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Dow reports in-line Q3 earnings, revenue beats estimates

Published 24/10/2024, 09:10 pm
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DOW
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NEW YORK - Dow Inc. (NYSE:DOW) reported third-quarter earnings that met analyst expectations while revenue surpassed estimates, driven by higher sales in the U.S. and Canada.

The chemical company reported adjusted earnings per share of $0.47, in line with analyst estimates, compared to $0.48 in the same quarter last year. Revenue came in at $10.9 billion, beating the consensus estimate of $10.68 billion and up 1% YoY.

Volume increased 1% compared to the year-ago period, driven by gains in Performance Materials & Coatings. Local price remained flat year-over-year, as gains in Packaging (NYSE:PKG) & Specialty Plastics were offset by decreases in Performance Materials & Coatings.

"In the third quarter, Team Dow delivered our fourth consecutive quarter of year-over-year volume growth, while managing ongoing macroeconomic softness and an unplanned cracker outage in Texas," said Jim Fitterling, Dow's chairman and CEO.

The company's Packaging & Specialty Plastics segment reported net sales of $5.5 billion, up 1% versus the year-ago period. Operating EBIT for this segment was $618 million, an increase of $142 million compared to the year-ago period.

Dow reported cash provided by operating activities from continuing operations of $800 million, down $858 million YoY, primarily due to higher inventory to support both sales growth and labor-related supply chain disruptions.

The company returned $584 million to shareholders in the quarter, including $490 million in dividends and $94 million in share repurchases.

Looking ahead, Fitterling stated, "As cycle dynamics improve, we remain well-positioned to enable higher returns to shareholders. Our financial strength will continue to support our counter-cyclical growth investments, which are focused in higher-value businesses and regions."

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