Dow Inc. Reports Strong Quarterly Performance, Led by Packaging & Specialty Plastics Segment

$DOW

Dow Inc. (NYSE:DOW), a leader in materials science, reported robust quarterly results, surpassing revenue and profit expectations with significant contributions from its Packaging & Specialty Plastics (P&SP) segment. Net sales in the P&SP segment reached $5.5 billion, reflecting a 1% increase from the same period last year. This growth was primarily driven by a 1% increase in local prices, bolstered by higher polyethylene prices across most regions, although pricing in Latin America remained stable. While demand for functional polymers grew across all regions, overall volume remained flat due to decreased polyethylene sales.

On a sequential basis, P&SP net sales were stable, with slightly lower sales in downstream polymers offset by a rise in non-recurring licensing revenue. Equity earnings for the segment totaled $16 million, a decline of $34 million from the prior year due to reduced gains from Thai joint ventures. Sequentially, equity earnings were also down by $39 million, influenced by weaker returns from non-core joint ventures.

Operating EBIT for the segment stood at $618 million, up $142 million from the same quarter last year, as higher integrated margins more than compensated for the effects of an unplanned cracker outage in Texas. However, on a sequential basis, Operating EBIT fell by $85 million, primarily due to the ongoing impact of this Texas facility outage.

Dow Inc.’s strategic focus on maintaining integrated margins and capitalizing on regional price improvements has positioned it for continued performance, despite some challenges from operational disruptions.

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