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Dow Chemical says looking to raise $3 billion-$4 billion from asset sales
October 24, 2013 / 11:26 AM / 4 years ago

Dow Chemical says looking to raise $3 billion-$4 billion from asset sales

(Reuters) - Dow Chemical Co DOW.N, which is looking to exit businesses that are exposed to commodity price swings, said it planned to raise at least $3 billion (1 billion pounds) to $4 billion from asset sales.

The company’s shares fell 4 percent in premarket trading.

Dow Chemical said in August that it would consider shedding its epoxy business, European building and construction and commodity chlorine derivatives businesses that together contribute $6 billion to annual revenue.

“We have identified targets and are moving forward with defined divestiture plans - actions valued at a minimum of $3-$4 billion,” Chief Executive Andrew Liveris said in a statement announcing third-quarter results.

The company sold its polypropylene licensing and catalyst business to smaller peer W.R. Grace & Co (GRA.N) for $500 million earlier this month as a part of an earlier plan to sell non-core assets worth about $1.5 billion by mid-2014.

The largest U.S. chemical maker by sales has divested non-core businesses representing about $8 billion in revenue since 2009.

Dow Chemical’s third-quarter profit rose by a fifth, helped by robust demand for its farm products in emerging markets such as Latin America, and higher margins in its plastics business.

Net income rose to $594 million, or 49 cents per share, in the third quarter ended September 30 from $497 million, or 42 cents per share, a year earlier.

Revenue rose 1 percent to $13.73 billion.

Dow Chemical’s stock was down at $39.50 in trading before the bell.

Reporting by Garima Goel and Swetha Gopinath in Bangalore; Editing by Savio D'Souza and Kirti Pandey

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