Dow's Revenue And Profit Double

Recently, Dow released its financial report for the fourth quarter of 2021, saying that in the fourth quarter, the Dow team once again achieved year-on-year revenue and profit growth in all operating segments. Strong underlying demand and continued rigour in business operations have allowed Dow to overcome supply and logistics constraints and rising raw material and energy costs.

The financial report shows that in the fourth quarter of last year, Dow's net sales were 14.4 billion US dollars, a year-on-year increase of 34%. Growth was achieved across all operating segments, business segments and regions. Net sales declined 3% sequentially, primarily due to lower polyethylene volumes due to supply constraints and lower olefin and by-product prices. Equity income was $224 million, an increase of $118 million year-over-year, primarily due to higher margins in joint ventures.

"The fourth quarter capped Dow's record 2021," said Dow Chairman and Chief Executive Officer Jim Fitlin. "Dow delivered $55 billion in full-year sales and 95 $7.1 billion in operating EBIT. All operating segments grew, margins improved, operating cash flow reached $7.1 billion, and annual return on capital exceeded 22%." 's liability management actions to achieve financial priorities, including reducing total debt by $2.4 billion, optional pension contributions of $1 billion, and cumulative shareholder returns of $3.1 billion. Importantly, Dow also announced plans to decarbonize assets while increasing earnings, enabling Dow to continue delivering more than $3 billion in underlying earnings growth.

Looking ahead to 2022, Fitlin said: "As industrial production continues to grow and consumer spending continues to increase, end-market demand will continue to be strong. After a year of supply constraints and logistical challenges posed by the COVID-19 pandemic, Dow is working to normalize operating rates, inventory and service levels."