July 25 (Reuters) - Dow (DOW.N), opens new tab missed second-quarter profit estimates on Thursday, hurt by lower prices and demand in key markets including Asia and Europe, sending shares of the chemicals maker 5% down in premarket trading.
Manufacturing activity in the euro zone and China weakened in the quarter, resulting in a 4% drop in local prices of Dow's products in their key markets.
The company produces a vast range of chemicals and additives that are used in manufacturing a variety of end-products in the consumer, agricultural and energy sector.
"The pace of the global macroeconomic recovery has been slower than expected," said Chief Executive Officer Jim Fitterling.
Dow's net sales fell 4% to $10.92 billion in the reported quarter, compared with LSEG estimates of $11 billion.
"While near-term demand in many markets that we serve is growing, building & construction and consumer durables are unlikely to significantly change in 2024," Fitterling said.
Dow expects third-quarter sales of about $11.1 billion, higher than the second quarter, but below Wall Street estimates of $11.35 billion, according to LSEG data.
Analysts at RBC Capital Markets said earlier this month that while the company was through with destocking, demand remained soft, particularly in Europe.
The Midland, Michigan-based company reported operating earnings per share of 68 cents for the quarter ended June 30, compared with the average analyst estimate of 72 cents, according to LSEG data.
Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli
