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The company said the macroeconomic environment remains dynamic due to decades-high inflation and the impact of rate hikes to clamp it down, and outlined plans to cut costs by $1 billion in 2023.
Despite persistent cost and supply chain pressures in the quarter, Dow, which makes chemicals used in industries ranging from automobiles and food packaging to electronics, beat analysts’ estimates for third-quarter revenue and profit.
“Underlying demand remains resilient in the United States, while high energy and feedstock costs are driving record inflation and impacting demand in the Eurozone, and ongoing lockdowns in China continue to pressure both consumer spending and infrastructure investments,” Chief Executive Officer Jim Fitterling said in a statement.
Net income available for Dow stockholders was $739 million, or $1.02 a share, in the three months ended Sept. 30, compared with $1.68 billion, or $2.23 per share, a year earlier.
Excluding items, Dow’s operating income was $1.11 per share, its lowest in six quarters, compared with Wall Street consensus of $1.08 a share as per Refinitiv data.
Sales fell 4.9% to $14.2 billion due to declines in its industrial intermediates and infrastructure as well as packaging & specialty plastics units, above estimates of $13.10 billion.
Quarterly sales volume was down 4%, driven by a 12% decline in Dow’s Europe, Middle East, Africa and India (EMEAI) division.
