FILE PHOTO: The Dow Chemical logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S. on December 22, 2015. REUTERS/Lucas Jackson/File Photo
October 21, 2021
(Reuters) – Chemicals maker Dow Inc beat Wall Street estimates for quarterly profit on Thursday, aided by higher prices across its businesses following a rebound in economic activity and tight supplies after Hurricane Ida.
A rebound in industrial and automotive activity from pandemic lows has fueled a rise in demand for the company’s chemicals, which is used in everything from plastic and food packaging to textiles, electronics and paints.
Hurricane Ida forced Dow and other chemical makers along the U.S. Gulf Coast to shut some manufacturing operations during the quarter, tightening already low supplies and boosting prices.
Dow, established after chemical conglomerate DowDuPont split into three, said on Thursday overall prices climbed 50% from a year earlier.
“We continue to see robust end-market demand that is expected to extend into 2022, coupled with near-term logistics constraints and low inventory levels across our value chains”, Chief Executive Officer Jim Fitterling said in a statement.
Volume rose 2% from the year-ago period, driven by gains in its packaging & specialty plastics as well as coatings, the company said, adding that it was held back by supply and logistics constraints.
The company’s net sales of $14.84 billion came above estimates of $14.28 billion.
Net operating income, which excludes certain items, rose to $2.07 billion, or $2.75 per share, in the three months ended Sept. 30, from $376 million, or 50 cents per share, year earlier.
Analysts had estimated the company to post earnings of $2.55 per share, according to Refinitiv IBES data.
(Reporting by Rithika Krishna in Bengaluru; Editing by Sriraj Kalluvila)
Source: One America News Network
