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Sep 30, 2023

Dow Q3 2023 Earnings Report

Dow's Q3 2023 results were reported, demonstrating resilience in a challenging macro environment through cost reduction and cash generation initiatives.

Key Takeaways

Dow's Q3 2023 net sales reached $10.7 billion, a 24% decrease compared to the previous year, while GAAP earnings per share stood at $0.42. The company focused on cost savings and cash flow management, achieving $1.7 billion in operating cash flow and returning $617 million to shareholders.

GAAP earnings per share was $0.42; operating earnings per share (EPS) was $0.48.

Net sales were $10.7 billion, down 24% versus the year-ago period.

Cash provided by operating activities – continuing operations was $1.7 billion.

Returns to shareholders totaled $617 million in the quarter.

Total Revenue
$10.7B
Previous year: $14.1B
-24.0%
EPS
$0.48
Previous year: $1.11
-56.8%
Operating EBIT Margin
5.8%
Previous year: 8.5%
-31.8%
Gross Profit
$1.14B
Previous year: $1.73B
-34.4%
Cash and Equivalents
$3.08B
Previous year: $2.22B
+39.0%
Free Cash Flow
$1.06B
Total Assets
$58.3B
Previous year: $59.6B
-2.1%

Dow

Dow

Dow Revenue by Segment

Dow Revenue by Geographic Location

Forward Guidance

Dow anticipates benefiting from rising oil prices due to its cost-advantaged asset footprint, while maintaining focus on operational and financial discipline.

Positive Outlook

  • Rising oil prices are expected to benefit Dow's cost-advantaged asset footprint.
  • Continued focus on operational and financial discipline.
  • Decarbonize and Grow and Transform the Waste strategies are expected to deliver more than $3 billion in underlying earnings by 2030.
  • Reduce greenhouse gas emissions by 5 million metric tons.
  • Commercialize 3 million metric tons of circular and renewable solutions annually by 2030.

Challenges Ahead

  • Challenging market dynamics.
  • Slower global macroeconomic activity.
  • Lower local prices in all operating segments and regions.
  • Lower feedstock and energy costs.
  • Declines in olefin and aromatic merchant sales and lower polyethylene prices primarily in EMEAI.

Revenue & Expenses

Visualization of income flow from segment revenue to net income