(Reuters) – Dow Inc <DOW.N> posted a drop in adjusted quarterly profit on Thursday as its margins were squeezed by a double whammy of lower selling prices for its chemicals after a plunge in crude prices and a coronavirus-led demand hit in some end-markets.
A widespread halt in industrial activity to stem the spread of the pandemic and the oil-price crash added to the woes of chemical companies, which were battling trade-related uncertainties even before the outbreak began.
Dow, which makes chemicals used in industries ranging from plastics, paints and building materials, said volumes fell 2% and prices declined by 8%.
Net income available to Dow stockholders rose about 36% to $239 million on a pro forma basis, as the year-earlier quarter included higher charges related to its merger and later split from DowDupont.
Excluding items, net operating income fell to $439 million, or 59 cents per share, in the first quarter ended March 31 from $729 million, or 98 cents per share, a year earlier.
That marginally beat analysts’ estimates of 58 cents, according to Refinitiv IBES.
Net sales fell to $9.77 billion from $11.02 billion a year earlier.
(Reporting by Taru Jain and Arathy S Nair in Bengaluru; Editing by Anil D’Silva)