Dow Chemical's stock fell sharply by 6.49% during pre-market trading on Thursday, following the release of its first-quarter financial results.
The company reported a widened GAAP net loss of $445 million, or $0.74 per share, compared to a loss of $290 million a year earlier. Net sales declined 6% to $9.79 billion, pressured by lower prices and softening demand. Management cited that prices were approximately 7% lower than the prior year, which only partially offset cost-reduction efforts. Furthermore, sales volumes fell by 2%, primarily due to declines in industrial intermediates and infrastructure linked to the ongoing Middle East conflict.
While Dow's adjusted loss per share of $0.14 was better than the analyst consensus estimate of a $0.29 loss, the market reaction focused on the deteriorating fundamentals, including the wider GAAP loss, the sales decline, and the persistent headwinds from geopolitical tensions and lower pricing across its product portfolio.
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