Dow Posts Lower Profit, Sales
October 24 2019 - 7:17AM
Dow Jones News
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)
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