Q1 profit dips by 10% at Dow Chemical

29-Apr-06

As rising oil and feedstock costs offset a modest gain in sales, Dow Chemical Co. has posted a 10% decline in Q1 earnings. An $800 million increase in feedstock and energy costs have caused net income to fall to US$1.21 billion from US$1.35 billion in the same period last year. Sales increased 3% to US$12.02 billion from US$11.68 billion a year ago. Restructuring plans at major facilities in the United States and Europe reduced volume and significantly increased costs. U.S. sales slowed at the start of the quarter. Demand however, picked up again in March and has continued into the second quarter. Dow continues to believe that 2006 will be better than 2005, and that 2007 will be another good year.