IBJNews

Dow AgroSciences grows sales, earnings to new heights

Back to TopCommentsE-mailPrintBookmark and Share

Record sales of seeds and new crop protection products helped boost Dow AgroSciences LLC revenue 14 percent in the first quarter, leading to record profit.

The Indianapolis-based maker of agricultural products, a unit of Michigan-based Dow Chemical Co., brought in $2.1 billion in revenue compared with $1.7 billion a year earlier.

Profit in the latest quarter totaled $484 million before accounting for interest, taxes, depreciation and amortization. That was a 7-percent jump from $451 million a year earlier, Dow Chemical reported Thursday morning.

Sales of crop protection products swelled 7 percent, driven by gains in North America and Latin America. Sales of seeds, genetic traits and oils rocketed 37 percent, due in part to strong demand for the firm’s genetically modified SmartStax products.

On the whole, Dow Chemical Co., the largest U.S. chemical maker by sales, posted first-quarter profit that beat analysts’ estimates as lower prices for natural gas increased earnings from plastics.

Net income climbed 28 percent to $635 million, or 46 cents a share, from $497 million, or 35 cents, a year earlier, Dow reported.

Profit excluding a tax charge and other one-time items was 69 cents a share, topping the 61-cent average of 16 estimates compiled by Bloomberg News.

Company-wide sales declined to $14.4 billion from $14.7 billion in the first quarter of 2012, missing the $14.9 billion average of 12 estimates.

Chairman and CEO Andrew Liveris is selling Dow’s least profitable units, cutting jobs, closing plants and deferring investments to counter slower global economic growth.

Lower costs for raw materials derived from gas and oil helped increased profit in performance plastics, Dow’s largest business, Liveris said Thursday.

“They beat [estimates] primarily because of continuing trends in agriculture and performance plastics,” Hassan Ahmed, a New York-based analyst at Alembic Global Advisors, told Bloomberg News on Thursday. “There are some early signs of recovery in electronics as well.”

Dow shares rose more than 4 percent to $33.60 in early trading Thursday. The shares are little changed this year.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT