Dow Chemical's Q1 performance Disappoints with a Net Loss - What Went Wrong?

Dow Chemical's Q1 performance Disappoints with a Net Loss - What Went Wrong?

Dow Chemical's Q1 performance Disappoints with a Net Loss - What Went Wrong?

  • 10-May-2023 6:30 PM
  • Journalist: Xiang Hong

United States: In the latest earnings report, The Dow Chemical Company disclosed a net loss of $73 million for the first quarter, which can be attributed to significant declines in sales volumes and prices in key regions and sectors. The company reported a 22% decrease in net sales revenue, totalling $11.851 billion, due to reduced macroeconomic activity, leading to lower sales revenue in all operating segments. Nevertheless, the company's sales remained steady compared to the previous quarter, with gains from performance and plastic packaging products offsetting losses from durable and industrial and infrastructure products.

Dow Chemical's plastics and packaging division was affected by lower consumer demand, primarily outside the U.S. and Canada, in the first quarter. Earnings were also impacted by lower polyethylene margins. The industrial intermediates and infrastructure businesses faced lower sales due to decreased demand from industrial customers, construction, and consumer durables. Additionally, the Performance Materials and Coatings segment witnessed a decline in sales revenue.

According to a recent report, Dow Chemical experienced an 11% decline in sales in the first quarter of this year, compared to the same period in 2019. The company's sales in Europe, the Middle East, Africa, and India dropped by 15%, and in local currency, they were down 10% year-over-year. This was primarily due to the ongoing global economic instability and increased supply in the industry, which led to lower prices across all regions and operating segments.


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