Dow reports second quarter 2024 results
Dow (NYSE: DOW) reported its Q2 2024 results with operating earnings per share of $0.68, down from $0.75 in the year-ago period but up from $0.56 in Q1 2024. Net sales were $10.9 billion, down 4% year-over-year but up 1% sequentially. The company saw volume increases of 1% both year-over-year and sequentially, with gains in most regions. Operating EBIT was $819 million, down $66 million year-over-year but up $145 million sequentially. Dow returned $691 million to shareholders through dividends and share repurchases. The company noted slower-than-expected global macroeconomic recovery but remains focused on working capital, cost reduction, and matching operating rates to current demand.
Dow (NYSE: DOW) ha riportato i risultati del secondo trimestre 2024 con utile operativo per azione pari a $0,68, in calo rispetto a $0,75 nello stesso periodo dell'anno precedente, ma in aumento rispetto a $0,56 nel primo trimestre 2024. Le vendite nette sono state di $10,9 miliardi, in calo del 4% rispetto all'anno precedente ma in aumento dell'1% rispetto al trimestre precedente. L'azienda ha registrato un aumento dei volumi dell'1% sia su base annua che sequenziale, con guadagni nella maggior parte delle regioni. L'EBIT operativo è stato di $819 milioni, in calo di $66 milioni anno su anno, ma in aumento di $145 milioni rispetto al trimestre precedente. Dow ha restituito $691 milioni agli azionisti attraverso dividendi e riacquisti di azioni. L'azienda ha notato un recupero macroeconomico globale più lento del previsto, ma rimane concentrata sul capitale circolante, sulla riduzione dei costi e sull'equilibrio tra i tassi operativi e la domanda attuale.
Dow (NYSE: DOW) informó sus resultados del segundo trimestre de 2024 con ganancias operativas por acción de $0,68, una disminución desde $0,75 en el mismo período del año anterior, pero en aumento desde $0,56 en el primer trimestre de 2024. Las ventas netas fueron de $10,9 mil millones, una caída del 4% interanual pero un aumento del 1% secuencialmente. La compañía observó aumentos de volumen del 1% tanto interanuales como secuenciales, con ganancias en la mayoría de las regiones. El EBIT operativo fue de $819 millones, una disminución de $66 millones interanuales, pero un aumento de $145 millones secuencialmente. Dow devolvió $691 millones a los accionistas a través de dividendos y recompras de acciones. La compañía notó una recuperación macroeconómica global más lenta de lo esperado, pero sigue enfocada en el capital de trabajo, la reducción de costos y equilibrar las tasas operativas con la demanda actual.
Dow (NYSE: DOW)는 2024년 2분기 실적을 보고하며 주당 운영 수익이 $0.68로, 지난해 동기 $0.75에서 감소했지만 2024년 1분기 $0.56에서 상승했습니다. 순매출은 $10.9억 달러로, 전년 대비 4% 감소했지만 전 분기 대비 1% 증가했습니다. 이 회사는 전년 대비 및 순차적으로 1%의 물량 증가를 보았으며, 대부분의 지역에서 이익을 얻었습니다. 운영 EBIT는 $819백만으로, 전년 대비 $66백만 감소했지만 전 분기 대비 $145백만 증가했습니다. Dow는 배당금과 주식 매입을 통해 $691백만을 주주에게 반환했습니다. 이 회사는 예상보다 느린 세계 거시경제 회복을 언급했지만, 운전 자본, 비용 절감 및 현재 수요에 맞춘 운영 비율에 집중하고 있습니다.
Dow (NYSE: DOW) a publié ses résultats pour le deuxième trimestre 2024, avec un bénéfice opérationnel par action de 0,68 USD, en baisse par rapport à 0,75 USD au cours de la même période l'année précédente, mais en hausse par rapport à 0,56 USD au premier trimestre 2024. Les ventes nettes se sont élevées à 10,9 milliards USD, en baisse de 4 % par rapport à l'année précédente, mais en hausse de 1 % par rapport au trimestre précédent. L'entreprise a observé une augmentation du volume de 1 % tant sur une base annuelle que séquentielle, avec des gains dans la plupart des régions. Le EBIT opérationnel s'élevait à 819 millions USD, en baisse de 66 millions USD par rapport à l'année précédente, mais en hausse de 145 millions USD par rapport au trimestre précédent. Dow a restitué 691 millions USD aux actionnaires par le biais de dividendes et de rachats d'actions. L'entreprise a noté une reprise macroéconomique mondiale plus lente que prévu, mais reste concentrée sur le fonds de roulement, la réduction des coûts et l'adéquation des taux d'exploitation à la demande actuelle.
Dow (NYSE: DOW) berichtete über seine Ergebnisse im 2. Quartal 2024 mit operativen Erträgen pro Aktie von 0,68 USD, ein Rückgang von 0,75 USD im Vorjahreszeitraum, aber ein Anstieg von 0,56 USD im 1. Quartal 2024. Der Nettoumsatz betrug 10,9 Milliarden USD, ein Rückgang um 4% im Jahresvergleich, jedoch ein Anstieg von 1% sequenziell. Das Unternehmen verzeichnete Volumenzuwächse von 1%, sowohl im Jahresvergleich als auch sequenziell, mit Gewinnen in den meisten Regionen. Das operative EBIT betrug 819 Millionen USD, ein Rückgang um 66 Millionen USD im Jahresvergleich, jedoch ein Anstieg um 145 Millionen USD sequenziell. Dow gab 691 Millionen USD an die Aktionäre zurück durch Dividenden und Aktienrückkäufe. Das Unternehmen stellte eine langsamere als erwartete globale makroökonomische Erholung fest, konzentriert sich jedoch weiterhin auf das Betriebskapital, die Kostenreduzierung und die Anpassung der Betriebsraten an die aktuelle Nachfrage.
- Operating earnings per share increased to $0.68 from $0.56 in the previous quarter
- Net sales increased 1% sequentially to $10.9 billion
- Volume increased 1% year-over-year and sequentially
- Operating EBIT improved by $145 million sequentially to $819 million
- Cash provided by operating activities increased by $372 million compared to the prior quarter
- Returns to shareholders totaled $691 million in the quarter
- Operating earnings per share decreased from $0.75 in the year-ago period to $0.68
- Net sales decreased 4% year-over-year to $10.9 billion
- Operating EBIT decreased by $66 million year-over-year
- Local price decreased 4% year-over-year
- Cash provided by operating activities decreased by $515 million year-over-year
- Slower-than-expected global macroeconomic recovery noted
Dow's Q2 2024 results present a mixed picture with some positive developments amid challenging macroeconomic conditions. Operating earnings per share of
Net sales of
The company's focus on cash generation is evident, with
Segment performance varied, with Packaging & Specialty Plastics seeing a significant drop in Operating EBIT, while Performance Materials & Coatings showed improvement. The Industrial Intermediates & Infrastructure segment returned to profitability, albeit with slim margins.
Looking ahead, Dow's cautious outlook for the second half of 2024 acknowledges ongoing challenges in building & construction and consumer durables markets. The company's strategy of focusing on innovation, leveraging its global scale and making counter-cyclical investments could position it well for when market conditions improve.
Dow's Q2 results offer valuable insights into broader market trends. The
The performance disparity among Dow's segments provides a window into sector-specific trends. The challenges in Packaging & Specialty Plastics, with Operating EBIT down
Geographically, Dow's results hint at uneven global recovery. Gains in the U.S. & Canada contrast with challenges in Asia Pacific, potentially reflecting differing paces of post-pandemic economic rebounds and shifts in global supply chains.
The company's emphasis on innovation and diverse product mix as growth drivers aligns with broader industry trends towards customization and specialization. This strategy could be important in navigating the anticipated continued weakness in building & construction and consumer durables markets through 2024.
Dow's cautious outlook for the second half of 2024 serves as a barometer for the chemical industry and, by extension, the global manufacturing sector. The company's focus on sequential improvements rather than year-over-year growth suggests a 'new normal' of tempered expectations in the face of persistent economic headwinds.
FINANCIAL HIGHLIGHTS
- GAAP earnings per share was
; operating earnings per share (EPS)1 was$0.62 , compared to$0.68 in the year-ago period and$0.75 in the prior quarter. Operating EPS excludes significant items in the quarter related to restructuring and efficiency costs totaling$0.56 per share.$0.06 - Net sales were
, down$10.9 billion 4% versus the year-ago period. Sales were up1% sequentially, driven by gains in Performance Materials & Coatings and Packaging & Specialty Plastics. - Volume increased
1% versus the year-ago period, with gains led by theU.S. &Canada . Sequentially, volume increased1% , with gains in all regions exceptAsia Pacific , which was flat. Excluding Hydrocarbons & Energy, volume increased4% year-over-year and2% sequentially. - Local price decreased
4% year-over-year. Sequentially, local price increased1% , led by gains inEurope , theMiddle East ,Africa andIndia (EMEAI). - Currency decreased net sales by
1% both year-over-year and sequentially. - Equity earnings were
, an$26 million improvement compared to the year-ago period, driven by gains at the$83 million Kuwait and Sadara joint ventures. Sequentially, equity earnings were up .$9 million - GAAP net income was
. Operating EBIT1 was$458 million , down$819 million year-over-year, primarily driven by lower integrated margins and higher planned maintenance activity, which were partly offset by improved equity earnings. Sequentially, Op. EBIT was up$66 million , reflecting gains in Performance Materials & Coatings and Packaging & Specialty Plastics.$145 million - Cash provided by operating activities – continuing operations was
, down$832 million year-over-year and up$515 million compared to the prior quarter due to stronger cash flow conversion1 and a release of working capital.$372 million - Returns to shareholders totaled
in the quarter, including$691 million in dividends and$491 million in share repurchases.$200 million
SUMMARY FINANCIAL RESULTS
Three Months Ended Jun 30 | Three Months Ended Mar 31 | ||||
In millions, except per share amounts | 2Q24 | 2Q23 | vs. SQLY [B / (W)] | 1Q24 | vs. PQ [B / (W)] |
Net Sales | |||||
GAAP Income, Net of Tax | |||||
Operating EBIT¹ | |||||
Operating EBIT Margin¹ | 7.5 % | 7.7 % | (20) bps | 6.3 % | 120 bps |
Operating EBITDA¹ | |||||
GAAP Earnings Per Share | |||||
Operating Earnings Per Share¹ | |||||
Cash Provided by Operating Activities – Cont. Ops |
1. Op. Earnings Per Share, Op. EBIT, Cash Flow Conversion, 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 second quarter, Team Dow delivered sequential earnings improvement and our third consecutive quarter of year-over-year volume growth," said Fitterling. "The pace of the global macroeconomic recovery has been slower than expected. We remain focused on working capital, reducing costs, and matching our operating rates to current demand. We're innovating with our customers, which was evident in the quarter as we captured growing demand in packaging, electronics, and home & personal care. With a continued focus on cash generation, we delivered cash flow from operations of
SEGMENT HIGHLIGHTS
Packaging & Specialty Plastics
Three Months Ended Jun 30 | Three Months Ended Mar 31 | ||||
In millions, except margin | 2Q24 | 2Q23 | vs. SQLY [B / (W)] | 1Q24 | vs. PQ [B / (W)] |
Net Sales | |||||
Operating EBIT | |||||
Operating EBIT Margin | 12.7 % | 15.5 % | (280) bps | 11.1 % | 160 bps |
Equity Earnings |
Packaging & Specialty Plastics segment net sales in the quarter were
Equity earnings were
Operating EBIT was
Packaging and Specialty Plastics business reported a net sales decline versus the year-ago period as higher demand for industrial, consumer, and flexible food packaging was more than offset by lower prices, primarily in infrastructure and mobility end-markets, and lower non-recurring licensing sales. Sequentially, net sales increased, led by higher polyethylene sales in the
Hydrocarbons & Energy business reported a net sales decline compared to the year-ago period, driven by lower merchant olefin and aromatic sales primarily due to lighter feedslate cracking in EMEAI. Sequentially, net sales decreased slightly due to lower third-party power and steam sales in the
Industrial Intermediates & Infrastructure
Three Months Ended Jun 30 | Three Months Ended Mar 31 | ||||
In millions, except margin | 2Q24 | 2Q23 | vs. SQLY [B / (W)] | 1Q24 | vs. PQ [B / (W)] |
Net Sales | |||||
Operating EBIT | |||||
Operating EBIT Margin | 0.2 % | (1.1) % | 130 bps | 2.9 % | (270) bps |
Equity Losses |
Industrial Intermediates & Infrastructure segment net sales were
Equity losses for the segment were
Operating EBIT was
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 EMEAI, led by building & construction. Sequentially, net sales decreased as price gains in all geographic regions except
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 outage at Louisiana Operations, which successfully restarted at the end of June. Sequentially, net sales increased, led by volume gains in
Performance Materials & Coatings
Three Months Ended Jun 30 | Three Months Ended Mar 31 | ||||
In millions, except margin | 2Q24 | 2Q23 | vs. SQLY [B / (W)] | 1Q24 | vs. PQ [B / (W)] |
Net Sales | |||||
Operating EBIT | |||||
Operating EBIT Margin | 6.5 % | 3.0 % | 350 bps | 1.9 % | 460 bps |
Equity Earnings |
Performance Materials & Coatings segment net sales in the quarter were
Operating EBIT was
Consumer Solutions business reported a decrease in net sales versus the year-ago period, as higher volumes in all geographic regions and most end-markets, including home & personal care and consumer electronics, were more than offset by lower prices. Sequentially, net sales increased, driven by volume gains across all end-markets as well as price gains in the
Coatings & Performance Monomers business reported an increase in net sales compared to the year-ago period, driven by volume gains in all geographic regions, which were partly offset by lower prices. Sequentially, net sales increased, driven by seasonally higher demand for pavement markings and architectural coatings.
OUTLOOK
"As we look to the second half of the year, Team Dow is focused on continuing to deliver sequential earnings improvements while navigating through the slower macro environment we remain in," said Fitterling. "While near-term demand in many markets that we serve is growing, building & construction and consumer durables are unlikely to significantly change in 2024. We will continue driving higher sales through our innovation portfolio and diverse product mix. And, through leveraging our global scale, strategically advantaged cost positions, and counter-cyclical growth investments, we remain on track to enable higher earnings and shareholder returns."
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
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
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 and its consolidated subsidiaries 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.
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 per common share - diluted" excluding the after-tax impact of significant items.
Operating EBIT is defined as earnings (i.e., "Income 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 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 | Six Months Ended | ||
Jun 30, | Jun 30, | Jun 30, | Jun 30, | |
Net sales | $ 10,915 | $ 11,420 | $ 21,680 | $ 23,271 |
Cost of sales | 9,591 | 9,875 | 19,079 | 20,504 |
Research and development expenses | 196 | 205 | 400 | 419 |
Selling, general and administrative expenses | 390 | 408 | 832 | 836 |
Amortization of intangibles | 77 | 81 | 158 | 162 |
Restructuring and asset related charges - net | — | 8 | 45 | 549 |
Equity in earnings (losses) of nonconsolidated affiliates | 26 | (57) | 43 | (105) |
Sundry income (expense) - net | 76 | 31 | 137 | 110 |
Interest income | 42 | 66 | 107 | 142 |
Interest expense and amortization of debt discount | 197 | 172 | 396 | 357 |
Income before income taxes | 608 | 711 | 1,057 | 591 |
Provision for income taxes | 150 | 210 | 61 | 163 |
Net income | 458 | 501 | 996 | 428 |
Net income attributable to noncontrolling interests | 19 | 16 | 41 | 36 |
Net income available for Dow Inc. common stockholders | $ 439 | $ 485 | $ 955 | $ 392 |
Per common share data: | ||||
Earnings per common share - basic | $ 0.62 | $ 0.68 | $ 1.35 | $ 0.55 |
Earnings per common share - diluted | $ 0.62 | $ 0.68 | $ 1.35 | $ 0.54 |
Weighted-average common shares outstanding - basic | 703.8 | 707.0 | 704.1 | 707.6 |
Weighted-average common shares outstanding - diluted | 705.3 | 709.9 | 705.5 | 710.7 |
Dow Inc. and Subsidiaries Consolidated Balance Sheets | ||
In millions, except share amounts (Unaudited) | Jun 30, | Dec 31, |
Assets | ||
Current Assets | ||
Cash and cash equivalents | $ 3,341 | $ 2,987 |
Accounts and notes receivable: | ||
Trade (net of allowance for doubtful receivables - 2024: | 5,098 | 4,718 |
Other | 1,981 | 1,896 |
Inventories | 6,459 | 6,076 |
Other current assets | 1,174 | 1,937 |
Total current assets | 18,053 | 17,614 |
Investments | ||
Investment in nonconsolidated affiliates | 1,239 | 1,267 |
Other investments (investments carried at fair value - 2024: | 2,844 | 2,740 |
Noncurrent receivables | 461 | 438 |
Total investments | 4,544 | 4,445 |
Property | ||
Property | 61,369 | 60,203 |
Less: Accumulated depreciation | 39,779 | 39,137 |
Net property | 21,590 | 21,066 |
Other Assets | ||
Goodwill | 8,559 | 8,641 |
Other intangible assets (net of accumulated amortization - 2024: | 1,875 | 2,072 |
Operating lease right-of-use assets | 1,321 | 1,320 |
Deferred income tax assets | 1,342 | 1,486 |
Deferred charges and other assets | 1,242 | 1,323 |
Total other assets | 14,339 | 14,842 |
Total Assets | $ 58,526 | $ 57,967 |
Liabilities and Equity | ||
Current Liabilities | ||
Notes payable | $ 114 | $ 62 |
Long-term debt due within one year | 238 | 117 |
Accounts payable: | ||
Trade | 4,979 | 4,529 |
Other | 1,990 | 1,797 |
Operating lease liabilities - current | 321 | 329 |
Income taxes payable | 309 | 419 |
Accrued and other current liabilities | 2,357 | 2,704 |
Total current liabilities | 10,308 | 9,957 |
Long-Term Debt | 16,016 | 14,907 |
Other Noncurrent Liabilities | ||
Deferred income tax liabilities | 372 | 399 |
Pension and other postretirement benefits - noncurrent | 4,675 | 4,932 |
Asbestos-related liabilities - noncurrent | 744 | 788 |
Operating lease liabilities - noncurrent | 1,032 | 1,032 |
Other noncurrent obligations | 6,579 | 6,844 |
Total other noncurrent liabilities | 13,402 | 13,995 |
Stockholders' Equity | ||
Common stock (authorized 5,000,000,000 shares of issued 2024: 782,006,798 shares; 2023: 778,595,514 shares) | 8 | 8 |
Additional paid-in capital | 9,012 | 8,880 |
Retained earnings | 21,739 | 21,774 |
Accumulated other comprehensive loss | (7,785) | (7,681) |
Treasury stock at cost (2024: 81,085,770 shares; 2023: 76,302,081 shares) | (4,656) | (4,374) |
Dow Inc.'s stockholders' equity | 18,318 | 18,607 |
Noncontrolling interests | 482 | 501 |
Total equity | 18,800 | 19,108 |
Total Liabilities and Equity | $ 58,526 | $ 57,967 |
Dow Inc. and Subsidiaries Consolidated Statements of Cash Flows | ||
In millions (Unaudited) | Six Months Ended | |
Jun 30, | Jun 30, | |
Operating Activities | ||
Net income | $ 996 | $ 428 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,402 | 1,297 |
Provision (credit) for deferred income tax | 28 | (589) |
Earnings of nonconsolidated affiliates less than dividends received | 156 | 267 |
Net periodic pension benefit credit | (95) | (46) |
Pension contributions | (63) | (76) |
Net gain on sales of assets, businesses and investments | (20) | (51) |
Restructuring and asset related charges - net | 45 | 549 |
Other net loss | 155 | 492 |
Changes in assets and liabilities, net of effects of acquired and divested companies: | ||
Accounts and notes receivable | (485) | 156 |
Inventories | (383) | 501 |
Accounts payable | 544 | (986) |
Other assets and liabilities, net | (988) | (64) |
Cash provided by operating activities - continuing operations | 1,292 | 1,878 |
Cash provided by operating activities - discontinued operations | 8 | 4 |
Cash provided by operating activities | 1,300 | 1,882 |
Investing Activities | ||
Capital expenditures | (1,437) | (1,001) |
Investment in gas field developments | (96) | (124) |
Purchases of previously leased assets | — | (3) |
Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 8 | 59 |
Acquisitions of property and businesses, net of cash acquired | — | (54) |
Investments in and loans to nonconsolidated affiliates | (4) | (2) |
Distributions and loan repayments from nonconsolidated affiliates | — | 1 |
Proceeds from sales of ownership interests in nonconsolidated affiliates | — | 63 |
Purchases of investments | (1,072) | (821) |
Proceeds from sales and maturities of investments | 1,824 | 1,083 |
Other investing activities, net | 12 | (35) |
Cash used for investing activities | (765) | (834) |
Financing Activities | ||
Changes in short-term notes payable | 26 | (255) |
Proceeds from issuance of short-term debt greater than three months | 40 | — |
Proceeds from issuance of long-term debt | 1,396 | 55 |
Payments on long-term debt | (183) | (320) |
Collections on securitization programs | 21 | — |
Purchases of treasury stock | (400) | (375) |
Proceeds from issuance of stock | 51 | 55 |
Transaction financing, debt issuance and other costs | (11) | (1) |
Employee taxes paid for share-based payment arrangements | (38) | (41) |
Distributions to noncontrolling interests | (47) | (36) |
Dividends paid to stockholders | (984) | (989) |
Cash used for financing activities | (129) | (1,907) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (69) | (98) |
Summary | ||
Increase (decrease) in cash, cash equivalents and restricted cash | 337 | (957) |
Cash, cash equivalents and restricted cash at beginning of period | 3,048 | 3,940 |
Cash, cash equivalents and restricted cash at end of period | $ 3,385 | $ 2,983 |
Less: Restricted cash and cash equivalents, included in "Other current assets" | 44 | 59 |
Cash and cash equivalents at end of period | $ 3,341 | $ 2,924 |
Dow Inc. and Subsidiaries Net Sales by Segment and Geographic Region | ||||
Net Sales by Segment | Three Months Ended | Six Months Ended | ||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, |
Packaging & Specialty Plastics | $ 5,515 | $ 5,940 | $ 10,945 | $ 12,054 |
Industrial Intermediates & Infrastructure | 2,951 | 3,177 | 5,959 | 6,555 |
Performance Materials & Coatings | 2,243 | 2,197 | 4,395 | 4,473 |
Corporate | 206 | 106 | 381 | 189 |
Total | $ 10,915 | $ 11,420 | $ 21,680 | $ 23,271 |
$ 4,191 | $ 4,249 | $ 8,321 | $ 8,699 | |
EMEAI 1 | 3,572 | 3,774 | 7,056 | 7,827 |
1,901 | 2,058 | 3,822 | 4,105 | |
1,251 | 1,339 | 2,481 | 2,640 | |
Total | $ 10,915 | $ 11,420 | $ 21,680 | $ 23,271 |
Net Sales Variance by | Three Months Ended Jun 30, 2024 | Six Months Ended Jun 30, 2024 | |||||||
Local | Currency | Volume | Total | Local | Currency | Volume | Total | ||
Percent change from prior year | |||||||||
Packaging & Specialty | (4) % | — % | (3) % | (7) % | (6) % | — % | (3) % | (9) % | |
Industrial Intermediates & | (7) | (1) | 1 | (7) | (11) | (1) | 3 | (9) | |
Performance Materials & | (4) | (1) | 7 | 2 | (6) | (1) | 5 | (2) | |
Total | (4) % | (1) % | 1 % | (4) % | (7) % | (1) % | 1 % | (7) % | |
Total, excluding the | (6) % | (1) % | 4 % | (3) % | (8) % | (1) % | 4 % | (5) % | |
(4) % | — % | 3 % | (1) % | (6) % | — % | 2 % | (4) % | ||
EMEAI 1 | (4) | (1) | — | (5) | (9) | — | (1) | (10) | |
(6) | (3) | 1 | (8) | (9) | (2) | 4 | (7) | ||
(7) | — | — | (7) | (7) | — | 1 | (6) | ||
Total | (4) % | (1) % | 1 % | (4) % | (7) % | (1) % | 1 % | (7) % |
Net Sales Variance by Segment and Geographic Region | Three Months Ended Jun 30, 2024 | ||||
Local | Currency | Volume | Total | ||
Percent change from prior quarter | |||||
Packaging & Specialty Plastics | 1 % | — % | 1 % | 2 % | |
Industrial Intermediates & Infrastructure | — | (1) | (1) | (2) | |
Performance Materials & Coatings | 1 | (1) | 4 | 4 | |
Total | 1 % | (1) % | 1 % | 1 % | |
Total, excluding the Hydrocarbons & Energy business | — % | — % | 2 % | 2 % | |
— % | — % | 1 % | 1 % | ||
EMEAI 1 | 3 | (1) | 1 | 3 | |
— | (1) | — | (1) | ||
(2) | — | 4 | 2 | ||
Total | 1 % | (1) % | 1 % | 1 % |
Europe ,Middle East ,Africa andIndia .
Dow Inc. and Subsidiaries Selected Financial Information and Non-GAAP Measures
| |||||
Operating EBIT by Segment | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, | |
Packaging & Specialty Plastics | $ 703 | $ 918 | $ 1,308 | $ 1,560 | |
Industrial Intermediates & Infrastructure | 7 | (35) | 94 | 88 | |
Performance Materials & Coatings | 146 | 66 | 187 | 101 | |
Corporate | (37) | (64) | (96) | (156) | |
Total | $ 819 | $ 885 | $ 1,493 | $ 1,593 | |
Depreciation and Amortization by Segment | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, | |
Packaging & Specialty Plastics | $ 343 | $ 320 | $ 714 | $ 640 | |
Industrial Intermediates & Infrastructure | 141 | 129 | 288 | 257 | |
Performance Materials & Coatings | 191 | 194 | 384 | 390 | |
Corporate | 7 | 6 | 16 | 10 | |
Total | $ 682 | $ 649 | $ 1,402 | $ 1,297 | |
Operating EBITDA by Segment | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, | |
Packaging & Specialty Plastics | $ 1,046 | $ 1,238 | $ 2,022 | $ 2,200 | |
Industrial Intermediates & Infrastructure | 148 | 94 | 382 | 345 | |
Performance Materials & Coatings | 337 | 260 | 571 | 491 | |
Corporate | (30) | (58) | (80) | (146) | |
Total | $ 1,501 | $ 1,534 | $ 2,895 | $ 2,890 | |
Equity in Earnings (Losses) of Nonconsolidated | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, | |
Packaging & Specialty Plastics | $ 55 | $ 19 | $ 80 | $ 40 | |
Industrial Intermediates & Infrastructure | (31) | (83) | (46) | (156) | |
Performance Materials & Coatings | 2 | 6 | 8 | 9 | |
Corporate | — | 1 | 1 | 2 | |
Total | $ 26 | $ (57) | $ 43 | $ (105) | |
Reconciliation of "Net income" to "Operating EBIT" | Three Months Ended | Six Months Ended | |||
In millions (Unaudited) | Mar 31, | Jun 30, | Jun 30, | Jun 30, | Jun 30, |
Net income | $ 538 | $ 458 | $ 501 | $ 996 | $ 428 |
+ Provision (credit) for income taxes | (89) | 150 | 210 | 61 | 163 |
Income before income taxes | $ 449 | $ 608 | $ 711 | $ 1,057 | $ 591 |
- Interest income | 65 | 42 | 66 | 107 | 142 |
+ Interest expense and amortization of debt discount | 199 | 197 | 172 | 396 | 357 |
- Significant items | (91) | (56) | (68) | (147) | (787) |
Operating EBIT (non-GAAP) | $ 674 | $ 819 | $ 885 | $ 1,493 | $ 1,593 |
Dow Inc. and Subsidiaries Selected Financial Information and Non-GAAP Measures | ||||
Significant Items Impacting Results for the Three Months Ended Jun 30, 2024 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results | $ 608 | $ 439 | $ 0.62 | |
Less: Significant items | ||||
Restructuring, implementation and | (56) | (43) | (0.06) | Cost of sales ( R&D ( |
Total significant items | $ (56) | $ (43) | $ (0.06) | |
Operating results (non-GAAP) | $ 664 | $ 482 | $ 0.68 |
Significant Items Impacting Results for the Three Months Ended Jun 30, 2023 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results | $ 711 | $ 485 | $ 0.68 | |
Less: Significant items | ||||
Restructuring, implementation and | (55) | (42) | (0.06) | Cost of sales ( R&D ( |
Indemnification and other transaction | (13) | (10) | (0.01) | Sundry income (expense) - net |
Total significant items | $ (68) | $ (52) | $ (0.07) | |
Operating results (non-GAAP) | $ 779 | $ 537 | $ 0.75 |
- "Income before income taxes."
- "Net income 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.
- "Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
- Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program.
- 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.
Dow Inc. and Subsidiaries Selected Financial Information and Non-GAAP Measures | ||||
Significant Items Impacting Results for the Six Months Ended Jun 30, 2024 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results | $ 1,057 | $ 955 | $ 1.35 | |
Less: Significant items | ||||
Restructuring, implementation and | (147) | (115) | (0.16) | Cost of sales ( R&D ( |
Income tax related items 5 | — | 194 | 0.27 | Provision for income taxes |
Total significant items | $ (147) | $ 79 | $ 0.11 | |
Operating results (non-GAAP) | $ 1,204 | $ 876 | $ 1.24 |
Significant Items Impacting Results for the Six Months Ended Jun 30, 2023 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results | $ 591 | $ 392 | $ 0.54 | |
Less: Significant items | ||||
Restructuring, implementation and | (606) | (478) | (0.67) | Cost of sales ( R&D ( ( |
Litigation related charges, awards and | (177) | (138) | (0.19) | Cost of sales |
Indemnification and other transaction | (4) | (1) | — | Sundry income (expense) - net |
Income tax related items 8 | — | 57 | 0.08 | Provision for income taxes |
Total significant items | $ (787) | $ (560) | $ (0.78) | |
Operating results (non-GAAP) | $ 1,378 | $ 952 | $ 1.32 |
- "Income before income taxes"
- "Net income 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.
- "Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
- 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.
- Reassessment of interest and penalties related to a tax matter in a foreign jurisdiction.
- Includes a loss associated with legacy agricultural products groundwater contamination matters.
- 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.
- 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 Mar 31, 2024 | ||||
In millions, except per share amounts (Unaudited) | Pretax 1 | Net | EPS 3 | Income Statement Classification |
Reported results | $ 449 | $ 516 | $ 0.73 | |
Less: Significant items | ||||
Restructuring, implementation and | (91) | (72) | (0.10) | Cost of sales ( |
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 |
- "Income before income taxes."
- "Net income 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.
- "Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
- 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.
- Reassessment of interest and penalties related to a tax matter in a foreign jurisdiction.
Reconciliation of Free Cash Flow | Three Months Ended | Six Months Ended | ||
In millions (Unaudited) | Jun 30, | Jun 30, | Jun 30, | Jun 30, |
Cash provided by operating activities - continuing operations (GAAP) | $ 832 | $ 1,347 | $ 1,292 | $ 1,878 |
Capital expenditures | (723) | (561) | (1,437) | (1,001) |
Free Cash Flow (non-GAAP) | $ 109 | $ 786 | $ (145) | $ 877 |
Reconciliation of Cash Flow Conversion | Three Months Ended | |||
In millions (Unaudited) | Sep 30, | Dec 31, | Mar 31, | Jun 30, |
Cash provided by operating activities - continuing operations (GAAP) | $ 460 | $ 832 | ||
Net income (loss) (GAAP) | $ 327 | $ (95) | $ 538 | $ 458 |
Cash flow from operations to net income (GAAP) 1 | 507.0 % | N/A | 85.5 % | 181.7 % |
Cash flow from operations to net income - trailing twelve months | 372.8 % | |||
Operating EBITDA (non-GAAP) | ||||
Cash Flow Conversion (Cash flow from operations to Operating | 129.2 % | 133.9 % | 33.0 % | 55.4 % |
Cash Flow Conversion - trailing twelve months (non-GAAP) | 84.9 % |
- 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: | |
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SOURCE The Dow Chemical Company
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