Dow earns 71 cents a share on an operating basis as local prices rise 14 percent

Price did the lifting at Dow in the third quarter. Local prices rose 14 percent from a year earlier, led by polyethylene in every region, while volume slipped 1 percent, according to results the Midland, Michigan, chemical maker filed with the SEC on Thursday.

Net sales rose 13 percent to $11.3bn. GAAP net income was $525m, or $0.62 a share, against $124m and $0.08. Operating earnings, which exclude 9 cents a share of significant items that the company says relate mainly to its self-help cost actions, came to $0.71 a share against a loss of $0.19 a year earlier. Dow credits higher prices and those programs, which it says more than offset higher raw material and logistics costs.

Volume grew in every region except Asia Pacific, where Dow says the Middle East conflict hit hardest. Packaging and Specialty Plastics, the largest segment, lifted operating EBIT to $585m from $199m.

Cash from continuing operations was $1.8bn and free cash flow $1.1bn. Chief executive Karen S. Carter said the company has cut debt by about $600m this year.