On October 24, 2023, Dow Inc (DOW, Financial) released its third quarter 2023 earnings report. Despite challenging macroeconomic conditions, the company continues to advance its long-term strategy while delivering returns to shareholders. However, the company's financial performance was impacted by slower global macroeconomic activity and lower local prices.
Financial Performance
Dow Inc (DOW, Financial)'s GAAP earnings per share (EPS) for Q3 2023 was $0.42, while operating EPS was $0.48. This represents a significant decrease from the $1.11 EPS reported in the same period last year. The operating EPS excludes significant items in the quarter, totaling $0.06 per share, primarily related to costs associated with the Company’s 2023 Restructuring Program.
Net sales for the quarter were $10.7 billion, down 24% compared to the year-ago period. This decline reflects slower global macroeconomic activity impacting all operating segments. Sequentially, sales were down 6% as volume gains were more than offset by lower local prices.
Segment Performance
In the Packaging & Specialty Plastics segment, net sales were $5.5 billion, down 26% YoY. The Industrial Intermediates & Infrastructure segment reported net sales of $3 billion, down 25% YoY. The Performance Materials & Coatings segment reported net sales of $2.1 billion, down 20% YoY.
Shareholder Returns
Dow Inc (DOW, Financial) returned a total of $617 million to shareholders in the quarter. This included $492 million in dividends and $125 million in share repurchases.
CEO Commentary
Jim Fitterling, chair and chief executive officer, commented on the quarter: “In the third quarter, Team Dow continued to advance our long-term strategy while also taking proactive actions to reduce costs and maximize cash generation in a challenging macro environment. Despite higher sequential feedstock costs, we continued to implement targeted actions to deliver $1 billion in cost savings in 2023. Operating cash flow of $1.7 billion improved $311 million sequentially, and enabled more than $615 million in returns to shareholders, reflecting our continued disciplined and balanced approach to capital allocation.”
Despite the challenging macroeconomic conditions, Dow Inc (DOW, Financial) remains committed to its long-term strategy and delivering value to its shareholders. The company continues to navigate these market dynamics and expects to further benefit from rising oil prices that favor its cost-advantaged asset footprint.
