Q2 2024 Dow Inc Earnings Call Transcript
Key Points
- Dow Inc (DOW) delivered sequential top and bottom-line growth and the third consecutive quarter of year-over-year volume growth.
- Net sales were $10.9 billion, with gains in Packaging and Specialty Plastics and Performance Materials and Coatings.
- Cash flow from operations was $832 million, resulting in an 85% cash flow conversion on a trailing 12-month basis.
- Dow Inc (DOW) returned $691 million to shareholders, including $491 million through dividends and $200 million in share repurchases.
- The company is advancing multiple downstream silicones de-bottlenecking projects and progressing on its Path2Zero project, expected to deliver significant EBITDA growth by 2030.
- Net sales were down 4% year over year, reflecting a slower than expected global macroeconomic recovery.
- Local price decreased 4% year over year, indicating pricing pressures.
- Operating EBIT in the Packaging & Specialty Plastics segment was down $215 million year over year due to lower integrated margins and higher planned maintenance activity.
- The Industrial Intermediates & Infrastructure segment saw a sequential decrease in operating EBIT by $80 million due to higher planned maintenance activity and higher equity losses.
- The macroeconomic environment remains challenging with mixed demand conditions and geopolitical tensions impacting global interest rates and consumer confidence.
Standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Dow Inc 2024 earnings report. (Operator Instructions)
Thank you. I will now like to turn the conference over to Andrew Riker. Andrew, the floor is yours.
Good morning. Thank you for joining today. The accompanying slides are provided in this webcast and posted on our website. I am Andrew Riker, Dow's Investor Relations Vice President. Leading today's call are Jim Fitterling, Dow's Chairman and Chief Executive Officer; and Jeff Tate, Chief Financial Officer.
Please note our comments contain forward-looking statements and are subject to the related cautionary statement contained in the earnings news release and slides. Please refer to our public filings for further information about principal risks and uncertainties.
Unless otherwise specified, all financials where applicable excludes significant items. We will also refer to non-GAAP measures. A
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