Dow Chemical (DOW) shares are having a rough morning of it, falling $1.66, or 6%, at $27 after the company this morning despite the company reporting sales rose 15% to $12.5 billion, nearly $700 million ahead of the consensus estimate. The company also beat on the bottom line, reporting 18 cents versus the average 11-cent estimate.
Perhaps spooking investors, the company said volume rose 33% overall, but dipped 1% in North America, the only area where volume of sales was down. Furthermore, pricing declines of 17% were a result of the overall drop in feedstock and energy costs, with prices falling in all areas of the world the company operates.
On the outlook, chair and CEO Andrew Liveris had pretty grim thoughts to offer, noting that while the outlook for the developing world was strong, “Growth will continue to lag in the U.S. and Europe, however, as high unemployment persists and questions about the sustainability of government stimulus spending remain.”
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