Dow Earnings Beat Expectations

The Michigan-based chemical giant on Thursday reported net income of $1.1 billion during the quarter, an increase from $882 million in the previous second quarter.

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Low feedstock costs helped Dow Chemical exceed analysts' earnings expectations for the second quarter.

The Michigan-based chemical giant on Thursday reported net income of $1.1 billion during the quarter, an increase from $882 million in the previous second quarter.

Dow's sales, however, fell from $14.9 billion one year earlier to $12.9 billion, which fell just below a Bloomberg forecast.

Sales were hindered by falling crude oil prices and a strong dollar, but low energy prices helped the company by lowering its raw material costs.

The prevalence of natural gas from fracking operations in the U.S. helped spark the U.S. chemical industry, particularly in plastics. Low oil prices, meanwhile, helped Dow in Europe, where is serves as the primary chemical feedstock.

Dow officials said stronger demand in construction, auto production and packaging should offset the lagging energy and agriculture sectors. Ongoing cost-cutting efforts by Dow also maintained the company's margins.

Read more: Lowering cost and gaining efficiency in chemical manufacturing.

“In a period of economic volatility, our order-loading remains strong,” said CEO Andrew Liveris.
 

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