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7/25/2019, 12:49 PM (Source: TeleTrader)
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Dow's sales fall 13.9% in Q2 to $11.01B after spinoff

Dow Inc. said on Thursday that attributable net income landed at $75 million for the three months through June. The result is 94.4% lower than the pro forma profits calculated for the comparable period last year, before the material science company separated from DowDuPont. It translates to earnings per diluted share of $0.1 on net sales of $11.01 billion. The top line came in 13.9% lower on an annual basis, matching the manufacturer's guidance.

The widely watched cost of sales was reduced by 10.6% to $9.42 billion but integration and separation impact was $348 million or 32.8% higher than in the second quarter of 2018.

"We faced margin compression in our intermediate products in both our core business and equity earnings. However, we achieved demand growth in packaging applications, supported by new capacity on the US Gulf Coast. We delivered more than $175 million of savings from cost synergies and stranded cost removal," chief executive Jim Fitteling said and cited "challenging market conditions."

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