Dow Inc on Thursday forecast better-than-expected sales for the current quarter after fourth-quarter results beat estimates, helped by higher prices for its products as supplies remained tight amid strong demand.

The company's shares rose as much as 2.3% to $58.55 in premarket trading.

Demand for the company's chemicals, used in everything from food packaging and mattresses to textiles and electronics, has been strong since it began recovering after a brief hit at the start of the pandemic.

That along with supply chain pressures, pandemic-related logistical constraints and weather-related outages at plants have helped the company boost prices for its products.

Prices climbed 39% in the fourth quarter from a year earlier, while volumes fell 4%.

Dow forecast first-quarter sales between $14 billion and $14.5 billion, above analysts' estimates of $12.84 billion, according to Refinitiv IBES data.

Logistics constraints are expected to ease throughout the year to fulfill elevated order backlogs and pent-up customer demand, Chief Executive Officer Jim Fitterling said.

"In 2022, we expect continued demand strength across our end markets, supported by growing industrial production and sustained consumer spending."

Chief Financial Officer Howard Ungerleider, however, said he expects margins to moderate in 2022 as supply improves.

Ungerleider added that he expects the board to make a final investment decision on the company's net-zero carbon emissions ethylene plant in Alberta by the end of 2022.

Net operating income more than doubled to $1.6 billion, or $2.15 per share, in the three months ended Dec. 31. Analysts were expecting a profit of $2.04 per share.

Sales rose 34.2% to $14.37 billion and came in slightly above estimates of $14.31 billion. However, this marked the first sequential decline in Dow's revenue in six quarters.

(Reporting by Ruhi Soni and Arathy Somasekhar in Bengaluru; Editing by Shounak Dasgupta) ((; Twitter: