Dow Chemical +2.3% as Q1 earnings jump 65%

Dow Chemical (DOW) +2.3% premarket after Q1 earnings rose 65% Y/Y, beating estimates, on a slight revenue rise and a boost from lower costs.

DOW says adjusted EBITDA margin expanded more than 60 bps Y/Y to 16.6%, with increases in all operating segments except feedstocks and energy; margins grew despite a $300M-plus increase in purchased feedstocks and energy, due to continued emphasis on productivity and cost-control actions.

Sales in DOW's performance plastics segment gained 3%, largely due to price increases; excluding the impact of divestitures, the growth was 6%.

R&D expenses fell 10%.

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Comments (4)
  • quinnman
    , contributor
    Comments (138) | Send Message
    Cut R&D expand margins. Losers game
    23 Apr 2014, 11:18 AM Reply Like
    , contributor
    Comments (90) | Send Message


    You need to know why they dropped. Was it laying off scientists or was it completion of a major lab that's now fully outfitted with no further need for major investment?P...W
    24 Apr 2014, 12:27 AM Reply Like
  • quinnman
    , contributor
    Comments (138) | Send Message
    To remain competitive you always have to be spending on R&D. This is oldst game in the books...cut R&D, goose profits, lose future edge
    24 Apr 2014, 11:54 AM Reply Like
  • MVM
    , contributor
    Comments (5) | Send Message
    Dow is on right track. At this stage it is better to cut costs, and after some time ramp up research again. Selling business which are not doing well, and then buying back shares is the way to fast progress.
    23 Apr 2014, 08:50 PM Reply Like
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