Dow Q1 Earnings: Higher Margins Offset Revenue & EBITDA Decline, Management Confident Of Dow-Dupont Merger Synergies

+31.62%
Upside
58.14
Market
76.52
Trefis
DOW: Dow logo
DOW
Dow

The Dow Chemical Company (NYSE:DOW) released its 2016 first quarter earnings report recently. [1] Dow management spoke briefly about the proposed merger with DuPont (NYSE:DD), stating that the companies’ estimates of $3 billion in cost synergies is their most conservative estimate. [2] DuPont management had earlier stated on the company’s Q1 earnings call that it was confident the deal will be completed in the second half of 2016. [3] As for the quarter in question, Dow was able to grow its earnings through margin expansion despite a decline in revenues & EBITDA. Q1 2016 was Dow’s 14th consecutive quarter of year-on-year adjusted EBITDA margin expansion.

The following table provides an overview of the company’s earnings.

DOW Earnings Q1 2016 (1)

Relevant Articles
  1. Will Dow Stock Recover To Its Pre-Inflation Shock Highs?
  2. After A 2x Rally Dow Inc Stock Appears To Be Vulnerable
  3. Dow Chemical Benefits From Price Increases
  4. Revisiting Dow-DuPont Merger Motivation As The Companies Win U.S. Anti-Trust Approval
  5. How Will Dow’s New Texas Polyethylene Plant Help?
  6. Dow’s Impressive Earnings, Upcoming Merger Make It Interesting Going Forward

 

DOW Earnings Q1 2016 (2)

DOW Earnings Q1 2016 (3)

 

Have more questions about Dow Chemical Company? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Dow Chemical Company
Interactive Institutional Research (Powered by Trefis):

Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap |More Trefis Research

Notes:
  1. Dow Reports First Quarter Results, April 28, 2016, Dow Investor Relations []
  2. The Dow Chemical (DOW) Andrew N. Liveris on Q1 2016 Results – Earnings Call Transcript, April 29, 2016, Seeking Alpha []
  3. DuPont’s (DD) CEO Ed Breen on Q1 2016 Results – Earnings Call Transcript, April 26, 2016, Seeking Alpha []