Published: April 30, 2009 08:33 pm         

Dow profits tumble

NEW YORK (AP) - Dow Chemical posted a 97 percent drop in first-quarter profit on Thursday as big commercial clients and consumers cut back heavily on spending, though results easily beat Wall Street expectations.

Because Dow's chemicals are used in such a wide variety of products, from toys to automobiles, the global economic downturn has hit the company especially hard.

The company earned $24 million, or 3 cents per share, compared with $941 million, or 99 cents per share, a year earlier.

Excluding charges and other one-time items, Dow earned 12 cents per share during the period.

Sales fell 39 percent to $9.09 billion from $14.82 billion a year earlier.

Analysts polled by Thomson Reuters expected a loss of 21 cents per share on revenue of $11.69 billion. Analysts typically exclude one-time items.

"Our positive earnings in this recessionary environment were the direct result of our rapid actions to reduce costs and tightly manage operations," said Andrew Liveris, Dow's chairman and chief executive officer.

Dow has already announced it was paring 9,500 jobs and shutting 20 plants.

The Midland, Mich.-based company posted a $19 million charge related to a restructuring plan announced last year. Dow also recorded a $48 million charge related to its buyout of Rohm & Haas, and a $29 million charge connected to its stake in Dow Corning.

     

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