Chemicals company Dow Inc. said Thursday it swung to a net loss of $105 million, or 15 cents a share, in the fourth quarter, after posting income of $613 million, or 85 cents a share, in the year-earlier period.
Adjusted per-share earnings came to 43 cents, ahead of the 40 cent FactSet consensus.
Sales fell to $10.621 billion from $11.859 billion, but beat the $10.377 billion FactSet consensus.
The adjusted number excludes significant items in the quarter totaling 58 cents a share, including a noncash settlement charge stemming from pension de-risking plans.
The Midland, Michigan-based Dow
DOW,
said sales were lower at all operating segments due to slower macro activity and as price and volume gains in packaging & specialty plastics were more than offset by seasonal demand declines in performance materials & coatings.
“In 2024, we will maintain our commitment to financial and operational discipline as we continue to navigate dynamic market conditions,” Chief Executive Jim Fitterling said in a statement.
“While we expect softness in industrial and durable goods demand to continue in the first quarter, we are encouraged by early positive signals in areas including construction, automotive and consumer electronics.”
By segment, sales at the packaging & specialty plastics segment fell 7% to $5.641 billion from $6.073 billion a year ago.
“Volume increased 3% year-over-year, led by higher packaging demand, primarily in the U.S. & Canada and Latin America. On a sequential basis, net sales increased by 3% led by higher merchant sales of hydrocarbons, as well as higher polyethylene prices in all regions,” the company said.
Sales at the industrial intermediates & infrastructure segment fell 19% to $2.9 billion, as local price fell 17%. Volume was down 2%, due to reduced supply availability.
Sales at the performance materials & coatings segment fell 8% to $1.9 billion as local price fell 12% with declines in both businesses.
On Wednesday, rival DuPont de Nemours Inc. issued a profit warning, saying weaker demand at year-end was expected to continue.
As we finished 2023, we saw additional channel inventory destocking within our industrial businesses as well as continued weak demand in China,” said Chief Executive Ed Breen.
The stock was down 0.6% premarket and has fallen 8% in the last 12 months, while the S&P 500
SPX,
has gained 21%.
