Chemicals maker Dow has registered 27 per cent decline to its Q2 FY2023 revenue at US$ 11.42 billion. According to the company, declines in all operating segments reflected lower demand and prices due to slower macroeconomic activity. Sales were down 4% sequentially, as volume gains were more than offset by lower local prices. Also, volume decreased 8% versus the year-ago period, led by a 14 per cent decline in Europe, the Middle East, Africa, and India (EMEAI).

Sequentially, volume increased by 1 per cent, driven by gains in Asia Pacific and Latin America. The company said that local price declined 18% versus the year-ago period and 5% sequentially, with declines in all operating segments and regions due to lower demand and global energy and feedstock costs.

According to the company, equity losses were $57 million, compared to equity earnings of $195 million in the year-ago period, primarily driven by declines at Sadara. Equity losses were $48 million in the prior quarter. Sequentially, the earnings decline was primarily driven by lower product prices, reflecting the impact of a slow recovery in China.

GAAP net income was $501 million. Operating EBIT1 was $885 million, down from $2.4 billion in the year-ago period, with declines in all operating segments primarily driven by lower local prices. Sequentially, Op. EBIT was up $177 million, primarily driven by Packaging & Specialty Plastics.

Commenting on the result, Jim Fitterling, Chair and Chief Executive Officer, said: “Team Dow delivered sequential earnings improvement and generated operating cash flow of more than $1.3 billion in the second quarter. We proactively navigated the challenging near-term macro environment by mplementing our targeted cost savings actions while capitalizing on our advantaged feedstock position and participation in attractive end-markets. Year-to-date, we have returned nearly $1.4 billion to shareholders through our industry-leading dividend and share repurchases, reflecting our ongoing commitment to strong cash generation. Altogether, we remain well-positioned to execute our financial and operational playbook and advance our Decarbonize and Grow strategy to continue to create value for all our stakeholders.”

On outlook, Fitterling opined: “Looking ahead, we will continue to execute our near-term cost savings actions and advance our longer-term strategic priorities as we manage through a macro environment that is expected to remain challenging in the second half of the year.”

“The actions we outlined in January are on track to deliver $1 billion of cost savings this year and we continue to benefit from the solid financial position and focus on cash flow generation we have demonstrated since Spin. Additionally, our disciplined and balanced capital allocation priorities continue to support our Decarbonize and Grow, and Transform the Waste investments to deliver long-term value creation for our stakeholders.”