NEW YORK - Dow (NYSE:DOW), a leading chemical corporation, reported a second-quarter adjusted EPS of $0.68, falling short of the analyst consensus of $0.71.
The company's revenue reached $10.92 billion, also below the expected $11.01 billion, marking a 4% decline from the same quarter last year.
Following the earnings release, Dow's shares experienced a 2.5% drop, indicating investor concern over the earnings miss.
In comparison to the previous year, Dow's second-quarter performance showed a decrease in operating earnings per share from $0.75 to $0.68. This decline was attributed to restructuring and efficiency costs totaling $0.06 per share.
Despite a 1% increase in volume, with notable growth in the U.S. & Canada, and a sequential volume rise across all regions except Asia Pacific, the company faced a 4% year-over-year (YoY) decrease in local price and a 1% impact from currency fluctuations on net sales.
The company's GAAP net income stood at $458 million, with operating EBIT of $819 million, which is a $66 million reduction YoY. The decrease was primarily due to lower integrated margins and higher planned maintenance activity, partly mitigated by improved equity earnings. On a positive note, Dow saw a sequential operating EBIT increase of $145 million, fueled by gains in Performance Materials & Coatings and Packaging (NYSE:PKG) & Specialty Plastics.
Dow's CEO, Jim Fitterling, commented on the results, "In the second quarter, Team Dow delivered sequential earnings improvement and our third consecutive quarter of year-over-year volume growth. The pace of the global macroeconomic recovery has been slower than expected. We remain focused on working capital, reducing costs, and matching our operating rates to current demand."
He also highlighted the company's innovation efforts and cash generation, which allowed for significant returns to shareholders totaling $691 million in the quarter.
The company's cash flow from operations for continuing operations was reported at $832 million, a decrease from the previous year but an increase from the prior quarter.
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