Dow reports first quarter 2021 results
Dow (NYSE: DOW) reported significant financial growth for the quarter, with GAAP EPS of $1.32 and Operating EPS of $1.36, rising from $0.59 year-over-year. Net sales reached $11.9 billion, a 22% increase driven by local price gains. Local price rose 19%, while volume remained stable due to supply constraints. Notably, equity earnings increased by $313 million. The company is contributing $1 billion to U.S. pension plans, reducing its liability by $2.3 billion. Dividend returns to shareholders totaled $521 million.
- GAAP EPS rose to $1.32, up from $0.59 YoY.
- Net sales increased 22% to $11.9 billion.
- Local price gains of 19% support revenue growth.
- Equity earnings up by $313 million.
- Pension liability reduced by $2.3 billion after $1 billion contribution.
- Volume remained flat year-over-year due to supply constraints.
Dow (NYSE: DOW):
FINANCIAL HIGHLIGHTS
-
GAAP earnings per share (EPS) was
$1.32 ; Operating EPS1 was$1.36 , compared to$0.59 in the year-ago period. Operating EPS excludes certain items in the quarter, totaling$0.04 per share, related to restructuring implementation costs and digital acceleration spending. -
Net sales were
$11.9 billion , up22% versus the year-ago period, driven by local price gains across all operating segments, businesses and regions. Sequentially, net sales were up11% with gains in all segments and regions. -
Local price increased
19% versus the year-ago period, reflecting gains in all operating segments. Sequentially, improvements in all operating segments, businesses and regions drove a14% increase. - Volume was in line with the year-ago period as demand growth in Packaging & Specialty Plastics was offset by supply constraints in Industrial Intermediates & Infrastructure and Performance Materials & Coatings due to the impact of Winter Storm Uri on the U.S. Gulf Coast.
-
Equity earnings were
$224 million , up$313 million compared to the year-ago period, primarily driven by margin expansion in polyurethanes and polyethylene at the Sadara and Kuwait joint ventures. -
GAAP Net Income was
$1.0 billion . Operating EBIT1 was$1.6 billion , up from$843 million in the year-ago period, primarily driven by margin expansion in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure. -
Dow elected to contribute
$1 billion to its U.S. pension plans, and announced it will freeze its U.S. plans for active employees as of December 31, 2023. These actions and the subsequent remeasurement of the U.S. plans effectively reduce the Company’s pension liability by$2.3 billion and decrease its full year 2021 pension expense by approximately$200 million , inclusive of a curtailment gain. -
Cash used for operating activities – continuing ops. was
$228 million . Excluding the$1 billion elective pension contribution, cash from ops was more than$750 million . The Company’s ongoing prioritization of cash resulted in a cash flow conversion1 of76% on a trailing twelve-month basis. -
Dividend returns to shareholders totaled
$521 million in the quarter. -
The Sadara joint venture successfully completed its debt reprofiling and is now expected to be cash flow self-sufficient – providing an approximately
$350 million cash tailwind to Dow in 2021.
SUMMARY FINANCIAL RESULTS
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Three Months Ended March 31 |
Three Months Ended December 31 |
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In millions, except per share amounts |
1Q21 |
1Q20 |
vs. SQLY [B / (W)] |
4Q20 |
vs. PQ [B / (W)] |
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Net Sales |
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