Dow Posts Lower Profit, Sales

By Dave Sebastian

Dow Inc. reported lower quarterly profit and sales, citing a decline in global energy prices.

For the third quarter, Dow posted a profit of 45 cents a share, compared with $1.36 cents a share a year earlier. Analysts polled by FactSet were expecting 72 cents a share. Adjusted earnings were 91 cents a share, down from $1.34 a share a year earlier but ahead of the 70 cents a share analysts had expected.

Dow, which makes plastics and silicones, is the former materials-science business of DowDuPont, which spun it out in April.

Lower local prices weighed on sales, which declined 14.8% to $10.76 billion. Analysts expected $10.74 billion. Sales in packaging and specialty plastics decreased 17.8%.

The company also recorded equity losses of $44 million, in place of a $135 million gain on a pro forma basis a year earlier. Dow said that was largely because of margin compression in joint ventures in Kuwait.

Dow in August agreed to sell by the end of the year its acetone derivatives business to Altivia Ketones & Additives, an affiliate of privately held chemical producer Altivia. The planned divestiture includes its production assets located in Institute, West Va. Dow said it will remain a tenant at the Institute site, retaining ownership of certain manufacturing assets. Acetone derivatives are used in the manufacture of pharmaceuticals, plastics, fibers and films.

The company reported a drop in certain expense items, including selling, general and administrative costs, and recorded $147 million in restructuring- and asset-related charges.

(END) Dow Jones Newswires

October 24, 2019 07:02 ET (11:02 GMT)

DuPont de Nemours (NYSE:DD)
Historical Stock Chart
From Mar 2024 to Apr 2024