Dow Inc. expects earnings in its largest business to almost double in the fourth quarter from a year earlier. The chemical company expects operating earnings before interest, taxes, depreciation and amortization of about $1.11 billion in the packaging and specialty plastics segment, it said Thursday. This is above Wall Street’s average estimate of $1.02 billion and implies a 93% surge from a year ago.
A September price increase and lower spending during the quarter should help drive growth, Chief Financial Officer Jeff Tate said in an interview. “It’s a combination of our self-help actions, our pricing improvement actions.”
Third-quarter net sales rose 13%, the second straight quarter of double-digit growth, a streak not seen in almost four years. That was broadly in line with expectations. Operating income topped analysts’ average estimate. The Michigan-based company benefited from higher-margin markets in the quarter, such as artificial intelligence infrastructure and consumer electronics.
This should help offset rising feed stocks and continued softness in the building and construction space, Tate said.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing