Dow lost $225 million in the second quarter and plans to lay off 2200 employees

category:Finance
 Dow lost $225 million in the second quarter and plans to lay off 2200 employees


Dow, the US chemical giant, has announced plans to cut thousands of jobs in response to the impact of the new crown epidemic on performance.

Dow CEO Jim fittering said on July 23 that it may take years for the chemical giant to recover its sales and profits to pre epidemic levels, Reuters reported.

Dow has therefore introduced a cost reduction program to deal with the impact of the epidemic. Dow plans to cut operating expenses by $150 million this year, and has launched a restructuring plan to improve the companys profit level, which is expected to increase Dows profit by $300 million by the end of next year.

Among the plans announced by Dow, 6% of the companys employees will be cut and some assets will be sold. By the end of last year, Dow had 36500 employees worldwide and 109 production bases in 31 countries.

From this calculation, the layoff plan will affect about 2200 employees of the company.

Dows report on July 23 showed a net loss of $225 million in the second quarter, compared with a net profit of $75 million in the same period last year. This is the first time that the company has suffered a single quarter loss since it was spun off from the Dow DuPont consortium last year.

In the second quarter, Dow achieved revenue of 8.3 billion US dollars, a year-on-year decrease of 24%. Its durable consumer goods and building materials business has become the hardest hit area affected by the Xinguan epidemic.

Dow has three pillar sectors: packaging and special plastics, industrial intermediates and construction, as well as high-performance materials and coatings. The companys products cover plastics, polyurethane, silicone, etc.

Compared with the same period last year, Dows total sales of products in a single quarter fell by 9%. Due to the sharp drop in oil and gas prices, the market price of the companys products has also dropped by 14%.

Dow said that as of June, the continued economic shutdown has not led to the turning point of market demand recovery in some key regions. Dows CFO, Howard Ungerleider, said on a conference call with analysts that Dow is still in the early stages of recovery in terms of possible market imbalances in the future. According to Dow, sales in Asia rose 3% year-on-year due to Chinas economic restart. At the meeting, Jim fitling said Dow would not increase capital spending until sales and profits returned to epidemic levels. Dow expects revenue in the third quarter of this year to be between $8.5 billion and $9 billion. Affected by the news, the companys shares fell nearly 4% on July 23 to close at $42.82. HSBC Chinas response to closing Shenzhen Longgang sub branch? Gabu Xiabu lost more than 100 million yuan in the first half of the year, and then increased by 10 yuan per gram every day. Beijing gold jewelry ushered in the most intensive price adjustment. Source: interface news editor in charge: Zhong Qiming_ NF5619

Dow said that as of June, the continued economic shutdown has not led to the turning point of market demand recovery in some key regions.

Dows CFO, Howard Ungerleider, said on a conference call with analysts that Dow is still in the early stages of recovery in terms of possible market imbalances in the future.

According to Dow, sales in Asia rose 3% year-on-year due to Chinas economic restart.

At the meeting, Jim fitling said Dow would not increase capital spending until sales and profits returned to epidemic levels. Dow expects revenue in the third quarter of this year to be between $8.5 billion and $9 billion.

Affected by the news, the companys shares fell nearly 4% on July 23 to close at $42.82.