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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Dow AgroSciences was a bright spot in an otherwise gloomy fourth quarter for parent Dow Chemical Co.
Although Dow today reported a fourth-quarter loss of $1.6 billion on sales of $10.9 billion – down from a $472 million profit and $14.2 billion in sales the prior year – its agricultural sciences segment posted record sales of $885 million for the quarter.
Dow AgroSciences sales have been boosted by its acquisition of nine companies or their assets since May 2007. Among the acquisitions was Indiana-based Brodbeck Seeds, Germany-based S?dwestsaat GbR as well as the assets of Iowa-based Renze Hybrids Inc. and Brazil-based Coodetec.
Dow AgroSciences’ operating earnings were $34 million in the quarter, compared to a loss of $38 million in 2007. The unit’s prior-year results included restructuring charges of $77 million for the quarter.
For the full year, Dow AgroSciences reported record sales of $4.5 billion and operating earnings of $761 million. The parent company had sales of $57.5 billion in 2008, up from $53.5 billion the year before.
But profits fell 80 percent, to $579 million from $2.9 billion. The company cited several special charges totaling $1.1 billion, including $839 million in restructuring costs tied to a plan to scale back operations.
Volume was down 5 percent on lower demand – something Dow CEO Andrew N. Liveris sees continuing for the foreseeable future.
“As we enter 2009 we are assuming that the late 2008 demand levels will continue for several quarters and possibly beyond,” he said. And although recovery could be quick if the government succeeds in propping up the economy, “we are planning for a global recession throughout 2009 and will continue to take actions on managing our cash and controlling our costs with the same intensity that we demonstrated in the fourth quarter.”
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