Dow Q4 2024 net sales down by 2% at $ 10.4 billion
Chemical

Dow Q4 2024 net sales down by 2% at $ 10.4 billion

The company is taking actions to reduce its 2025 CapEx plans by $300 - 500 million

  • By ICN Bureau | January 30, 2025

Dow has posted a 2 per cent YoY drop in its net sales at $10.4 billion, reflecting declines in Packaging & Specialty Plastics. Sequentially, net sales were down 4 per cent, led by seasonal declines in Performance Materials & Coatings.

Meanwhile, volume increased 1 per cent compared to the year-ago period, with gains in most regions. Sequentially, volume decreased 1 per cent, led by seasonally lower demand in Performance Materials & Coatings, partly offset by improved supply availability in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure.

Local price was down 3 per cent year-over-year and sequentially, with declines in all operating segments. Equity losses were $51 million, down $44 million compared to the year-ago period, primarily driven by lower integrated margins at our Thai joint ventures. Sequentially, equity earnings were down $53 million, driven by lower earnings at our principal joint ventures.

GAAP net loss was $35 million, or $0.08 per share, including significant items totaling $0.08, primarily from restructuring and efficiency costs. Operating earnings per share¹ was $0.00. Both earnings per share and operating earnings per share include higher-than-expected non-cash tax adjustments of $0.27, primarily related to Argentina, amplified by inflation.

Op. EBIT1 was $454 million, down $105 million year-over-year, primarily driven by lower prices, which were partly offset by higher operating rates and lower spending. Sequentially, Op. EBIT was down $187 million, reflecting lower integrated margins in Packaging & Specialty Plastics and seasonally lower demand in Performance Materials & Coatings.

Cash provided by operating activities – continuing operations was $811 million, down $817 million year-overyear, primarily driven by a significant prior period working capital release from destocking. Sequentially, cash from operating activities was up $11 million.

The Company delivered 2024 full year net sales of $43.0 billion compared to $44.6 billion in 2023. GAAP net income was $1.2 billion, up from $660 million in 2023. Operating EBIT was $2.6 billion, down from $2.8 billion last year. Cash provided by operating activities – continuing operations was $2.9 billion compared to $5.2 billion in 2023. The Company delivered returns to shareholders of $2.5 billion, comprised of $2 billion in dividends and $0.5 billion in share repurchases in 2024.

Jim Fitterling, Chair and Chief Executive OLfficer, commented on the quarter: “Despite persistently weak macroeconomic conditions, Team Dow delivered our fifth consecutive quarter of yearover-year volume growth, leveraging our cost-advantaged footprint to capture resilient demand for high-value applications. In December, we signed a definitive agreement for the sale of a minority stake in select U.S. Gulf Coast infrastructure assets for expected cash proceeds of up to approximately $3 billion. The partnership represents a new business model designed to drive operational efficiencies and growth with new customers, while providing near-term financial flexibility. We also announced a strategic review of select European assets, and today we are announcing additional actions to deliver $1 billion of targeted cost reductions. These collective actions represent a continuation of Dow’s commitment to maintaining our strong financial foundation and supplementing near-term cash flow.”

OUTLOOK

“We remain confident that Dow will benefit from the completion of our near-term incremental growth projects and an enhanced focus on operational discipline in 2025. In addition, we are optimistic that we will see further demand growth in attractive end markets such as packaging, energy and electronics,” said Fitterling.

“Our differentiated portfolio and strong balance sheet enable us to deliver on all our capital allocation priorities, including an industryleading dividend. Until we see more definitive indications of a true recovery taking hold – and in order to deliver improved margins – we are taking actions to reduce our costs by $1 billion as well as our 2025 CapEx plans by $300 - 500 million. We will complete these actions while staying the course on our long-term strategic priorities. Our proactive interventions are necessary for Dow to continue to successfully navigate this economic downcycle.”  

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