Dow exceeds Q1 profit forecasts amidst global manufacturing growth

Dow exceeds Q1 profit: Dow, the chemicals manufacturer, surpassed first-quarter profit expectations on Thursday, driven by increased sales volumes amidst a backdrop of expanding global manufacturing activities. Notably, China witnessed its manufacturing activity expand for the first time in six months in March, while US manufacturing saw growth after nearly 18 months, favourably impacting Dow, whose products span various industries.

Despite a 9 per cent decline in net sales to $10.77 billion, Dow outperformed expectations of $10.74 billion, attributed to a 1 per cent rise in volumes, except in Europe, the Middle East, Africa, and India. The company's margins received a boost from low US natural gas prices, hitting a three-and-a-half-year low in February.

In 2022, chemical firms raised prices to counter inflation following Russia's invasion of Ukraine, tightening feedstock supplies. Although Dow's sales in packaging and specialty plastics fell by 11 per cent to $5.43 billion, and performance materials and coating sales decreased by about 5 per cent to $2.16 billion, they surpassed Wall Street estimates.

Jim Fitterling, Dow's CEO, expressed optimism about near-term demand, citing trends in key end-markets such as packaging, mobility, and energy applications.

For the quarter ending March 31, the Midland, Michigan-based company reported operating earnings per share of 56 cents, compared to the average analyst estimate of 45 cents, according to LSEG data. Dow's resilient performance underscores its adaptability amidst dynamic market conditions.

(with Reuters inputs)