Q3 2024 Dow Inc Earnings Call Transcript
Key Points
- Dow Inc (DOW) achieved its fourth consecutive quarter of year-over-year volume growth despite challenging macroeconomic conditions.
- Net sales increased to $10.9 billion, up 1% from the previous year, driven by higher demand and local prices in the United States and Canada.
- The company completed the acquisition of Circulus, adding 50,000 metric tons of recycled materials annually to its portfolio.
- Dow Inc (DOW) signed a long-term agreement with Linde for clean hydrogen supply, advancing its Path2Zero project.
- The company has a strong financial position with ample liquidity and no substantive debt maturities until 2027.
- The unplanned cracker outage in Texas negatively impacted operating EBIT, which was partly offset by higher integrated margins.
- Cash flow from continuing operations decreased year-over-year due to higher inventories and labor-related supply chain disruptions.
- The Industrial Intermediates and Infrastructure segment experienced a 2% volume decline, driven by lower volumes in Polyurethanes and Construction Chemicals.
- Performance Materials and Coatings segment saw a decline in local price year-over-year, with operating EBIT down $39 million due to higher raw material costs.
- Dow Inc (DOW) faces ongoing challenges in Europe due to soft demand and lack of consistent regulatory policy, prompting a strategic review of select European assets.
Greetings, and welcome to the Dow's third-quarter 2024 earnings conference call.
(Operator Instructions)
As a reminder, this conference is being recorded.
I will now turn it over to Dow Investor Relations, Vice President, Andrew Riker. Mr. Riker, you may now begin.
Good morning. Thank you for joining today. The accompanying slides are provided through this webcast and posted on our website.
I'm Andrew Riker, Dow's Investor Relations Vice President.
Leading today's call are Jim Fitterling, Chair 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 exclude significant items. We will also refer to non-GAAP
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