Dow Chemical Co (NYSE:DOW) just disclosed first quarter of fiscal 2016 (1QFY16) earnings results, before trading commenced today. It posted mixed results, compared to the Street’s earnings per share (EPS) and revenue expectations.
Net sales clocked in at $10.70 billion for the quarter, as opposed to the analysts' estimated $10.66 billion, but were down 13% year-over-year (YoY). The company attributed the decline to the suppressed domestic prices, specifically in the Hydrocarbons business, as well as the ongoing global currency headwinds. EPS came in at $0.15 ($0.89 on operating basis), compared to the consensus forecast of $0.82, and significantly below $0.84 reported in the same quarter, last year. The steep decline was owed to the urethane matters' legal settlement charges, as well as the cost coverage, linked to the portfolio and productivity actions.
Chairman and CEO Andrew N. Liveris commented: “Dow’s resolute focus on our priorities was once again evident, with this quarter marking the fourteenth in a row of year-over-year operating EPS and EBITDA margin increases. The strength of our businesses and business model was on display across our broad geographic footprint and targeted end-markets, from transportation to agriculture to construction. These results are notable in the context of the lower hydrocarbon and crop price environments, and underscore the power of Dow’s unique combination of differentiation and integration, coupled with focused market participation, driven by our innovation agenda, and a disciplined productivity mindset”
On the other hand, with regard to the much talked-about merger with E I Du Pont De Nemours And Co. (NYSE:DD), he mentioned that both companies are on the track to complete it. The joint implementation teams have made significant progress to accelerate the integration plans, and synergize the capture activities. He showed his excitement toward the potential of these rare strategic actions, which are likely to enhance the strength, performance, and resilience of both companies’ operations and business models.