Dow Losses Larger Than Expected

Midland, MI, Feb. 3, 2009-- Dow Chemical Co. said it lost $1.55 billion in the fourth quarter, due in large part to restructuring costs and a 23 percent drop in sales amid a global slump.

The loss was larger than expected and revenue came in below Wall Street expectations.

Andrew N. Liveris, Dow's chairman and chief executive, said while the economic recovery could be rapid this year, "we are planning for a global recession throughout 2009 and will continue to take actions on managing our cash and controlling our costs with the same intensity that we demonstrated in the fourth quarter."

Dow, one of the world's largest chemical makers, said its loss amounted to $1.68 per share in the three months ended Dec. 31. It had earned $472 million, or 49 cents per share, during the last quarter of 2007.

The company reported $978 million in charges related to restructuring, the effect of two hurricanes on its Gulf of Mexico facilities, and expenses related to a failed joint venture and its planned acquisition of rival Rohm and Haas Co.

Excluding those one-time costs, its loss was 62 cents per share.

A survey of analysts showed they expected a profit of 6 cents a share excluding one-time items.

Dow said sales fell to $10.9 billion from $14.2 billion.

"With a global economic crisis unfolding during the quarter, we responded with speed and urgency to get ahead of the demand destruction that continued to accelerate as we approached the end of the year," Liveris said. "We immediately put in place a full array of aggressive cash generation and cost and capital control measures that delivered results. We remain intensely focused on those actions that we can control and will continue to do so throughout 2009."

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