Dow has posted net sales at US$ 10.8 billion during January – March 2024, down 9% versus the year-ago period. Sales were up 1% sequentially, driven by gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure. However, volume increased 1% versus the year-ago period, with gains in all regions except Europe, the Middle East, Africa and India (EMEAI).

Excluding Hydrocarbons & Energy, volume increased 5% year-over-year. Sequentially, volume increased 1%, led by Performance Materials & Coatings. Excluding Hydrocarbons & Energy, volume increased 3% sequentially.

Local price decreased 10% year-over-year. Sequentially, local price was flat, as modest gains in EMEAI were offset by slight declines in Asia Pacific and the U.S. & Canada. Currency was flat both year-over-year and sequentially.

During the quarter, equity earnings were US$ 17 million, a US$ 65 million improvement compared to the year-ago period and up US$ 24 million sequentially, reflecting improvements in all of the company's principal joint ventures.

GAAP net income was US$ 538 million. Operating EBIT was US$ 674 million, down US$ 34 million year-over-year, driven by lower prices. Sequentially, Op. EBIT was up US$ 115 million, reflecting gains in Performance Materials & Coatings and Industrial Intermediates & Infrastructure.

Cash provided by operating activities – continuing operations was US$ 460 million, down US$ 71 million year-over-year and down US$ 1.2 billion compared to the prior quarter due to a normal seasonal increase in working capital, as sales progressively increased during the quarter.

Jim Fitterling, Chair and Chief Executive Officer, commented on the quarter: "In the first quarter, we captured improving demand, maintained pricing and benefited from lower feedstock and energy costs. The strength of our cost-advantaged positions around the world led to higher operating rates. As a result, Team Dow delivered volume growth and margin expansion sequentially across our diverse portfolio. We also delivered on our capital allocation priorities, including returning $693 million in cash to shareholders during the quarter."

"Dow once again delivered top-quartile performance in our annual benchmarking on three-year average cash flow, margins, return on invested capital and shareholder remuneration. Each of these can be attributed to our consistent operating and financial discipline."

Outlook

"In the near-term, demand in key end-markets from packaging and mobility to energy applications are trending sequentially higher and in-line with our expectations at the start of the year," said Fitterling. "In addition, our high-value organic growth investments and our advantaged portfolio position Dow well to deliver earnings growth and enhanced shareholder value as the economic recovery gathers strength. This allows us the financial flexibility to advance our long-term Decarbonize & Grow and Transform the Waste strategies and capture more than $3 billion in underlying earnings improvement annually by 2030.”