On Jan. 25, conglomerate Dow Chemical (NYSE:DOW) released fourth-quarter earnings for the period ended Dec. 31.
- The chemicals and performance plastics segments led a 2.7% revenue increase.
- Research and development and selling, general, and administrative expenses dampened the bottom line to the tune of 11%.
- Dow has earned a solid four-star rating in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$12,236.0 |
$11,917.0 |
2.7% |
|
Net Profit |
$975.0 |
$1,096.0 |
(11.0%) |
|
EPS |
$1.00 |
$1.12 |
(10.7%) |
|
Diluted Shares |
971.1 |
981.3 |
(1.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
14.2% |
15.8% |
(1.6) |
|
Operating Margin |
11.6% |
15.8% |
(4.2) |
|
Net Margin |
8.0% |
9.2% |
(1.2) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,910.0 |
$3,838.0 |
(24.2%) |
|
Accounts Rec. |
$8,048.0 |
$7,926.0 |
1.5% |
|
Inventory |
$6,058.0 |
$5,319.0 |
13.9% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$5,674.0 |
$5,760.0 |
(1.5%) |
|
Long-Term Debt |
$8,036.0 |
$9,186.0 |
(12.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
As big as Dow is, you'd think it would hire enough help to give us a cash flow statement with the earnings release. Eeesh.
Find out why Fools always follow the money.
Related Companies:
- Sherwin-Williams (NYSE:SHW)
- Eastman Chemical (NYSE:EMN)
- Rohm & Haas (NYSE:ROH)
- Air Products & Chemicals (NYSE:APD)
- Ashland (NYSE:ASH)
Related Foolishness:
Dow Chemical is a Motley Fool Income Investor recommendation. Find more dividend superstars with a free 30-day trial of James Early's low-risk, high-reward newsletter service.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
