Dow Inc. posted declines in sales and profit in the second quarter of 2024.
In the quarter, Midland, Mich.-based Dow had sales of $10.9 billion, down more than 4 percent vs. the same period in 2023. The firm reported a $458 million profit for the quarter, down almost 9 percent vs. the year-ago period.
In a news release, Chairman and CEO Jim Fitterling said that "the pace of the global macroeconomic recovery has been slower than expected." He added that Dow "is innovating with our customers, which was evident in the quarter as we captured growing demand in packaging, electronics and home and personal care."
First-quarter sales at Dow's Packaging & Specialty Plastics unit — including one of the world's largest polyethylene resin businesses — were down more than 6 percent to $5.5 billion, with operating profit down 23 percent to $703 million. The unit's sales volume in pounds was down 3 percent in the quarter.
Dow's Industrial Intermediates & Infrastructure business, which includes polyurethanes, saw sales fall 7.5 percent to a little under $3 billion in the first quarter. That unit posted second-quarter operating profit of $7 million after showing a $35 million operating loss in the year-ago period. The unit's sales volume in pounds was up 1 percent in the quarter.
Looking ahead, Fitterling said that Dow "is focused on continuing to deliver sequential earnings improvements while navigating through the slower macro environment." He added that, in the near term, demand in many markets that Dow serves is growing, although markets for building and construction and consumer durables "are unlikely to significantly change in 2024."
Dow is one of the world's largest producers of PE and specialty resins. The firm posted sales of almost $45 billion in full-year 2023. In November, Dow's board approved a $6.5 billion investment in sustainable materials — including polyethylene resin — in Fort Saskatchewan, Alberta.
On Wall Street, Dow's per-share stock price began 2024 at $55, but closed just under $53 on July 25 for a decline of almost 4 percent so far this year.