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Dow’s packaging and specialty plastics segment saw a 26% decline in net sales versus a year ago, according to the company’s third-quarter earnings report released Tuesday.

The company reported net sales in that segment at $5.5 billion, down from $7.3 billion in 3Q 2022. Local prices fell by 20%, added the company, “driven by lower polyethylene and olefin prices in all regions, primarily due to lower global energy costs.”

Further, segment volume declined 7% year over year, with PE demand “more than offset by lower merchant volume in the Hydrocarbons & Energy business.” Net sales decreased 8% on a sequential basis, hindered by declines in olefin and aromatic merchant sales and lower PE prices.

Dow noted that “higher polyethylene demand in all regions was more than offset by the impact of lower energy costs on local prices. Sequentially, net sales decreased as higher demand for industrial, consumer, and flexible food packaging partly offset polyethylene price declines, primarily in EMEAI (Europe, the Middle East, Africa, and India).”

Companywide, net sales fell 24% to $10.7 billion.

“With our continued focus on operational and financial discipline, we are navigating challenging market dynamics and expect to further benefit from rising oil prices that favor our cost-advantaged asset footprint,” said Dow Chairman and CEO Jim Fitterling. “By 2030, our Decarbonize and Grow and Transform the Waste strategies are expected to deliver more than $3 billion in underlying earnings, reduce greenhouse gas emissions by five million metric tons, and commercialize 3 million metric tons of circular and renewable solutions annually.”