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AgroSciences LLC’s profit and sales slumped in the second quarter after
the Indianapolis-based company racked up record earnings in the prior
period, parent Dow Chemical Co. reported today.
The agricultural
arm of the Midland, Mich. corporation generated $140 million in
earnings before interest and taxes in the second quarter, a 61-percent
drop from the same period last year. Dow Agro had $338 million in
earnings in the first quarter of 2009.
Revenue dipped 12 percent
in the second quarter, to $1.2 billion. Dow Agro attributed the
decrease to unusually wet weather in North America and Europe, and
extreme drought in Argentina, which limited the use of its weed-killing
chemicals. In addition, lower farm commodity prices drove farmers to
reduce costs, the company said.
Dow Chemical lost $486
million, or 47 cents a share, in the period compared with profit of
$762 million, or 81 cents a share, in the same period last year.
Revenue fell 31 percent, to $11.3 billion, down from $16.4 billion.
Dow
Chemical’s loss was driven by charges related to its $16.5 billion
buyout of rival Rohm & Haas in April and dismal sales for
chemicals.
Yet, aggressive cost-cutting by the company led to a surprise profit when the one-time charges are stripped from the results.
Excluding
those charges, Dow reported adjusted earnings of 5 cents per share.
Analysts polled by Thomson Reuters forecast, on average, a loss of 8
cents per share. Analysts typically exclude one-time charges.
Dow AgroSciences has about 1,000 workers at its northwest-side headquarters.
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