(Reuters) – Dow Inc on Thursday posted a 56% fall in third-quarter profit, as the chemicals giant took a hit from soaring energy prices and a slower-than-expected recovery in demand.
Dow’s chemicals, used in industries ranging from automobiles and food packaging to electronics, are seeing higher energy costs, especially in Europe, as well as lower demand as consumers tighten purse strings amid a global economic slowdown.
China’s zero-COVID policy and the resulting lockdowns also caused a slowdown in demand. The company also faced reduced polyethylene production and persistent supply chain constraints in the quarter.
“Underlying demand remains resilient in the United States, while high energy and feedstock costs are driving record inflation and impacting demand in the Eurozone, and ongoing lockdowns in China continue to pressure both consumer spending and infrastructure investments,” Chief Executive Officer Jim Fitterling said in a statement.
Excluding items, Dow’s operating income was $1.11 per share, its lowest in six quarters.
Net income available for Dow stockholders was $739 million, or $1.02 a share, in the three months ended Sept. 30, compared with $1.68 billion, or $2.23 per share, a year earlier.
(Reporting by Ruhi Soni in Bengaluru; Editing by Anil D’Silva and Shinjini Ganguli)
