Dow earnings drop on economic woes

Slow economic activity around the world stymied third-quarter performance at Dow, the largest US chemical maker and the first major firm to report results. Dow’s sales were down 24% in the third quarter versus the year-earlier period, while net income fell 57%. Selling volumes declined by 6%, but a bigger factor in the results were prices for Dow products, which declined 18% from a year earlier—primarily the result of lower energy costs. Sales in the company’s largest business, packaging and specialty plastics, were down 26%. Demand for the segment’s key product, polyethylene, was strong, but volumes for merchant sales of chemicals were weak. Moreover, the unit saw a 20% decline in prices. The main reasons for the sluggish economic performance: Europe, which continues to show tepid growth, and China, which is experiencing a slow recovery from its COVID-19 lockdowns. But the results weren’t all negative. “Automotive, I would say, is