Dow Chemical Earns Up 29 Percent
MIDLAND, Mich. (AP) _ Dow Chemical Co.‘s second-quarter earnings rose 29 percent from a year ago, beating analysts’ expectations despite higher raw material and energy costs.
The Midland-based company said Thursday it earned $527 million, or 77 cents a share, in the three months ending June 30. The company earned $410 million, or 61 cents a share, in the same period of 1999.
A survey of analysts by First Call/Thomson Financial had predicted earnings of 74 cents a share.
Sales rose 22 percent in the latest quarter, from $4.6 billion to $5.6 billion on a 13 percent improvement in pricing and 9 percent rise in volume.
Shares of Dow Chemical were up 12.5 cents to $28 Thursday on the New York Stock Exchange.
The company expects growth the remainder of the year to be positive ``despite some short-term weakening in certain industry fundamentals,″ said J. Pedro Reinhard, Dow Chemical’s executive vice president and chief financial officer. Feedstock and energy costs are expected to stabilize, he added.
Dow Chemical said last month its planned merger with Union Carbide Corp. of Danbury, Conn., is expected to be completed in the third quarter.
The deal, valued at $9.3 billion when announced last August, is awaiting regulatory approval. It would create the world’s second-largest chemical business behind DuPont. The companies originally had hoped to complete the merger late in this year’s first quarter.
For the first six months of this year, Dow earned $942 million, or $1.38 per share, up from $739 million, or $1.10 per share, in the same period of 1999.
Sales totaled $11.01 billion, up from $9.04 billion.
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