Core Viewpoint - A class action lawsuit has been filed against Dow Inc. and certain officers for alleged violations of federal securities laws during the Class Period from January 30, 2025, to July 23, 2025, seeking damages for affected investors [1] Company Overview - Dow is an American materials science company serving various industries, including packaging, infrastructure, mobility, and consumer applications, organized into three operating segments: Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings [4] Financial Performance and Market Position - Dow's CEO, Jim Fitterling, emphasized the importance of the company's "industry-leading dividend," claiming that over 65% of shareholders rely on it [5] - Despite challenges in the materials science industry and tariff-related uncertainties, Dow's management claimed the company was well-positioned to maintain financial flexibility and support its dividend [5] - However, the lawsuit alleges that Dow's management made materially false and misleading statements regarding the company's ability to handle macroeconomic pressures and maintain its dividend, which were overstated [5] Recent Developments - On June 23, 2025, BMO Capital downgraded Dow's stock from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00 due to ongoing weakness in key markets and pressure on the dividend, resulting in a 3.21% drop in stock price [6] - Following the release of disappointing Q2 2025 financial results on July 24, 2025, where Dow reported a non-GAAP loss per share of $0.42 and net sales of $10.1 billion (a 7.3% year-over-year decline), the company announced a dividend cut from $0.70 to $0.35 per share, leading to a 17.45% drop in stock price [7][8]

Core Insights - The Dow Jones Industrial Average (DJIA) rose over 3% in August, driven by a generally positive earnings season, despite concerns about tariffs and a sell-off in AI-related stocks [1] Group 1: Company Performance - Microsoft experienced a decline of 5% due to negative sentiment surrounding AI investments, particularly its stake in OpenAI [4] - Caterpillar's stock fell by 4.3% after missing earnings expectations, with increased concerns about tariff impacts leading to a revised annual estimate of $1.5 billion to $1.8 billion [6][7] - IBM's stock decreased by 3.8% as investors reacted to the broader market's aversion to AI, despite the company's significant investments in AI infrastructure [8][9] - Amazon's stock dropped by 2.2%, despite beating earnings estimates, due to underperformance in its AWS segment compared to competitors [10][11] - Nvidia's stock fell by 2.1% amid the AI market downturn, with earnings growth not meeting high investor expectations [12][13]

Core Viewpoint - The article discusses a class action lawsuit against Dow Inc. for alleged violations of the Securities Exchange Act of 1934, focusing on misleading statements regarding the company's financial health and ability to manage macroeconomic challenges during a specified class period [1][4]. Company Allegations - The lawsuit claims that Dow overstated its ability to handle macroeconomic and tariff-related challenges, as well as its financial flexibility to support dividends [4]. - It is alleged that Dow failed to disclose the true extent of negative impacts from competitive pressures, softening global sales, and product oversupply [4]. Financial Performance - On June 23, 2025, BMO Capital downgraded Dow's stock from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00 due to ongoing weakness in key markets, which led to a stock price drop of over 3% [5]. - Dow reported a non-GAAP loss per share of $0.42 for Q2 2025, significantly worse than the expected loss of $0.17 to $0.18, with net sales of $10.1 billion, a 7.3% year-over-year decline, missing estimates by $130 million [6]. - Following the disappointing results, Dow's stock price fell by more than 17%, and the company announced a dividend cut from $0.70 to $0.35 per share to maintain financial flexibility [6]. Legal Process - Investors who purchased Dow securities during the class period can seek appointment as lead plaintiff in the lawsuit, which allows them to represent the interests of all class members [7]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [8]. - The firm has a strong track record in obtaining significant recoveries in securities class action cases, including the largest recovery in history at $7.2 billion from the Enron case [9].

Core Viewpoint - A class action lawsuit has been filed against Dow Inc. for allegedly failing to disclose critical information regarding its business prospects, leading to significant financial losses for shareholders [1][2]. Group 1: Allegations and Financial Performance - The lawsuit claims that Dow overstated its ability to handle macroeconomic challenges and maintain financial flexibility for dividends, while understating the negative impacts of competitive pressures, declining global sales, and product oversupply [2]. - On June 23, 2025, BMO downgraded Dow's stock from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00, resulting in a 3.21% drop in stock price to $26.87 [3]. - Dow reported disappointing Q2 2025 results on July 24, 2025, with a non-GAAP loss per share of $0.42, significantly worse than the expected loss of $0.17 to $0.18, and net sales of $10.1 billion, a 7.3% year-over-year decline, missing estimates by $130 million. The company also announced a 50% cut in its dividend, causing a 17.45% drop in stock price to $25.07 [4]. Group 2: Class Action Participation - Shareholders may be eligible to participate in the class action against Dow Inc. and can contact Robbins LLP if they wish to serve as lead plaintiff, representing other class members [5]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [5].

Core Viewpoint - A class action lawsuit has been filed against Dow Inc. for allegedly failing to disclose critical information regarding its business prospects, leading to significant financial losses for shareholders [1][2]. Group 1: Allegations and Financial Performance - The lawsuit claims that Dow overstated its ability to handle macroeconomic challenges and maintain financial flexibility for dividends, while understating the negative impacts of competitive pressures, declining global sales, and product oversupply [2]. - On June 23, 2025, BMO downgraded Dow's stock from "Market Perform" to "Underperform," reducing the price target from $29.00 to $22.00, resulting in a 3.21% drop in stock price to $26.87 [3]. - Dow reported disappointing Q2 2025 results on July 24, 2025, with a non-GAAP loss per share of $0.42, exceeding analyst expectations of a loss between $0.17 and $0.18. Net sales were $10.1 billion, a 7.3% year-over-year decline, missing estimates by $130 million. Additionally, Dow announced a 50% cut in its dividend, causing a 17.45% drop in stock price to $25.07 [4]. Group 2: Class Action Participation - Shareholders may be eligible to participate in the class action against Dow Inc. and can contact Robbins LLP if they wish to serve as lead plaintiff [5]. - The lead plaintiff represents other class members in directing the litigation, and shareholders can remain absent class members if they choose not to participate [5]. Group 3: Company Background - Dow Inc. is an American materials science company that serves various industries, including packaging, infrastructure, mobility, and consumer applications [1].

Group 1 - The company is responsible for the development of all transcript-related projects [1] - The company publishes thousands of quarterly earnings calls per quarter and is expanding its coverage [1]

Market Overview - The U.S. stock market showed mixed but resilient performance on September 12, 2025, with major indexes reflecting cautious optimism ahead of the Federal Reserve's interest rate decision [1][2] - The S&P 500 and Nasdaq Composite remained near record levels, while the Dow Jones experienced profit-taking [1][2] Major Index Performance - The S&P 500 was flat, maintaining its all-time high for the third consecutive day, indicating that much of the positive news regarding potential rate cuts has been priced in [2] - The Nasdaq Composite achieved a new record peak, supported by strength in the tech sector [2] - The Dow Jones Industrial Average saw a decline due to profit-taking after previous gains [2] Economic Indicators - Expectations for a Federal Reserve interest rate cut have been bolstered by recent economic reports, including a milder-than-expected August CPI and a rise in weekly jobless claims [3] - The University of Michigan Consumer Sentiment Index for September fell to 55.4, the lowest since May, indicating caution in consumer outlook [3] Upcoming Events - The Federal Open Market Committee (FOMC) meeting on September 16-17 is highly anticipated, with a near-certainty of a 25-basis-point rate cut expected [4] - The FOMC's updated projections for future interest rates will be closely monitored for long-term policy insights [4] Corporate Earnings - Key corporate earnings reports are expected next week, including General Mills, FedEx, and Darden, which will provide insights into corporate performance amid current economic conditions [6] Notable Stock Movements - Tesla, Inc. shares rose 6% due to optimism surrounding Fed rate cuts and a strong technical breakout [7] - Warner Bros. Discovery, Inc. surged 29% following news of a potential majority-cash takeover bid from Paramount Skydance [7] - AbbVie Inc. rose 4.1% after securing a patent settlement for its drug Rinvoq, extending protection until 2037 [12] - Super Micro Computer Inc. climbed 3.6% after announcing high-volume shipments of racks using Nvidia's technology [12] - Quantum computing company IonQ surged 15% after receiving UK regulatory clearance for its acquisition of Oxford Ionics [12]

Group 1 - The presentation features Jim Fitterling, the CEO of Dow, who is expected to make opening remarks and address slides available on the Dow website [1][2] - The event is hosted by Vincent Andrews, Managing Director, who provides initial disclosures and invites attendees to refer to the Morgan Stanley research disclosure website [1]

Group 1 - The polyethylene market is expected to experience positive price action in September after a decline in the second quarter due to tariff uncertainties, with no significant inventory build observed [1] - The company has reported stable volumes, strong export capabilities, and low-cost positions in the United States during the third quarter [2] - Ongoing tariff and geopolitical uncertainties have impacted demand patterns, particularly in the industrial infrastructure and durable goods sectors [2] Group 2 - A reduction in interest rates is anticipated to aid recovery in depressed end markets such as housing and durable goods, which are sensitive to rates and affordability [3] - The company is adding additional capacity to its net-zero petrochemical project, Path2Zero production complex, in Alberta, Canada, with an update expected by year-end [3] - The project timeline has been delayed by one to two years due to unfavorable market conditions, with construction initially planned to begin in 2024 [4]

Summary of Dow's Earnings Call Company Overview - The call features Jim Fitterling, CEO of Dow, discussing the company's performance and outlook amidst ongoing industry challenges [3][4]. Key Industry Insights - The global economy remains consistent with previous quarters, with many end-markets facing challenges that delay recovery and pressure industry earnings [4]. - Despite unchanged macro conditions, Dow expects third-quarter operating EBITDA to be higher than the second quarter, aligning with Wall Street forecasts [5]. - Positive developments include clarity on US trade deals and actions from countries addressing overcapacity challenges [6]. Financial Performance and Projections - Dow reduced its total enterprise CapEx for 2025 to approximately $2.5 billion, down from $3.5 billion, due to delayed construction in Alberta [7]. - The company completed two non-core product line divestitures totaling approximately $250 million at attractive EBITDA multiples of around 10x [7]. - Dow anticipates at least $1 billion in targeted cost savings by the end of 2026, increasing this year's savings expectation to approximately $400 million [8]. Strategic Partnerships and Cash Generation - A strategic partnership with Macquarie Asset Management resulted in approximately $3 billion in cash proceeds from the sale of a minority equity stake in US Gulf Coast infrastructure assets [9]. - Dow expects to receive approximately $1.2 billion in cash for damages related to litigation with Nova Chemicals [10]. - The company is executing a debt-neutral bond strategy to extend debt maturities beyond 2027, enhancing financial flexibility [10]. Market Dynamics and Pricing - The polyethylene market has seen price rollovers, attributed to cautious demand and inventory management by customers [14][18]. - Operating rates on US Gulf Coast ethylene crackers are above 90%, indicating a strong cost position [17]. - The company anticipates potential price increases in September, depending on demand in the fourth quarter [20]. Capacity Management and Future Outlook - Dow is managing capacity rationalization, with significant reductions in European ethylene capacity expected to impact global operating rates positively [24]. - The company is optimistic about demand recovery, particularly in infrastructure-related industries, which could drive raw material demand [26]. - The Alberta project is still considered viable, with a one to two-year delay in construction to align with market conditions [33][34]. Feedstock Market Considerations - The US is expected to maintain a strong position in natural gas and ethane supply, which is crucial for chemical production [37][40]. - Volatility in ethane prices is anticipated, influenced by LNG exports and competing demand for natural gas [39]. Conclusion - Dow is focused on operational and financial discipline, with strategic moves to enhance shareholder value while navigating current market challenges [13].