July 23 (Reuters) – Chemicals company Dow Inc beat Wall Street estimates for second-quarter adjusted profit on Thursday, helped by higher prices and volumes as a result of the Middle East conflict-driven supply shock.
Tensions surrounding the Strait of Hormuz following the escalation of the U.S.-Iran conflict have led to disruptions in oil and petrochemical flows, resulting in a tightening of global chemicals supply and a subsequent increase in prices of plastics and polymer.
Quarterly net sales from Dow’s packaging and specialty plastics segment rose 27% to $6.4 billion from a year earlier, driven by higher polyethylene prices in all regions.
The Michigan-based company reported an adjusted profit of $1.44 per share for the quarter ended June 30, compared with analysts’ average estimate of a profit of $1.28 per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Joyjeet Das)
