Summary
Dow Inc. reported a substantial turnaround in its financial performance for the nine months ended September 30, 2021, compared to the same period in 2020. Net sales surged by 46% to $40.6 billion, driven by a significant 40% increase in local prices and a 3% rise in volume, reflecting robust end-market demand and favorable supply/demand dynamics. This led to a dramatic improvement in profitability, with Net Income Available for Common Stockholders reaching $4.575 billion, a stark contrast to a net loss of $11 million in the prior year. The company also demonstrated strong operational execution, with cash provided by operating activities increasing, and a notable reduction in gross debt by $1.1 billion in the third quarter, contributing to improved financial flexibility. Dow's strategic focus on higher-margin, sustainability-driven solutions and disciplined capital allocation appears to be yielding positive results for investors. In the third quarter of 2021 specifically, net sales grew by 53% year-over-year to $14.8 billion, with local prices increasing by 50% and volume up 2%. Net income available for common stockholders was $1.683 billion, or $2.23 per diluted share, a significant recovery from a net loss in the prior year. The company also actively managed its capital, repurchasing $400 million of its common stock and reducing gross debt. Looking ahead, Dow is focused on long-term value creation through decarbonization efforts and investments in sustainable, high-growth areas.
Financial Highlights
52 data points| Revenue | $14.84B |
| Cost of Revenue | $11.61B |
| Gross Profit | $3.23B |
| SG&A Expenses | $403.00M |
| Operating Income | $4.64B |
| Interest Expense | $178.00M |
| Net Income | $1.68B |
| EPS (Basic) | $2.25 |
| EPS (Diluted) | $2.23 |
| Shares Outstanding (Basic) | 744.50M |
| Shares Outstanding (Diluted) | 750.00M |
Key Highlights
- 1Net sales for the nine months ended September 30, 2021, increased by 46% to $40.6 billion, compared to $27.8 billion in the prior year period, driven by a 40% increase in local price and a 3% increase in volume.
- 2Net income available for common stockholders surged to $4.575 billion for the nine months ended September 30, 2021, a significant improvement from a net loss of $11 million in the same period of 2020.
- 3Third-quarter 2021 net sales rose 53% year-over-year to $14.8 billion, with local prices up 50% and volume up 2%.
- 4Diluted earnings per share for the nine months ended September 30, 2021, were $6.06, a substantial increase from a loss of $0.02 in the prior year.
- 5Cash provided by operating activities for the nine months ended September 30, 2021, was $4.434 billion, demonstrating strong operational cash generation.
- 6Dow Inc. repurchased $400 million of its common stock in the third quarter of 2021 and reduced gross debt by $1.1 billion during the quarter.
- 7The company is investing in long-term growth through initiatives focused on decarbonization and sustainability, including plans for a net-zero carbon emissions ethylene and derivatives complex and expansion of circular plastics capabilities.