Dow Inc. (NYSE:DOW) has reported second-quarter revenue and earnings that beat expectations despite a tough period for the company due to lower demand and prices as a result of waning macroeconomic activity.
The company, which provides chemical, plastic and agricultural products and services to a wide range of industries, also warned that conditions are expected to remain challenging for the remainder of its 2023 financial year.
For the three months to June 30, 2023, it reported net sales of $11.7 billion, down 27% from a year earlier.
An 8% reduction in volumes was led by a 14% decline in Europe, the Middle East, Africa, and India, the company said in a statement. Local prices fell 18%, with declines in all operating segments and regions due to lower demand and global energy and feedstock costs.
Operating earnings per share of $0.75, down from $2.31, were ahead of the $0.70 expected by analysts, according to Zacks Investment Research.
“We proactively navigated the challenging near-term macro environment by implementing our targeted cost savings actions while capitalizing on our advantaged feedstock position and participation in attractive end-markets,” CEO Jim Fitterling said in a statement.
“Altogether, we remain well-positioned to execute our financial and operational playbook and advance our Decarbonize and Grow strategy to continue to create value for all our stakeholders."
The company’s shares rose 1.3% to $53.25 in early trading on Tuesday.
Contact the author at stephen.gunnion@proactiveinvestors.com