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Dow Chemical posts 11 percent drop in 4th-quarter profit on higher costs

Dow Chemical posts 11 percent drop in 4th-quarter profit on higher costs

Dow Chemical Co. said Thursday its fourth-quarter profit declined 11 percent as higher costs offset a modest rise in sales.
Net income fell to $975 million (euro749.71 million), or $1 per share, in the last three months of 2006 from $1.1 billion, or $1.12 per share, in the year-ago period.
The recent quarter was hurt by a charge of $85 million (euro65.36 million) for a fine imposed by the European Commission related to a rubber price-fixing scandal, as well as a $12 million (euro9.23 million) restructuring charge.
Excluding certain items, earnings totaled 98 cents versus $1.02 per share a year ago.
Sales edged up 3 percent to $12.24 billion (euro9.41 billion) from $11.92 billion a year earlier.
Selling, general and administrative expenses jumped 16 percent to $453 million (euro348.33 million), while sales costs and research and development expenses were also higher.
Analysts surveyed by Thomson Financial expected Dow to earn 93 cents per share on $12.12 billion (euro9.32 billion) in revenue.
Volume rose 2 percent in the quarter, led by growth in Dow's performance chemicals and plastics segments offset declines in its basic chemicals and energy businesses.
By region, the company saw strong demand for its products in Asia, Europe and Latin America, which tempered a slowdown in North America.
Dow said feedstock and energy costs are trending lower in 2007, and expects to see healthy demand and "solid results" in the year ahead.


Updated : 2021-06-23 01:42 GMT+08:00