Dow Inc. Reports Unexpected Profit Amidst Economic Headwinds

Dow Inc. revealed an unforeseen profit on Thursday, as substantial sales volumes effectively counteracted the impact of diminished prices and elevated input expenditures. This announcement propelled the chemical company’s shares upward by 2% in premarket trading.

Similar to its counterparts in the chemical sector, Dow has been grappling with escalated expenses related to feedstock and energy, compounded by soft demand for its products, notably in European markets.

However, the organization noted an expansion in volume across all its sectors and consumer markets, with the exception of Latin America.

Executive Perspective

“Despite persistent macroeconomic difficulties, Dow achieved its sixth successive quarter of year-over-year volume augmentation, concurrently implementing measures to curtail costs and optimize capacity,” stated CEO Jim Fitterling.

Dow has embarked on several initiatives aimed at alleviating the repercussions of subdued demand and pressures on profit margins. These include workforce reductions and a strategic assessment of specific European holdings.

Nasdaq experienced a rise in Q1 profits due to robust demand for financial technology and related product offerings.

The company communicated on Thursday its intent to broaden the scope of its evaluation, pinpointing an initial trio of assets—comprising two in Germany and one in the UK—deemed to warrant further action, potentially encompassing temporary suspensions or definitive closures.

Dow anticipates finalizing the review by the midpoint of the year.

Quarterly net sales within its packaging and specialty plastics division, the company’s largest revenue generator, receded by 2% to $5.3 billion compared to the prior year. Nevertheless, volumes demonstrated a 4% increase year-over-year, predominantly fueled by heightened licensing revenues and sales of merchant hydrocarbons.

The corporation documented an unanticipated profit of 2 cents on an adjusted basis. Analysts had projected an adjusted loss of 1 cent per share, according to data compiled by LSEG.