Dow Chemical’s 1Q17 revenue
Dow Chemical (DOW) reported revenues of $13.2 billion in 1Q17, a 23.6% rise year-over-year compared to $10.7 billion in 1Q16. DOW managed to beat Wall Street analysts’ estimate of $12.5 billion. The first-quarter revenues turned around after a three-year declining trend.
DOW’s revenue growth was primarily driven by the continued integration of the Dow-Corning (GLW) business. Volumes rose across all reporting segments with the exception of Agricultural Sciences. We’ll analyze the performances of all the reporting segments in the rest of this series. The price increases in some of the segments increased the overall revenues. Geographically, all regions reflected revenue growth in 1Q17 over the previous year.
Andrew Liveris, DOW’s chair and chief executive officer, said, “Dow’s operational and financial results reflect the strength of our broad geographic footprint, robust consumer-driven demand aligned with our core material science markets and a focused productivity agenda. Our disciplined execution against our strategy continues to deliver a fundamental shift in our growth trajectory.”
Dow Chemical expects the global economy to continue its positive upward trend. In 2Q16, DOW expects its revenue to be $13.3 billion–$13.8 billion, driven by the integration of the Dow-Corning business. Sales volume growth is also expected to continue its upward trend, driven by the consumer-led end markets.
You can indirectly hold Dow Chemical by investing in the First Trust Indxx Global Agriculture ETF (FTAG), which holds 9.9% of its portfolio in Dow Chemical as of April 26, 2017.
In the next few parts of this series, we’ll analyze the performance of each of DOW’s reporting segments in 1Q17.