On April 26, Motley Fool Income Investor pick Dow Chemical
- Revenue increased 3.4%, reflecting strong underlying volume and solid price increases across most businesses. But ...
- ... EPS declined sharply (19.4%), with the primary driver being "a decline in licensing revenues from extremely high levels a year ago."
- Double-digit sales improvements in Europe, Asia Pacific, and Latin America more than offset continued weakness in North America, particularly in the housing and automotive sectors.
- Dow has an impressive four-star rating in Motley Fool CAPS, while fellow chemical giant BASF
(NYSE:BF) boasts a five-star rank and one of the highest scores in CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$12,432.0 |
$12,020.0 |
3.4% |
Net Profit |
$973.0 |
$1,214.0 |
(19.9%) |
EPS |
$1.00 |
$1.24 |
(19.4%) |
Diluted Shares |
975.9 |
980.7 |
(0.5%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
14.7% |
18.4% |
(3.7) |
Operating Margin |
8.8% |
12.8% |
(4.0) |
Net Margin |
7.8% |
10.1% |
(2.3) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$2,565 |
$3,424 |
(25.1%) |
Accounts Rec. |
$8,775 |
$7,554 |
16.2% |
Inventory |
$6,106 |
$5,982 |
2.1% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$5,402 |
$4,993 |
8.2% |
Long-Term Debt |
$7,975 |
$9,180 |
(13.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Dow does not provide a cash flow statement in its earnings releases. Shame, since plenty of other companies do (hint hint, Dow).
Find out why free cash flow is a Fool's best friend.
Related Foolishness:
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