MIDLAND, Mich. – Dow Chemical Co. said Thursday its third-quarter earnings fell 28 percent on a slew of one-time charges. But revenue rose and its adjusted results topped Wall Street's expectations.
The nation's largest chemical manufacturer said it's seeing a solid recovery in demand in North America and Europe with "momentum" in emerging countries. Dow said its third-quarter results give it "confidence that a sustained global economic recovery, led by emerging economies, is firming despite headwinds."
Its shares rose 5 cents to $31.26 in morning trading.
The Midland, Mich., company said its net income fell to $512 million, or 45 cents per share, from $711 million, or 63 cents per share, a year ago.
Excluding one-time items for restructuring and acquisitions among other things, the company said it earned 54 cents per share in the most recent quarter.
Revenue rose 7 percent to $12.87 billion from $12.1 billion a year ago. Emerging economies like those in Brazil, Asia, the Middle East and Eastern Europe now make up about a third of Dow's sales.
Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, expected earnings of 41 cents a share on revenue of $12.81 billion.
The company said its major markets like electronics, coatings, automotive and packaging continue to show strength despite continued high unemployment and continued weakness in construction.
Demand in North America and Europe was "particularly strong" for lubricants and other heat transfer fluids used in solar power applications.