(Adds details on results, background)
April 25 (Reuters) - Chemicals giant Dow Inc beat Wall Street estimates for first-quarter profit and revenue
on Tuesday on easing prices of natural gas, a key raw material
for its chemicals.
Average natgas prices dropped about 40% during the
quarter as a milder-than-usual winter in the U.S. led to less
fuel consumption by homes and offices.
The company performed well despite "challenging
macroeconomic conditions" by leveraging advantaged feedstock
positions, Dow CEO Jim Fitterling said.
Weaker demand in other sectors amid signs of a global
economic slowdown have affected demand for Dow, which sells its
chemicals to industries ranging from automobiles and food
packaging to electronics.
To counter weaker demand and inflationary pressures the
company said in January that it would cut about 2,000 jobs.
Dow said on Tuesday that its plans to save $1 billion in
2023 were "progressing".
The company's net sales fell about 22% to $11.85 billion in
the quarter due to declines in all operating segments. However,
the sales beat analysts' estimates of $11.35 billion, according
to Refinitiv IBES data.
Overall prices dropped 10% in the first quarter from a year
earlier.
The Midland, Michigan-based company posted an operating
income of 58 cents per share, beating analysts' estimates of 36
cents.
(Reporting by Ankit Kumar; Editing by Devika Syamnath and
Shounak Dasgupta)
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