Dow (NYSE: DOW) released its Q2 results last week missing analysts’ expectations. The company is now expected to cut the year spending amid prolonged U.S-China trade dispute and attributes excess supply of ethylene and polyethylene from the United States, China, Korea, and Thailand for disrupting prices.
Company’s net profit dropped 39% to $649 million for the quarter ending June 30. Net operating earnings dropped to 86 cents per share ahead of estimates of 84 cents per share. Net sales of $11.01 billion were reported as against estimates of $11.24 billion. Revenue from global ethylene and polyethylene business dropped 15% for the quarter.
“Looking ahead, we still see global growth, but the pace of that expansion has slowed, as buying patterns remain cautious due to the ongoing trade and geopolitical uncertainties,” stated Dow Chief Executive Officer Jim Fitterling.
Dow expects third-quarter revenue of $10.50 billion to $11 billion, below a forecast of $12.03 billion. It further plans to reduce spending in 2019 by 25%.
Dow (NYSE: DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from material, polymer, chemical, and biological science to help address many of the world’s most challenging problems, such as the need for fresh food, safer and more sustainable transportation, clean water, energy efficiency, more durable infrastructure, and increasing agricultural productivity. To learn more about Dow (NYSE: DOW) and to continue to track its progress please visit the Vista Partners Dow Coverage Page.
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
Stay Informed! Stay Competitive!