Soft Market Cited as Dow Profits Fall 50% on 4.5% Sales Rise
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MIDLAND, Mich. — Dow Chemical Co. said today that a soft market for its plastics and chemical products cut second-quarter profits 50% despite a 4.5% increase in sales.
The second quarter is usually Dow’s strongest, but sales volume failed to increase from the first quarter and anticipated price increases didn’t materialize, the company said.
“Industry fundamentals weakened in early June and are softer than a year ago when demand and prices were near all-time highs and supply generally was tight,” said Enrique C. Falla, Dow financial vice president.
In addition, plant maintenance shutdowns and production outages in several plants increased Dow’s manufacturing costs, the company said.
Dow said net income fell to $364 million, or $1.34 a share, for the three months ended June 30, from $728 million, or $2.70 a share, for the second quarter of 1989.
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