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Dow Inc. (DOW +6.8%) opens with strong gains after Q4 earnings and revenues exceed Wall Street estimates, helped by higher prices for its products, and saying it expects supply chain pressures will ease throughout the year.
Q4 net income rose to $1.74B from $1.24B a year earlier, while sales jumped 34% Y/Y to $14.36B, with improvement in every operating segment, but fell 3% Q/Q/Q, driven primarily by lower polyethylene volumes due to supply constraints.
Q4 overall volumes fell 4% Y/Y and 3% Q/Q, driven by supply constraints from maintenance and lingering effects from COVID-19 and weather related outages, but Q4 pricing increased 39%, reflecting gains in all operating segments, businesses and regions, while rising 1% Q/Q.
Q4 sales by segment: Packaging and Specialty Plastics +40% Y/Y to $7.19B, Industrial Intermediates and Infrastructure +30% to $4.55B, Performance Materials +26% to $2.56B.
Dow forecasts Q1 sales of $14B-$14.5B, above $12.84B analyst consensus, according to Reuters.
"In 2022, we expect continued demand strength across our end markets, supported by growing industrial production and sustained consumer spending," CEO Jim Fitterling said.
Dow shares have been treading water for the past six months but today are hitting four-month highs.