Dow Chemical (DOW) Tops Q1 EPS by 8c

Dow Chemical (NYSE: DOW) reported Q1 EPS of $0.84, $0.08 better than the analyst estimate of $0.76. Revenue for the quarter came in at $12.4 billion versus the consensus estimate of $13.04 billion.

Dow announced the signing of a definitive agreement to divest a substantial portion of its chlorine value chain through a transaction with Olin Corporation for a tax-efficient consideration of $5 billion, and taxable equivalent value of $8 billion(6) – equivalent to a 12.5x EBITDA multiple.

Outlook

Commenting on the Company’s outlook, CEO Andrew Liveris said:

“Looking ahead, we expect geopolitical and economic uncertainty throughout 2015, although the oil market is projected to be more favorable behind growing global demand in the coming quarters. In this environment, we will continue to execute against our growth commitments, demonstrated by our investment in bringing 5,000 new products to market in the last twelve months – with a similar amount planned for the next twelve months. In addition, our large Saudi Arabia and U.S. Gulf Coast projects will begin starting up later this year. Collectively these investments set Dow apart by further strengthening our portfolio through economic cycles and fortifying our long-term growth trajectory.

“With our recently announced portfolio moves, we are confident that we have the right business model to navigate fast-moving market dynamics, with the right amount of integration, and the right amount of diversification. We have struck the right balance in creating a company that is consistently growing the bottom line under these challenging economic conditions. We continue to advance our growth investments in science-based, sustainable solutions that enable our customers’ growth while continuing to allow Dow to increasingly reward our shareholders.”

For earnings history and earnings-related data on Dow Chemical (DOW) click here.

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