Dow profit beats estimates as demand overpowers rise in costs -Breaking
(Reuters) – Chemical compounds maker Dow Inc on Thursday beat Wall Avenue estimates for first-quarter revenue as stronger product costs and demand helped it overcome a surge in uncooked materials prices.
Native costs throughout Dow’s three segments had been up between 24% and 39% after the corporate boosted charges in an effort to fight supply-chain pressures, logistical snags and weather-related outages at crops.
Shares of the corporate rose 5% to $70.94 in morning commerce.
Rising inflation and power costs hitting multi-year peaks had been anticipated to undercut the financial restoration that has lifted Dow’s earnings in latest quarters.
However Chief Govt Officer Jim Fitterling stated the corporate navigated the “stubbornly excessive” prices of and by profiting from considerable shale-based feedstocks.
“Regardless of larger power prices, we captured wholesome end-market demand and achieved stable quantity development, worth beneficial properties and margin enlargement,” Fitterling stated.
Whole web gross sales rose to $15.26 billion from $11.88 billion a yr in the past.
The corporate, which makes chemical substances utilized in a variety of merchandise together with meals packaging, mattresses, textiles and electronics, additionally stated it took a $186 million hit to earnings within the quarter because of the ongoing Russia-Ukraine battle.
Excluding objects, Dow’s earnings of $2.34 per share beat analysts’ common estimate of $2.06, in response to Refinitiv information.