The Dow Chemical Company has posted net sales of $15.7 billion, up 13% versus the year-ago period with gains in all operating segments and regions during the second quarter of 2022. Sequentially, sales were up 3% with gains in all regions except Asia Pacific, which was impacted by pandemic-related lockdowns in China.

As local price increased 16% versus the year-ago period, it reflected gains in all operating segments, businesses, and regions. Currency decreased net sales by 3% year-over-year due to broad-based strength of the U.S. dollar. Sequentially, local price increased 6% with gains in all operating segments and regions.

Meanwhile, volume was consistent with the year-ago period, as gains in Packaging & Specialty Plastics were primarily offset by declines in Industrial Intermediates & Infrastructure. Sequentially, volume declined 2%, driven by declines primarily in Europe and China.

Equity earnings were $195 million, down $83 million from the year-ago period, primarily due to impacts from pandemic-related lockdowns in China. Equity earnings were up $21 million from the prior quarter, driven by gains at Sadara.

GAAP Net Income was $1.7 billion. Operating EBIT1 was $2.4 billion, down $453 million versus the year-ago period. Gains in the Performance Materials & Coatings segment were more than offset by higher raw material and energy costs across the company as well as lower equity earnings. Sequentially, operating EBIT decreased 2%, as gains in Packaging & Specialty Plastics were more than offset by declines in Industrial Intermediates & Infrastructure.

Cash provided by operating activities – continuing operations was $1.9 billion, down $165 million year-over-year and up $244 million compared to the prior quarter. Free cash flow1 was $1.4 billion.

The company's proactive actions to redeem outstanding notes totaling $750 million have delivered an annual interest expense reduction of $27 million and no substantive long-term debt maturities are due until 2027.

Jim Fitterling, Chairman and CEO, said : "Team Dow once again delivered net sales growth both year-over-year and sequentially with price increases across all operating segments and regions. Our competitive advantages and relentless focus on disciplined execution enabled us to navigate the impacts of pandemic-related lockdowns in China, continued logistics constraints, and higher energy and raw material costs. As a result, we increased our cash flow and our share buybacks sequentially.

"We continued to progress our strategy to grow our underlying earnings over the economic cycle by investing in higher-return, faster-payback projects while capitalizing on long-term growth opportunities. As part of these efforts, today we announced a series of circularity projects that will enable us to achieve approximately two thirds of our 2030 'Stop the Waste' target as we capture growth for the sustainable and circular solutions our customers are increasingly demanding."

OUTLOOK

"Looking ahead, the long-term fundamentals driving growth across our end markets remain attractive," said Fitterling. "While near-term market conditions are dynamic, we will continue to leverage our diverse, global portfolio and flexible operating model to capitalize on attractive growth opportunities. The actions we've taken to enhance the resiliency of our business position us well to deliver value across a variety of economic environments. Our disciplined and balanced approach to capital allocation has delivered higher mid-cycle earnings, an improved credit profile, and cash generation above pre-pandemic levels. Team Dow remains well-positioned to continue advancing our "decarbonize and grow" strategy while delivering attractive shareholder remuneration."