Dow Chemical Co
Maintenance, safety training and lag time to increase operating rates at the three plants hurt profit by 7 cents per share and revenue by $300 million.
Many of the plants had been operating at low levels during the recession and needed the extra time to ramp up production, a slow process, Dow said.
For example, Dow's largest polyethlyene plant in Latin America was closed for 30 days, roughly a third of the quarter.
In a positive sign, Dow said its advanced materials unit, which hold assets from the legacy Rohm & Haas and is comprised of two reporting units, saw sales jump 13.6 percent to $2.73 billion.
Dow hopes to boost annual sales at the unit to $16 billion by 2015.
We remain focused on realizing the full potential of our new portfolio and lean cost structure, Chief Executive Andrew Liveris said in a statement. We continue to have confidence that momentum is gradually building, and we have not changed our view of a sustained global recovery led by Asia, slowly helped by the U.S. recovery, but with Europe lagging.
However, Liveris added: Our U.S. macroeconomic view remains guardedly optimistic.
BY THE NUMBERS
Dow reported net income of $566 million, or 50 cents per share, compared with a year-earlier loss of $486 million or 47 cents per share.
Excluding one-time items, earnings were 54 cents per share. By that measure, analysts expected 56 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 20.3 percent to $13.62 billion. Analysts expected $13.69 billion.
Like the first quarter, Dow's basic plastics unit posted strong results, with sales up 26.2 percent. The unit's products go into a wide range of consumer goods, including diapers.
Dow has been trying to spin the unit off into a joint venture as part of it's asset-light strategy to focus more on high-margin specialty chemicals.
The basic chemicals unit, which makes chlorine, one of the most mass-produced chemicals in the world, saw sales rise 25 percent.
Dow cut its long-term debt, much of which came from the Rohm & Haas buyout, by 5.5 percent to $18.11 billion.
Earnings from joint ventures, including the Dow Corning business with Corning Inc
During the period Dow sold its Styron basic plastics unit to a private equity firm.
Last month the Midland, Michigan-based company said it would become a global sponsor of the Olympics, a move it hopes will boost its standing with the public and net more than a $1 billion in revenue over the next 10 years.
Dow also announced a licensing deal with Monsanto Co, whereby Dow's agricultural unit will use Monsanto's Roundup Ready 2 Yield herbicide trait in its genetically modified soybeans.
During the quarter, Dow shareholders rejected a say-on-pay proposal, despite having approved a similar measure last year.
Shares of the company fell $1.01, or 3.6 percent, to $27.32 in premarket trading. The stock has traded between $19.75 and $32.05 in the past 52 weeks.
(Reporting by Ernest Scheyder; Editing by Lisa Von Ahn, Dave Zimmerman)