Business

Dow quarterly results beat on higher demand, prices

Dow Inc reported a fourth-quarter profit on Thursday that rose 61.4per cent, compared with the third, helped by higher demand for its chemicals following a gradual recovery from the impact of the COVID-19 pandemic.

A screen shows the Dow results near the end of the day on the floor of the New York Stock Exchange
A screen shows the Dow results near the end of the day on the floor of the New York Stock Exchange in New York, U.S., February 8, 2018. REUTERS/Brendan Mcdermid
(Updated: )

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REUTERS: Dow Inc reported quarterly results on Thursday that beat analysts' estimates, helped by higher prices and demand for its chemicals following a recovery from the impact of the COVID-19 pandemic.

Some of Dow's end markets, including furniture, appliances, packaging, construction and automotive, have started to recover. The company has also slashed its workforce and is looking to sell its non-core businesses to counter the hit from the pandemic.

The company's Chief Executive Officer Jim Fitterling said he expects margins to improve as different parts of Dow's portfolio see improving demand.

For the reported quarter, prices rose 8per cent, compared with the third, helped by higher prices for polyethylene, the main ingredient used in making most plastics, and for polyurethanes, used in upholstery, mattresses and car seats.

Volumes sold rose 2per cent sequentially and 1per cent versus the year-earlier quarter, reaching pre-pandemic levels in all operating segments.

Net operating income, which excludes some items, rose to US$607 million, or 81 cents per share, in the three months ended Dec. 31, from US$376 million, or 50 cents per share, in the third quarter.

That beat analysts' estimates of 67 cents per share, according to Refinitiv IBES.

Dow also reported sales of US$10.71 billion, compared with estimates of US$10.03 billion.

(Reporting by Arathy S Nair in Bengaluru; Editing by Shounak Dasgupta)

Source: Reuters