Dow Chemical Swings to Loss
26 Januar 2017 - 2:43PM
Dow Jones News
By Imani Moise
Dow Chemical Co., looking to complete its merger with rival
DuPont Co., swung to a loss in the most recent quarter, though
adjusted earnings grew more than expected.
During the quarter the company opted to book a more than $1
billion pretax charge to account for future asbestos-related
expenses covering the next 40 years. Excluding this charge and
other items, the company's earnings grew 6%.
Sales in plastics, Dow's largest segment, grew 4% to $4.8
billion while the infrastructure solutions segment surged 41% to
$2.4 billion and performance material and chemical sales edged up
1% to $2.41 billion.
DuPont, which reported better-than-expected earnings earlier
this week, and Dow have said their aim is to unite to form an
industrial behemoth worth about $129 billion before breaking up
into companies agriculture, materials, and specialty products like
enzymes and electronic components.
The merger, initially said to close in late 2016, is now
expected to close after March as the companies await regulatory
approval.
Over all, Dow reported a loss of $33 million, or 3 cents a
share, compared with a profit of $3.53 billion, or $2.94 a share, a
year earlier. Excluding certain items, the company earned 99 cents
a share, up from 93 cents a year earlier.
Revenue jumped 14% to $13.02 billion.
Analysts polled by Thomson Reuters had forecast earnings of 88
cents on $12.38 billion in revenue.
Shares of Dow rose 1.9% to $61.35 in premarket trade. Dow closed
Wednesday at $60.01 and is up 12% over the past three months.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
January 26, 2017 08:28 ET (13:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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