By Tess Stynes
Dow Chemical Co. swung to a fourth-quarter profit on improved
sales in most of its operating businesses.
Results solidly topped expectations and the company disclosed
plans to boost its quarterly dividend by 15% to 37 cents a share
and increase its stock buyback authorization to $4.5 billion.
"We exceeded our goals in 2013 despite the challenging market
conditions that existed throughout the year, and this is clear
evidence of our ability to manage all aspects of our integrated
business to generate strong financial performance in an uncertain
world," Chief Executive Andrew Liveris said.
The company added it exceeded its $500 million cost-cut target
for the year.
Activist investor Daniel Loeb is pressing Dow to split its
petrochemicals businesses from its specialty chemicals
businesses--a breakup that would go further than Dow's current
restructuring plans.
Dow outlined a plan in December to exit some low-margin chemical
businesses, part of the company's effort to increase its focus on
specialty chemicals used in industrial processes. Mr. Loeb has
argued that Dow's petrochemicals operation is a drag on the
company's performance. The bulk of the proposed specialty chemicals
unit that Mr. Loeb would like to see comes from operations Dow
acquired from Rohm & Haas in 2009. The proposed specialty unit
would also include Dow's agricultural chemicals unit.
Dow Chemical reported a profit of $1.05 billion, or 79 cents a
share, compared with a year-earlier loss of $631 million, or 61
cents a share. Excluding restructuring-related charges, asset
write-downs and other items, adjusted earnings rose to 65 cents
from 33 cents. Revenue increased 3.4% to $14.4 billion and volume
improved by 2%.
Analysts polled by Thomson Reuters expected per-share profit of
43 cents and revenue of $14.13 billion.
Write to Tess Stynes at tess.stynes@wsj.com
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