Dow Chemical profit beats estimates as it benefits from the falling oil price
The fall in oil price is not bad news for everyone it seems, as US firm Dow Chemical, which agreed in December to a historic merger with long time rival DuPont, has reported analyst beating fourth-quarter profits.
The firm's chief executive, Andrew Liveris, announced in the firms earnings conference call he will step down from the company once the merger with DuPont is complete.
Activist investor Dan Loeb has been campaigning for him to quit the post due to Dow Chemical’s subdued performance and claims that he charged unjustified expenses to the company.
Net income is up to $2.94 a share, from 63 cents a year.
Margins in the firm’s plastics business did especially well from lower oil costs, which it uses as a raw material.
The firm's chief executive, Andrew Liveris, announced in the firms earnings conference call he will step down from the company once the merger with DuPont is complete.
Activist investor Dan Loeb has been campaigning for him to quit the post due to Dow Chemical’s subdued performance and claims that he charged unjustified expenses to the company.
The oil price has been falling for the last 18 months and has settled around $30 per barrel.
Shares in the company have surged on the news, up 2.4 per cent at $43.60 in premarket trading.
Sales at the Michigan-based firm fell to $11.5bn from $14.4bn, compared with analyst expectations of around $11.2bn.
The tie up between Dow Chemical and DuPont will create the world’s largest agriculture business, overtaking both Monsanto and Syngenta AG.