Dow Chemical posts earnings loss
MIDLAND — The Dow Chemical Co. is feeling the impact of the slowing European economy, and seeing some weakness in North America as well.
And the nation's largest chemical maker doesn't expect to see much improvement in overall demand until the second quarter.
Dow 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 fell short of analysts' expectations.
Price hikes helped revenue increase 2 percent to $14.1 billion. But overall volume was down 3 percent, or flat excluding businesses that Dow has sold off.
The Midland company's quarterly loss totaled $20 million. That compares with a year-ago profit of $426 million, or 37 cents per share.
Kellogg announces net income gains
BATTLE CREEK — Kellogg Co. is showing signs of easing its way out of a two-year slump. The cereal maker reported Thursday that its net income rose 23 percent on revenue gains.
The results beat expectations and Kellogg reiterated its full-year guidance, which sent its shares higher.
Kellogg has struggled with high ingredient costs, weak consumer spending, a major cereal recall and other issues over the past two fiscal years.
The Battle Creek-based company reported that it earned $232 million, or 64 cents per share, for the quarter ended Dec. 31. That's up from $189 million, or 51 cents per share, in the same quarter last year. Analysts expected 63 cents per share, according to FactSet.
Kellogg's revenue rose 5 percent to $3.02 billion; analysts expected $2.99 billion.
Fewer people seeking unemployment benefits
WASHINGTON — The number of people seeking unemployment benefits fell last week to a level that signaled a steadily improving job market. The figures came one day before the government is expected to report that January marked another solid month for hiring.
Unemployment applications fell 12,000 to a seasonally adjusted 367,000, the Labor Department said Thursday. The four-week average, a less volatile measure, dropped for the third straight week to 375,750.
That's the second-lowest level for the four-week average since June 2008. When applications stay consistently below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.
Separately, retailers issued mixed sales reports for January. Slow growth is leaving many Americans cautious about how they spend their money.
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