Shares of Dow Inc. (DOW) slipped 0.2% in premarket trading Thursday, after the materials science company matched profit expectations but topped sales forecasts, and said it was taking further measures to strengthen its financial position amid the COVID-19 pandemic. Net income rose to $258 million, or 32 cents a share, from $208 million, or 24 cents a share, in the year-ago period. Excluding special items, adjusted EPS fell to 59 cents from 98 cents but matched the FactSet consensus. Sales fell 11.3% to $9.77 billion, amid lower local prices due to a decline in energy prices, but topped expectations of $9.71 billion. Volume fell 2%, as growth in demand for food, health and hygiene packaging; surfactants and solvents for cleaning; and coatings was more than offset by declines in polyurethanes and silicones. Dow said it was beginning to see indications of recovery from COVID-19 in China. The company is further reducing its capital expenditure target to $1.25 billion, below the 2019 target of $2.0 billion, and trimming operating expenses by $350 million. The company is idling some manufacturing units. The stock has dropped 22.7% over the past three months through Wednesday, while the Dow Jones Industrial Average has declined 14.6%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 30, 2020 06:35 ET (10:35 GMT)
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