April 24 (Reuters) - Chemicals firm Dow Inc said on Thursday that it expects extended pressure on earnings as uncertainty from U.S. President Donald Trump's erratic trade policies adds to macroeconomic volatility.

Along with other chemicals firms, Dow has been struggling with higher feedstock and energy costs as well as weak demand and prices for its products, especially in markets such as Europe.

"Our industry is in one of the most protracted downcycles in decades," CEO Jim Fitterling said in a post-earnings call.”

"Now, with the uncertainty around where tariffs are going to land, with the impact that's having on demand, that's driving our lower for longer (earnings) outlook."

The company said it expects to see delays in both purchase and investment decisions from consumers as well as corporations until negotiations on tariffs are finalized, even though an estimated 95% of its North America trade volumes were compliant with the United States-Mexico-Canada Agreement.

It said on Thursday that it was also taking other actions to reduce costs and increase competitiveness, including widening the review of its European assets and delaying the construction of its Alberta project.

As part of the expanded review, Dow has identified three initial assets - two in Germany and one in the UK - that it believes will require further action, including idling or complete shutdowns.

It expects to complete the review by the middle of the year, Dow said.
The company is also delaying the construction of its Path2Zero project in Alberta, Canada, until market conditions improve. As a result, it expects total enterprise capital expenditure for 2025 to be $2.5 billion, compared to its original plan of $3.5 billion.

Dow also grappled with lower prices and higher input costs in the reported quarter, although volume growth helped it post a surprise profit of 2 cents per share. Analysts had expected an adjusted loss of 1 cent per share, according to data compiled by LSEG.

Source: Reuters