The Dow Chemical Co. (NYSE: DOW) is indicated lower after earnings missed expectations. CEO Andrew Liveris was on CNBC this morning to talk up the numbers during a challenging time but it mattered little.
The chemicals giant reported earnings of $0.25 per share versus expectations of $0.30 EPS. Too bad this was soft because many felt the bar was set low considering that it has raised prices and is claiming to have some pricing power. Revenues rose 2.4% to $14.1 billion, also short of the $14.25 billion expected.
Sales in emerging markets reached a new record at $5 billion and total Volume declined 3%, but these were ex-divestitures. China volume was up 12%, offsetting a weak -5% drop in Europe and a 2% drop in the United States.
Dow is not anticipating any sudden recovery in market conditions for the first quarter of the year, but it does see economic recovery gaining momentum in the second quarter and through the rest of 2012.
Dow shares are down 3.2% at $32.66 in the pre-market trading on almost 50,000 shares and the 52-week range is $20.61 to $42.23. The current dividend yield is about 3%.
JON C. OGG