This story has been corrected to reflect FactSet's earnings estimate of 84 cents a share
Dow Inc. (DOW) on Thursday reported second-quarter earnings that fell from a year earlier as lower revenue stemming from chemicals price declines and reduced sales was offset by streamlined expenses.
The chemical and industrial products maker posted operating earnings of $1.1 billion, or 86 cents a share, vs. operating earnings of $1.64 billion, or $1.41 a share, in the comparable year-earlier period. The results were in line with the company's consensus estimates and above the 84 cents a share expected by analysts polled by FactSet.
Revenue was $11 billion, driven primarily by local price declines in polyethylene, siloxanes and isocyanates, and lower sales of hydrocarbon co-products, the company said. That figure was a 14% drop from year-earlier revenue of $12.8 billion.
In the second quarter, our company recorded net sales of $11.0 billion, in-line with guidance; operating EBITDA of $1.8 billion, and operating EPS of $0.86 - both in-line with consensus estimates. $DOW— Dow (@DowNewsroom) July 25, 2019
"In spite of challenging market conditions, our results reflect the benefits of Dow's streamlined and more focused portfolio, continued cost synergy savings and stranded cost removal," CEO Jim Fitterling said in a statement.
Looking ahead, the company sees ongoing trade and geopolitical uncertainties continuing to impact buying patterns among Dow's customers.
"In this environment, we will maintain cost and operating discipline by continuing cost synergy and stranded cost removal actions, by reducing our planned capital expenditures for the year from $2.5 billion to $2 billion," Fitterling said.
Shares of Dow were down 3.8% at $50.64 in trading on Thursday. Dow began trading as its own business in April after being spun off from DowDuPont.
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