By Saikeerthi .
(Reuters) - Dow Inc (NYSE:DOW) forecast average net sales for the current quarter below analyst estimates on Tuesday, as the chemical maker continues to navigate weak demand and low prices for its products in key markets.
Chemical makers had flagged a potential blow in the second half of the year from a slower-than-expected recovery in China following its post-pandemic reopening and lower demand in Europe.
Dow reported a sequential decline of 7% in prices of their products in Europe, the Middle East, Africa and India, primarily due to lower feedstock and energy rates.
The chemical maker expects net sales in the fourth quarter in the range of $10.0 billion to $10.5 billion, the midpoint of which is below average analysts' estimate of $10.48 billion, according to LSEG data.
However, the company added it expects to see benefits from rising oil prices in the next few quarters.
Prices of Dow products such as polyethylene, poly vinyl chloride and other base metals increase on the back of rising crude oil.
Dow could be in a better shape for 2024 once the "weight of inflation starts to moderate" and turn back to a positive direction, CEO James Fitterling said on the earnings call.
The company added it has been seeing strength in areas such as telecommunications and automotive data centers even amid ongoing UAW strikes and expects demand to bounce back once the agreements are made between all parties.
It's adjusted profit was 48 cents per share for the three months ended Sept. 30, compared with analysts' average estimate of 44 cents per share.
Shares of the chemical maker rose 1.8% in early trading.
Additionally, Dow said its chief financial officer Howard Ungerleider is expected to retire from his role after 33 years with the company. Jeffrey Tate will succeed as the new CFO, effective Nov. 1.