Latest news with #PackagingSpecialtyPlastics
Globe and Mail
6 days ago
- Business
- Globe and Mail
DOW Lags Q2 Earnings and Sales Estimates on Lower Prices
Dow Inc. DOW recorded a loss (on a reported basis) of $835 million or $1.18 per share for second-quarter 2025. This compares to a profit of $439 million or 62 cents per share a year ago. The bottom line was hurt by lower prices and restructuring charges. On an adjusted basis (barring one-time items), DOW logged a loss of 42 cents for the reported quarter against earnings of 68 cents a year ago. The figure was wider than the Zacks Consensus Estimate of a loss of 11 cents. Dow recorded net sales of $10,104 million for the quarter, down 7% year over year. It missed the Zacks Consensus Estimate of $10,277 million. The top line was adversely impacted by lower sales across all segments. Volume declined 1% year over year, with growth in the United States and Canada outweighed by reductions in Europe, the Middle East, Africa and India (EMEAI). On a sequential basis, volume fell 2%, as seasonal increases in Performance Materials & Coatings, particularly in downstream silicones, were offset by declines in Packaging & Specialty Plastics. Dow's Segment Highlights Packaging & Specialty Plastics: The division's sales fell 8.9% year over year to $5,025 million in the reported quarter. The figure missed our estimate of $5,197.9 million. Volume grew 1% year over year, led by greater energy sales and polyethylene volumes, which were slightly offset by decreased volumes in functional polymers. Local prices fell 10% year over year, primarily due to lower downstream polymer pricing. Industrial Intermediates & Infrastructure: Sales for the unit were down 5.6% year over year to $2,786 million. The figure lagged our estimate of $2,884.6 million. Local prices fell 5% year over year, indicating reductions in both businesses. Volume fell 2% due to lower volumes in Polyurethanes and Construction Chemicals, which were partly offset by higher volumes in Industrial Solutions. Performance Materials & Coatings: Revenues from the division fell 5% year over year to $2,129 million. The figure missed our estimate of $2,142.1 million. Volume fell 3% year over year, as gains in downstream silicones were more than offset by decreased volumes in coatings applications and upstream siloxanes. Local prices fell 3% year over year due to losses in both businesses. DOW's Financials Cash flow from operating activities for continuing operations was negative $470 million, representing a decline of $1.3 billion from the same period last year and a $574 million drop from the previous quarter. This decrease was primarily due to lower earnings resulting from margin compression. Shareholder returns for the quarter amounted to $496 million in dividends. Dow's Outlook Dow noted that its strategic initiatives help the company navigate the evolving challenges within the industry. However, the emergence of new market entrants exporting at anti-competitive prices is creating signs of oversupply, highlighting the need for broader industry collaboration and further regulatory intervention to re-establish fair market conditions. The company's near-term growth projects—all set to be fully operational in the third quarter—along with its long-term strategic investments, are expected to enhance Dow's presence in high-value applications and attractive markets that are less affected by such anti-competitive pressures. These efforts aim to support more stable earnings and deliver strong returns to shareholders. In addition, Dow remains committed to structurally reducing its cost base, optimizing its global asset network and upholding operational excellence to further reinforce its competitive edge. DOW Stock's Price Performance DOW's shares are down 43% in a year compared with the industry's 15.9% decline. DOW's Zacks Rank & Key Picks DOW currently carries a Zacks Rank #4 (Sell). Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. RGLD, Kinross Gold Corporation KGC and Agnico Eagle Mines AEM. Royal Gold is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Kinross is scheduled to report second-quarter results on July 30. The Zacks Consensus Estimate for KGC's second-quarter earnings is pegged at 27 cents. KGC beat the Zacks Consensus Estimate in three of the last four quarters, with the average earnings surprise being 16.1%. KGC currently carries a Zacks Rank #1. Agnico Eagle is slated to report second-quarter results on July 30. The consensus estimate for AEM's earnings is pegged at $1.66. AEM, carrying a Zacks Rank #1, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.3%. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dow Inc. (DOW): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis Report Agnico Eagle Mines Limited (AEM): Free Stock Analysis Report Royal Gold, Inc. (RGLD): Free Stock Analysis Report
Yahoo
6 days ago
- Business
- Yahoo
Dow falls as Q2 earnings miss estimates amid industry challenges
-- Dow Inc. reported a wider-than-expected loss for the second quarter of 2025, as the chemical giant continues to face margin pressure and industry oversupply. Shares tumbled 5.9% following the announcement. The company posted an adjusted loss of -$0.42 per share, significantly worse than analysts' expectations of -$0.16 per share. Revenue fell to $10.1 billion, down 7% YoY and below the consensus estimate of $10.24 billion. The revenue decline reflected lower prices and volumes across all operating segments, with local prices down 7% and volume decreasing 1% compared to the year-ago period. "This quarter the Dow team advanced several aggressive actions in response to the lower-for-longer earnings environment that our industry is facing, amplified by recent trade and tariff uncertainties," said Jim Fitterling, Dow chair and CEO. "We are delivering near-term cash support and earnings growth levers, which we anticipate will total more than $6 billion by 2026." Cash flow from operations turned negative at -$470 million, a sharp decline from $832 million in the same quarter last year. The company maintained its dividend payments, returning $496 million to shareholders during the quarter, but indicated it would adjust its dividend policy to maintain financial flexibility. The Packaging (NYSE:PKG) & Specialty Plastics segment, Dow's largest business unit, saw a 9% decline in sales to $5 billion and a steep drop in operating EBIT to $71 million from $703 million a year earlier. The Industrial Intermediates & Infrastructure segment reported an operating EBIT loss of $185 million compared to a $7 million profit in Q2 2024. Dow cited industry oversupply as a continuing challenge, with Fitterling noting that "signs of oversupply from newer market entrants who are exporting to various regions at anti-competitive economics require broader industry engagement and additional regulatory action to restore competitive dynamics." The company is focusing on structural cost improvements and optimizing its global asset footprint to strengthen its competitive position as it navigates the challenging industry environment Related articles Dow falls as Q2 earnings miss estimates amid industry challenges Victoria's Secret Exposed: The Warning Sign Behind the Stock's 52% Collapse After soaring 149%, this stock is back in our AI's favor - & already +25% in July
