Dow updated its website with a new press release on third-quarter 2024 earnings guidance.
Thu Sep 12 11:04:12 -0000 2024 UTC– Dow Inc. (NYSE: DOW) announced a revised outlook for its third-quarter 2024 earnings, now expecting revenue of approximately $10.6 billion and an Operating EBITDA of roughly $1.3 billion.
Texas Incident
The adjustment to Dow Inc.’s third-quarter earnings outlook was mainly due to an unexpected incident at one of the company’s ethylene crackers in Texas that occurred in late July. An ethylene cracker is a crucial facility in the production of ethylene, a key raw material used in various chemical processes.
The incident likely led to a disruption in operations, affecting Dow’s production capacity and contributing to the lowered revenue and earnings expectations for the quarter. The company did not provide specific details about the nature of the incident, but such events can include equipment failure, safety issues, or other operational challenges.
Margin Pressures in Europe
Additionally, Dow is grappling with rising input costs and margin pressures in Europe. However, these challenges are partially mitigated by improved pricing and feedstock costs in North America within its Packaging & Specialty Plastics segment.
CEO optimistic about Q4
CEO Jim Fitterling highlighted the company’s proactive measures and remains , citing expected benefits from reduced turnaround costs, increased operating rates, and fewer weather-related disruptions in the U.S. Gulf Coast.
Fitterling is scheduled to discuss these developments further during a fireside chat at the 12th Annual Morgan Stanley Laguna Conference later today.
About Dow Dow Inc. is a leading global materials science company, catering to high-growth sectors such as packaging, infrastructure, mobility, and consumer goods.