Dow AgroSciences profit falls despite revenue increase

Indianapolis-based Dow AgroSciences said Tuesday it posted a profit of $69 million in the fourth quarter, down 19 percent
from the prior year, because of increased research and development spending and higher administrative expenses.

Revenue
rose 17 percent, to $1.1 billion, from $920 million in the fourth quarter of 2008.

Dow Agro, the health and agriculture
subsidiary of Midland, Mich.-based Dow Chemical Co., reported revenue of $4.5 billion for the full year, down from $4.6 billion
in 2008. Annual earnings before interest, taxes, depreciation and amortization dropped to $577 million from $892
million.

Quarterly profits were affected by higher research and development costs and a 15 percent increase in
what the company calls Selling, General and Administrative expenses. Dow said the increase was driven
by new product launches and commercial activities related to newly acquired seed companies.

Overall, Dow Chemical reported fourth-quarter profit of $87 million, up from a loss of $1.6 billion
in the prior-year period, on revenue of $12.5 billion. For the year, the parent company’s profit
dropped to $336 million from $579 million in 2008; revenue totaled $44.9 billion.

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