MIDLAND, Mich. (AP) — Dow Chemical's second-quarter net income slid 62 percent as the prior-year period benefited from a $2.16 billion payment related to a scrapped joint venture.
But its adjusted profit and revenue topped analysts' estimates. The stock climbed in premarket trading on Wednesday.
The specialty chemical company's earnings after preferred stock dividends dropped to $882 million, or 73 cents per share, from $2.34 billion, or $1.87 per share, a year ago.
A year earlier Dow Chemical received a $2.16 billion payment from Petrochemical Industries Co. of Kuwait tied to a joint venture deal that fell apart.
Earnings, adjusted for non-recurring costs, came to 74 cents per share. That compares with an adjusted profit of 64 cents per share in the prior-year period. The average per-share estimate of analysts surveyed by Zacks Investment Research was for a profit of 73 cents.
Revenue for the Midland, Michigan, company climbed 2.3 percent to $14.92 billion from $14.58 billion. Wall Street forecast $14.88 billion in revenue.
Shares of Dow Chemical Co. rose $1.05, or 2 percent, to $53.35 in premarket trading about an hour before the market open.
The stock has increased $7.90, or 18 percent, to $52.30 since the beginning of the year, while the Standard & Poor's 500 index has climbed 7.3 percent.
