Dow Chemical (NYSE: DOW) has reported second-quarter earnings of $649 million, or $0.55 per share, and $14.5 billion in revenue. EPS were down from $0.84 in the same quarter of last year and revenue dropped 10 percent. Analysts polled by Thomson Reuters had expected the company to report earnings of $0.64 per share on $15.70 billion in sales for the quarter.
The company is struggling to boost earnings as contracting economies in Europe and slower Chinese growth curtail demand for products such as plastics. Profit in the plastics business, Dow’s largest unit, fell 21% as prices declined.
“Sustained uncertainty in the world economy continues to present a challenging operating environment,” said CEO Andrew N. Liveris. “This, coupled with an unusually high turnaround season for Dow and a large currency effect, pressured margins in the quarter.”
Shares are down about 3% in premarket trading to $29.35, and the 52-week trading range is $20.61 to $36.32. Thomson Reuters had a consensus analyst price target of $36.31 before this news.
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