Dow Posts Strong Quarter
Price hikes power Dow’s results ahead of DuPont merger
(Reuters) – Price hikes and strong demand for its products helped Dow Chemical Co (DOW.N) beat Wall Street estimates in its last quarter before the chemicals giant merges with DuPont (DD.N).
Dow, which makes a range of products including packaging material, chemicals used in fertilizers and makeup, said overall volumes rose 3 percent in the second quarter ended June 30.
“We had broad-based price bump in the quarter (with) double digit price increases in polyurethane and performance monomers,” chief financial officer Howard Ungerleider said in an interview.
These synthetic products are used to make adhesives, coating materials and inks, among other things.
Revenue for the company, which is valued at $81.15 billion, rose 16 percent in the quarter, helped by an overall 5 percent rise in pricing.
Sales rose across geographies with a 17.6 percent rise in Europe, Middle East, India and Africa to $4.39 billion.
In North America, its biggest market, sales increased 14 percent to $5.27 billion.
The Midland, Michigan-based company said sales in performance plastics, its biggest business, grew 8.5 percent to $5.1 billion, helped by demand for its packaging products.
Dow, which is on track to close its merger with DuPont next month, earned $1.08 per share in the reported quarter, compared with average analysts’ estimate of $1 a share, according to Thomson Reuters I/B/E/S.
Dow’s shares were slightly higher at $67 in light pre-market trading on Thursday.