CHEMICAL EARNINGS YET TO SLIP

Abstract

DESPITE ALL the gloom about the U.S. economy and high energy prices, chemical company fourth-quarter results thus far have held relatively firm. Chemical companies are crediting continuing strength in overseas markets for their good fortunes. Profits also depended on how well companies were able to pass along higher costs to their customers. The largest U.S. chemical company, Dow Chemical, posted record sales of $14.2 billion in the quarter, representing a 16.3% increase over the same period in 2006. Yet the company’s earnings slipped, dropping 15.5% during the quarter, down to $806 million. Earnings for Dow and other companies are from continuing operations and exclude significant extraordinary and nonrecurring items. But Dow CEO Andrew N. Liveris regards the quarter as successful for his company, with results still among the strongest in the company’s history. He credits this to company efforts to raise prices in the face of escalating hydrocarbon costs. “Given the very difficult conditions we ...