Dow AgroSciences’ revenue, profit fall on lower crop prices

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Dow AgroSciences, the local subsidiary of Midland, Mich.-based Dow Chemical Co., said Thursday that revenue fell 20 percent and profits plummeted in the third quarter due largely to lower crop commodity prices.

The Indianapolis-based company reported revenue of $796 million, down from $995 million in last year’s third period. Quarterly earnings before interest, taxes, depreciation and amortization dropped to $5 million, down from $95 million in the year-ago time frame.

The steep drop reflects significant price and volume declines, as well as increased investment in research and development, the company said.

Dow AgroSciences was negatively affected by lower crop prices, which caused growers to reduce chemical applications, deplete existing inventories and delay purchases.

Overall, Dow Chemical reported third-quarter profit of $711 million, a 66-percent increase from the same time frame last year, on revenue of $12.05 billion. 
 

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