Dow Earnings: Adverse Market Conditions Constrain Results; Shares Still Undervalued

A sluggish macroeconomic environment around the world continued to weigh on Dow’s performance in the third quarter, with little relief expected through year-end. Total revenue dropped below $11 billion, a 6% sequential decline, as a result of restrained volumes and unfavorable pricing dynamics across end markets and regions. As a result, the firmwide operating margin contracted by nearly 150 basis points quarter over quarter.