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Dow cuts second-quarter revenue forecast on demand, pricing woes

Published 05/31/2023, 04:07 PM
Updated 05/31/2023, 04:12 PM
© Reuters. FILE PHOTO: The Dow Chemical logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S. on December 22, 2015. REUTERS/Lucas Jackson

(Reuters) - Chemical maker Dow Inc forecast second-quarter revenue below market expectations on Wednesday, citing slower macroeconomic activity and lower pricing levels.

The company now expects revenue for the quarter ending June 30 to be between $11 billion and $11.5 billion, compared with analysts' average expectations of $12.12 billion, according Refinitiv data.

Dow had previously projected revenue for the ongoing quarter in the range of $11.75 billion to $12.25 billion.

At a Bernstein conference, Dow flagged that demand in China continues to be "uneven", and said it witnessed lower-than-expected demand for home appliances and building materials in April.

© Reuters. FILE PHOTO: The Dow Chemical logo is displayed on a board above the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S. on December 22, 2015. REUTERS/Lucas Jackson

Weaker demand in other sectors affect Dow, which sells its products such as coatings and adhesives to industries ranging from automobiles and food packaging to electronics.

The forecast cut and comments come more than a month after Dow's Chief Financial Officer Howard Ungerleider had warned that the company would continue to navigate challenging macro conditions around the world in the second quarter.

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