Oct 22 (Reuters) - Dow beat Wall Street expectations for third-quarter adjusted profit on Thursday as higher polyethylene prices and cost-cutting measures helped the chemicals maker offset higher raw material and logistics costs.
The closure of the Strait of Hormuz following the escalation of the Iran conflict in late February has disrupted oil and petrochemical flows, tightening global chemical supplies and driving a sharp increase in plastics and polymer prices.
Earlier this year, Dow announced plans
to cut 13% of its workforce to cut costs. The company has also been reviewing assets across its global portfolio, as part of a broader effort to boost profitability.
CEO Karen S. Carter said in a statement that Dow remains on track to generate more than $1 billion in annual EBITDA uplift in both 2026 and 2027 through its cost-cutting and portfolio optimization initiatives, including the closure of higher-cost upstream assets.
Shares of the company were up over 1% in premarket trading.
Third-quarter net sales from Dow's packaging and specialty plastics segment rose over 18% to $5.8 billion from a year ago, driven by higher polyethylene and functional polymers prices in all regions.
Net sales at its industrial intermediates and infrastructure segment rose 7.9% to $3.06 billion, and performance materials and coatings were up over 8% to $2.25 billion from a year ago.
The Michigan-based company reported an adjusted profit of 71 cents per share for the quarter ended September 30, compared with analysts' average estimate of 64 cents, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)
