Dow Posts Quarterly Profit

Sales increases and cost-cutting measures have carried Dow Chemical to fourth-quarter profits of $295 million, compared with a loss of $574 million a year earlier. Dow’s earnings per share of 18 cents beat analysts’ expectations by 11 cents. Sales increased in all regions except for North America, and the company boasted that it increased sales volumes in emerging regions by 33% year over year. Still, Citigroup chemicals analyst P. J. Juvekar said the sales increase was smaller than expected. “The bottom line was more impressive due to cost-cutting initiatives, favorable taxes, and strong operational results in basic plastics, performance products, and electronics,” he told investors. In a conference call to discuss the results, Dow CEO Andrew N. Liveris detailed the company’s actions to integrate Rohm and Haas and shift away from basic chemicals. Although 2009 started with a deep recession and a failed petrochemical joint venture, “we quickly reduced costs and right-sized our asset footprint to reduce exposure to commodity products in low-growth locations,” he said. Looking ahead, Liveris said the company plans to divest businesses worth up to $12 billion. He confirmed that Dow is in negotiations with a buyer for its Styron styrenics business.