Materials science company Dow, Inc. (DOW) reported Thursday that net income for the second quarter declined from last year, hurt by lower integrated margins, higher planned maintenance activity and a 4 percent decline in net sales. Both Adjusted earnings per share and quarterly net sales missed analysts\' estimates.
\"In the second quarter, Team Dow delivered sequential earnings improvement and our third consecutive quarter of year-over-year volume growth,\" said Jim Fitterling, Chair and CEO.
For the second quarter, net income available for common stockholders declined to $439 million or $0.62 per share from $485 million or $0.68 per share in the prior-year quarter.
Excluding items, operating earnings for the quarter were $0.68 per share, compared to $0.75 per share in the prior-year quarter.
On average, 18 analysts polled by Thomson Reuters expected the company to report earnings of $0.71 per share for the quarter. Analysts\' estimates typically exclude special items.
Net sales for the quarter decreased 4 percent to $10.92 billion from $11.42 billion in the same quarter last year. Analysts expected revenues of $11.01 billion for the quarter.
Volume increased 1 percent from last year, with gains led by the U.S. & Canada. Excluding Hydrocarbons & Energy, volume increased 4 percent year-over-year.
Packaging & Specialty Plastics segment net sales decreased 7 percent to $5.52 billion and Industrial Intermediates & Infrastructure segment net sales declined 7 percent to $2.95 billion, while Performance Materials & Coatings segment net sales grew 2 percent to $2.24 billion from last year.
In early May, Dow agreed to sell its flexible packaging laminating adhesives unit, which falls under Dow\'s Packaging & Specialty Plastics division, to Arkema for $150 million. The deal is scheduled to be concluded by the end of 2024, pending regulatory approval.
The company said the proceeds from this sale will help it to advance the long-term Decarbonize & Grow and Transform the Waste strategies designed to capture more than $3 billion in annual earnings growth by 2030.
Looking ahead, Fitterling said, \"As we look to the second half of the year, Team Dow is focused on continuing to deliver sequential earnings improvements while navigating through the slower macro environment we remain in.\"