MIDLAND, Mich., July 25, 2024 /PRNewswire/ — Dow (NYSE: DOW):

FINANCIAL HIGHLIGHTS

• GAAP profits consistent with percentage was once $0.62; working profits consistent with percentage (EPS)¹ was once $0.68, in comparison to $0.75 within the year-ago duration and $0.56 within the prior quarter. Working EPS excludes vital pieces within the quarter linked to restructuring and potency prices totaling $0.06 consistent with percentage.
• Web gross sales had been $10.9 billion, indisposed 4% as opposed to the year-ago duration. Gross sales had been up 1% sequentially, pushed through positive aspects in Efficiency Fabrics & Coatings and Packaging & Forte Plastics.
• Quantity greater 1% as opposed to the year-ago duration, with positive aspects led through the U.S. & Canada. Sequentially, quantity greater 1%, with positive aspects in all areas except for Asia Pacific, which was once flat. With the exception of Hydrocarbons & Power, quantity greater 4% year-over-year and a pair of% sequentially.
• Native value reduced 4% year-over-year. Sequentially, native value greater 1%, led through positive aspects in Europe, the Center East, Africa and Republic of India (EMEAI).
• Forex reduced internet gross sales through 1% each year-over-year and sequentially.
• Fairness profits had been $26 million, an $83 million growth in comparison to the year-ago duration, pushed through positive aspects on the Kuwait and Sadara joint ventures. Sequentially, fairness profits had been up $9 million.
• GAAP internet source of revenue was once $458 million. Working EBIT¹ was once $819 million, indisposed $66 million year-over-year, essentially pushed through decrease built-in margins and better deliberate upkeep job, that have been partially offset through advanced fairness profits. Sequentially, Op. EBIT was once up $145 million, reflecting positive aspects in Efficiency Fabrics & Coatings and Packaging & Forte Plastics.
• Money supplied through working actions – proceeding operations was once $832 million, indisposed $515 million year-over-year and up $372 million in comparison to the prior quarter because of more potent money wave conversion¹ and a shed of operating capital.
• Returns to shareholders totaled $691 million within the quarter, together with $491 million in dividends and $200 million in percentage repurchases.

SUMMARY FINANCIAL RESULTS

CEO QUOTE

Jim Fitterling, chair and well-known govt officer, commented at the quarter:

“In the second quarter, Team Dow delivered sequential earnings improvement and our third consecutive quarter of year-over-year volume growth,” mentioned 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 $832 million and free cash flow of $109 million. This enabled us to return $691 million to shareholders while progressing our higher-return growth investments.”

SEGMENT HIGHLIGHTS

Packaging & Forte Plastics

Packaging & Forte Plastics section internet gross sales within the quarter had been $5.5 billion, indisposed 7% as opposed to the year-ago duration. Native value reduced 4% year-over-year, because of decrease downstream polymer costs essentially in Asia Pacific. Forex was once flat. Quantity reduced 3% year-over-year, pushed through decrease service provider hydrocarbon gross sales, partially offset through upper call for for purposeful polymers and polyethylene. On a sequential foundation, internet gross sales greater through 2%, led through positive aspects in EMEAI.

Fairness profits had been $55 million, an building up of $36 million in comparison to the prior 12 months, led through positive aspects at our predominant joint ventures, together with Sadara which had deliberate upkeep turnaround job within the prior 12 months. Sequentially, fairness profits had been up $30 million, pushed through positive aspects at our non-principal joint ventures.

Working EBIT was once $703 million, a shorten of $215 million in comparison to the year-ago duration, pushed through decrease built-in margins, upper deliberate upkeep job, and decrease non-recurring licensing gross sales. Sequentially, Op. EBIT greater through $98 million, essentially because of upper built-in margins.

Packaging and Forte Plastics industry reported a internet gross sales decrease as opposed to the year-ago duration as upper call for for business, client, and versatile meals packaging was once greater than offset through decrease costs, essentially in infrastructure and mobility end-markets, and decrease non-recurring licensing gross sales. Sequentially, internet gross sales greater, led through upper polyethylene gross sales within the U.S. & Canada, EMEAI, and Latin The us.

Hydrocarbons & Power industry reported a internet gross sales decrease in comparison to the year-ago duration, pushed through decrease service provider olefin and fragrant gross sales essentially because of lighter feedslate cracking in EMEAI. Sequentially, internet gross sales reduced fairly because of decrease third-party energy and steam gross sales within the U.S. & Canada. 

Commercial Intermediates & Infrastructure

Commercial Intermediates & Infrastructure section internet gross sales had been $3 billion, indisposed 7% as opposed to the year-ago duration. Native value declined 7% year-over-year. Forex reduced internet gross sales through 1%. Quantity was once up 1% year-over-year, pushed through positive aspects in Polyurethanes & Development Chemical substances. On a sequential foundation, internet gross sales reduced 2% as quantity positive aspects in Commercial Answers had been greater than offset through decrease volumes in Polyurethanes & Development Chemical substances, essentially within the U.S. & Canada, together with the affect of a third-party provider outage.

Fairness losses for the section had been $31 million, an growth of $52 million as opposed to the year-ago duration, pushed through advanced MEG margins on the Kuwait joint ventures. Fairness losses within the prior quarter had been $15 million. Sequentially, the profits decrease was once essentially pushed through decrease costs and volumes at Sadara.

Working EBIT was once $7 million, an growth of $42 million as opposed to the year-ago duration, pushed through advanced fairness profits, partially offset through decrease built-in margins. On a sequential foundation, working EBIT reduced $80 million, pushed through upper deliberate upkeep job and fairness losses, in addition to decrease volumes.

Polyurethanes & Development Chemical substances industry reported a internet gross sales shorten in comparison to the year-ago duration, pushed through native value declines, that have been partially offset through quantity positive aspects in EMEAI, led through construction & development. Sequentially, internet gross sales reduced as value positive aspects in all geographic areas except for Latin The us had been greater than offset through decrease volumes within the U.S. & Canada, together with the affect of a third-party provider outage.

Commercial Answers industry reported a shorten in internet gross sales in comparison to the year-ago duration, pushed through native value declines and the affect of an outage at Louisiana Operations, which effectively restarted on the terminate of June. Sequentially, internet gross sales greater, led through quantity positive aspects in Asia Pacific and native value positive aspects in EMEAI and Latin The us.

Efficiency Fabrics & Coatings

Efficiency Fabrics & Coatings section internet gross sales within the quarter had been $2.2 billion, up 2% as opposed to the year-ago duration. Native value reduced 4% year-over-year, with declines in each companies. Forex reduced internet gross sales through 1%. Quantity was once up 7% year-over-year, pushed through positive aspects in each companies and all geographic areas. On a sequential foundation, internet gross sales had been up 4%, pushed through upper volumes in each companies, essentially within the U.S. & Canada and Asia Pacific.

Working EBIT was once $146 million, an growth of $80 million in comparison to the year-ago duration, pushed through broad-based industry and geographic quantity development. Sequentially, Op. EBIT greater $105 million, pushed through quantity positive aspects in each companies and decrease deliberate upkeep job.

Shopper Answers industry reported a shorten in internet gross sales as opposed to the year-ago duration, as upper volumes in all geographic areas and maximum end-markets, together with house & non-public lend a hand and client electronics, had been greater than offset through decrease costs. Sequentially, internet gross sales greater, pushed through quantity positive aspects throughout all end-markets in addition to value positive aspects within the U.S. & Canada and EMEAI, that have been partially offset through decrease costs in Asia Pacific. 

Coatings & Efficiency Monomers industry reported an building up in internet gross sales in comparison to the year-ago duration, pushed through quantity positive aspects in all geographic areas, that have been partially offset through decrease costs. Sequentially, internet gross sales greater, pushed through seasonally upper call for 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,” mentioned 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.”

Convention Name

Dow will host a live webcast of its quarterly profits convention name with buyers to talk about its effects, industry outlook and alternative issues lately at 8:00 a.m. ET. The webcast and slide presentation that accompany the convention name will probably be posted at the occasions and displays web page of investors.dow.com.

About Dow

Dow (NYSE: DOW) is among the international’s chief fabrics science corporations, serving shoppers in high-growth markets akin to packaging, infrastructure, mobility and client packages. Our international breadth, asset integration and scale, centered innovation, chief industry positions and constancy to sustainability permit us to succeed in winning development and assistance ship a sustainable while. We perform production websites in 31 international locations and make use of roughly 35,900 folk. Dow delivered gross sales of roughly $45 billion in 2023. References to Dow or the Corporate heartless Dow Inc. and its subsidiaries. Be told extra about us and our ambition to be probably the most leading edge, customer-centric, inclusive and sustainable fabrics science corporate on the earth through visiting www.dow.com.

Cautionary Remark about Ahead-Having a look Statements 

Positive statements on this press shed are “forward-looking statements” inside the that means of the federal securities rules, together with Category 27A of the Securities Work of 1933, as amended, and Category 21E of the Securities Trade Work of 1934, as amended. Such statements ceaselessly cope with anticipated while industry and monetary efficiency, monetary situation, and alternative issues, and ceaselessly include phrases or words akin to “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and related expressions, and permutations or negatives of those phrases or words.

Ahead-looking statements are in line with flow suppositions and expectancies of while occasions which are topic to dangers, uncertainties and alternative elements which are past Dow’s regulate, which would possibly motive fresh effects to vary materially from the ones projected, expected or implied within the forward-looking statements and discuss best as of the time the statements had been made. Those elements come with, however aren’t restricted to: gross sales of Dow’s merchandise; Dow’s bills, while revenues and profitability; any international and regional financial affects of a plague or alternative family health-related dangers and occasions on Dow’s industry; any sanctions, export restrictions, provide chain disruptions or greater financial doubt linked to the continuing conflicts between Russia and Ukraine and within the Center East; capital necessities and wish for and availability of financing; sudden limitations within the construction of era, together with with recognize to Dow’s pondered capital and working tasks; Dow’s skill to appreciate its constancy to carbon neutrality at the pondered time-frame, together with the final touch and luck of its built-in ethylene cracker and derivatives facility in Alberta, Canada; measurement of the markets for Dow’s services and products and skill to compete in such markets; failure to create and marketplace untouched merchandise and optimally top product month cycles; the velocity and level of marketplace acceptance of Dow’s merchandise; vital litigation and environmental issues and linked contingencies and sudden bills; the luck of competing applied sciences which are or would possibly turn out to be to be had; the facility to give protection to Dow’s highbrow quality in america and out of the country; tendencies linked to pondered restructuring actions and proposed divestitures or acquisitions akin to personnel aid, production facility and/or asset closure and linked journey and disposal actions, and the advantages and prices related to every of the foregoing; fluctuations in power and uncooked subject matter costs; control of procedure protection and product stewardship; adjustments in relationships with Dow’s vital shoppers and providers; adjustments in family sentiment and political management; greater issues about plastics within the circumstance and dearth of a round economic system for plastics at scale; adjustments in client personal tastes and insist; adjustments in rules and laws, political statuses or business construction; international financial and capital markets statuses, akin to inflation, marketplace doubt, pastime and foreign money change charges, and fairness and commodity costs; industry or provide disruptions; safety warnings, akin to acts of sabotage, terrorism or conflict, together with the continuing conflicts between Russia and Ukraine and within the Center East; climate occasions and herbal failures; disruptions in Dow’s data era networks and techniques, together with the affect of cyberattacks; and dangers linked to Dow’s split-up from DowDuPont Inc. akin to Dow’s legal responsibility to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for positive liabilities.

The place, in any forward-looking commentary, an expectation or trust as to while effects or occasions is expressed, such expectation or trust is in line with the flow plans and expectancies of control and expressed in excellent religion and believed to have an inexpensive foundation, however there will also be refuse guarantee that the expectancy or trust will end result or be completed or completed. An in depth dialogue of predominant dangers and uncertainties which would possibly motive fresh effects and occasions to vary materially from such forward-looking statements is integrated within the division titled “Risk Factors” contained within the Corporate’s Annual File on Method 10-Ok for the 12 months ended December 31, 2023, and the Corporate’s next Quarterly Studies on Method 10-Q. Those aren’t the one dangers and uncertainties that Dow faces. There could also be alternative dangers and uncertainties that Dow is not able to spot at this future or that Dow does no longer recently be expecting to have a subject matter affect on its industry. If any of the ones dangers or uncertainties develops into an fresh tournament, it would have a subject matter hostile impact on Dow’s industry. Dow Inc. and The Dow Chemical Corporate and its consolidated subsidiaries think refuse legal responsibility to replace or revise publicly any forward-looking statements whether or not on account of untouched data, while occasions, or differently, except for as required through securities and alternative appropriate rules.

Non-GAAP Monetary Measures
This profits shed contains data that doesn’t agree to GAAP and are thought to be non-GAAP measures. Control makes use of those measures internally for making plans, forecasting and comparing the efficiency of the Corporate’s areas, together with allocating assets. Dow’s control believes that those non-GAAP measures highest mirror the continuing efficiency of the Corporate all over the classes offered and grant extra related and significant data to buyers as they grant perception with recognize to ongoing working result of the Corporate and a extra helpful comparability of year-over-year effects. Those non-GAAP measures complement the Corporate’s GAAP disclosures and must no longer be considered as possible choices to GAAP measures of efficiency. Moreover, such non-GAAP measures is probably not in line with related measures supplied or old through alternative corporations. Non-GAAP measures integrated on this shed are outlined beneath. Reconciliations for those non-GAAP measures to GAAP are supplied within the Decided on Monetary Knowledge and Non-GAAP Measures division founding on web page 11. Dow does no longer grant forward-looking GAAP monetary measures or a reconciliation of forward-looking non-GAAP monetary measures to probably the most similar GAAP monetary measures on a forward-looking foundation for the reason that Corporate is not able to are expecting with affordable walk in the park the endmost result of pending litigation, peculiar positive aspects and losses, foreign exchange change positive aspects or losses and possible while asset impairments, in addition to discrete taxable occasions, with out unreasonable attempt. This stuff are unsure, rely on numerous elements, and will have a subject matter affect on GAAP effects for the steering duration.

Working Profits In line with Percentage is outlined as “Earnings per common share – diluted” except for the after-tax affect of important pieces.

Working EBIT is outlined as profits (i.e., “Income before income taxes”) sooner than pastime, except for the affect of important pieces.

Working EBIT Margin is outlined as Working EBIT as a share of internet gross sales.

Working EBITDA is outlined as profits (i.e., “Income before income taxes”) sooner than pastime, depreciation and amortization, except for the affect of important pieces.

Detached Money Tide is outlined as “Cash provided by operating activities – continuing operations,” much less capital expenditures. Beneath this definition, Detached Money Tide represents the money generated through the Corporate from operations later making an investment in its asset bottom. Detached Money Tide, mixed with money balances and alternative assets of liquidity, constitute the money to be had to capitaltreasury responsibilities and grant returns to shareholders. Detached Money Tide is an integral monetary measure old within the Corporate’s monetary making plans procedure.

Money Tide Conversion is outlined as “Cash provided by operating activities – continuing operations,” divided through Working EBITDA. Control believes Money Tide Conversion is an impressive monetary metric because it is helping the Corporate decide how successfully it’s changing its profits into money wave.

Working Go back on Capital (ROC) is outlined as internet working benefit later tax, except for the affect of important pieces, divided through general common capital, additionally known as ROIC.

1. Europe, Center East, Africa and Republic of India.

1. “Income before income taxes.”
2. “Net income available for Dow Inc. common stockholders.” The source of revenue tax impact on vital pieces was once calculated founded upon the enacted tax rules and statutory source of revenue tax charges appropriate within the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3. “Earnings per common share – diluted,” which contains the affect of collaborating securities in keeping with the two-class form.
4. Restructuring fees and implementation and potency prices related to the Corporate’s 2023 Restructuring Program.
5. Basically linked to fees related to commitments entered into with DuPont and Corteva as a part of the split-up and distribution which, amongst alternative issues, supplies for cross-indemnities and allocations of responsibilities and liabilities for classes previous to, at and later the final touch of the split-up.

1. “Income before income taxes”
2. “Net income available for Dow Inc. common stockholders.” The source of revenue tax impact on vital pieces was once calculated founded upon the enacted tax rules and statutory source of revenue tax charges appropriate within the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3. “Earnings per common share – diluted,” which contains the affect of collaborating securities in keeping with the two-class form.
4. Restructuring fees and implementation and potency prices related to the Corporate’s 2023 Restructuring Program. Additionally contains impairment fees linked to the write-down of positive production property in 2024 and sure positive aspects and losses related to up to now worn fairness investments in 2023.
5. Reassessment of pastime and consequences linked to a tax topic in a overseas jurisdiction.
6. Features a loss related to legacy agricultural merchandise groundwater contamination issues.
7. Basically linked to fees related to commitments entered into with DuPont and Corteva as a part of the split-up and distribution which, amongst alternative issues, supplies for cross-indemnities and allocations of responsibilities and liabilities for classes previous to, at and later the final touch of the split-up.
8. Indistinguishable to deferred tax property in a overseas jurisdiction in part offset through a remeasurement of unsure tax positions.

1. “Income before income taxes.”
2. “Net income available for Dow Inc. common stockholders.” The source of revenue tax impact on vital pieces was once calculated founded upon the enacted tax rules and statutory source of revenue tax charges appropriate within the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3. “Earnings per common share – diluted,” which contains the affect of collaborating securities in keeping with the two-class form.
4. Restructuring fees and implementation and potency prices related to the Corporate’s 2023 Restructuring Program. Additionally contains impairment fees linked to the write-down of positive production property.
5. Reassessment of pastime and consequences linked to a tax topic in a overseas jurisdiction.

1. Money wave from operations to internet source of revenue isn’t appropriate for the fourth quarter of 2023 because of a internet loss for the duration.

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SOURCE The Dow Chemical Corporate