UPDATE 3-Dow Chemical says cost savings will likely exceed FY target

Thu Jul 28, 2016 10:52am EDT
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* Q2 adjusted EPS $0.95 vs est. $0.85

* Sales fall 7.4 pct to $11.95 bln vs est. $11.24 bln

* Q2 operating margin up 160 basis points to 21 pct (Adds details)

By Swetha Gopinath

July 28 (Reuters) - Dow Chemical Co reported a better-than-expected quarterly profit as lower costs helped boost margins and the company indicated that it would exceed its cost-cutting target for the year.

The company said on Thursday that it had realized $90 million of its full-year cost savings target of $300 million in the second quarter.

It would be "reasonable to assume" that Dow will exceed its cost-savings target for the year, Chief Financial Officer Howard Ungerleider said in an interview.

Dow and DuPont, who are expected to close their $130 billion merger this year, have been slashing costs by laying off employees and keeping a tight lid on expenses.

The merger is being scrutinized by regulators in the United States and Europe, and the companies have offered concessions in a bid to allay EU antitrust concerns   Continued...