Dow posts loss on Europe, N. America weakness

NEW YORK (AP) — Dow Chemical Co. is feeling the impact of the slowing European economy, and seeing some weakness in North America as well.

The nation’s largest chemical maker said Thursday that it posted a loss of 2 cents per share in the fourth quarter as a one-time charge resulted in higher taxes at its Brazilian operations.

Excluding charges, Dow earned 25 cents per share. But that was short of analysts’ expectations and shares fell 3 percent in premarket trading.

Price increases helped revenue rise 2 percent to $14.1 billion. But overall volume was down 3 percent, or flat excluding businesses that Dow has sold off. The company said demand slipped as customers in North America, Europe and other regions worked through existing inventory instead of replenishing their stockpiles.

Dow says it saw global economic “deterioration” in the period, with “considerable weakness” in Western Europe. Europe, which is embroiled in a debt crisis, accounts for a quarter of the company’s sales.

Volumes rose in the Latin American and Asia-Pacific region.