FILE PHOTO: A Dow sign is seen at the third China International Import Expo (CIIE) in Shanghai, China November 5, 2020. REUTERS/Aly Song
July 22, 2021
(Reuters) -Dow Inc on Thursday posted a quarterly profit and revenue that blew past analysts’ estimates, and said it was expecting to benefit from higher industrial production and consumer spending as demand recovers from pandemic lows.
Dow’s chemicals – used in everything from plastic and food packaging to textiles, electronics and paints – have seen a steady rise in prices on the back of strong consumer and industrial demand as economies emerge from pandemic-led lockdowns, with lower inventories also helping their cause.
Prices jumped 16% in the second quarter from the prior period, while volumes rose 1%, helped by growing demand in infrastructure, industrial and personal-care end markets.
Volumes were hit by lingering supply constraints from the impact of a winter storm on the U.S. Gulf Coast in February.
“Looking ahead, we expect earnings momentum from additional improvements in consumer spending, international travel and industrial production,” Chief Executive Officer Jim Fitterling said.
Net income available for Dow stockholders rose to $1.9 billion, or $2.51 per share, in the three months ended June 30, from $991 million, or $1.32 per share, in the first quarter.
Adjusted net operating income of $2.72 per share beat estimates of $2.45, according to Refinitiv IBES data.
Net sales of $13.89 billion also topped estimates of $13.07 billion.
Shares of the company, which have risen 7.5% so far this year, were up 0.5% at $60 in premarket trading.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil D’Silva)