Dow Inc. Takes Q2 Pandemic-Driven Hit, Slashes Workforce
Wherefore art Dow?
Chemical products maker Dow Inc. (DOW) - Get 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.
Latest Videos From TheStreet and Jim Cramer:
- Jobless Claims Are Heading in the Wrong Direction
- Coronavirus Update: Chipotle's Earnings Show Digital Sales, Delivery Up
- Amazon Prime Day Pushed Back, New Date Not Yet Released
- Twitter Posts Second-Quarter Loss, Though Sees It as Temporary
- What Is Trump’s Economic Plan and How Will it Impact Stocks?
- Walmart Is Paying $428 Million In Bonuses to Its Frontline Workers
