Dow beats third quarter estimates on higher prices

Investing.com -- On Thursday, Dow Inc. (NYSE: DOW) reported third quarter results that exceeded analyst expectations, with adjusted earnings per share of $0.71 compared to the consensus estimate of $0.61.

Shares of the chemical manufacturer edged up 0.79% in pre-market trading following the announcement.

Revenue reached $11.3 billion, surpassing the $11.21 billion estimate and marking a 13% increase YoY.

The company’s revenue growth was primarily driven by a 14% increase in local prices, led by higher polyethylene prices across all regions in the Packaging & Specialty Plastics segment. Volume declined 1% YoY, reflecting impacts from the Middle East conflict, particularly in Asia Pacific. Adjusted EBIT rose to $887 million from $180 million in the prior-year period, benefiting from higher prices and cost reduction initiatives.

"Dow delivered a solid third quarter, driven by targeted downstream growth and disciplined execution against an evolving macro backdrop," said Karen S. Carter, chief executive officer. "Our teams are delivering on our unique-to-Dow self-help commitments - including our 2025 $1 billion cost program, our European asset actions, and Transform to Outperform."

The company generated $1.8 billion in cash from operating activities, up $709 million YoY, with free cash flow of $1.1 billion. Dow released more than $400 million of working capital during the quarter and reduced debt by approximately $600 million year-to-date.

The Packaging & Specialty Plastics segment posted net sales of $5.8 billion, up 18% YoY, with operating EBIT of $585 million. Industrial Intermediates & Infrastructure reported sales of $3.1 billion, up 8% YoY, while Performance Materials & Coatings generated $2.3 billion in sales, an 8% increase.

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