Dow Inc. (DOW) recently announced its third-quarter financial results, reporting a decline in both profit and sales compared to the previous year. However, the company managed to exceed expectations despite the slower global macroeconomic activity.
Profit and Sales Figures
Net income for the quarter dropped to $302 million, or 42 cents per share, from $739 million, or $1.02 per share, in the same period last year. The adjusted EPS of 48 cents surpassed the FactSet consensus of 44 cents, indicating better-than-expected performance.
Sales Performance
Dow's sales for the third quarter reached $10.73 billion, surpassing the FactSet consensus of $10.36 billion. It is important to note the breakdown of sales performance across different segments:
- Packaging and specialty plastics sales experienced a decline of 25.6% to $5.45 billion.
- Industrial intermediates and infrastructure sales were down by 25.2% to $3.04 billion.
- Performance materials and coatings sales declined by 19.7% to $2.13 billion.
Cost-Saving Measures
Despite facing higher sequential feedstock costs, Dow's Chief Executive, Jim Fitterling, expressed confidence in the company's ability to navigate through these challenges. He highlighted their continued implementation of targeted actions to achieve $1 billion in cost savings by 2023.
Market Performance
Dow's stock has experienced an 8.2% decline over the past three months, while the Dow Jones Industrial Average (DJIA) has also recorded a 7.0% loss during the same period.
These results showcase Dow's resilience in a challenging global environment while demonstrating their commitment to cost-saving initiatives for future growth and profitability.
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