10-QPeriod: Q2 FY2022

DOW INC. Quarterly Report for Q2 Ended Jun 30, 2022

Filed July 22, 2022For Securities:DOW

Summary

Dow Inc. reported strong net sales growth for the second quarter of 2022, reaching $15.7 billion, a 13% increase year-over-year. This growth was primarily driven by a 16% increase in local prices across all segments, reflecting robust demand and rising raw material costs, while overall volume remained flat. Net income available for common stockholders decreased slightly to $1.66 billion from $1.90 billion in the prior year's quarter, leading to diluted earnings per share of $2.26, down from $2.51. The company's financial performance, particularly in its Packaging & Specialty Plastics segment, remained resilient despite inflationary pressures and a challenging global economic environment. Dow also continued its commitment to shareholder returns, repurchasing $800 million in stock and declaring a $0.70 per share dividend.

Financial Statements
Beta
Revenue$15.66B
Cost of Revenue$12.90B
Gross Profit$2.77B
SG&A Expenses$435.00M
Interest Expense$165.00M
Net Income$1.65B
EPS (Basic)$2.28
EPS (Diluted)$2.26
Shares Outstanding (Basic)725.70M
Shares Outstanding (Diluted)731.50M

Key Highlights

  • 1Net sales increased by 13% to $15.7 billion in Q2 2022, driven by strong pricing power.
  • 2Local prices rose by 16% year-over-year across all segments, indicating healthy demand and cost pass-through.
  • 3Volume was flat compared to Q2 2021, with growth in Packaging & Specialty Plastics offset by declines in other segments.
  • 4Net income available for common stockholders was $1.66 billion, a decrease from $1.90 billion in Q2 2021.
  • 5Diluted earnings per share were $2.26, down from $2.51 in the prior year's quarter.
  • 6Dow Inc. repurchased $800 million of its common stock in Q2 2022 and declared a $0.70 per share dividend.
  • 7The company experienced an unfavorable currency impact of 3% on net sales due to a stronger U.S. dollar.

Frequently Asked Questions

Dow Inc. reported net sales of $15.7 billion for the second quarter of 2022, representing a 13% increase compared to $13.9 billion in the second quarter of 2021. This growth was driven by a 16% increase in local prices, while volume remained flat.

Net income available for Dow Inc. common stockholders decreased to $1.66 billion in the second quarter of 2022, down from $1.90 billion in the same period of 2021. Consequently, diluted earnings per share also declined to $2.26 from $2.51 year-over-year.

Dow Inc. demonstrated its commitment to shareholder returns by repurchasing $800 million of its common stock in the second quarter of 2022, under a new $3 billion repurchase program. The company also declared a quarterly dividend of $0.70 per share.

Sales growth was broad-based across operating segments, with strong price increases in Packaging & Specialty Plastics (up 14%), Industrial Intermediates & Infrastructure (up 14%), and Performance Materials & Coatings (up 28%). While Packaging & Specialty Plastics saw a 5% volume increase, Industrial Intermediates & Infrastructure and Performance Materials & Coatings experienced volume declines of 6% and 3% respectively, impacting overall volume neutrality.