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Sep 30, 2020

Dow Q3 2020 Earnings Report

Dow's third quarter performance was driven by rebounding demand and strategic actions to focus on cash, reduce expenses, and pay down debt.

Key Takeaways

Dow reported Q3 2020 results with net sales of $9.7 billion, a decrease of 10% year-over-year, but a 16% increase sequentially. The company reported a GAAP loss per share of $0.04, but an operating EPS of $0.50. Dow achieved a net debt improvement of more than $1.8 billion year-to-date and completed the divestiture of its North American rail infrastructure assets.

Net sales were $9.7 billion, down 10% year-over-year, but up 16% sequentially.

GAAP loss per share was $0.04; Operating EPS was $0.50.

Free cash flow was $1.5 billion, up $156 million year-over-year.

The company achieved a net debt improvement of more than $1.8 billion year-to-date.

Total Revenue
$9.71B
Previous year: $10.8B
-9.8%
EPS
$0.5
Previous year: $0.91
-45.1%
Operating EBIT Margin
7.8%
Gross Profit
$1.34B
Previous year: $1.39B
-3.3%
Cash and Equivalents
$4.55B
Previous year: $2.82B
+61.1%
Free Cash Flow
$1.5B
Total Assets
$59.9B
Previous year: $64.9B
-7.7%

Dow

Dow

Dow Revenue by Segment

Dow Revenue by Geographic Location

Forward Guidance

Dow enters the fourth quarter with sequential momentum and a consistent focus on cash.

Positive Outlook

  • Sequential momentum entering the fourth quarter.
  • Improved financial flexibility.
  • Consistent focus on cash generation.
  • Proactive and agile approach to evolving market conditions.
  • Fundamental competitive advantages of industry-leading feedstock flexibility.

Challenges Ahead

  • The recovery has been uneven across markets.
  • Expectation of continued uneven recovery in the near term.
  • Impact of the COVID-19 pandemic.
  • Multiple natural disasters.
  • Uncertainty in global economic conditions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income