Dow (DOW) Beats Earnings And Sales Estimates In Q4

Dow Inc. (DOW - Free Report) recorded loss (on a reported basis) from continuing operations of $3.14 per share for fourth-quarter 2019 against earnings of 63 cents per share a year ago.

Barring one-time items including hefty restructuring, goodwill impairment and asset-related charges, earnings were 78 per share for the reported quarter, ahead of the Zacks Consensus Estimate of 74 cents.

The company benefited from its actions to reduce costs and contributions from its U.S. Gulf Coast investments in the quarter. Dow removed more than $35 million of stranded costs in the reported quarter.

Dow raked in net sales of $10,204 million for the quarter, down roughly 15% from the adjusted sales a year ago. It, however, beat the Zacks Consensus Estimate of $10,015.4 million.

Sales fell due to lower local pricing resulting from a decline in global energy prices. Currency reduced sales by 1% in the quarter.

Volumes fell 2% in the quarter, affected by lower hydrocarbon co-product sales due to a planned turnaround activity in Europe. The company also saw a 12% decline in local prices.

Dow Inc. Price, Consensus and EPS Surprise

Dow Inc. Price, Consensus and EPS Surprise

Full-Year Results

For 2019, loss from continuing operations was $2.42 per share against earnings of $3.80 per share a year ago. Revenues were $42,951 million for the full year, down around 13% year over year.

Segment Highlights

Packaging & Specialty Plastics: The division’s sales fell 18% from the adjusted sales a year ago to $4.8 billion in the reported quarter. Volumes fell 3% while local prices slipped 14%. Currency also reduced sales by 1%.

Industrial Intermediates & Infrastructure: Sales for the unit fell 14% to $3.3 billion. Volumes were flat while local prices fell 13%. Currency lowered sales by 1%.

Performance Materials & Coatings: Revenues from the division went down 10% to $2 billion. Sales were impacted by volumes and local price declines of 1% and 8%, respectively. Currency also reduced sales by 1%.

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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