UPDATE 2-Dow Chemical warns of softness in China, shares fall

Thu Jul 23, 2015 11:41am EDT
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* China remains a mixed bag, CEO says

* Q2 adj EPS beats analysts' estimates

* Solid Q2 not necessarily a harbinger of Q3: CEO

* CEO implying Dow won't sustain Q2 China growth: analyst

* Shares fall as much as 6 pct (Adds CEO, analyst comments; updates shares)

July 23 (Reuters) - Dow Chemical Co warned of soft demand in China, raising concerns that the largest U.S. chemical maker by revenue would not be able to maintain its growth rate in the key market.

Dow's stock fell as much as 6 percent on Thursday, reversing course from an increase in premarket trading when the company reported a better-than-expected quarterly profit due to higher margins.

"China remains a mixed bag," Chief Executive Andrew Liveris said on a post-earnings call. "A very solid Q2 for us is not necessarily a harbinger of Q3 ..."

However, Liveris said demand from the automobiles, construction, water and food safety industries would continue to drive demand in China.   Continued...