Dow Chemical 2Q profit falls as weaker demand leads to lower prices

AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Dow Chemical 2Q profit falls as weaker demand leads to lower prices; hurt by Europe softness by News Staff Posted Jul 26, 2012 7:58 am MDT MIDLAND, Mich. – Dow Chemical Co.’s second-quarter net income fell 34 per cent as weaker demand led to lower prices. Softness in Europe and a stronger dollar also weighed on results. The nation’s biggest chemical maker expects to accelerate cost-cutting efforts.Its results missed Wall Street estimates and the company’s shares dropped 3 per cent in premarket trading on Thursday.Dow Chemical is the nation’s biggest chemical maker and can offer a broad overview of global economic conditions because its products are used in nearly every sector. Its materials are used in products ranging from televisions and toys to automobiles.Since the end of the first quarter, economies have slowed in the U.S. and China. Some European countries have fallen into recession as the massive debt crisis there continues. Manufacturing declined in all three regions.Experts say that has cut demand for chemical products in a wide range of industries; including commercial construction, housing and consumer products like electronics.“Sustained uncertainty in the world economy continues to present a challenging operating environment, and this quarter was no exception,” Chairman and CEO Andrew Liveris said in a statement.He said that Europe’s troubles have continued to pressure the company, while activity in China and other emerging markets slows. The U.S. is also a factor, Liveris said, as the nation’s recovery is moderating from earlier in the year due to weakening consumer confidence, softer trade flows and high unemployment.To contend with these conditions, Liveris says that Dow Chemical will ramp up its efforts to cut costs.“Despite these near-term headwinds, Dow has the right strategy in place to deliver over the long term,” he said.For the April-June quarter, Dow Chemical’s earnings fell to $649 million, or 55 cents per share. That’s down from $982 million, or 84 cents per share, a year ago.Analysts forecast higher earnings of 64 cents per share, according to a poll by FactSet.Revenue dropped 10 per cent to $14.51 billion, missing Wall Street’s estimate of $15.69 billion.Prices fell 5 per cent, declining in all geographic regions. The biggest drop — 8 per cent — was in Europe.One bright spot was the agricultural sciences division, which reported a 12 per cent rise in sales.Sales declines were reported by the electronic and functional materials unit, coatings and infrastructure solutions, the performance materials segment, performance plastics and the feedstock and energy division.Shares of Dow Chemical fell 92 cents, or 3 per cent, to $29.35 before the market opening. read more

Womens basketball Mitchell moves up No 15 Ohio State keeps win streak

Ohio State junior guard Kelsey Mitchell pulls up for a shot in the second half against Wisconsin at the Schottenstein Center on Jan. 19. OSU won 70-61. Credit: Jacob Myers | Assistant Sports EditorThe No. 15 Ohio State women’s basketball team walked away from its first win in Williams Arena since 2011 after Thursday night’s game, beating the Minnesota Gophers 88-76.The Buckeyes (18-5, 8-1 Big Ten) were lead by junior guard Kelsey Mitchell with 25 points where she also racked up two assists and five rebounds. She was followed by senior forward Shayla Cooper with 18 points. Redshirt junior forward Stephanie Mavunga dominated on both sides of the ball getting her ninth double-double of the season with 13 points and 16 rebounds. Mitchell passed former Minnesota player Lindsay Whalen in the Big Ten all-time scoring list, becoming the Big Ten’s tenth all-time scorer after ending Thursday’s game with 2,287 career points. OSU struggled in the first quarter. Minnesota (11-10, 2-6 Big Ten) came out in a 2-3 zone and swarmed OSU’s shooters, holding the Buckeyes to an 0-for-5 start from beyond the arc. The Gophers also forced six OSU turnovers, and held a one point lead after the first quarter.In the second quarter, the Buckeyes found their rhythm offensively as the Big Ten’s leading scorer found her groove. Mitchell hit three straight shots midway through the quarter to swing the momentum in OSU’s favor. In the third, the Gophers couldn’t stop Cooper, as she hit several open jumpers from the elbow. Additionally, the Buckeyes came out of halftime and got to the line more and knocked down their shots, knocking down 7-of-9 free throws in the third.Two minutes into the last quarter of play, Minnesota junior guard Carlie Wagner hit a wide-open 3-pointer to cut the lead to three and got the crowd into the game. However, Minnesota relinquished momentum when Mavunga grabbed an offensive rebound and hit the put-back shot. Wagner went on to score 34 points, but OSU’s offense kept the score in its favor.OSU scored 26 in the last quarter of play, and finished with 50 percent shooting from the field as a team. The Buckeyes will look to continue their winning streak to five, facing the Nebraska Cornhuskers at the Schottenstein Center on Sunday at noon. read more