Dow's performance fell sharply

On January 30, Dow released its fourth quarter 2022 financial report, showing that the company's earnings per share were $0.85 on a generally accepted accounting principle (GAAP) basis, far lower than $2.15 in the same period of 2021 and $1.11 in the third quarter of 2022.

According to the financial report, in the fourth quarter, Dow's equity income in major joint ventures declined, with equity losses of $43 million, down $267 million from equity gains in the same period in 2021. The decline in equity income was related to a significant decline in the company's sales. The company's net sales in the fourth quarter were only $11.9 billion, down 17% year-over-year and 16% sequentially. All operating segments declined, mainly due to a slowing economy and reduced inventories by customers. Sales decreased by 8% year-on-year, including an 18% decline in EMEA and India.

In the fourth quarter, Dow's operating EBIT was $601 million, down $1.7 billion year-over-year and $594 million sequentially. Earnings declined in all of the company's operating segments due to lower pricing and lower operating rates to accommodate changing market dynamics.

In 2022, Dow's GAAP net income was only $4.6 billion, down from $6.4 billion in 2021. Operating EBITDA of $6.6 billion was also well below $9.5 billion in 2021.