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The
No.1 U.S. chemical company said it would sell its stake in a
joint venture with Petrochemical Industries Co of Kuwait for
pretax proceeds of $1.5 billion.
Dow is also looking to cut its stake in another joint venture in
Kuwait that makes petrochemical products.
Shares of the company, which reported a higher-than-expected
quarterly profit, rose about 7 percent to $50.70 in premarket
trading.
Dow's joint venture with Petrochemical Industries, MEGlobal,
produces ethylene glycol, a raw material used to make polyester
fibers. The U.S. company's partners in the petrochemical
products joint venture, Greater EQUATE, include Petrochemical
Industries and Boubyan Petrochemical Co.
Dow's net income attributable to shareholders surged more than
50 percent to $1.29 billion, or $1.09 per share, in the third
quarter ended Sept. 30, partly due to a $621 million gain
related to the sale of its AgroFresh specialty chemical
business.
Operating profit rose about 14 percent to 82 cents per share as
a fall in raw material prices boosted margins.
Revenue fell 16 percent to $12.04 billion.
Analysts on average had expected an operating profit of 69 cents
per share and revenue of $12.38 billion, according to Thomson
Reuters I/B/E/S.
(Reporting by Swetha Gopinath in Bengaluru; Editing by Kirti
Pandey)
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