Dow Reports Third Quarter 2024 Financial Results
Dow Inc. (NYSE: DOW) has announced its financial results for the third quarter of 2024, showcasing a mixed performance amidst challenging market conditions.
Key Financial Metrics
| Metric | 3Q24 | 3Q23 | YoY Change | 2Q24 | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Net Sales | $10.9 billion | $10.73 billion | +1% | $10.92 billion | -0.3% | $10.64 billion |
| GAAP Earnings Per Share (EPS) | $0.30 | $0.42 | -$0.12 | $0.62 | -$0.32 | |
| Operating EPS | $0.47 | $0.48 | -$0.01 | $0.68 | -$0.21 | $0.46 |
| Operating EBIT | $641 million | $626 million | +$15 million | $819 million | -$178 million |
Dow's financial performance in the third quarter reflects a slight increase in net sales year-over-year, driven by higher sales in the U.S. and Canada. However, the company faced a decline in both GAAP and operating EPS compared to the previous quarter, primarily due to an unplanned cracker outage in Texas and lower local prices in certain regions.
Segment Revenue Performance
| Segment | 3Q24 Net Sales | 3Q23 Net Sales | YoY Change | 2Q24 Net Sales | QoQ Change |
|---|---|---|---|---|---|
| Packaging & Specialty Plastics | $5.52 billion | $5.45 billion | +1% | $5.52 billion | Flat |
| Industrial Intermediates & Infrastructure | $2.96 billion | $3.04 billion | -2% | $2.95 billion | +0.4% |
| Performance Materials & Coatings | $2.21 billion | $2.13 billion | +4% | $2.24 billion | -1.3% |
The Packaging & Specialty Plastics segment saw a modest increase in sales, supported by higher polyethylene prices. Meanwhile, the Industrial Intermediates & Infrastructure segment experienced a decline due to lower volumes and prices. Performance Materials & Coatings reported a year-over-year increase in sales, driven by higher volumes across all regions.
CEO Comments
Jim Fitterling, Dow's CEO, highlighted the company's ability to achieve volume growth despite macroeconomic challenges and operational disruptions. He emphasized Dow's strategic focus on optimizing its global asset footprint, particularly in Europe, and announced a strategic review of select assets in the region.
Shareholder Returns and Guidance
Dow returned $584 million to shareholders in the quarter, including $490 million in dividends and $94 million in share repurchases. The company did not provide specific forward guidance but expressed confidence in its ability to leverage demand strength and maintain financial discipline.
Stock Price Movement
Following the earnings release, Dow's stock price rose by 1.5% in premarket trading, reflecting investor optimism about the company's strategic initiatives and performance in key markets.
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