Investing.com. - Dow Inc.reported first quarter results that exceeded analyst expectations on Thursday, though the chemical manufacturer posted a net loss amid challenging market conditions and impacts from the Middle East conflict.

The company’s shares fell 1.06% in pre-market trading following the announcement.

The company reported an adjusted loss per share of -$0.14, beating the consensus estimate of -$0.27.

Revenue totaled $9.8 billion, surpassing analyst expectations of $9.65 billion but declining 6% YoY from $10.4 billion in the prior-year period.

The revenue decrease reflected a 7% decline in local pricing and a 2% drop in volume, partially offset by a 3% currency tailwind.

Operating EBIT reached $154 million, down $76 million YoY, primarily driven by lower prices that were partly offset by benefits from the company’s cost reduction program. The company suspended recognition of equity losses from its Sadara joint venture in the quarter after the carrying value of liabilities reached total existing obligations.

"In the first quarter, our results reflect the growing impact of Dow’s self-help actions," said Jim Fitterling, Dow chair and CEO. "Additionally, the margin backdrop began to positively inflect in March following global supply constraints, as impacts from the conflict in the Middle East quickly became widespread."

Volume decreased 2% YoY, with declines in Industrial Intermediates & Infrastructure impacted by the Middle East conflict.

The Packaging & Specialty Plastics segment saw net sales of $4.9 billion, down 7% YoY, while Performance Materials & Coatings remained flat at $2.1 billion.

Cash provided by operating activities from continuing operations reached $1.1 billion, up $1.0 billion YoY, primarily driven by receipt of payment from NOVA Chemicals and working capital improvements.