The Dow logo is seen on a building in downtown Midland, Michigan, in this May 14, 2015 file photograph. REUTERS/Rebecca Cook/File Photo

(Reuters) -Chemicals company 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.

Shares of Dow were up 6.5% at $23.10 in premarket trading.

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 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.

Global chemical markets remain under pressure from weak demand, rising production costs, and tightening environmental regulations, particularly in Europe, forcing companies worldwide to reassess strategies and optimize operations.

Dow said addressing regional challenges, including European shutdowns, will deliver an adjusted core profit uplift of nearly $200 million beginning in mid-2026.

The company expects challenging conditions to persist and forecasts fourth-quarter net sales of $9.4 billion, below analysts' forecast of $10.2 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.

He added that the polyethylene market is setting up for positive price action following a dip in the second quarter due to tariff uncertainties.

The 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)