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Dow profit jumps 58% on higher prices, strong demand

Dow profit jumps 58% on higher prices, strong demand

On Thursday, Dow Chemical Inc announced a 58 percent increase in first-quarter profit, supported by higher product prices as supply remained tight amid increasing demand.

As demand climbs as the economy recovers from the pandemic, Dow has upped its prices to combat supply-chain issues, logistical issues, and weather-related factory interruptions.

According to the business, local costs grew by 24 percent to 39 percent across Dow’s three categories. In the third quarter, the company’s entire net revenues grew to $15.26 billion, up from $11.88 billion the year before.

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“Despite rising energy costs, we captured steady end-market demand and achieved solid volume growth, pricing improvements, and margin expansion,” said Chief Executive Officer Jim Fitterling in a statement.

The company, which makes chemicals used in food packaging, mattresses, textiles, and electronics, also said the current Russia-Ukraine conflict cost them $186 million in the quarter.

Net income for Dow stockholders grew to $1.57 billion, or $2.11 per share, from $991 million, or $1.32 per share, a year ago.

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Excluding adjustments, Dow’s operational earnings grew to $2.34 per share from $1.36 a year ago.

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