Dow profit falls as inflation, China lockdowns hit demand
2022.07.21 14:10
FILE PHOTO: A Dow sign is seen at the third China International Import Expo (CIIE) in Shanghai, China November 5, 2020. REUTERS/Aly Song/File Photo
(Reuters) – Chemicals maker Dow Inc reported a fall in second-quarter profit on Thursday, as surging inflation and COVID-19 lockdowns in China dented demand for its products.
Dow’s chemicals, used in a wide range of products including food packaging, mattresses, textiles and electronics, suffered a slowdown in orders from the key Chinese market as Beijing imposed widespread restrictions to contain COVID-19 flare-ups.
Volumes at two of the company’s three main businesses declined in the quarter, while a stronger dollar also weighed on net sales. Overall, Dow’s net sales increased about 13% to $15.66 billion.
Net income to Dow stockholders fell to $1.68 billion, or $2.26 per share, in the three months ended June 30, compared with $1.93 billion, or $2.51 per share, a year ago.
