Dow Inc. (NYSE:DOW) shares are trading lower after it revised its third-quarter outlook.
The company lowered its guidance for revenue to around $10.6 billion (vs. consensus $11.0 billion) from $11.1 billion earlier and expects operating EBITDA of around $1.3 billion.
The revised outlook reflects a major unplanned event at a Texas ethylene cracker in late July, alongside higher input costs and margin compression in Europe.
However, these challenges are expected to be partly mitigated by improved pricing and feedstock costs in North America for Packaging & Specialty Plastics.
Also Read: Linde Invests Over $2B For Clean Hydrogen, Inks Supply Deal With Dow: Details
Jim Fitterling, chair and chief executive officer, said, “As we look to the fourth quarter, we expect typical seasonality in demand. However, we expect a positive impact from lower turnaround costs, higher operating rates as we ramp up our Texas cracker, and fewer weather-related events in the U.S. Gulf Coast.”
In July, Dow reported second-quarter sales decline of 4% Y/Y to $10.9 billion, missing the $11.01 billion consensus. Adjusted EPS was $0.68, below the $0.72 consensus, with operating EBIT declining to $819 million.
Investors can gain exposure to the stock via Invesco Dow Jones Industrial Average Dividend ETF (NYSE:DJD) and FT Vest DJIA Dogs 10 Target Income ETF (BATS:DOGG).
Price Action: DOW shares are down 1.20% at $50.12 at the last check Thursday.
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This article Chemicals Company Dow Cuts Outlook Amid Production Challenges originally appeared on Benzinga.com
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