Stock Alert: Dow Loses 6% After Q1 Profit Falls

Shares of Dow Inc. (DOW), a provider of materials science solutions for the consumer care, infrastructure, and packaging markets, are losing more than 6 percent or $2.23 in Friday's morning trade at $34.46. The stock has traded in a range of $21.95 to $56.25 in the past 52 weeks.

Thursday, Dow's first-quarter net income available for common stockholders fell to $239 million or $0.32 per share from $556 million or $0.74 per share last year. Operating earnings per share were $0.59. Net sales declined to $9.77 billion from $10.97 billion in the prior year.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share on revenues of $9.73 billion. Analysts' estimates typically exclude special items.

Dow also said that in response to the COVID-19 pandemic, it is taking additional proactive measures to further strengthen its financial position. The company has further reduced its fiscal 2020 capital expenditure target by $750 million from 2019 to $1.25 billion.

It will also trim operating expenses by $350 million and unlock another $500 million from working capital. Further, Dow will temporarily idle select manufacturing units to balance production to demand across markets more severely affected by restrained economic activity.

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