MOSCOW (MRC) -- Dow has reported earnings per share of USD1.18 or operating earnings of USD0.84 per share. This compares with earnings of USD0.79 per share on both a reported and an operating basis in the year-ago period, as per the company's press release.
EBITDA for the quarter was USD3.1 billion. Operating EBITDA was USD2.4 billion, with gains reported in Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals, as well as Performance Plastics. Operating EBITDA increases were led by Consumer Solutions and Infrastructure Solutions (both up 10%).
Sales were USD12.4 billion, down 14% driven primarily by price declines, due to changes in crude oil values and currency devaluations versus the dollar. Demand for Dow products grew across all geographic regions. Volume increased in Performance Plastics (up 6%), and Performance Materials & Chemicals and Consumer Solutions (both up 5%). Overall, growth was led by emerging geographies (up 5%), with particular strength in Greater China (up 10%).
Operating cash flow was USD1.2 billion - a first quarter record and an increase of more than USD660 million versus the same quarter last year.
Dow announced the signing of a definitive agreement to divest a substantial portion of its chlorine value chain through a transaction with Olin Corporation for a tax-efficient consideration of USD5 billion, and taxable equivalent value of USD8 billion.
Additional, ongoing portfolio management in the quarter included the sale of the ANGUS Chemical Company and Sodium Borohydride businesses, generating USD688 million in pre-tax gains.
Andrew N. Liveris, Dow’s chairman and chief executive officer, stated: "Dow delivered a tenth consecutive quarter of operating earnings and margin growth with the full impact of an integrated, diversified portfolio on display. Demand for our high-margin, technology-driven businesses, coupled with our low-cost integration delivered margin expansion. This performance underscores the power of our portfolio to deliver in the face of significant macroeconomic pressures, with issues like oil price declines and currency volatility, plus weather impacts in agriculture, all overcome in the quarter. Our targeted market participation strategy, together with the strength of our integrated portfolio, has created a company with higher and even more predictable earnings.
"The actions that we have taken to build a shareholder-centric foundation are fudamentally transforming Dow into the premiere company in the chemicals, materials and agricultural sectors. Our ongoing execution against the commitments we have made is demonstrated by the return of an additional USD977 million to shareholders during the quarter and our announced divestiture transactions, which we expect to exceed USD11 billion - well ahead of our stated target of USD7 billion to USD8.5 billion."
The Dow Chemical Company is an American multinational chemical corporation. As of 2007, it is the second-largest chemical manufacturer in the world by revenue (after BASF) and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont). Dow is a large producer of plastics, including polystyrene, polyurethane, polyethylene, polypropylene, and synthetic rubber.
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