Dow Chemical Offers Earnings Beat Despite Weather Issues
Dow Chemical reported better-than-expected first-quarter 2014 earnings before markets opened Wednesday due to a strong gain in its plastics unit and growth in China.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Dow Chemical Co. (NYSE: DOW) reported first-quarter 2014 results before markets opened Wednesday. The diversified chemicals company posted diluted earnings per share (EPS) of $0.79 on revenues of $14.46 billion. In the same period a year ago, the company reported adjusted EPS of $0.69 on revenues of $14.38 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.71 and $14.72 billion in revenues.
Its Performance Plastics unit saw sales gains of 6% due to higher prices, while higher volumes in Coatings and Infrastructure Solutions led to a 5% increase in sales. The company also cited strong growth in China.
The company’s CEO said:
We achieved margin expansion in all of our key business operating segments — despite a series of weather- and transport-related issues in North America. … Our financial priorities are firmly institutionalized, and we continued to increase cash flow and further improved return on capital. Additionally, we increased our dividend and completed $1.25 billion in share repurchases in the first quarter alone.
ALSO READ: The Most Innovative Companies in the World
Competitor E.I. du Pont de Nemours and Company (NYSE: DD), commonly known as DuPont, last week reported first-quarter results that fell short of consensus estimates, in part due to inclement weather.
Dow Chemical did not offer specific guidance, but consensus forecasts so far call for EPS of $0.83 and revenue of $15.08 billion in the current quarter, as well as $2.92 per share and $58.99 billion for the full year.
Dow Chemical shares were inactive in premarket trading, after ending Tuesday at $48.94 in a 52-week range of $31.00 to $50.96. Thomson Reuters had a consensus analyst price target of around $50.50 before the report.
ALSO READ: Companies Profiting the Most From War
Contact [email protected] for any questions or corrections.
Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.