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Dow To Reduce 6% Of Its Global Workforce

Dow (DOW) said the company will initiate a restructuring program, targeting more than $300 million in annualized EBITDA benefit by the end of 2021. This program includes a 6% reduction in the company's global workforce as well as actions to exit uncompetitive assets. The company will also upsize its 2020 operating expense reduction target from $350 million to $500 million through additional structural cost interventions.

"Based on what we've seen in the second quarter and into July, we continue to expect a gradual and uneven recovery and, therefore, remain intensely focused on the actions within our control and maximizing our operational advantages," said Jim Fitterling, CEO.

Second quarter operating loss per share was $0.26 compared to profit of $0.86, previous year. The company noted that the operating loss per share excludes significant items in the quarter, totaling $0.05 per share, primarily related to integration and separation costs. On average, 20 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.30, for the quarter. Analysts' estimates typically exclude special items. Operating EBIT was $57 million, down from $1.1 billion, last year.

Second quarter net sales were $8.4 billion, down 24% from year-ago period driven by both local price and volume declines, as the COVID-19 pandemic dramatically impacted results. Analysts expected revenue of $8.01 billion for the quarter. Volume declined 9% from prior year. The company said the demand growth in food packaging, health and hygiene, home care and pharma applications was more than offset by weakness in durable good end-markets.

Total cash and available committed liquidity at quarter-end was approximately $12 billion, including $3.7 billion of cash and equivalents. The company paid down nearly $600 million of debt in the quarter.

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