Dow Profits Jump More Than 50 Percent On Double Digit Sales Increase
MIDLAND — Dow Chemical Co. (NYSE: DOW) reported third quarter net income of $815 million or 69 cents a share, up from $512 million or 54 cents a share in the third quarter of 2010.
Revenue was $15.11 billion, up 17 percent from $12.87 billion a year earlier.
The company also reported “adjusted” net income excluding “certain items,” of $729 million or 62 cents a share, up from $620 million or 54 cents a share a year earlier.
For the nine months, net income was $2.42 billion or $2.07 a share, from $1.54 billion or $1.35 a share a year earlier. Nine-month revenue was $45.89 billion, up from $39.9 billion a year earlier.
“Dow delivered broad-based sales gains and significant earnings growth this quarter, reflecting the strength of our transformed business portfolio,” CEO Andrew Liveris said. “Our diversified geographic presence was also on display, as our investments in emerging regions enabled us to capitalize on growth where it is happening most rapidly, even as developed regions paused in their economic recovery. “We achieved record EBITDA for both the quarter and year to date. This performance demonstrates that our strategy is delivering results, as we commercialize our R&D pipeline, strengthen our balanced and integrated portfolio, build upon our formidable feedstock advantage, and drive efficiencies throughout our business to deliver earnings growth. This quarter shows clearly that Dow has the agility and flexibility to respond to rapidly changing economic conditions. We took actions again this quarter to provide near-term flexibility in anticipation of volatile economic environments, while also continuing to invest for long-term growth. We are operating from a position of financial strength. Dow is an enterprise that is built for times like these – and is built to grow.”
Double-digit sales gains were reported in all operating segments, with the largest percentage increases in Feedstocks and Energy (34 percent) and Agricultural Sciences (27 percent). Double-digit sales increases were also reported in all geographic areas, with the largest growth in Latin America (21 percent) and Europe, Middle East and Africa (EMEA) (19 percent). In emerging geographies, sales reached $5 billion, a new quarterly record for the Company.
Price rose 17 percent at the Company level. Broad-based price gains were achieved in all geographic areas, led by Europe, the Middle East and Africa (21 percent) and North America (17 percent). Double-digit price gains were reported in all operating segments, except Electronic and Functional Materials (up 8 percent) and Agricultural Sciences (up 9 percent). Price gains offset a $1.7 billion increase in purchased feedstock and energy costs.
At the Company level, volume was flat versus the same quarter last year, as demand gains in Latin America (7 percent) and Asia Pacific (5 percent) offset decreases in North America (3 percent) and EMEA (2 percent). Volume growth in emerging geographies was 7 percent, led by China (12 percent), India (11 percent) and Brazil (10 percent). Across operating segments volume gains were reported in Agricultural Sciences (18 percent), Electronic and Functional Materials (3 percent) and Performance Plastics (1 percent).