Dow profit doubles on higher prices

FILE PHOTO: A Dow sign is seen at the third China International Import Expo (CIIE) in Shanghai, China November 5, 2020. REUTERS/Aly Song

(Reuters) -Dow Inc on Thursday said its second-quarter profit doubled from the prior period, as prices for its chemicals used in plastics and packaging rose on the back of strong consumer and industrial demand as well as lower inventories.

Dow’s chemicals, used in everything from plastic and food packaging to textiles, electronics and paints, have seen a steady rise in demand as economies open up. Prices have also got a boost due to lower inventories at its customers.

Prices jumped 16% in the quarter from the prior period, while volumes rose 1%, helped by demand gains in infrastructure, industrial and personal care end markets.

Net operating income, which excludes certain items, rose to $2.06 billion, or $2.72 per share, in the three months ended June 30, from $1.02 billion, or $1.36 per share, in the first quarter.

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