Dow swings to profit, revenue beats expectations as prices rise

Shares of Dow Inc.
edged up 0.5% in premarket trading Thursday, after the chemicals company swung to a second-quarter profit and reported revenue that rose above expectations, boosted by sharp local price increases amid stronger demand. Net income was $1.93 billion, or $2.51 a share, after a loss of $217 million, or 31 cents a share, in the year-ago period. Excluding nonrecurring items, operating earnings per share was $2.72, beating the FactSet consensus of $2.47. Sales jumped 66.2% to $13.89 billion, above the FactSet consensus of $13.13 billion, as all three business segments topped sales expectations. Local price increased 70% in packaging and specialty plastics, rose 53% in industrial intermediates and infrastructure and grew 16% in performance materials and coatings. “Our second quarter results reflected strong demand in all our value chains and regions as we achieved substantial growth in sales and earnings both sequentially and year-over-year,” said Chief Executive Jim Fitterling. “Looking ahead, we expect earnings momentum from additional improvements in consumer spending, international travel and industrial production.” The stock has gained 7.6% year to date through Wednesday, while the Dow Jones Industrial Average

has advanced 13.7%.