Dow Chemical 2Q profit falls as weaker demand leads to lower prices; hurt by Europe softness

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A May 28, 2008 file photo shows the Dow Chemical Co. industrial site is seen in Midland, Mich. THE CANADIAN PRESS/AP, Steven Simpkins

MIDLAND, Mich. – Dow Chemical Co. says its second-quarter net income fell 34 per cent as weaker demand led to lower prices. Softness in Europe and a stronger dollar also weighed on results.

Its results missed Wall Street estimates and its shares dropped 4 per cent in premarket trading.

The nation’s biggest chemical maker can offer a broad picture of global economic conditions because its products are used in nearly every sector.

Dow Chemical reported Thursday that its net income fell to $649 million, or 55 cents per share, for the April-June quarter. That’s down from $982 million, or 84 cents per share, a year ago.

Analysts forecast 64 cents per share.

Revenue dropped 10 per cent to $14.51 billion, missing Wall Street’s estimate of $15.69 billion.

Prices fell 5 per cent, declining in all geographic regions. The biggest drop — 8 per cent — was in Europe.

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