Tags: Dow Chemical | earnings | profit | buyback

Dow Chemical Raises Stock Buyback Plan After Profit Beats Estimates

Wednesday, 29 Jan 2014 08:08 AM

Dow Chemical Co. reported a better-than-expected quarterly profit and tripled its share buyback program to $4.5 billion, joining rival DuPont in increasing shareholder returns amid investor activism.

Shares of Dow Chemical, the largest U.S. chemical maker by sales, rose 7 percent after the company also raised its dividend by 15 percent.

The company's results in the fourth quarter were powered by resilient agricultural demand and strong margins at its plastics business.

Dow Chemical in December said it would sell a bulk of its century-old chlorine business as part of a larger plan to raise $3-$4 billion from the disposal of commodity businesses.

But activist investor Daniel Loeb, whose hedge fund Third Point holds a stake in Dow Chemical, is pushing for something more drastic: a spin off the company's slow-growing petrochemical business to focus on specialty materials.

DuPont, which is the target of Nelson Peltz, on Tuesday said it would buy back $5 billion in stock after reporting quarterly profit above market estimates, helped by early seed shipments and strong insecticide demand.

Dow Chemical on Wednesday increased its buyback to $4.5 billion from $1.5 billion.

The company, which has paid quarterly dividends since 1912, raised its dividend to 37 cents from 32 cents per share.

Net income available for common stockholders was $963 million, or 79 cents per share, in the quarter ended Dec. 31.

Dow Chemical posted a loss of $716 million, or 61 cents per share, in the year-ago quarter due to a $990 million charge related to job cuts, plant closures and write down of the value of its lithium-ion battery business.

Adjusted profit was 65 cents per share in the latest quarter, comfortable beating the analysts' average estimate of 43 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 3 percent to $14.39 billion.

Dow Chemical shares were up 7 percent at $45.84 on the New York Stock Exchange on Wednesday. The stock has risen 25 percent in the last year.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
InvestingAnalysis
Dow Chemical Co. reported a better-than-expected quarterly profit and tripled its share buyback program to $4.5 billion, joining rival DuPont in increasing shareholder returns amid investor activism.
Dow Chemical,earnings,profit,buyback
326
2014-08-29
Wednesday, 29 Jan 2014 08:08 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved