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Earnings Review and Free Research Report: Dow's Sales Jumped 16%; Exceeded Sales and Earnings Expectations
Aug 09, 2017 (ACCESSWIRE via COMTEX) -- Copyright 2017 ACCESSWIRE

Research Desk Line-up: FMC Corp. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Dow Chemical Co. (NYSE: DOW) ("Dow"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DOW, following the Company's posting of its second quarter fiscal 2017 results on July 27, 2017. The specialty chemicals maker achieved 19 consecutive quarters of y-o-y operating earnings growth and 15 consecutive quarters of volume growth. This also marked the Company's third consecutive quarter of delivering an all-time operating EBITDA record. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Chemicals - Major Diversified industry. Pro-TD has currently selected FMC Corporation (NYSE: FMC) for due-diligence and potential coverage as the Company reported on August 01, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on FMC Corp. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DOW; also brushing on FMC. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=DOW

http://protraderdaily.com/optin/?symbol=FMC

Earnings Reviewed

For the three months ended June 30, 2017, Dow's sales jumped 16% to $13.83 billion compared to sales of $11.95 billion in Q2 2017. The Company's sales rose 8% excluding the addition of Dow Corning's silicones business, with increases in all operating segments and all geographic areas. The Company's revenue numbers exceeded analysts' expectations of $13.65 billion.

During Q2 2017, Dow's volume grew 3% on a y-o-y basis excluding the impact of acquisitions, reflecting broad-based gains in all operating segments and all geographic areas, led by Middle-East and Africa up by 17%, India up by 14%, Asia/Pacific up by 6%, and Europe up by 4%. The Company noted that volume growth was led by businesses aligned to Dow's downstream consumer-driven end-markets of automotive, infrastructure, consumer care, electronics, and agriculture.

For Q2 2017, Dow's operating earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 12% to $2.76 billion compared to $2.46 billion in Q2 2016, with gains in all operating segments, except Performance Plastics, driven by higher prices, broad-based demand growth, new product introductions, cost controls and productivity measures, and the contribution of Dow Corning's silicones business.

Dow reported earnings per share of $1.07, or operating earnings per share of $1.08, in Q2 2017, compared to earnings per share of $2.61, or operating earnings per share of $0.95, in Q2 2016. The Company's reported quarter reflected a $0.08 per share charge for transactions and productivity actions and a $0.07 per share gain for a patent infringement award, while results in the year-ago same period primarily reflected a $2.20 per share gain related to the Dow Corning ownership restructure, and a $0.27 per share charge related to a restructuring program. The Company's adjusted earnings of $1.08 per share exceeded Wall Street's expectations of $1.01 per share.

Segment Results

During Q2 2017, Dow's Agricultural Sciences segment reported sales of $1.63 billion, up 3% compared to sales of $1.58 billion in Q2 2016, driven by a double-digit increase in the Seeds business. The segment's volume increased 6%, with gains in both Seeds and Crop Protection businesses, while price declined 3% on a y-o-y basis.

The Company's Agricultural Sciences operating EBITDA was $326 million, up from $232 million in Q2 2016, driven by robust demand for the business's novel Seeds and Crop Protection technologies and benefits from lower operating costs primarily driven by productivity actions.

For Q2 2017, Dow's Consumer Solutions generated sales of $1.68 billion, up 32% from $1.27 billion sales in Q2 2016, primarily driven by the contribution of Consumer Solutions - Silicones. Excluding acquisitions, the segment's sales rose 8% with gains in all businesses and geographic areas. In the reported quarter, volume grew 9% on a y-o-y basis more than offsetting a 1% price decline due to currency headwinds.

Consumer Solutions' operating EBITDA rose to a quarterly record of $541 million, up from $341 million in Q2 2016. This result represented the eighth consecutive quarter of y-o-y operating EBITDA growth.

During Q2 2017, Dow's Infrastructure Solutions reported sales of $2.79 billion, up from $2.09 billion in Q2 2016, delivering sales growth of 34%, driven by the contribution of Infrastructure Solutions - Silicones. Excluding acquisitions, sales rose 7% with gains in all businesses and all geographic areas, except Latin America which remained flat. Infrastructure Solutions' volume grew 3% on a y-o-y basis and price increased 4%. The segment's operating EBITDA increased 29% to $556 million, up from $432 million in the year-ago comparable period.

During Q2 2017, Dow's Performance Materials & Chemicals reported sales of $2.57 billion, up 13% compared to sales of $2.26 billion in Q2 2016 with gains in all geographic areas. The price rose 10% and volume grew 3% on a y-o-y basis. The segment's operating EBITDA was $347 million, up from $295 million in the year-ago corresponding period.

For Q2 2017, Dow's Performance Plastics reported sales of $5.1 billion, up 8% compared to sales of $4.7 billion in Q2 2016, achieving its fourth consecutive quarter of y-o-y sales growth. The price rose 7%, primarily on higher co-product values, and volume grew 1%. In the reported quarter, operating EBITDA for the segment was $1.1 billion, down from Q2 2016 record of $1.2 billion.

Cash Matters

Dow generated $1.3 billion of cash flow from operations in Q2 2016, down $889 million from the year-ago same period, driven by broad-based sales gains as well as increased investments in working capital related to Sadara product marketing activities. The Company continued to further enhance working capital efficiency, with an improvement of more than 8 days versus the year-ago same period.

Dow's productivity and cost savings was $215 million in Q2 2017, an increase of $125 million versus the same quarter last year. In the reported quarter, Dow also completed its 2015 restructuring program.

Dow DuPont Merger

On August 04, 2017, DuPont (DD) and Dow announced that all required regulatory approvals and clearances have been received, that all conditions to closing of their merger of equals have been satisfied, and that their merger of equals will close after the market closes on August 31, 2017. Shares of Dow and DD will cease trading at the close of the New York Stock Exchange (NYSE) on August 31, 2017. Shares of DowDuPont will begin trading on the NYSE under the stock ticker symbol "DWDP" on September 01, 2017.

Stock Performance

At the closing bell, on Tuesday, August 08, 2017, Dow Chemical's stock slightly slipped 0.74%, ending the trading session at $63.41. A total volume of 4.11 million shares have exchanged hands. The Company's stock price surged 2.56% in the last three months, 6.05% in the past six months, and 18.30% in the previous twelve months. Moreover, the stock rallied 10.82% since the start of the year. The stock is trading at a PE ratio of 26.54 and has a dividend yield of 2.90%. The stock currently has a market cap of $76.76 billion.

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