Dow Slips Post Q2 Results; Unveils Series Of Circularity Projects

  • Dow Inc DOW reported second-quarter sales growth of 13% year-over-year to $15.66 billion, beating the consensus of $15.54 billion.
  • Adjusted EPS was $2.31, above the consensus of $2.16.
  • Local price increased 16% Y/Y, reflecting gains in all operating segments, businesses, and regions. Volume was consistent with the year-ago period.
  • Operating EBIT declined by 16% Y/Y to $2.37 billion and margin contracted by 520 bps to 15.2%.
  • Packaging & Specialty Plastics sales increased 16% Y/Y to $8.2 billion, and the operating EBIT margin of 17.4% was down by 1,090 bps.
  • Industrial Intermediates & Infrastructure sales increased 4% Y/Y to $4.4 billion, and the operating EBIT margin contracted by 570 bps to 9.7%.
  • Performance Materials & Coatings sales increased by 22% Y/Y to $3 billion, and the operating EBIT margin expanded by 960 bps to 18.7%.
  • DOW's cash provided by operating activities year-to-date was $3.46 billion, compared to $1.71 billion a year ago. Free cash flow was $2.7 billion.
  • The company returned $1.3 billion to shareholders in the quarter, comprised of $505 million in dividends and $800 million in share repurchases.
  • "Looking ahead, the long-term fundamentals driving growth across our end markets remain attractive. While near-term market conditions are dynamic, we will continue leveraging our diverse, global portfolio and flexible operating model to capitalize on attractive growth opportunities," said chairman and CEO Jim Fitterling.
  • Separately, Dow and Mura Technology announced the next steps in partnership. The companies will build multiple facilities in the U.S. and Europe, adding as much as 600 kilotons of aggregate advanced recycling capacity by 2030.
  • Price Action: DOW shares are trading lower by 3.03% at $50.96 on the last check Thursday.
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