Dow Chemical Says Sales Volume Slides 9%, Recovery ‘Slow’
October 22/2009
Oct. 22 (Bloomberg) -- Dow
Chemical Co., the largest U.S. chemical maker, said sales volumes fell
9 percent in the third- quarter and the company doesn’t expect
significant demand improvements next year.
Sales in the quarter fell 22 percent to $12 billion, topping analysts’
$11.8 billion average estimate. The revenue decline was 32 percent when
viewed as if Rohm & Haas was part of Dow in the year earlier quarter, with prices dropping 23 percent.
Dow
is not counting on “material improvements in market conditions” through
2010, Chief Executive Officer Andrew Liveris said today in a statement.
“The global economy is now on firmer footing and in, our view, the
United States economy is beginning a slow and tenuous recovery, with
unemployment continuing to be a drag on consumer spending.”
Dow fell $1.14, or 4.5 percent, to $24.36 at 9:53 a.m. in New York
Stock Exchange composite trading. The shares gained 69 percent this
year before today.
Net income increased to $796 million, or 63 cents a share, from $428
million, or 46 cents, a year earlier, the Midland, Michigan-based
company said. Profit excluding divestitures and other one-time items
was 24 cents a share, topping the 10-cent average estimate of 10
analysts in a Bloomberg survey.
Liveris fired workers, shut plants and sold assets to buoy earnings and
pay off a loan used to buy Rohm & Haas Co. in April. Profit rose in
five of Dow’s seven units, and lower U.S. natural gas prices helped cut
raw- material costs by $3.5 billion. Sales improved 6 percent from the
second quarter.
