Dow Chemical Misses Profit Estimates
August 4, 2010
Dow Chemical Co posted a lower-than-expected quarterly profit, as it idled several plants to retool for higher production rates, sending shares down nearly 9 percent, reports Reuters. The temporary closing of three plants, one in Argentina and two in Texas, overshadowed higher sales across all businesses and regions, cutting profit by 7 cents per share and revenue by $300 million. The Argentina factory, Dow''s largest polyethylene plant in Latin America, was closed for 30 days, roughly a third of the quarter. It also had a water supply problem, Chief Executive Andrew Liveris said on a call with investors. Liveris told investors the plant outages did not bleed into the third quarter and that there will be no major outages the rest of the year. He also said that his view of the U.S. economy "remains guardedly optimistic."