Dow Chemical Profits Beat the Street
Post date: Jul 30, 2013 8:10:46 AM
Dow Chemical Co's (DOW) adjusted quarterly profit jumped 16 percent, topping analysts' estimates, driven by robust demand for a new line of crop protection products.
A steady climb in U.S. farm income has increased demand for biotech seeds and pesticides, to the benefit of both Dow Chemical and bigger rival DuPont (DD)
Dow Chemical's agriculture sciences business also benefited from strong demand from Latin American farmers for crop protection products such as herbicides and insecticides.
Sales at the agribusiness, which supplies seeds, oils and farm chemicals, jumped 10 percent in the quarter, the highest growth among its six operating segments.
Margins at the performance plastics unit, Dow Chemical's biggest, jumped to 27.5 percent in the second quarter from 20.5 percent a year earlier, also helping quarterly results. The unit reported its sixth quarter of growing margins.