Dow 2023 net sales drops to US$ 44.6 billion

Dow 2023 net sales drops to US$ 44.6 billion

Net sales were $10.6 billion for Q4 2023

  • By ICN Bureau | January 28, 2024

Dow delivered 2023 full year net sales of US$ 44.6 billion compared to US$ 56.9 billion in 2022. GAAP net income was US$ 660 million, down from $4.6 billion in 2022. Operating EBIT was US$ 2.8 billion, down from US$ 6.6 billion last year.

Cash provided by operating activities – continuing operations was $5.2 billion compared to $7.5 billion in 2022. The Company delivered returns to shareholders of $2.6 billion through $2 billion in dividends and $625 million in share repurchases in 2023.

For Q4 2023, net sales were $10.6 billion, down 10% versus the year-ago period, reflecting declines in all operating segments due to slower global macroeconomic activity. Sales were down 1% sequentially, as price and volume gains in Packaging & Specialty Plastics were more than offset by seasonal demand declines in Performance Materials & Coatings.

During Q4, volume increased 2% versus the year-ago period, with gains across all regions except Asia Pacific, which was flat. Sequentially, volume decreased by 1%, including the impact to our Bahía Blanca, Argentina site due to a severe, unexpected storm in December.

Jim Fitterling, Chair and CEO,  commented on the quarter: "In the fourth quarter, Team Dow continued to advance our strategic, financial and operational priorities in a challenging and dynamic macroeconomic environment. We saw year-over-year volume improvements in the quarter, delivered our goal of $1 billion in targeted cost actions for the year, and took actions to further de-risk our pension plans.

“With our continued focus on cash generation, we achieved a cash flow to EBITDA conversion of 96% in 2023, which enabled free cash flow of $870 million and returns to shareholders of $616 million in the quarter. We also hit a key milestone towards advancing our long-term Decarbonize & Grow strategy with the final investment decision for our Path2Zero project in Fort Saskatchewan, Alberta, where construction will begin this year.

“The strength of our balance sheet allows us to navigate the bottom of the cycle and have the strength to invest and capitalize on the next upside in the global economy."

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