
and China. The companies announced the merger in December 2015.
DuPont, which reported better-than-expected earnings earlier
this week, and Dow have said their aim is to unite to form an
industrial behemoth worth about $122 billion before breaking up
into companies agriculture, materials, and specialty products like
enzymes and electronic components.
Over all for the September quarter, Dow earned $804 million, or
63 cents a share, compared with $1.38 billion, or $1.09 a share, a
year ago.
Excluding items the company earned 91 cents a share, up from 82
cents a year ago. Analysts polled by Thomson Reuters expected 79
cents a share.
Revenue rose 3.7% to $12.48 billion.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
October 27, 2016 08:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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