Dow Chemical posted a higher-than-expected fourth-quarter profit as volumes doubled in emerging markets and earnings from joint ventures mushroomed.

But while results were strong in countries like China and India, the largest U.S. chemical maker's prices and volumes fell in North America and Europe, an indication that the recession may not fully be over in those regions.

"We see demand in emerging geographies continuing to show sustained growth, which bodes well for global growth," Chief Executive Andrew Liveris said in a statement. "Growth will continue to lag in the U.S. and Europe, however, as high unemployment persists and questions about the sustainability of government stimulus spending remain."

Sales rose in four of Dow's seven business units, including basic plastics, which posted a 17% jump.

Dow said it had repaid a loan it used to buy rival Rohm & Haas last year and had cut its debt due in 2011 by 80 percent to $2.9 billion. It had $2.8 billion in cash on hand at the end of the quarter.

"Not only are they generating cash from their businesses, but also from asset sales, and they're using that cash to pay down debt," Alembic Global Advisors analyst Hassan Ahmed said. "I see the quarter as being a handy beat."