Shares of Dow Inc. (DOW) slumped 4.7% in morning trading Thursday, after the materials science company swung to a narrower-than-expected loss and reported revenue that fell less than expected, but also said it will cut its workforce by 6% as part of a restructuring aimed at increasing its expense reduction target to $500 million from $350 million. The net loss was $225 million, or 31 cents a share, after a net income of $75 million, or 10 cents a share, in the year-ago period. The operating loss, which excluding non-recurring items such as integration and separation costs, the per-share loss was 26 cents, compared with the FactSet consensus for a loss of 28 cents. Sales fell 24% to $8.35 billion, above the FactSet consensus of $8.04 billion, as all three of its business segments beat sales expectations. "We captured solid demand growth in packaging, health and hygiene, home care and pharma end-markets, which partially offset weakness in consumer durable goods," said Chief Executive Jim Fitterling. "Extended economic lockdowns shifted the inflection point for demand recovery in key markets and geographies into June, where we began to see gradual improvements across most industries." Dow's stock has dropped 22.8year to date through Wednesday, while the Dow Jones Industrial Average has slipped 5.7%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 23, 2020 10:15 ET (14:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.