Financial Results and Dow AgroSciences and Public Companies and Health Care & Life Sciences and Life Science & Biotech

Dow Agro sales climb, but profit suffers

October 28, 2010

Indianapolis-based Dow AgroSciences improved revenue during the third quarter thanks to a 26-percent increase in volume, but it still recorded a loss for the period.

The unit of Dow Chemical Co. on Thursday reported revenue of $948 million, up 19 percent from the same period last year despite lower prices. Quarterly earnings before interest, taxes, depreciation and amortization, however, were a loss of $12 million—compared with a profit of $5 million a year ago.

Dow Agro’s selling, general and administrative expenses increased 9 percent during the quarter because of new product launches and commercial activities related the recent seed acquisitions, the company said. Its research and development costs were up 14 percent.

The Midland, Mich.-based parent company, meanwhile, posted a smaller drop in third-quarter profit than analysts estimated.

Profit fell 25 percent to $597 million, or 45 cents a share, from $796 million, or 63 cents, a year earlier. Profit excluding some items was 54 cents, topping the 41-cent average estimate of 12 analysts in a Bloomberg survey. Sales rose 6.8 percent to $12.9 billion.

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