Dow expects strong first-quarter sales on higher prices


The Dow logo is seen on a building in downtown Midland, Michigan in this May 14, 2015 file photo. REUTERS/Rebecca Cook/File Photo

Join now for FREE unlimited access to


Jan 27 (Reuters) – Dow Inc (DOW.N) forecast better-than-expected sales for the current quarter on Thursday after fourth-quarter results beat estimates, helped by higher prices for its products, the supply remaining limited in a context of strong demand.

Shares of the company rose 2.3% to $58.55 in premarket trading.

Demand for the company’s chemicals, used in everything from food packaging and mattresses to textiles and electronics, has been strong since it began to recover after a brief slump at the start of the pandemic. .

Join now for FREE unlimited access to


That, combined with supply chain pressures, pandemic-related logistical constraints and weather-related outages at factories, helped the company raise prices for its products.

Prices climbed 39% in the fourth quarter from a year earlier, while volumes fell 4%.

Dow expects first-quarter sales of $14 billion to $14.5 billion, above analyst estimates of $12.84 billion, according to Refinitiv IBES data.

Logistics constraints are expected to ease throughout the year to meet high order books and pent-up customer demand, chief executive Jim Fitterling said.

“In 2022, we expect continued demand strength in our end markets, supported by growing industrial production and sustained consumer spending.”

Chief Financial Officer Howard Ungerleider, however, said he expects margins to moderate in 2022 as supply improves.

Ungerleider added that he expects the board to make a final investment decision on the company’s net-zero carbon ethylene plant in Alberta by the end of 2022. .

Net operating income more than doubled to $1.6 billion, or $2.15 per share, in the three months ended Dec. 31. Analysts had expected earnings of $2.04 per share. Read more

Sales rose 34.2% to $14.37 billion and were slightly above estimates of $14.31 billion. However, it marked Dow’s first sequential revenue decline in six quarters.

Join now for FREE unlimited access to


Reporting by Ruhi Soni and Arathy Somasekhar in Bengaluru; Editing by Shounak Dasgupta

Our standards: The Thomson Reuters Trust Principles.


Comments are closed.