Dow Chemical’s second-quarter profit and sales exceeded expectations, local product prices rose 16%
Latest News: On July 21, chemical and specialty materials company Dow Company (DOW) reported second-quarter profit and sales that beat expectations as higher selling prices helped it offset the impact of COVID-19. Pandemic-related lockdowns, logistical restrictions, and rising energy and raw material costs.
Dow Chemical’s net income fell to $1.68 billion from $1.93 billion a year earlier, and earnings per share fell to $2.26 from $2.51
Dollar. During the same period, the company’s domestic market product prices rose 16%, and all market segments, business units and regions increased product prices.
Operating profit per share was $2.31, beating the consensus estimate of $2.14. Sales revenue rose 12.8% year-on-year to $15.66 billion, beating market expectations of $15.55 billion. Strong growth in its Packaging and Specialty Plastics business offset weaker-than-expected results in its Industrial Intermediates, Infrastructure, Performance Materials and Coatings business units.
Cost of sales increased by 20.1%, outpacing the growth rate of sales revenue. Gross profit margin dropped from 22.65% to 17.65%.