Dow Inc. Takes Q2 Pandemic-Driven Hit, Slashes Workforce
Wherefore art Dow?
Chemical products maker Dow Inc. (DOW) - Get Free Report took a second-quarter hit, revealing a quarterly loss on Thursday that was driven by a pandemic-related drop in demand.
The Midland, Mich.-based company posted a net loss of $217 million, or 31 cents a share, vs. income of 75 million, or 10 cents a share, in the year-ago period. Analysts polled by FactSet had been expecting a loss of 41 cents a share.
Revenue came in at $8.35 billion, down from $11.01 billion in the year-earlier quarter though slightly above analysts’ forecasts of $8 billion.
A boost in demand for its materials in packaging, health and hygiene, home care and pharma wasn’t enough to offset weakness in demand for consumer durable goods-related chemicals and plastics, Dow CEO Jim Fitterling said in a statement.
To offset loss, Dow said it will “upsize” its 2020 operating expense reduction target to $500 million from $350 million, including targeting $300 million in cost reductions – in part through a 6% reduction in Dow’s global workforce.
Dow employs approximately 36,500 people across 109 sites in 31 countries. The commodity chemical maker was spun off of DowDuPont in April 2019, at which time it became a public company and was added to the Dow Jones Industrial Average.
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