MIDLAND, Mich. (AP) — Shares of Dow Chemical jumped 7 percent before the opening bell after the company returned to a profitable fourth quarter, increased its dividend and tripled the size of its share-repurchase plan.
The company, based in Midland, Mich., easily topped profit and revenue expectations on Wall Street.
Sales rose in nearly all it businesses, with energy being a notable exception. Dow reported double-digit sales gains in agricultural chemicals and coatings, and it raised prices for performance plastics by 7 percent, offsetting declines in other segments.
Net income was $963 million, or 79 cents per share, compared with a loss of $716 million, or 61 cents per share, a year earlier, when the company wrote down the value of a battery business as part of a restructuring plan.
Excluding a gain on the sale of a catalysts business and other items, the company would have earned 65 cents per share. Analysts expected 43 cents per share, according to a FactSet survey.
Revenue rose 3 percent to $14.39 billion, beating the $14.14 billion forecast by analysts.
Dow raised its quarterly dividend to 37 cents per share from 32 cents per share, and it increased a share-buyback authorization to $4.5 billion from $1.5 billion.
In trading before Wednesday's opening bell, shares of Dow Chemical Co. rose $2.98 to $46.04.