Dow Inc.’s second quarter adjusted earnings, though beat analysts’ estimates, fell sharply from the year-ago period.
The chemical and industrial products maker's net income declined to $75 million (or 10 cents a share), from $1.33 billion, (or $1.78 a share) in the year-ago period. Excluding non-recurring items, earnings fell to 86 cents from $1.41, but was able to surpass the 84 cents expected by the Street consensus.
Dow’s net sales fell to $11.01 from $12.85 billion a year ago. It missed FactSet consensus of $11.29 billion.
The company lowered its spending outlook by -25% to $2 billion in 2019, and said that it would delay a 450,000-ton polyolefins plant expansion in Europe and a feasibility study for a new siloxanes plant.
Dow Inc. has projected third-quarter revenue of $10.50 billion to $11 billion, a range lower than estimates of $12.03 billion.
"Macro environment is cautious, largely driven by geopolitical volatility and prolonged trade negotiations," Chief Executive Officer Jim Fitterling said on a post-earnings call.