Dow Inc reported quarterly results on Thursday that beat analysts’ estimates, helped by higher prices and demand for its chemicals following a recovery from the impact of the COVID-19 pandemic.
Some of Dow’s end markets, including furniture, appliances, packaging, construction and automotive, have started to recover. The company has also slashed its workforce and is looking to sell its non-core businesses to counter the hit from the pandemic.
The company’s Chief Executive Officer Jim Fitterling said he expects margins to improve as different parts of Dow’s portfolio see improving demand.
For the reported quarter, prices rose 8%, compared with the third, helped by higher prices for polyethylene, the main ingredient used in making most plastics, and for polyurethanes, used in upholstery, mattresses and car seats.
Volumes sold rose 2% sequentially and 1% versus the year-earlier quarter, reaching pre-pandemic levels in all operating segments.
Net operating income, which excludes some items, rose to $607 million, or 81 cents per share, in the three months ended Dec. 31, from $376 million, or 50 cents per share, in the third quarter.
That beat analysts’ estimates of 67 cents per share, according to Refinitiv IBES.
Dow also reported sales of $10.71 billion, compared with estimates of $10.03 billion.