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Dow also beat estimates for second-quarter
profit and revenue as its chemicals - used in everything from
plastic and food packaging to textiles, electronics and paints -
have seen a steady rise in prices on the back of strong consumer
and industrial demand as well as lower inventories.
The company said it was expecting third-quarter net sales of
between $13.75 billion and $14.25 billion, well above the
estimates of $12.64 billion, according to Refinitiv IBES data.
"Looking ahead, we expect earnings momentum from additional
improvements in consumer spending, international travel and
industrial production," Chief Executive Officer Jim Fitterling
said.
Fitterling's comment comes as the spread of the highly
contagious Delta variant of the novel coronavirus is fuelling
fears of a pandemic resurgence and lockdowns across different
parts of the globe.
Prices jumped 16% in the second quarter from the prior period,
while volumes rose 1%, helped by growing demand in
infrastructure, industrial and personal-care end markets.
Volumes were weighed down by lingering supply constraints from
the impact of a winter storm on the U.S. Gulf Coast in February.
Net income available for Dow stockholders rose to $1.9 billion,
or $2.51 per share, in the three months ended June 30, from $991
million, or $1.32 per share, in the first quarter.
Adjusted net operating income of $2.72 per share beat estimates
of $2.45, according to Refinitiv IBES data.
Net sales of $13.89 billion also topped estimates of $13.07
billion.
Shares of the company, which have risen 7.5% so far this year,
were up 1.3% at $60.50 in premarket trading.
(Reporting by Arathy S Nair in Bengaluru; Editing by Anil
D'Silva)
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