Summary
Dow Inc. reported a significant year-over-year decline in net sales for the third quarter of 2023, reaching $10.7 billion, a 24% decrease compared to $14.1 billion in Q3 2022. This decline was driven by widespread decreases in local prices (down 18%) and, to a lesser extent, volume (down 6%) across all operating segments and geographic regions, reflecting a challenging global macroeconomic environment and lower energy and feedstock costs. Consequently, net income available for common stockholders also saw a substantial reduction, falling to $302 million ($0.42 EPS) from $739 million ($1.02 EPS) in the prior year's quarter. Despite the revenue challenges, the company highlighted ongoing efforts in structural cost improvements and strategic initiatives like Decarbonize and Grow, and Transform the Waste. The company reported $3.5 billion in cash from operating activities for the first nine months of 2023, though this was down from $5.4 billion in the same period last year. Dow Inc. also continued its capital allocation priorities, repurchasing $125 million in common stock during the quarter and maintaining its quarterly dividend of $0.70 per share. The company is also managing an estimated $100 million pretax earnings impact per quarter from an incident at its Louisiana Operations Glycol-2 unit, with expected resumption of operations in Q2 2024.
Financial Highlights
49 data points| Revenue | $10.73B |
| Cost of Revenue | $9.59B |
| Gross Profit | $1.14B |
| SG&A Expenses | $380.00M |
| Interest Expense | $192.00M |
| Net Income | $300.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 704.00M |
| Shares Outstanding (Diluted) | 707.50M |
Key Highlights
- 1Net sales decreased by 24% year-over-year to $10.7 billion in Q3 2023, driven by an 18% decrease in local prices and a 6% decrease in volume.
- 2Net income available for common stockholders was $302 million ($0.42 diluted EPS) for Q3 2023, down from $739 million ($1.02 diluted EPS) in Q3 2022.
- 3The company recorded $549 million in restructuring and asset-related charges in the first nine months of 2023, primarily related to cost improvement initiatives and workforce reductions.
- 4Cash provided by operating activities for the first nine months of 2023 was $3.54 billion, a decrease from $5.40 billion in the same period of 2022.
- 5Dow Inc. repurchased $125 million of its common stock in Q3 2023 and $500 million year-to-date.
- 6The company declared a quarterly dividend of $0.70 per share, consistent with previous quarters.
- 7An incident at the Louisiana Operations Glycol-2 unit is estimated to impact pretax earnings by $100 million per quarter, with operations expected to resume in Q2 2024.