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DOW Dow Inc

40.12
1.02 (2.61%)
21 Dec 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type
Dow Inc NYSE:DOW NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  1.02 2.61% 40.12 40.285 38.8503 38.99 17,715,604 01:00:00

Dow reports first quarter 2024 results

25/04/2024 11:00am

PR Newswire (US)


Dow (NYSE:DOW)
Historical Stock Chart


From Dec 2023 to Dec 2024

Click Here for more Dow Charts.

MIDLAND, Mich., April 25, 2024 /PRNewswire/ -- Dow (NYSE: DOW):

Dow, Inc. (PRNewsfoto/The Dow Chemical Company)

FINANCIAL HIGHLIGHTS

  • GAAP earnings per share was $0.73; operating earnings per share (EPS)1 was $0.56, compared to $0.58 in the year-ago period and $0.43 in the prior quarter. Operating EPS excludes significant items in the quarter, including income tax-related items and restructuring and efficiency costs, totaling $0.17 per share.
  • Net sales were $10.8 billion, down 9% versus the year-ago period. Sales were up 1% sequentially, driven by gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure.
  • Volume increased 1% versus the year-ago period, with gains in all regions except Europe, the Middle East, Africa and India (EMEAI). Excluding Hydrocarbons & Energy, volume increased 5% year-over-year. Sequentially, volume increased 1%, led by Performance Materials & Coatings. Excluding Hydrocarbons & Energy, volume increased 3% sequentially.
  • Local price decreased 10% year-over-year. Sequentially, local price was flat, as modest gains in EMEAI were offset by slight declines in Asia Pacific and the U.S. & Canada.
  • Currency was flat both year-over-year and sequentially.
  • Equity earnings were $17 million, a $65 million improvement compared to the year-ago period and up $24 million sequentially, reflecting improvements in all of the Company's principal joint ventures.
  • GAAP net income was $538 million. Operating EBIT1 was $674 million, down $34 million year-over-year, driven by lower prices. Sequentially, Op. EBIT was up $115 million, reflecting gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure.
  • Cash provided by operating activities – continuing operations was $460 million, down $71 million year-over-year and down $1.2 billion compared to the prior quarter due to a normal seasonal increase in working capital, as sales progressively increased during the quarter.
  • Returns to shareholders totaled $693 million in the quarter, including $493 million in dividends and $200 million in share repurchases.

SUMMARY FINANCIAL RESULTS


Three Months Ended Mar 31

Three Months Ended Dec 31

In millions, except per share amounts

1Q24

1Q23

vs. SQLY

[B / (W)]

4Q23

vs. PQ

[B / (W)]

Net Sales

$10,765

$11,851

$(1,086)

$10,621

$144

GAAP Income (Loss), Net of Tax

$538

$(73)

$611

$(95)

$633

Operating EBIT¹

$674

$708

$(34)

$559

$115

Operating EBIT Margin¹

6.3 %

6.0 %

30 bps  

5.3 %

100 bps  

Operating EBITDA¹

$1,394

$1,356

$38

$1,216

$178

GAAP Earnings (Loss) Per Share

$0.73

$(0.13)

$0.86

$(0.15)

$0.88

Operating Earnings Per Share¹

$0.56

$0.58

$(0.02)

$0.43

$0.13

Cash Provided by Operating Activities – Cont. Ops

$460

$531

$(71)

$1,628

$(1,168)

 

1. Op. Earnings Per Share, Op. EBIT, Op. EBIT Margin and Op. EBITDA are non-GAAP measures. See page 6 for further discussion.

 

CEO QUOTE

Jim Fitterling, chair and chief executive officer, commented on the quarter:

"In the first quarter, we captured improving demand, maintained pricing and benefited from lower feedstock and energy costs. The strength of our cost-advantaged positions around the world led to higher operating rates. As a result, Team Dow delivered volume growth and margin expansion sequentially across our diverse portfolio. We also delivered on our capital allocation priorities, including returning $693 million in cash to shareholders during the quarter."

"Dow once again delivered top-quartile performance in our annual benchmarking on three-year average cash flow, margins, return on invested capital and shareholder remuneration. Each of these can be attributed to our consistent operating and financial discipline." 

SEGMENT HIGHLIGHTS

Packaging & Specialty Plastics


Three Months Ended Mar 31

Three Months Ended Dec 31

In millions, except margin
percentages

1Q24

1Q23

vs. SQLY

[B / (W)]

4Q23

vs. PQ

[B / (W)]

Net Sales

$5,430

$6,114

$(684)

$5,641

$(211)

Operating EBIT

$605

$642

$(37)

$664

$(59)

Operating EBIT Margin

11.1 %

10.5 %

60 bps  

11.8 %

(70) bps  

Equity Earnings

$25

$21

$4

$40

$(15)

Packaging & Specialty Plastics segment net sales in the quarter were $5.4 billion, down 11% versus the year-ago period. Local price decreased 8% year-over-year, primarily driven by lower energy and feedstock costs globally. Currency was flat. Volume decreased 3% year-over-year, driven by declines in the Hydrocarbons & Energy business primarily due to higher downstream derivative polymer demand, as well as lighter feedslate cracking in Europe. On a sequential basis, net sales decreased by 4% as increased demand for functional polymers in all regions was more than offset by lower merchant hydrocarbon and energy sales, as well as non-recurring licensing revenue.

Equity earnings were $25 million, an increase of $4 million compared to the year-ago period. Sequentially, equity earnings were down $15 million, driven by losses at our non-principal joint ventures and partly offset by lower equity losses at Sadara.

Operating EBIT was $605 million, a decrease of $37 million compared to the year-ago period, primarily due to lower integrated margins. Sequentially, Op. EBIT decreased by $59 million, as improved polyethylene integrated margins were more than offset by lower non-recurring licensing revenue and higher planned maintenance activity.

Packaging and Specialty Plastics business reported a net sales decline versus the year-ago period as improved demand for polyethylene, primarily in flexible food and specialty packaging, and for functional polymers in mobility and consumer end-markets, was more than offset by lower prices in all regions. Sequentially, net sales decreased due to lower non-recurring licensing sales, while derivative polymer sales remained resilient.

Hydrocarbons & Energy business reported a net sales decline compared to the year-ago period and sequentially, primarily due to higher internal derivative demand and lighter feedslate cracking, resulting in lower third-party hydrocarbon sales in EMEAI and the U.S. & Canada.  

Industrial Intermediates & Infrastructure


Three Months Ended Mar 31

Three Months Ended Dec 31

In millions, except margin
percentages

1Q24

1Q23

vs. SQLY

[B / (W)]

4Q23

vs. PQ

[B / (W)]

Net Sales

$3,008

$3,378

$(370)

$2,948

$60

Operating EBIT

$87

$123

$(36)

$15

$72

Operating EBIT Margin

2.9 %

3.6 %

(70) bps  

0.5 %

240 bps  

Equity Losses

$(15)

$(73)

$58

$(57)

$42

Industrial Intermediates & Infrastructure segment net sales were $3 billion, down 11% versus the year-ago period. Local price declined 14% year-over-year. Currency decreased net sales by 1%. Volume was up 4% year-over-year, driven by gains in Polyurethanes & Construction Chemicals, primarily in EMEAI. On a sequential basis, net sales increased 2% as price and volume gains in the U.S. & Canada and EMEAI were partly offset by lower volumes in Asia Pacific due to typical Lunar New Year seasonality.

Equity losses for the segment were $15 million, an improvement of $58 million versus the year-ago period, driven by improvements at the Kuwait and Sadara joint ventures. Sequentially, equity losses improved by $42 million, driven primarily by lower equity losses at Sadara.

Operating EBIT was $87 million, compared to $123 million in the year-ago period, driven by lower prices in both businesses, which were partly offset by lower energy and feedstock costs, primarily in EMEAI, improved equity earnings, and volume gains in Polyurethanes & Construction Chemicals. On a sequential basis, operating EBIT was up $72 million, driven by improved equity earnings and higher operating rates, as well as lower energy and feedstock costs, primarily in EMEAI.

Polyurethanes & Construction Chemicals business reported a net sales decrease compared to the year-ago period, driven by local price declines which were partly offset by volume gains in all geographic regions. Sequentially, net sales were flat, as price and volume gains in the U.S. & Canada and EMEAI were offset by lower volumes in Asia Pacific, due to typical Lunar New Year seasonality, and in Latin America.

Industrial Solutions business reported a decrease in net sales compared to the year-ago period, driven by local price declines and the impact of an ongoing outage at Louisiana Operations. Sequentially, net sales increased, driven by volume gains in the U.S. & Canada and local price gains, which were partly offset by lower volumes in Asia Pacific, primarily due to lower ethylene oxide project-related catalyst sales.

Performance Materials & Coatings


Three Months Ended Mar 31

Three Months Ended Dec 31

In millions, except margin
percentages

1Q24

1Q23

vs. SQLY

[B / (W)]

4Q23

vs. PQ

[B / (W)]

Net Sales

$2,152

$2,276

$(124)

$1,894

$258

Operating EBIT

$41

$35

$6

$(61)

$102

Operating EBIT Margin

1.9 %

1.5 %

40 bps  

(3.2) %

510 bps  

Equity Earnings

$6

$3

$3

$6

$0

Performance Materials & Coatings segment net sales in the quarter were $2.2 billion, down 5% versus the year-ago period. Local price decreased 9% year-over-year with declines in both businesses. Volume was up 4% year-over-year, driven by gains primarily in the U.S. & Canada and Latin America. On a sequential basis, net sales were up 14% driven by higher volumes in both businesses and all geographic regions, primarily from typical seasonality.

Operating EBIT was $41 million, compared to $35 million in the year-ago period, driven by volume growth and higher operating rates. Sequentially, Op. EBIT increased $102 million, driven by seasonally higher volumes and overall improved demand.

Consumer Solutions business reported a decrease in net sales versus the year-ago period, driven by lower prices in all geographic regions. Sequentially, net sales increased, driven by volume gains in all geographic regions and across most end-markets, led by higher volumes in siloxanes, seasonally higher volumes in building & construction and stronger demand for personal care applications. 

Coatings & Performance Monomers business reported an increase in net sales compared to the year-ago period, driven by volume gains in all geographic regions, partly offset by lower local price. Sequentially, net sales increased due to seasonally higher volumes for building & construction end-markets, with gains across all geographic regions.

OUTLOOK

"In the near-term, demand in key end-markets from packaging and mobility to energy applications are trending sequentially higher and in-line with our expectations at the start of the year," said Fitterling. "In addition, our high-value organic growth investments and our advantaged portfolio position Dow well to deliver earnings growth and enhanced shareholder value as the economic recovery gathers strength. This allows us the financial flexibility to advance our long-term Decarbonize & Grow and Transform the Waste strategies and capture more than $3 billion in underlying earnings improvement annually by 2030. We will share more about our strategic and financial priorities that will drive earnings growth and enable higher shareholder returns at our upcoming Investor Day on May 16, 2024."

Conference Call
Dow will host a live webcast of its quarterly earnings conference call with investors to discuss its results, business outlook and other matters today at 8:00 a.m. ET. The webcast and slide presentation that accompany the conference call will be posted on the events and presentations page of investors.dow.com.

About Dow
Dow (NYSE: DOW) is one of the world's leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.

 

Cautionary Statement about Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as "anticipate," "believe," "estimate," "expect," "intend," "may," "opportunity," "outlook," "plan," "project," "seek," "should," "strategy," "target," "will," "will be," "will continue," "will likely result," "would" and similar expressions, and variations or negatives of these words or phrases.

Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow's control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow's products; Dow's expenses, future revenues and profitability; any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow's business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow's products and services and ability to compete in such markets; failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow's products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow's intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow's significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business or supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow's information technology networks and systems, including the impact of cyberattacks; and risks related to Dow's separation from DowDuPont Inc. such as Dow's obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities.

Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled "Risk Factors" contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and the Company's subsequent Quarterly Reports on Form 10-Q. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow's business. Dow Inc. and The Dow Chemical Company ("TDCC") assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.

®TM Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow                 

 

Non-GAAP Financial Measures
This earnings release includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Non-GAAP measures included in this release are defined below. Reconciliations for these non-GAAP measures to GAAP are provided in the Selected Financial Information and Non-GAAP Measures section starting on page 11. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.

Operating Earnings Per Share is defined as "Earnings (loss) per common share - diluted" excluding the after-tax impact of significant items.

Operating EBIT is defined as earnings (i.e., "Income (loss) before income taxes") before interest, excluding the impact of significant items.

Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales.

Operating EBITDA is defined as earnings (i.e., "Income (loss) before income taxes") before interest, depreciation and amortization, excluding the impact of significant items.

Free Cash Flow is defined as "Cash provided by operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by the Company from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in the Company's financial planning process.

Cash Flow Conversion is defined as "Cash provided by operating activities - continuing operations," divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings into cash flow.

Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC.

 

Dow Inc. and Subsidiaries

Consolidated Statements of Income


In millions, except per share amounts (Unaudited)

Three Months Ended

Mar 31,
2024

Mar 31,
2023

Net sales

$   10,765

$   11,851

Cost of sales

9,488

10,629

Research and development expenses

204

214

Selling, general and administrative expenses

442

428

Amortization of intangibles

81

81

Restructuring and asset related charges - net

45

541

Equity in earnings (losses) of nonconsolidated affiliates

17

(48)

Sundry income (expense) - net

61

79

Interest income

65

76

Interest expense and amortization of debt discount

199

185

Income (loss) before income taxes

449

(120)

Credit for income taxes

(89)

(47)

Net income (loss)

538

(73)

Net income attributable to noncontrolling interests

22

20

Net income (loss) available for Dow Inc. common stockholders

$       516

$        (93)




Per common share data:



Earnings (loss) per common share - basic

$      0.73

$     (0.13)

Earnings (loss) per common share - diluted

$      0.73

$     (0.13)




Weighted-average common shares outstanding - basic

704.5

708.2

Weighted-average common shares outstanding - diluted

705.5

708.2

 

Dow Inc. and Subsidiaries

Consolidated Balance Sheets


In millions, except share amounts (Unaudited)

Mar 31,
2024

Dec 31,
2023

Assets



Current Assets



Cash and cash equivalents

$         3,723

$         2,987

Accounts and notes receivable:



Trade (net of allowance for doubtful receivables - 2024: $71; 2023: $81)

5,212

4,718

Other

1,857

1,896

Inventories

6,373

6,076

Other current assets

1,283

1,937

Total current assets

18,448

17,614

Investments



Investment in nonconsolidated affiliates

1,240

1,267

Other investments (investments carried at fair value - 2024: $2,030; 2023: $1,877)

2,831

2,740

Noncurrent receivables

382

438

Total investments

4,453

4,445

Property



Property

60,662

60,203

Less: Accumulated depreciation

39,401

39,137

Net property

21,261

21,066

Other Assets



Goodwill

8,590

8,641

Other intangible assets (net of accumulated amortization - 2024: $5,445; 2023: $5,374)

1,967

2,072

Operating lease right-of-use assets

1,364

1,320

Deferred income tax assets

1,402

1,486

Deferred charges and other assets

1,332

1,323

Total other assets

14,655

14,842

Total Assets

$       58,817

$       57,967

Liabilities and Equity



Current Liabilities



Notes payable

$             55

$             62

Long-term debt due within one year

118

117

Accounts payable:



Trade

4,940

4,529

Other

1,847

1,797

Operating lease liabilities - current

324

329

Income taxes payable

448

419

Accrued and other current liabilities

2,517

2,704

Total current liabilities

10,249

9,957

Long-Term Debt

16,170

14,907

Other Noncurrent Liabilities



Deferred income tax liabilities

383

399

Pension and other postretirement benefits - noncurrent

4,800

4,932

Asbestos-related liabilities - noncurrent

761

788

Operating lease liabilities - noncurrent

1,071

1,032

Other noncurrent obligations

6,466

6,844

Total other noncurrent liabilities

13,481

13,995

Stockholders' Equity



Common stock (authorized 5,000,000,000 shares of $0.01 par value each;

issued 2024: 781,810,357 shares; 2023: 778,595,514 shares)

8

8

Additional paid-in capital

8,942

8,880

Retained earnings

21,796

21,774

Accumulated other comprehensive loss

(7,814)

(7,681)

Treasury stock at cost (2024: 78,604,527 shares; 2023: 76,302,081 shares)

(4,507)

(4,374)

Dow Inc.'s stockholders' equity

18,425

18,607

Noncontrolling interests

492

501

Total equity

18,917

19,108

Total Liabilities and Equity

$       58,817

$       57,967

 

Dow Inc. and Subsidiaries

Consolidated Statements of Cash Flows


In millions (Unaudited)

Three Months Ended

Mar 31,
2024

Mar 31,
2023

Operating Activities



Net income (loss)

$          538

$           (73)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:



Depreciation and amortization

720

648

Provision (credit) for deferred income tax

7

(418)

Earnings of nonconsolidated affiliates less than dividends received

75

102

Net periodic pension benefit credit

(48)

(23)

Pension contributions

(34)

(41)

Net gain on sales of assets, businesses and investments

(11)

(49)

Restructuring and asset related charges - net

45

541

Other net loss

92

347

Changes in assets and liabilities, net of effects of acquired and divested companies:



Accounts and notes receivable

(600)

(68)

Inventories

(297)

163

Accounts payable

398

(631)

Other assets and liabilities, net

(425)

33

Cash provided by operating activities - continuing operations

460

531

Cash provided by operating activities - discontinued operations

4

4

Cash provided by operating activities

464

535

Investing Activities



Capital expenditures

(714)

(440)

Investment in gas field developments

(52)

(55)

Purchases of previously leased assets

(2)

Proceeds from sales of property, businesses and consolidated companies, net of cash divested

2

57

Acquisitions of property and businesses, net of cash acquired

(23)

Investments in and loans to nonconsolidated affiliates

(2)

Distributions and loan repayments from nonconsolidated affiliates

1

Purchases of investments

(679)

(165)

Proceeds from sales and maturities of investments

1,173

512

Other investing activities, net

1

(35)

Cash used for investing activities

(271)

(150)

Financing Activities



Changes in short-term notes payable

(20)

(91)

Proceeds from issuance of short-term debt greater than three months

7

Proceeds from issuance of long-term debt

1,381

13

Payments on long-term debt

(93)

(156)

Collections on securitization programs

4

Purchases of treasury stock

(200)

(125)

Proceeds from issuance of stock

42

55

Transaction financing, debt issuance and other costs

(11)

Employee taxes paid for share-based payment arrangements

(37)

(41)

Distributions to noncontrolling interests

(14)

(13)

Dividends paid to stockholders

(493)

(496)

Cash provided by (used for) financing activities

566

(854)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(54)

(41)

Summary



Increase (decrease) in cash, cash equivalents and restricted cash

705

(510)

Cash, cash equivalents and restricted cash at beginning of period

3,048

3,940

Cash, cash equivalents and restricted cash at end of period

$       3,753

$       3,430

Less: Restricted cash and cash equivalents, included in "Other current assets"

30

111

Cash and cash equivalents at end of period

$       3,723

$       3,319

 

Dow Inc. and Subsidiaries

Net Sales by Segment and Geographic Region


Net Sales by Segment

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Packaging & Specialty Plastics

$    5,430

$    6,114

Industrial Intermediates & Infrastructure

3,008

3,378

Performance Materials & Coatings

2,152

2,276

Corporate

175

83

Total

$   10,765

$   11,851

U.S. & Canada

$    4,130

$    4,450

EMEAI 1

3,484

4,053

Asia Pacific

1,921

2,047

Latin America

1,230

1,301

Total

$   10,765

$   11,851

 

Net Sales Variance by Segment and Geographic Region

Three Months Ended Mar 31, 2024


Local
Price &
Product
Mix

Currency

Volume

Total


Percent change from prior year


Packaging & Specialty Plastics

(8) %

— %

(3) %

(11) %


Industrial Intermediates & Infrastructure

(14)

(1)

4

(11)


Performance Materials & Coatings

(9)

4

(5)


Total

(10) %

— %

1 %

(9) %


Total, excluding the Hydrocarbons & Energy business

(11) %

(1) %

5 %

(7) %


U.S. & Canada

(8) %

— %

1 %

(7) %


EMEAI 1

(12)

(2)

(14)


Asia Pacific

(11)

(2)

7

(6)


Latin America

(7)

2

(5)


Total

(10) %

— %

1 %

(9) %


 

Net Sales Variance by Segment and Geographic Region

Three Months Ended Mar 31, 2024


Local
Price &
Product
Mix

Currency

Volume

Total


Percent change from prior quarter


Packaging & Specialty Plastics

(1) %

— %

(3) %

(4) %


Industrial Intermediates & Infrastructure

1

1

2


Performance Materials & Coatings

1

1

12

14


Total

— %

— %

1 %

1 %


Total, excluding the Hydrocarbons & Energy business

— %

— %

3 %

3 %


U.S. & Canada

(1) %

— %

5 %

4 %


EMEAI 1

1

1

3

5


Asia Pacific

(2)

1

(7)

(8)


Latin America

(1)

(1)


Total

— %

— %

1 %

1 %


  1. Europe, Middle East, Africa and India.

 

Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures


Operating EBIT by Segment

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Packaging & Specialty Plastics

$       605

$       642

Industrial Intermediates & Infrastructure

87

123

Performance Materials & Coatings

41

35

Corporate

(59)

(92)

Total

$       674

$       708




Depreciation and Amortization by Segment

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Packaging & Specialty Plastics

$       371

$       320

Industrial Intermediates & Infrastructure

147

128

Performance Materials & Coatings

193

196

Corporate

9

4

Total

$       720

$       648




Operating EBITDA by Segment

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Packaging & Specialty Plastics

$       976

$       962

Industrial Intermediates & Infrastructure

234

251

Performance Materials & Coatings

234

231

Corporate

(50)

(88)

Total

$    1,394

$    1,356




Equity in Earnings (Losses) of Nonconsolidated Affiliates by Segment

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Packaging & Specialty Plastics

$         25

$         21

Industrial Intermediates & Infrastructure

(15)

(73)

Performance Materials & Coatings

6

3

Corporate

1

1

Total

$         17

$        (48)




Reconciliation of "Net income (loss)" to "Operating EBIT"

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Net income (loss)

$       538

$        (73)

+ Credit for income taxes

(89)

(47)

Income (loss) before income taxes

$       449

$      (120)

-  Interest income

65

76

+ Interest expense and amortization of debt discount

199

185

-  Significant items

(91)

(719)

Operating EBIT (non-GAAP)

$       674

$       708

 

Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures


Significant Items Impacting Results for the Three Months Ended Mar 31, 2024

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported results

$     449

$     516

$     0.73


Less: Significant items





Restructuring, implementation and
   efficiency costs, and asset related
   charges - net 4

(91)

(72)

(0.10)

Cost of sales ($33 million);

R&D ($1 million); SG&A ($12 million);
Restructuring and asset related
charges - net ($45 million)

Income tax related items 5

194

0.27

Credit for income taxes

Total significant items

$      (91)

$     122

$     0.17


Operating results (non-GAAP)

$     540

$     394

$     0.56


 

Significant Items Impacting Results for the Three Months Ended Mar 31, 2023

In millions, except per share amounts (Unaudited)

Pretax 1

Net
Income 2

EPS 3

Income Statement Classification

Reported results

$    (120)

$      (93)

$   (0.13)


Less: Significant items





Restructuring, implementation and
  efficiency costs, and asset related
  charges - net 4

(551)

(436)

(0.61)

Cost of sales ($28 million);

R&D ($1 million); SG&A ($11 million);
Restructuring and asset related
charges - net ($541 million), offset by
Sundry income (expense) - net
($30 million)

Litigation related charges, awards and
  adjustments 6

(177)

(138)

(0.19)

Cost of sales

Indemnification and other transaction
  related costs 7

9

9

0.01

Sundry income (expense) - net

Income tax related items 8

57

0.08

Credit for income taxes

Total significant items

$    (719)

$    (508)

$   (0.71)


Operating results (non-GAAP)

$     599

$     415

$     0.58


  1. "Income (loss) before income taxes."
  2. "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
  3. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
  4. Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes impairment charges related to the write-down of certain manufacturing assets in 2024 and certain gains and losses associated with previously impaired equity investments in 2023.
  5. Reassessment of interest and penalties related to a tax matter in a foreign jurisdiction.
  6. Includes a loss associated with legacy agricultural products groundwater contamination matters.
  7. Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
  8. Related to deferred tax assets in a foreign jurisdiction partially offset by a remeasurement of uncertain tax positions.

 

Dow Inc. and Subsidiaries

Selected Financial Information and Non-GAAP Measures


Significant Items Impacting Results for the Three Months Ended Dec 31, 2023

In millions, except per share amounts (Unaudited)

Pretax 1

Net I
ncome 2

EPS 3

Income Statement Classification

Reported results

$    (352)

$    (105)

$   (0.15)


Less: Significant items





Restructuring, implementation and
  efficiency costs, and asset related
  charges - net 4

(53)

(41)

(0.05)

Cost of sales ($55 million); R&D ($1
  million); SG&A ($18 million); offset by
  Restructuring and asset related
  charges - net ($21 million)

Litigation related charges, awards and
  adjustments 5

106

87

0.12

Sundry income (expense) - net

Argentine peso devaluation 6

(177)

(67)

(0.09)

Cost of sales ($68 million); Sundry
  income (expense) - net ($109 million)

Pension settlement charges 7

(642)

(493)

(0.70)

Sundry income (expense) - net

Indemnifications and other transaction
  related costs 8

9

9

0.01

Sundry income (expense) - net

Income tax related items 9

94

0.13

Credit for income taxes

Total significant items

$    (757)

$    (411)

$   (0.58)


Operating results (non-GAAP)

$     405

$     306

$     0.43


  1. "Income (loss) before income taxes."
  2. "Net income (loss) available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
  3. "Earnings (loss) per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
  4. Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program, partially offset by a credit from a prior restructuring program.
  5. Related to a gain associated with a legal matter with Nova Chemicals Corporation.
  6. Foreign currency losses and inventory valuation impacts related to the devaluation of the Argentine peso by the Argentina government in December 2023.
  7. Non-cash settlement charges related to the purchase of nonparticipating group annuity contracts for certain Company pension plans in the United States and Canada.
  8. Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
  9. Related to deferred tax assets in a foreign jurisdiction partially offset by an adjustment to certain foreign tax reserves.

 

Reconciliation of Free Cash Flow

Three Months Ended

In millions (Unaudited)

Mar 31,
2024

Mar 31,
2023

Cash provided by operating activities - continuing operations (GAAP)

$       460

$       531

Capital expenditures

(714)

(440)

Free Cash Flow (non-GAAP)

$      (254)

$         91

 

Reconciliation of Cash Flow Conversion

Three Months Ended

In millions (Unaudited)

Jun 30,
2023

Sep 30,
2023

Dec 31,
2023

Mar 31,
2024

Cash provided by operating activities - continuing operations (GAAP)

$ 1,347

$ 1,658

$ 1,628

$    460

Net income (loss) (GAAP)

$    501

$    327

$     (95)

$    538

Cash flow from operations to net income (GAAP) 1

268.9 %

507.0 %

N/A

85.5 %

Cash flow from operations to net income - trailing twelve months
(GAAP)


400.7 %

Operating EBITDA (non-GAAP)

$ 1,534

$ 1,283

$ 1,216

$ 1,394

Cash Flow Conversion (Cash flow from operations to Operating
  EBITDA) (non-GAAP)

87.8 %

129.2 %

133.9 %

33.0 %

Cash Flow Conversion - trailing twelve months (non-GAAP)


93.8 %

  1. Cash flow from operations to net income is not applicable for the fourth quarter of 2023 due to a net loss for the period.

 

For further information, please contact:



Investors:

Pankaj Gupta

pgupta@dow.com

+1 989-638-5265

Media:

Sarah Young

syoung3@dow.com 

+1 989-638-6871

 

X: https://twitter.com/DowNewsroom 
Facebook: https://www.facebook.com/dow/ 
LinkedIn: http://www.linkedin.com/company/dow-chemical 
Instagram: http://instagram.com/dow_official 

 

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SOURCE The Dow Chemical Company

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