Dow Chemical Reports Strong Results; Confirms Merger Closing
Midland, Michigan-based Dow Chemical Co. (NYSE: DOW – $65.87) said it had adjusted earnings for the second quarter equal to $1.08 per share, ahead of the consensus of $1.01 and compared to $0.95 last year. Sales increased to $13.8 billion, up 16% year-over-year and better than Street views. Excluding the addition of Dow Corning’s silicones business, sales rose 8%, with increases in all operating segments and all geographic areas. Sales gains were led by Performance Materials & Chemicals (up 13%) as well as Performance Plastics and Consumer Solutions (each up 8%). Volume grew 3% excluding the impact of acquisitions, reflecting broad-based gains in all operating segments and all geographies led by the Middle East and Africa (up 17%), India (up 14%), Asia-Pacific (up 6%) and Europe (up 4%). Volume growth was led by businesses aligned to Dow’s downstream consumer-driven end-markets of automotive, infrastructure, consumer care, electronics and agriculture. Prices increased 5% for the quarter. Operating segment highlights include Consumer Solutions (up 9%), Agricultural Sciences (up 6%) and Infrastructure Solutions and Performance Materials & Chemicals (each up 3%).
Dow and DuPont reaffirmed their proposed merger transaction with the expectation to close the deal next month; announced the new Board of Directors for DowDuPont; and said it achieved conditional regulatory clearance in key jurisdictions. The shares, yielding 2.8%, can be held pending details of the merger and subsequent three-way split of the combined company’s businesses.