October 27, 2011 / 10:54 AM / in 6 years

Price hikes dent Dow Chemical profit

(Reuters) - Dow Chemical DOW.N narrowly missed Wall Street’s quarterly profit expectations as cost increases dented demand in Europe and North America.

Cars drive past a plant of U.S. chemical producer Dow near the eastern German village of Lippendorf south of Leipzig March 25, 2004. REUTERS/Arnd Wiegmann

Dow had been raising prices to offset a $1.7 billion jump in raw material costs. The results on Thursday show that for at least some of its customers, those price hikes were too much.

For the third quarter, reported net income on Thursday of $815 million, or 69 cents per share, compared with $512 million, or 45 cents per share, in the year-ago period.

Excluding an unexpected gain when a joint venture partner repaid a loan that Dow had previously written off, the company earned 62 cents per share.

By that measure, analysts expected earnings of 63 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 17 percent to $15.11 billion. Analysts expected $14.63 billion.

The company raised prices by 17 percent across the globe.

Volume fell 3 percent in Europe and North America, but increased 7 percent in Latin America and 5 percent in Asia.

Reporting by Ernest Scheyder; Editing by Derek Caney

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