IBJNews

Dow AgroSciences' profit rises despite lower revenue

Back to TopCommentsE-mailPrintBookmark and Share

Indianapolis-based Dow AgroSciences' first-quarter profit increased nearly 6 percent, to $384 million, over the same period of 2009, primarily due to higher profit margins from a stronger mix of products, the company said Wednesday morning.

Strong farmer acceptance of new products and seed acquisitions partially offset the impact of unseasonably cold spring weather across the northern part of the globe and continued pricing pressure on certain agricultural chemicals, Dow AgroSciences said.

Revenue dipped 8 percent, to $1.3 billion, from $1.4 billion in the first quarter of 2009, due to an oversupply of glyphosate, which hurt demand for the herbicide.

Meanwhile, Dow AgroSciences’ parent company, Midland, Mich.-based Dow Chemical Co., on Wednesday reported its best quarterly results in more than a year as it benefited from growing demand and price increases.

Profit rose to $466 million from just $24 million in the first quarter a year ago. The nation's largest chemical maker said the results show that demand is growing in developed markets, which were hit hardest by the recession. Strong growth in emerging markets continues to boost the manufacturing sector, Dow said.

“Overall the global economic environment is on a stronger footing and there are signs that this will continue for the foreseeable future,” CEO Andrew Liveris said in a statement. “This is good news for Dow.”

On a per-share basis, profit rose to 41 cents per share, after paying preferred dividends, from 3 cents per share, in the same quarter last year. Excluding certain items, Dow earned 43 cents per share.

Revenue rose 48 percent, to $13.42 billion from $9.04 billion.

Wall Street expected earnings of 30 cents per share on $12.9 billion in revenue, according to a Thomson Reuters survey.

Dow Chemical raised prices by 17 percent in the first quarter and logged a 16-percent increase in sales volumes as demand grew across all of its regions.

Revenue gains were led by higher sales in its basic plastics business, which posted a 49-percent sales increase. Performance products revenue climbed 41 percent.

Revenue in its electronic and specialty-materials segment and its performance-systems unit rose 30 percent, while revenue from its coatings and infrastructure business grew 21 percent.

Last year, Dow acquired Rohm & Haas for $16.5 billion to expand into the more profitable specialty chemicals business. The company said the acquisition and cost cuts allowed it to save $275 million in the period.

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. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT