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Dow Chemical beats Street
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October 26, 2000: 7:52 a.m. ET
No. 2 U.S. chemical maker reports higher profits despite higher costs
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NEW YORK (CNNfn) - Dow Chemical Co. Thursday said third-quarter profits rose 2.5 percent, beating Wall Street forecasts, as strong sales helped it overcome higher raw material costs.
The No. 2 U.S. chemical maker after DuPont Co. earned $328 million, or 48 cents a diluted share, up from $320 million, or 48 cents a share, a year earlier. Analysts surveyed by earnings tracker First Call had forecast that profits would drop to 44 cents a share in the period.
 Sales jumped 17 percent to $5.5 billion from $4.7 billion. The company said posted a volume increase of 9 percent and saw average prices gain 8 percent.
Raw material and energy costs rose $600 million in the quarter, but the company said strong sales and cost-cutting helped it meet growth targets.
"We remain confident that we will achieve measurably higher year-over-year earnings in 2000, though we continue to see challenging industry conditions, including volatile feedstock costs, some currency fluctuations and the potential for slower economic growth around the world," J. Pedro Reinhard, Dow's chief financial officer, said in a statement.
For the first nine months of the year, net income rose to $1.3 billion, or $1.86 a diluted share, from $1.1 billion, or $1.58 a diluted share, a year earlier. Sales rose to $16.5 billion from $13.7 billion.
Dow Chemical (DOW: Research, Estimates) stock fell 69 cents to $25.94 Wednesday, just above its 52-week low. 
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Dow Chemical Co.
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