Dow Chemical's Profit Jumps Five-Fold

Industries Reuters

(Dow)

Dow Chemical which is merging with DuPont, reported a stronger-than-expected quarterly profit as the company gained from its focus on consumer markets.

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Demand in Dow's packaging, consumer care, electronics and automotive businesses has been robust due to improving economic growth worldwide.

Dow has been concentrating on its high-margin businesses while shedding its less-lucrative commodity businesses, including parts of its century-old chlorine business.

Net income available to the company's shareholders rose to $888 million, or 72 cents per share, in the first quarter ended March 31 from $169 million, or 15 cents per share, a year earlier.

The year-earlier included a $778 million charge related to the settlement of a 2005 lawsuit that accused Dow and other companies of conspiring to fix prices of urethane chemicals in the preceding six years.

Excluding a $386 million arbitration-related charge in the latest quarter, operating profit was $1.04 per share, topping the analysts' average estimate of 99 cents per share, according to Thomson Reuters I/B/E/S.

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Net sales rose 23.6 percent to $13.23 billion, slightly beating analysts' estimate of $13.21 billion.

 

 

(Reporting by Swetha Gopinath and Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)