Dow’s stock set to rise after adjusted profit, sales fall less than forecast

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Dow Inc. swung to a third-quarter net loss, but reported an adjusted profit and sales that fell less than expected, as all of the materials and plastics company’s beat expectations. The stock was indicated up about 2% in premarket trading. The company reported a net loss of $1 million, or 4 cents a share, after net income of $347 million, or 45 cents a share, in the year-ago period. Excluding non-recurring items, such as restructuring and asset-related charges, adjusted earnings per share fell to 50 cents from 91 cents but was above the FactSet consensus of $32 cents. Sales fell 9.8% to $9.71 billion but beat the FactSet consensus of $9.51 billion. Packaging and specialty plastics sales declined 9.8% to $4.57 billion but beat expectations of $4.41 billion, industrial intermediates and infrastructure sales fell 9.1% to $3.06 billion but topped forecasts of $2.73 billion and performance materials and coatings sales slid 11.0% to $2.00 billion but was above expectations of $1.93 billion. The company said polyethylene prices increased 12% from the prior quarter, as packaging demand remained resilient. “Although the third quarter rebound was significant, the recovery has been uneven across markets, and we expect this will continue in the near term,” said Chief Executive Jim Fitterling. The stock has lost 11.3% year to date through Wednesday, while the Dow Jones Industrial Average has slipped 1.2%.
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