Dow third-quarter sale sales increase 13%

Dubai: The Dow Chemical Company reported sales of $15.4 billion for the third quarter of 2008, 13 per cent higher than the same period last year, setting a third-quarter sales record.

Net income for the quarter was $428 million, reflecting $81 million in costs (after tax) related to Hurricanes Gustav and Ike, a $27 million charge for purchased in-process research and development related to recent acquisitions, and expenses of $18 million related to the company's pending acquisition of Rohm and Haas.

This compares with net income of $403 million in the third quarter of 2007, which included a $362 million charge related to a change in German tax law and a $39 million charge for purchased in-process research and development.

Earnings for the quarter of $0.46 per share were unfavourably impacted by the hurricanes ($0.09 per share in costs and $0.03 per share in margin on lost sales), purchased in-process research and development charges of $0.03 per share, and acquisition-related expenses of $0.02 per share.

Price was 22 per cent higher than the same quarter last year, with double-digit increases in all operating segments and in all geographic areas. This was the largest year-over-year percentage increase in price since the first quarter of 2005.

However, feedstock and energy costs surged $2.6 billion over the same period last year. Margin expansion was not achieved as the hurricanes idled approximately 80 per cent of the Company's Gulf Coast capacity in September, when feedstock costs were declining.