Chemicals maker Dow Inc on Thursday reported an over 58% surge in first-quarter profit, helped by stronger product prices as supplies remained tight amid robust demand.
With demand rising thanks to an economic recovery from the pandemic, Dow has boosted its prices as it combats supply-chain pressures, logistical snags and weather-related outages at plants.
Local prices across Dow's three segments were up between 24% and 39%, the company said. Its total net sales rose to $15.26 billion in the quarter from $11.88 billion a year ago.
"Despite higher energy costs, we captured healthy end-market demand and achieved solid volume growth, price gains and margin expansion," Chief Executive Officer Jim Fitterling said in a statement.
The company, which makes chemicals used in a range of products including food packaging, mattresses, textiles and electronics, also said it took a $186 million hit to earnings in the quarter due to the ongoing Russia-Ukraine conflict.
Net income attributable to Dow stockholders rose to $1.57 billion, or $2.11 per share, compared with $991 million, or $1.32 per share, a year ago.
Excluding items, Dow's operating earnings rose to $2.34 per share from $1.36 a year ago.
(Reporting by Shariq Khan; Editing by Devika Syamnath)