(CercleFinance.com) – Dow announced on Thursday results that were less marked than expected for the fourth quarter, the American chemical giant’s margins having notably benefited from the current cost reduction program.
Over the last three months of the year, its operating profit fell to $1.22 billion, or 43 cents per share, compared to $1.25 billion (46 cents) a year earlier.
For comparison, the consensus was targeting EPS of around 40 cents.
The Michigan-based group emphasizes that the decline in its selling prices was partially offset by an increase in volumes.
At the same time, its gross margin improved to 5.3%, compared to 5.1% a year earlier, thanks to the achievement of the billion dollar savings target on an annual basis that the company had given itself.
The turnover fell by 10%, but at 10.6 billion dollars, it also exceeds the consensus which gave it at 10.4 billion dollars.
Following this better-than-expected publication, the Dow stock – which is listed on the Dow Jones index – rose by almost 2% on Thursday in early trading on Wall Street.
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