Dow Q4 2022 Earnings Report
Key Takeaways
Dow's Q4 2022 net sales were $11.9 billion, a 17% decrease year-over-year, with GAAP earnings per share (EPS) at $0.85 and operating EPS at $0.46. The company focused on cash generation, achieving $2.1 billion in cash flow from operations, and returned $620 million to shareholders through dividends and share repurchases.
GAAP earnings per share (EPS) was $0.85; operating EPS was $0.46, compared to $2.15 in the year-ago period.
Net sales were $11.9 billion, down 17% versus the year-ago period, reflecting declines in all operating segments driven by slower GDP growth and customer destocking.
Cash provided by operating activities – continuing operations was $2.1 billion and free cash flow was $1.5 billion.
Returns to shareholders totaled $620 million, including $495 million in dividends and $125 million in share repurchases.
Dow
Dow
Dow Revenue by Segment
Dow Revenue by Geographic Location
Forward Guidance
Dow is focused on managing near-term dynamics while positioning for long-term value creation, implementing targeted actions to optimize costs and enhance productivity, expected to deliver $1 billion in cost savings.
Positive Outlook
- Initial positive signs from moderating inflation in the U.S.
- Improving outlook for energy in Europe
- Re-opening in China
- Optimizing labor costs
- Enhancing productivity
Challenges Ahead
- Slowing global growth
- Challenging energy markets
- Destocking
- Reducing turnaround spending
- Prudent and proactive approach
Revenue & Expenses
Visualization of income flow from segment revenue to net income