Dow Chemical's Net Sales Drop to $44.6 Billion in 2023

In 2023, Dow's full-year net sales were $44.6 billion, down from $56.9 billion in 2022. On a generally accepted accounting principles (GAAP) basis, net income was $660 million, down from $4.6 billion in 2022. Operating EBIT was $2.8 billion, down from $6.6 billion last year.

Cash provided by continuing operating activities was $5.2 billion, compared with $7.5 billion in 2022. The company returned $2.6 billion to shareholders through 2023 with $2 billion in dividends and $625 million in stock repurchases.

In the fourth quarter of 2023, net sales were $10.6 billion, down 10% from the same period last year, reflecting the impact of slower global macroeconomic activity that resulted in declines across all operating segments. Sales fell 1% compared to the previous quarter, primarily as price and volume increases in Packaging and Specialty Plastics were offset by lower seasonal demand in Performance Materials and Coatings, and including the impact of severe, unexpected storms that hit Bahia Blanca, Argentina, in December. In the fourth quarter, compared with the same period last year, sales increased 2% and increased in all regions except Asia Pacific, which was flat.

Commenting on the quarter, Jim Fitterling, chairman of the board and chief executive officer, said: "In the fourth quarter, the Dow team continued to drive our strategic, financial and operational priorities in a challenging and dynamic macroeconomic environment.We saw year-over-year improvement in quarterly volume, met our full-year target of $1 billion in targeted cost measures and took steps to further reduce our pension plan risk. Through our continued focus on cash generation, we achieved a 96% cash flow to EBIT conversion rate in 2023, which resulted in quarterly free cash flow of $870 million and returned $616 million to shareholders."

"We also reached a major milestone in advancing our long-term decarbonization and growth strategy with the decision to initiate a final investment decision on our Path2Zero project this year in Fort Saskatchewan, Alberta. The strength of our balance sheet positions us to weather the bottom of the economic cycle and is well positioned to invest in and take advantage of the next upswing in the global economy. " Jim added.