Dow Chemical posts net loss in first quarter

The Dow Chemical Company reported a first-quarter net loss of $73 million due to sharply lower volumes and selling prices in key areas and important geographies.

The company said that in the first quarter of this year, net sales revenue fell 22% year-on-year to $11.851 billion, reflecting a slowdown in macroeconomic activity that led to lower net sales revenue across all of its operating segments. However, Dow's sales were flat in the first quarter compared to the fourth quarter of 2022, with higher sales of performance products and plastic packaging products offsetting lower sales of durable products and industrial and infrastructure products.

In the first quarter, lower consumer demand hit Dow Chemical's plastics and packaging division, especially outside the U.S. and Canada, while lower polyethylene margins also weighed on earnings. Lower demand from industrial customers, construction and consumer durables impacted sales in the industrial intermediates and infrastructure businesses. Sales revenue in the Performance Materials and Coatings segment also declined.

Dow Chemical said sales in the first quarter were down 11% compared to the same period last year, with combined sales in Europe, the Middle East, Africa and India down 15% and 10% year-over-year in local currency, mainly due to The continued weakening of the global economy and increased supply in the industry resulted in lower prices across all operating segments and regions.