Dow Inc reported quarterly results on Thursday that beat analysts estimates and forecast betterthanexpected sales for the first quarter as demand and prices for its chemicals recover from the impact of the COVID19 pandemic.
The company, which has slashed its workforce and sold some noncore businesses, said it saw higher demand for materials in which its chemicals are widely used, such as furniture, mattresses, appliances, doityourself paint coatings and packaging.
Dow Chief Executive Officer James Fitterling said he expects new consumer behaviors that have emerged during the pandemic to drive strong demand for the companys products even after the virus outbreak diminishes.
Increased inhome delivery and takeout dining, paired with heightened awareness of food hygiene, will sustain higher demand for food and consumer packaging, Fitterling added.
Dow forecast firstquarter sales between 10.7 billion and 11.2 billion, compared with analysts estimates of 10.33 billion, according to Refinitiv IBES data.
For the fourth quarter, Dows volumes sold rose 2 sequentially and 1 versus the yearearlier quarter, reaching prepandemic levels in all operating segments.
Prices rose 8, compared with the third, helped by higher prices for polyethylene, the main ingredient used in making most plastics, and for polyurethanes, used in upholstery, mattresses and car seats.
Net operating income, which excludes some items, rose to 607 million, or 81 cents per share, in the three months ended…