Dow Inc. lowered its third-quarter earnings guidance due to an unplanned event in July at one of its ethylene crackers in Texas.
The company expects third-quarter revenue to be approximately $10.6 billion, down from its previous guidance of $11.1 billion, Reuters news service reported.
"The updated third quarter outlook is largely driven by a significant unplanned event that occurred in late July at one of our ethylene crackers in Texas.,” said CEO Jim Fitterling. “In addition, we are currently experiencing higher input costs and margin compression in Europe. These headwinds are partially offset by improved North America pricing and feedstock costs in packaging and specialty plastics."
Hurricane Beryl damaged local electrical infrastructure at Dow's Freeport, Texas, facility in July.
The company anticipates normal seasonal demand fluctuations, but expects to benefit from lower turnaround costs, increased operating rates as its Texas cracker ramps up production and fewer weather-related disruptions in the U.S. Gulf Coast region, according to Fitterling.
“We remain focused on maintaining our operating and financial discipline while executing on our long-term growth levers," Fitterling said.