Dow Posts Rising 2Q Sales, Above-Consensus Earnings

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By Dean Seal

Dow Inc. grew sales by 13% and logged better-than-expected earnings in the second quarter as higher prices on consistent volume helped it battle supply-chain constraints and higher input costs.

The chemicals company reported net income available for shareholders of $1.66 billion, or $2.26 a share, down from $1.9 billion, or $2.51 a share, in the same quarter a year ago.

Stripping out one-time items, adjusted earnings were $2.31 a share. Analysts surveyed by FactSet had expected $2.14 a share.

Sales climbed to $15.66 billion from $13.89 billion a year ago. Analysts polled by FactSet had expected $15.55 billion in sales.

The Midland, Mich.-based company said sales in its packaging and specialty plastics businesses were up 16% with higher pricing and volume, though currency hurt sales by 3%.

Dow’s industrial intermediates and infrastructure segment netted a 4% gain in sales, with higher pricing but lower volume and another hit from currency. Sales for its performance materials and coatings segment were up 22% as pricing increased by more than a quarter, though volume was dragged down by pandemic-related lockdowns in China.

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