Dow quarterly outcomes beat on increased demand, costs By Reuters
© Reuters. A screen shows Dow results towards the end of the day on the floor of the New York Stock Exchange in New York
(Reuters) – Dow Inc reported quarterly results Thursday that beat analysts’ estimates. This was aided by higher prices and increased demand for chemicals after a recovery from the effects of the COVID-19 pandemic.
Some of Dow’s end markets, including furniture, appliances, packaging, construction and automotive, have begun to recover. The company has also scaled back its workforce and intends to sell its non-core businesses in an effort to counter the outbreak of the pandemic.
The company’s chief executive officer Jim Fitterling expects margins to improve as various parts of the Dow portfolio see improved demand.
During the quarter, prices rose 8% compared to the third quarter, aided by higher prices for polyethylene, the main ingredient in the manufacture of most plastics, and for polyurethanes used in upholstery, mattresses and car seats.
The volumes sold increased sequentially by 2% and compared to the same quarter of the previous year by 1% and reached the level before the pandemic in all operating segments.
Net operating income, which excludes some items, increased from $ 376 million, or 50 cents per share, in the third quarter to $ 607 million, or 81 cents per share, for the three months ended December 31.
According to Refinitiv IBES, this exceeded analysts’ estimates of 67 cents per share.
Dow also reported sales of $ 10.71 billion, compared with estimates of $ 10.03 billion.
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