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NEW YORK - Dow Inc. (NYSE:DOW) on Thursday reported first quarter revenue that beat analyst expectations, even as earnings fell short of estimates.
The company’s shares jumped 3.90% in premarket trading following the release.
The company posted revenue of $10.4 billion for the quarter, surpassing the consensus forecast of $10.28 billion. However, adjusted earnings per share came in at $0.02, missing estimates of $0.03.
Dow’s CEO Jim Fitterling said the company remains "focused on disciplined execution and increased actions to improve profitability and support cash flow" amid ongoing macroeconomic challenges.
The company announced several measures to boost cash flow, including delaying construction of a major project in Canada and expanding its review of European assets. Dow expects these actions to provide approximately $6 billion in cash support.
"Today’s announcements build on Dow’s cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach," Fitterling stated.
Revenue declined 3% YoY, reflecting decreases across all operating segments. However, volume increased 2% compared to the year-ago period, with gains in all regions except Latin America.
The Packaging (NYSE:PKG) & Specialty Plastics segment saw revenue fall 2% YoY to $5.3 billion. Industrial Intermediates & Infrastructure revenue dropped 5% to $2.9 billion, while Performance Materials & Coatings revenue declined 4% to $2.1 billion.
Dow’s operating EBIT was $230 million for the quarter, down from $674 million a year earlier, primarily due to lower prices and higher energy and feedstock costs.
The company generated $104 million in cash from operations, down from $460 million in Q1 2024. Dow attributed the decline to earnings pressure from continued soft global industry demand.
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