July 23, 2014 at 8:06 am

Dow Chemical 2Q profit drops, revenue rises

Midland — Dow Chemical’s second-quarter net income slid 62 percent as the prior-year period benefited from a $2.16 billion payment related to a scrapped joint venture.

Adjusted profit and revenue topped analysts’ estimates. The stock climbed in premarket trading on Wednesday.

The specialty chemical company’s earnings after preferred stock dividends dropped to $882 million, or 73 cents per share, from $2.34 billion, or $1.87 per share, a year ago.

A year earlier Dow Chemical received a $2.16 billion payment from Petrochemical Industries Co. of Kuwait tied to a joint venture deal that fell apart.

Earnings, adjusted for non-recurring costs, came to 74 cents per share. The average per-share estimate of analysts surveyed by Zacks Investment Research was for a profit of 73 cents.

Revenue for the Midland, Michigan, company climbed 2.3 percent to $14.92 billion from $14.58 billion. Wall Street forecast $14.88 billion in revenue.

Shares of Dow Chemical Co. rose $1.06, or 2 percent, to $53.36 in premarket trading about 2½ hours before the market open.

The stock has increased $7.90, or 18 percent, to $52.30 since the beginning of the year, while the Standard & Poor’s 500 index has climbed 7.3 percent.