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BASIC INDUSTRIES: Dow (Baa1/BBB/BBB+): Profit Warning

BASIC INDUSTRIES

One off event with limited impact, unlikely to move spreads. The comments don’t read well for European chemicals.

  • Headlines coming across that Dow has lowered guidance for 3Q.
  • Revenue guidance cut by 5%.
  • Adj. EBITDA is seen at $1.3bn, 14% below consensus.
  • An unplanned event at a plant in July is blamed, but rising input costs and price pressure in Europe are flagged. On the other hand, certain input costs in NA are easing.

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