UPDATE 3-Dow beats loss estimates on cost cuts, new US capacity

* Stock up 10.7% * Company posts smaller-than-expected Q3 loss * Forecasts Q4 net sales below estimates * Achieves more than half of its planned $6.5 billion near-term cash support * Expects challenging conditions to persist (Updates shares in paragraph 1 and adds comments from conference call in paragraph 4 to 6) By Pooja Menon Oct 23 (Reuters) – Dow reported a smaller-than-expected adjusted quarterly loss in the third quarter on Thursday, as cost cuts and higher volumes from new U.S. Gulf Coast assets helped offset weakness in global chemical prices, sending its shares up 10.7%. The company, which began a strategic review of some of its European assets in 2024, said it has achieved more than half of its planned $6.5 billion in near-term cash support, including $1 billion in capital spending cuts and accelerated delivery of cost-reduction targets by end-2026. CEO Jim Fitterling said Dow's cost discipline and new polyethylene and alkoxylation assets in the U.S. Gulf Coast helped lift margins and volumes in key markets. Dow said the broader macroeconomic landscape remains largely unchanged and, based on current customer order visibility, it continues to see a cautious operating environment. "Recent monetary policy shifts and the beginning of a rate-cutting cycle could start to more positively influence demand," CFO Jeff Tate said during the earnings call. Dow expects pricing pressure in Europe, the Middle East, Africa and India as Asian exporters shift volumes to these markets, avoiding U.S. destinations where they would face dumping duties. Addressing regional challenges, including European shutdowns, will deliver an adjusted core profit uplift of nearly $200 million beginning in mid-2026, Dow said. The company expects challenging conditions to persist and forecasts fourth-quarter net sales of $9.4 billion, below analysts' forecast of $10.14 billion. In September, Fitterling had signaled that the company observed stable volumes, strong export capabilities and low-cost positions in the United States during the third quarter. The Midland, Michigan-based company reported an adjusted loss of 19 cents per share for the quarter ended September 30, smaller than analysts' average estimate of a loss of 29 cents, according to data compiled by LSEG. Its quarterly net sales of $9.97 billion, however, fell short of analysts' average forecast of $10.23 billion. (Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid and Krishna Chandra Eluri)

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