MIDLAND, M ich . — Dow Chemical’s second-quarter net income slid 62 percent from a prior-year period that benefited from a $2.16 billion payment related to a scrapped joint venture.
But Dow’s adjusted profit and revenue topped analysts’ estimates. The stock climbed in pre-market 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 $1.59, or 3 percent, to $53.89 Wednesday. The stock has increased $9.49, or 21 percent, since the beginning of the year, while the Standard & Poor’s 500 index has climbed 7.5 percent.