Dow Chemical has reported a drop in earnings of 25% for 2012, as it was hit by the world economy’s slowdown during the last six months of the year. However, the company still exceeded expectations of analysts during the fourth quarter.
Net income, which was adjusted to exclude all one-time items, including close to $1 billion of restructuring costs, fell 24% to $2.25 billion for 2012 or $1.90 per share. Revenues for the year were just less than Wall Street expectations down 2% for 2012 to $56.8 billion.
CEO Andrew Liveris said the second six months of 2012 saw great deterioration in the marketplace the company serves, particularly in China. Liveris said the chemicals group, based in the U.S., had taken very aggressive action to offset the effects of the slow to near no growth worldwide environment. The company deployed cash flow and cost levers and prudently managed its portfolio, said Liveris.
Earnings prior to tax, interest, amortization and depreciation were off at every division, except agricultural sciences, which earned $977 million or an increase of 7%. The biggest decline at Dow was from performance materials like surfactants and solvents, which dropped 41% to $1 billion.
Dow shares fell by 1.9% in premarket trading on Thursday morning in New York.
