Midland, MI, October 27, 2005--Dow Chemical Co. in the third quarter reported earnings that increased 30% to $801 million, or $0.82 a share, from $617 million, or $0.65, a year earlier.
Analysts were expecting $0.75 a share.
Product prices improved 12%, with increases in all geographic areas and across virtually every business, while volume held steady, despite the impact of the two hurricanes that hit the U.S. Gulf Coast. Dow's products are used in everything from antifreeze to plastic pipes.
Quarterly sales totaled $11.3 billion, a new third-quarter record, and were up 12% from a year earlier.
Still, Dow's feedstock and energy costs were almost $850 million higher than a year ago.
In recent months, the U.S. chemical industry has struggled with record energy costs, which spiked after Hurricanes Katrina and Rita hit the U.S. Gulf Coast. The storms also hobbled chemical output by forcing plant shutdowns.
Even before the storms, industry analysts were worried about weakening demand, rising interest rates, and high prices for natural gas.
