Dow Reports 4% Decline in Q2 2024 Net Sales to $10.9 Billion

Dow's net sales for the second quarter of 2024 fell 4% to $10.9 billion compared to the second quarter of 2023. However, sales increased 1% sequentially, driven by growth in Performance Materials & Coatings and Packaging & Specialty Plastics.

Volumes increased 1% year-over-year in the quarter, with the largest increases in the U.S. and Canada. Sequentially, sales increased 1%, with all regions increasing except Asia Pacific, which was flat. Volumes increased 4% year-over-year and 2% sequentially, except for Hydrocarbons & Energy. Equity earnings were $26 million, up $83 million from the year-over-year, driven by earnings from the Kuwait and Sadara joint ventures. Equity earnings increased $9 million sequentially.

GAAP net income was $458 million. Operating EBITDA was $819 million, down $66 million from the prior year due primarily to lower combined margins and higher planned maintenance activity, partially offset by higher equity earnings. Operating EBITDA increased $145 million sequentially, reflecting growth in Performance Materials & Coatings and Packaging & Specialty Plastics.

Cash provided by operating activities - continuing operations was $832 million, down $515 million from the prior year and up $372 million sequentially due to stronger cash flow conversion and working capital releases.

Jim Fitterling, Dow Chairman and CEO, said: "In the second quarter, the Dow team delivered sequential earnings growth and achieved year-over-year volume growth for the third consecutive quarter. The global macroeconomic recovery has been slower than expected. We remain focused on working capital, reducing costs and matching our operating rate to current demand. We innovate alongside our customers, which was fully demonstrated this quarter as we captured growing demand in packaging, electronics, and home and personal care. We continued to focus on cash generation, delivering $832 million of operating cash flow and $109 million of free cash flow. This enabled us to return $691 million to shareholders while advancing our higher-return growth investments.

"Looking ahead to the second half of the year, the Dow team is focused on continuing to deliver sequential earnings growth while navigating the slower macro environment we are currently experiencing. While short-term demand is growing in many of the markets we serve, construction and consumer durables are unlikely to change significantly in 2024. We will continue to drive higher sales through our innovative portfolio and diversified product portfolio. In addition, we remain on track to deliver higher earnings and shareholder returns by leveraging our global scale, strategically advantageous cost position and counter-cyclical growth investments," said Fitterling.