REUTERS — Dow missed second-quarter profit estimates late last month, hurt by lower prices and demand in key markets, including Asia and Europe.
Manufacturing activity in the euro zone and China weakened in the quarter, resulting in a four per cent drop in local prices of Dow’s products in their key markets.
The company produces a vast range of chemicals and additives that are used in manufacturing a variety of products in the consumer, agricultural and energy sectors.
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“The pace of the global macroeconomic recovery has been slower than expected,” said chief executive officer Jim Fitterling.
Dow’s net sales fell four per cent to US$10.92 billion in the reported quarter, compared with industry estimates of $11 billion.
“While near-term demand in many markets that we serve is growing, building and construction and consumer durables are unlikely to significantly change in 2024,” Fitterling said.
Dow expects third-quarter sales of about $11.1 billion, higher than the second quarter, but below Wall Street estimates of $11.35 billion.
Analysts at RBC Capital Markets said last month that while the company was through with destocking, demand remained soft, particularly in Europe.
The company reported operating earnings per share of 68 cents for the quarter ended June 30, compared with the average analyst estimate of 72 cents.
