WHAT TO WATCH FOR: Dow Chemical's products are used in nearly every sector of the economy so the manufacturing giant is sensitive to shifts in economic growth.
Since the end of the first quarter, economies have slowed in the U.S. and China. Some European countries have fallen into recession as the massive debt crisis there continues. Manufacturing declined in all three regions.
That has cut demand for chemical products in a wide range of industries; including commercial construction, housing and consumer products like electronics, analysts said.
That could be offset by sales to the agricultural industry, automobile and airline manufacturers. Analysts say auto sales are on pace for the best year since 2007. Boeing and Airbus are increasing production to meet orders from airlines looking to modernize fleets and save money on fuel.
The DuPont Co., which also provides chemicals and materials to various industries, said Tuesday that volumes fell for performance chemicals, electronics and safety products but agriculture businesses performed well globally.
WHY IT MATTERS: Dow Chemical manufactures basic materials used in an array of products from televisions and toys to automobiles and crops. The Midland, Mich., company's reach can offer a broad picture of global economic growth.
WHAT'S EXPECTED: Analysts have lowered earnings estimates for Dow Chemical as the global economy slowed during the second quarter. Analysts, on average, predict earnings of 64 cents per share and revenue of $15.69 billion, according to FactSet. That compares with late April estimates of 78 cents per share and revenue of $16.38 billion.
Most will look for Dow Chemical executives to provide a better idea of challenging business conditions in Europe and prospects for improving demand in the U.S. and China.
LAST YEAR'S QUARTER: Dow Chemical reported net income of $982 million, or 84 cents per share. Revenue totaled $16.05 billion. From April through June of this year, Dow Chemical's share price fell 9.1 percent.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment