Dow Chemical (DOW) Q2 Earnings Weak, Pretty Much Sums up Global Economy

Investors view Dow Chemical Co.'s (NYSE: DOW) earnings report as indicative of a weak global economy. The company reported Q2 EPS of $0.55, $0.09 worse than the analyst estimate of $0.64. This compares to 2011 EPS of $0.85. Revenue for the quarter came in at $14.5 billion versus the consensus estimate of $15.7 billion.

Sales were down 10 percent, or 6 percent on an adjusted sales basis. The decline was led by Europe, which decreased 10 percent, driven by adverse currency conditions totaling more than $400 million, or 8 percent. Sales in Agricultural Sciences grew 12 percent, achieving a new second quarter record.

Andrew N. Liveris, Dow's chairman and CEO, stated, "Sustained uncertainty in the world economy continues to present a challenging operating environment, and this quarter was no exception. Weak demand due to a slowdown in global growth drove declining prices. This, coupled with an unusually high turnaround season for Dow and a large currency effect, pressured margins in the quarter."

Shares of DOW are trading at $29.35 in pre-open trading Thursday, down 3 repent.

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