Dow Earnings Fall on Increasing Costs, Housing

Midland, MI, January 29, 2008—Earnings for Dow Chemical fell in the fourth-quarter earnings, hurt by weak U.S. housing and auto markets, increasing costs, and restructuring charges.

The chemical maker reported net income of $472 million, or 49 cents a share, down from $975 million, or $1 a share, a year earlier.

Excluding one time items, earnings fell to 84 cents a share from 98 cents.

Dow said it is focused on improving earnings growth through joint ventures. In December, it announced a large joint-venture agreement with a unit of Kuwait Petroleum Corp.

KPC's Petrochemical Industries Co will pay Dow $9.5 billion to contribute five of the U.S. company's businesses, which are worth about $19 billion, to a 50-50 joint venture.