Dow swings to a profit, with adjusted earnings and sales rising above expectations

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Dow Inc. reported Thursday that it swung to a fourth-quarter profit, as adjusted earnings and sales topped expectations, amid a 1% increase in volume and a 2% rise in local price. The materials science company’s stock was still essentially inactive in premarket trading. Net income was $1.24 billion, or $1.65 a share, after a net loss of $2.32 billion, or $3.14 a share, in the year-ago period. Excluding non-recurring items, such as gains of the sale of assets, adjusted earnings per share rose to 81 cents from 78 cents, above the FactSet consensus of 67 cents. Sales grew 4.9% to $10.70 billion, beating the FactSet consensus of $10.02 billion, as its packaging and specialty plastics, industrial intermediates and infrastructure and performance materials and coatings business segments all beat sales expectations. “This focus on cash flow generation, coupled with our execution of key strategic cash levers such as the sale of select U.S. Gulf Coast marine and terminal assets, enabled additional deleveraging in the quarter as we reduced total net debt by more than $2.6 billion for the year,” said Chief Executive Jim Fitterling. The stock has rallied 20.4% over the past three months, while the Dow Jones Industrial Average has gained 14.3%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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