Hitting the gas

24 October 2013 By Kevin Allison

Volatile oil prices led the U.S. chemicals giant to miss on earnings. Meanwhile, products based on cheap natural gas boomed. No wonder Dow is shedding crude-linked assets at a faster clip to invest in a gassier future. It’s another example of shale transforming American industry.

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Dow Chemical shares fell as much as 4.6 percent in early trading on Oct. 24 after it reported lower than expected quarterly revenue and profit. By late morning the shares were down 2.5 percent.
The U.S. chemicals group made adjusted net income of 49 cents per share in the third quarter, short of consensus Wall Street estimates of 54 cents. Revenue of $13.7 billion compared with an average analyst forecast of $14 billion.
Dow also announced a new target to divest $3 billion to $4 billion of assets by 2015, up from an earlier goal of $1.5 billion.

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