Profits and Sales Tumble at Most Chemical Firms

摘要

Lower volumes took a toll on second-quarter earnings at basic and specialty chemical firms, but several say conditions have stabilized. Most firms also managed to eke out higher profits than analysts expected. Dow Chemical reported a net loss of $435 million, compared with net income of $776 million in the year-ago quarter, due to weak demand and charges related to restructuring and its purchase of Rohm & Haas (R&H). Sales fell 31%, to $11.3 billion. The company incurred charges of $663 million to shut down a number of facilities and reduce workforce, and $86 million for acquisition-related expenses. Earnings excluding one-time it ems were 5 cts/share, above analysts' estimates of a loss of 8 cts/share, as reported by Thomson Reuters (New York). Second-quarter earnings reflect results from R&H, which Dow acquired April 1.