The what? Chemicals maker Dow Inc has beaten Wall Street estimates in the third quarter following a cost cutting exercise to offset the fall in demand for plastic and manufacturing chemicals.
The details Sales volumes fell 2 percent in Q3, with a price decline of 12 percent. Regionally the EMEAI region was hit the hardest with a 17.5 percent fall, while the United States and Canada, and Asia Pacific fell 15.6 percent and 7.5 percent respectively. However, China recorded a stellar year, reporting double digit growth. Q3 net sales fell 15.2% to $10.76 billion.
Shares of the company rose 5 percent following the news.
However, the company has forecast lower current-quarter revenue of $9.8 billion to $10.2 billion, below industry expectations.
The why? The better-than-expected results are part of a successful cost cutting exercise for Dow. In a bid to turn its fortunes around, the company has now saved around $1.37 billion as part of the cost reduction programme and $40 million in expenses in the previous quarter.
While not great, as Bernstein analyst Jonas Oxgaard told Reuters, “If this is as bad as it gets for Dow, that’s pretty good.”