Dow’s Losing Streak Continues
Dow Chemical (NYSE:DOW) found itself facing a less-interested market in the most recent quarter, and posted reduced performance Thursday, reporting October-December quarterly earnings before the bell.
Dow Chemical’s earnings on revenue reached $0.33 per share in the quarter; revenue was $13.2 billion. These values fell slightly below analysts’ expectations in a Reuters consensus estimate, which had Dow Chemical earning $0.34 a share on revenue of $13.7 billion, excluding items.
Demand for Dow Chemicals products, particularly specialty plastics and chlorine, dipped in the previous quarter, driving down Dow’s revenues and leading to an overall loss for the quarter. A year earlier, Dow also faced sales losses, but to a much lesser degree…
The net loss posted by Dow was $716 million, or $0.61 a share. The company also faced a charge of $990 million for the quarter, as it was working to close down 20 plants and cut 5 percent of its workforce. Doing so would help Dow write down the value of its lithium-ion battery business, which hasn’t been performing well recently.
In the year-earlier quarter, Dow’s losses amounted to $20 million, or $.02 a share. Last quarter’s losses are just over 35 times greater than those of the same quarter a year earlier. Dow will have to remedy this somehow to keep sales from sliding further and losses from growing year to year.
Dow shares were performing poorly Thursday morning, dropping as much as 5 percent, to around $32.88 a share. The stock started the day out low with an opening price of $32.42 compared to the previous close of $34.61. So, while the stock is rising from the day’s opening price, it is still struggling to reach the value at the previous close.