展示99.1
2024年10月24日
2024年10月24日
ダウは2024年第3四半期の業績を報告しました
財務ハイライト
•GAAP利益1株は0.30ドルでした；営業利益1株（eps）1 が0.47ドルとなり、前年同期の0.48ドル、前四半期の0.68ドルと比較されました。Op. epsは株当たり0.17ドルの大きな項目を除外しました。これには、再構築や効率化に関連するコスト、以前に売却されたビジネスに関連する費用が含まれています。
•純売上高は1億900万ドルで、前年同期比1%増加し、米国とカナダでの販売増に牽引されました。売上高は前期比横ばいでした。
•出来高は前年同期比1%増加し、性能材料およびコーティングの利益によるものです。順次に、パッケージングおよび特殊プラスチック、産業中間製品およびインフラ関連において出来高は1%増加しました。
•現地価格は前年同期比で横ばいであり、包装＆特殊プラスチックの増加がパフォーマンス材料＆コーティングの減少を相殺しました。続くまして、現地価格は1%下落し、すべてのセクターでわずかな低下を反映しています。
•通貨は前年同期および前期と比較して横ばいでした。
•株式収益は200万ドルで、前年同期比で900万ドル増加しました。連続して、株式収益は2400万ドル減少しました。
•GAAPの当期純利益は24000万ドルでした。営業EBIT1 は64100万ドルで、前年比1500万ドル増加しました。これは、パッケージング＆専門プラスチックの高い総合的なマージンが主に原因であり、これはテキサス州での計画外のクラッカーの停止と高い計画保守活動の影響を部分的に相殺しました。続いて、営業EBITは前期比17800万ドル減少し、同じ計画外のクラッカーの停止と低い現地価格の影響を反映しており、主にヨーロッパ、中東、アフリカ、およびアジア太平洋地域で発生しています。
•連続する営業活動による現金は80000万ドルであり、前年比で85800万ドル減少しました。主に売上増や労働に関連するサプライチェーンの混乱に対応するための在庫の増加によるものです。連続して、営業活動からの現金は3200万ドル減少しました。
•四半期に株主に返却された金額は58400万ドルで、うち配当が49000万ドル、シェアリパーチェスが94百万ドルを含んでいた。
財務結果の要約
| 2021年9月30日までの3か月間 | 2021年6月30日までの3か月間 | ||||||||||||||||
| In百万円、1株当たりの金額を除く | 3Q24 | 3Q23 | 前年同期比 [b / (W)] | 2Q24 | 前年同期比 [b / (W)] | ||||||||||||
| ネット売上高 | $ | 10,879 | $ | 10,730 | $ | 149 | $ | 10,915 | $ | (36) | |||||||
| 税引き後のGAAP収益 | $ | 240 | $ | 327 | $ | (87) | $ | 458 | $ | (218) | |||||||
営業利益1 | $ | 641 | $ | 626 | $ | 15 | $ | 819 | $ | (178) | |||||||
営業EBItマージン1 | 5.9 | % | 5.8 | % | 10 基点(1%) | 7.5 | % | （160）ベーシスポイント | |||||||||
営業EBITDA1 | $ | 1,382 | $ | 1,283 | $ | 99 | $ | 1,501 | $ | (119) | |||||||
| GAAPベースのEPS | $ | 0.30 | $ | 0.42 | $ | (0.12) | $ | 0.62 | $ | (0.32) | |||||||
営業EPS（1株当たり収益）1 | $ | 0.47 | $ | 0.48 | $ | (0.01) | $ | 0.68 | $ | (0.21) | |||||||
| 営業活動によるキャッシュ提供 - 連続する業務 | $ | 800 | $ | 1,658 | $ | (858) | $ | 832 | $ | (32) | |||||||
1.オペレーティング純利益1株当たり、オペレーティングEBIt、キャッシュフロー変換率、オペレーティングEBItマージン、およびオペレーティングEBITDAは非GAAP基準です。詳細についてはページ6をご覧ください。
®TM ザ・ダウ・ケミカル・カンパニーまたはダウの関連会社の商標
1
ダウは2024年第3四半期の業績を報告しました
CEOの板情報
ジム・フィッターリング（会長兼最高経営責任者）は四半期についてコメントしました：
第3四半期において、ダウ社チームは年々成長する出来高を達成し、米州におけるマクロ経済の軟調さとテキサスの計画外のクラッカーの停止を管理しています。 米州におけるコスト有利なフットプリントは引き続き強力な競争上の優位性を提供し、ダウは魅力的な市場で需要の成長を獲得しています。 ただし、ヨーロッパと中国で実質的な回復がまだ具体化していません。 さらに、ヨーロッパの規制環境は多くのセクターやバリューチェーン全体での課題が増加しています。 2023年以降、我々はグローバル資産のフットプリントを最適化するために積極的に標的を定めた行動を取ってきました。 我々の最善のオーナー思考に基づき、主に当社のポリウレタン事業における特定の資産の戦略的見直しを発表しています。 我々はグローバルなフットプリントを最適化し続け、また、新規投資の進捗に伴い、長期的な株主価値の向上をもたらす収益率の高い投資に取り組む中で、現金の最大化を図ります。
セグメントのハイライト
包装と特殊プラスチック
| 平成30年9月30日に終了した3か月間 | 平成30年6月30日に終了した3か月間 | ||||||||||||||||
| 百万単位で、マージンのパーセンテージを除く | 3Q24 | 3Q23 | 前年同期比 [前年同期比/(悪化)] | 2Q24 | 前期比 [前期比/(悪化)】 | ||||||||||||
| ネット売上高 | $ | 5,516 | $ | 5,454 | $ | 62 | $ | 5,515 | $ | 1 | |||||||
| 営業利益 | $ | 618 | $ | 476 | $ | 142 | $ | 703 | $ | (85) | |||||||
| 営業EBITマージン | 11.2 | % | 8.7 | % | 250ベーシスポイント | 12.7 | % | (150)ベーシスポイント | |||||||||
| 株式配当利益 | $ | 16 | $ | 50 | $ | (34) | $ | 55 | $ | (39) | |||||||
四半期のパッケージング・スペシャルティ・プラスチックセグメントの純売上高は55億ドルで、前年同期比1%増加しました。地域全体でポリエチレン価格が上昇し、ラテンアメリカを除くすべての地域で1%の年次増加を記録しました。ボリュームは前年同期と横ばいで、すべての地域で機能性ポリマーへの需要が高まった一方、ポリエチレンのボリュームは減少しました。連続基準で純売上高は横ばいで、やや低下したダウンストリームポリマーの売上と相殺される形で、非継続的なライセンス収入が増加しました。
エクイティ収益は1600万ドルで、前年比の3400万ドル減少しました。これは、タイの合弁事業における利益の低下が原因です。連続的に、エクイティ収益は3900万ドル減少しました。非主要な合弁事業における利益の低下が主な要因です。
Op. EBItは、前年同期比$14200万増の$61800万でした。高い統合マージンがテキサス州での予期せぬクラッカーの停止の影響を上回りました。連続ベースでは、Op. EBItは$8500万減少し、主にテキサス州での予期せぬクラッカーの停止の影響によるものです。
包装材料と特殊プラスチック ビジネスは、前年同期比での純売上高の増加を報告し、主にEMEAIおよび米国＆カナダの産業、消費およびフレキシブル食品包装用のポリエチレン販売の上昇が牽引しました。順次、すべての地域でのフレキシブル食品および特殊包装に対する需要の増加、および米国＆カナダにおけるポリエチレン価格の上昇により、純売上高は横ばいとなりましたが、再生可能エネルギーおよび移動エンド市場での販売減が相殺されました。
炭化水素とエネルギー ビジネスは、昨年同期比で純売上高が減少し、第三者のアロマ剤やエネルギーの売り上げが下がったため、オレフィン価格の上昇によって部分的に相殺されました。一方、連続的には、EMEAIにおけるアロマ価格の低下が主な要因となり、純売上高が減少しました。
2
ダウは2024年第3四半期の業績を報告しました
産業中間製品とインフラ関連
| 9月30日までの3ヶ月間 | 6月30日までの3ヶ月間 | ||||||||||||||||
| 百万単位、マージンのパーセンテージを除く | 3Q24 | 3Q23 | 前年同期比 [b / (W)] | 2Q24 | 前年同期比 [b / (W)] | ||||||||||||
| ネット売上高 | $ | 2,962 | $ | 3,035 | $ | (73) | $ | 2,951 | $ | 11 | |||||||
| 営業利益 | $ | (53) | $ | 21 | $ | (74) | $ | 7 | $ | (60) | |||||||
| 営業利益率 | (1.8) | % | 0.7 | % | (250) ベーシス ポイント | 0.2 | % | (200) bps | |||||||||
| 持分法損失 | $ | (17) | $ | (63) | $ | 46 | $ | (31) | $ | 14 | |||||||
産業中間体＆インフラ関連セグメントの純売上高は30億ドルで、前年同期比2％減少しました。地元価格は前年同期と同水準でした。
出来高は前年同期比2％減少し、主に第三者サプライヤーの停止に続くMDIの不可抗力によるポリウレタン＆建設用化学品の出来高の低下が原因です。連続的には、出来高の増加が両ビジネスともに低価格によって相殺されたため、純売上高は横ばいでした。
Equity losses for the segment were $17 million, an improvement of $46 million versus the year-ago period, driven by improved MEG margins at the Kuwait joint ventures. Sequentially, equity losses improved $14 million versus the prior quarter, driven by higher operating rates at Sadara and improved MEG margins at the Kuwait joint ventures.
Op. EBIT decreased $74 million versus the year-ago period, driven by higher planned maintenance activity and lower integrated margins, partly offset by improved equity earnings. On a sequential basis, Op. EBIT decreased $60 million, driven by lower integrated margins and higher planned maintenance, which were partly offset by the restart from an outage at Louisiana Operations.
Polyurethanes & Construction Chemicals business reported a net sales decrease compared to the year-ago period, driven by lower MDI volumes in the U.S. & Canada following a third-party supplier outage as well as lower local prices. Sequentially, net sales increased, driven by volume gains in Asia Pacific and Latin America, partly offset by lower volumes in EMEAI.
Industrial Solutions business reported an increase in net sales compared to the year-ago period, driven by improved supply availability following the restart from the outage at Louisiana Operations and local price gains. Sequentially, net sales were flat, driven by improved supply availability as well as higher demand for energy applications, which were offset by lower local prices.
Performance Materials & Coatings
| Three Months Ended Sep 30 | Three Months Ended Jun 30 | ||||||||||||||||
| In millions, except margin percentages | 3Q24 | 3Q23 | vs. SQLY [B / (W)] | 2Q24 | vs. PQ [B / (W)] | ||||||||||||
| Net Sales | $ | 2,214 | $ | 2,130 | $ | 84 | $ | 2,243 | $ | (29) | |||||||
| Operating EBIT | $ | 140 | $ | 179 | $ | (39) | $ | 146 | $ | (6) | |||||||
| Operating EBIT Margin | 6.3 | % | 8.4 | % | (210) bps | 6.5 | % | (20) bps | |||||||||
| Equity Earnings | $ | 1 | $ | 5 | $ | (4) | $ | 2 | $ | (1) | |||||||
Performance Materials & Coatings segment net sales in the quarter were $2.2 billion, up 4% versus the year-ago period. Local price decreased 1% year-over-year, driven by lower prices in Consumer Solutions, partly offset by higher prices in Coatings & Performance Monomers. Volume was up 5% year-over-year, driven by gains in both businesses and all geographic regions. On a sequential basis, net sales were down 1%, driven by lower prices and seasonally lower volumes in the U.S. & Canada and EMEAI.
3
Dow reports third quarter 2024 results
Op. EBIT was $140 million, a decrease of $39 million compared to the year-ago period, driven by higher raw material costs, partly offset by higher volumes. Sequentially, Op. EBIT decreased $6 million, driven by lower prices, which were mostly offset by lower planned maintenance activity.
Consumer Solutions business reported an increase in net sales versus the year-ago period, driven by higher volumes in all geographic regions and across all end-markets, led by home & personal care and electronics, partly offset by lower prices. Sequentially, net sales increased, driven by improved demand in siloxanes as well as electronics, which were partly offset by lower prices.
Coatings & Performance Monomers business reported an increase in net sales compared to the year-ago period, driven by volume and price gains, primarily in the U.S. & Canada. Sequentially, net sales decreased, primarily from seasonally lower demand for architectural coatings.
OUTLOOK
“Looking forward, we continue to operate with discipline as we capitalize on areas of demand strength and leverage our global scale and advantaged cost positions,” said Fitterling. “As cycle dynamics improve, we remain well-positioned to enable higher returns to shareholders. Our financial strength will continue to support our counter-cyclical growth investments, which are focused in higher-value businesses and regions, particularly where demand is resilient and we have a competitive cost advantage. Altogether, these investments are expected to deliver more than $3 billion in underlying earnings by 2030.”
Conference Call
Dow will host a live webcast of its quarterly earnings conference call with investors to discuss its results, business outlook and other matters today at 8:00 a.m. ET. The webcast and slide presentation that accompany the conference call will be posted on the events and presentations page of investors.dow.com.
About Dow
Dow (NYSE: DOW) is one of the world’s leading materials science companies, serving customers in high-growth markets such as packaging, infrastructure, mobility and consumer applications. Our global breadth, asset integration and scale, focused innovation, leading business positions and commitment to sustainability enable us to achieve profitable growth and help deliver a sustainable future. We operate manufacturing sites in 31 countries and employ approximately 35,900 people. Dow delivered sales of approximately $45 billion in 2023. References to Dow or the Company mean Dow Inc. and its subsidiaries. Learn more about us and our ambition to be the most innovative, customer-centric, inclusive and sustainable materials science company in the world by visiting www.dow.com.
###
For further information, please contact:
| Investors: | Media: | ||||
| Andrew Riker | Sarah Young | ||||
| ajriker@dow.com | syoung3@dow.com | ||||
| +1 989-633-5564 | +1 989-638-6871 | ||||
4
Dow reports third quarter 2024 results
Cautionary Statement about Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements often address expected future business and financial performance, financial condition, and other matters, and often contain words or phrases such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “opportunity,” “outlook,” “plan,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “will be,” “will continue,” “will likely result,” “would” and similar expressions, and variations or negatives of these words or phrases.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors that are beyond Dow’s control, which may cause actual results to differ materially from those projected, anticipated or implied in the forward-looking statements and speak only as of the date the statements were made. These factors include, but are not limited to: sales of Dow’s products; Dow’s expenses, future revenues and profitability; any global and regional economic impacts of a pandemic or other public health-related risks and events on Dow’s business; any sanctions, export restrictions, supply chain disruptions or increased economic uncertainty related to the ongoing conflicts between Russia and Ukraine and in the Middle East; capital requirements and need for and availability of financing; unexpected barriers in the development of technology, including with respect to Dow's contemplated capital and operating projects; Dow's ability to realize its commitment to carbon neutrality on the contemplated timeframe, including the completion and success of its integrated ethylene cracker and derivatives facility in Alberta, Canada; size of the markets for Dow’s products and services and ability to compete in such markets; failure to develop and market new products and optimally manage product life cycles; the rate and degree of market acceptance of Dow’s products; significant litigation and environmental matters and related contingencies and unexpected expenses; the success of competing technologies that are or may become available; the ability to protect Dow’s intellectual property in the United States and abroad; developments related to contemplated restructuring activities and proposed divestitures or acquisitions such as workforce reduction, manufacturing facility and/or asset closure and related exit and disposal activities, and the benefits and costs associated with each of the foregoing; fluctuations in energy and raw material prices; management of process safety and product stewardship; changes in relationships with Dow’s significant customers and suppliers; changes in public sentiment and political leadership; increased concerns about plastics in the environment and lack of a circular economy for plastics at scale; changes in consumer preferences and demand; changes in laws and regulations, political conditions or industry development; global economic and capital markets conditions, such as inflation, market uncertainty, interest and currency exchange rates, and equity and commodity prices; business, logistics, and supply disruptions; security threats, such as acts of sabotage, terrorism or war, including the ongoing conflicts between Russia and Ukraine and in the Middle East; weather events and natural disasters; disruptions in Dow’s information technology networks and systems, including the impact of cyberattacks; and risks related to Dow’s separation from DowDuPont Inc. such as Dow’s obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities.
Where, in any forward-looking statement, an expectation or belief as to future results or events is expressed, such expectation or belief is based on the current plans and expectations of management and expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the expectation or belief will result or be achieved or accomplished. A detailed discussion of principal risks and uncertainties which may cause actual results and events to differ materially from such forward-looking statements is included in the section titled “Risk Factors” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and the Company's subsequent Quarterly Reports on Form 10-Q. These are not the only risks and uncertainties that Dow faces. There may be other risks and uncertainties that Dow is unable to identify at this time or that Dow does not currently expect to have a material impact on its business. If any of those risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow’s business. Dow Inc. and The Dow Chemical Company and its consolidated subsidiaries assume no obligation to update or revise publicly any forward-looking statements whether because of new information, future events, or otherwise, except as required by securities and other applicable laws.
®TM Trademark of The Dow Chemical Company or an affiliated company of Dow
5
Non-GAAP Financial Measures
This earnings release includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including allocating resources. Dow's management believes that these non-GAAP measures best reflect the ongoing performance of the Company during the periods presented and provide more relevant and meaningful information to investors as they provide insight with respect to ongoing operating results of the Company and a more useful comparison of year-over-year results. These non-GAAP measures supplement the Company's GAAP disclosures and should not be viewed as alternatives to GAAP measures of performance. Furthermore, such non-GAAP measures may not be consistent with similar measures provided or used by other companies. Non-GAAP measures included in this release are defined below. Reconciliations for these non-GAAP measures to GAAP are provided in the Selected Financial Information and Non-GAAP Measures section starting on page 11. Dow does not provide forward-looking GAAP financial measures or a reconciliation of forward-looking non-GAAP financial measures to the most comparable GAAP financial measures on a forward-looking basis because the Company is unable to predict with reasonable certainty the ultimate outcome of pending litigation, unusual gains and losses, foreign currency exchange gains or losses and potential future asset impairments, as well as discrete taxable events, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on GAAP results for the guidance period.
Operating Earnings Per Share is defined as "Earnings per common share - diluted" excluding the after-tax impact of significant items.
Operating EBIT is defined as earnings (i.e., "Income before income taxes") before interest, excluding the impact of significant items.
Operating EBIT Margin is defined as Operating EBIT as a percentage of net sales.
Operating EBITDA is defined as earnings (i.e., "Income before income taxes") before interest, depreciation and amortization, excluding the impact of significant items.
Free Cash Flow is defined as "Cash provided by operating activities - continuing operations," less capital expenditures. Under this definition, Free Cash Flow represents the cash generated by the Company from operations after investing in its asset base. Free Cash Flow, combined with cash balances and other sources of liquidity, represent the cash available to fund obligations and provide returns to shareholders. Free Cash Flow is an integral financial measure used in the Company's financial planning process.
Cash Flow Conversion is defined as "Cash provided by operating activities - continuing operations," divided by Operating EBITDA. Management believes Cash Flow Conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings into cash flow.
Operating Return on Capital (ROC) is defined as net operating profit after tax, excluding the impact of significant items, divided by total average capital, also referred to as ROIC.
6
Dow Inc. and Subsidiaries
Consolidated Statements of Income
| In millions, except per share amounts (Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||
| Net sales | $ | 10,879 | $ | 10,730 | $ | 32,559 | $ | 34,001 | ||||||
| Cost of sales | 9,809 | 9,592 | 28,888 | 30,096 | ||||||||||
| Research and development expenses | 208 | 197 | 608 | 616 | ||||||||||
| Selling, general and administrative expenses | 396 | 380 | 1,228 | 1,216 | ||||||||||
| Amortization of intangibles | 76 | 81 | 234 | 243 | ||||||||||
| Restructuring and asset related charges - net | 24 | — | 69 | 549 | ||||||||||
| Equity in earnings (losses) of nonconsolidated affiliates | 2 | (7) | 45 | (112) | ||||||||||
| Sundry income (expense) - net | 119 | 92 | 256 | 202 | ||||||||||
| Interest income | 36 | 44 | 143 | 186 | ||||||||||
| Interest expense and amortization of debt discount | 199 | 192 | 595 | 549 | ||||||||||
| Income before income taxes | 324 | 417 | 1,381 | 1,008 | ||||||||||
| Provision for income taxes | 84 | 90 | 145 | 253 | ||||||||||
| Net income | 240 | 327 | 1,236 | 755 | ||||||||||
| Net income attributable to noncontrolling interests | 26 | 25 | 67 | 61 | ||||||||||
| Net income available for Dow Inc. common stockholders | $ | 214 | $ | 302 | $ | 1,169 | $ | 694 | ||||||
| Per common share data: | ||||||||||||||
| Earnings per common share - basic | $ | 0.30 | $ | 0.43 | $ | 1.65 | $ | 0.97 | ||||||
| Earnings per common share - diluted | $ | 0.30 | $ | 0.42 | $ | 1.65 | $ | 0.97 | ||||||
| Weighted-average common shares outstanding - basic | 702.3 | 704.0 | 703.5 | 706.4 | ||||||||||
| Weighted-average common shares outstanding - diluted | 703.6 | 707.5 | 704.9 | 709.7 | ||||||||||
7
Dow Inc. and Subsidiaries
Consolidated Balance Sheets
In millions, except share amounts (Unaudited) | Sep 30, 2024 | Dec 31, 2023 | ||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 2,883 | $ | 2,987 | ||||
| Accounts and notes receivable: | ||||||||
| Trade (net of allowance for doubtful receivables - 2024: $111; 2023: $81) | 5,380 | 4,718 | ||||||
| Other | 1,936 | 1,896 | ||||||
| Inventories | 6,741 | 6,076 | ||||||
| Other current assets | 1,037 | 1,937 | ||||||
| Total current assets | 17,977 | 17,614 | ||||||
| Investments | ||||||||
| Investment in nonconsolidated affiliates | 1,303 | 1,267 | ||||||
| Other investments (investments carried at fair value - 2024: $2,135; 2023: $1,877) | 2,854 | 2,740 | ||||||
| Noncurrent receivables | 525 | 438 | ||||||
| Total investments | 4,682 | 4,445 | ||||||
| Property | ||||||||
| Property | 62,642 | 60,203 | ||||||
| Less: Accumulated depreciation | 40,549 | 39,137 | ||||||
| Net property | 22,093 | 21,066 | ||||||
| Other Assets | ||||||||
| Goodwill | 8,684 | 8,641 | ||||||
| Other intangible assets (net of accumulated amortization - 2024: $5,645; 2023: $5,374) | 1,840 | 2,072 | ||||||
| Operating lease right-of-use assets | 1,301 | 1,320 | ||||||
| Deferred income tax assets | 1,526 | 1,486 | ||||||
| Deferred charges and other assets | 1,286 | 1,323 | ||||||
| Total other assets | 14,637 | 14,842 | ||||||
| Total Assets | $ | 59,389 | $ | 57,967 | ||||
| Liabilities and Equity | ||||||||
| Current Liabilities | ||||||||
| Notes payable | $ | 111 | $ | 62 | ||||
| Long-term debt due within one year | 296 | 117 | ||||||
| Accounts payable: | ||||||||
| Trade | 5,093 | 4,529 | ||||||
| Other | 1,955 | 1,797 | ||||||
| Operating lease liabilities - current | 316 | 329 | ||||||
| Income taxes payable | 257 | 419 | ||||||
| Accrued and other current liabilities | 2,799 | 2,704 | ||||||
| Total current liabilities | 10,827 | 9,957 | ||||||
| Long-Term Debt | 16,164 | 14,907 | ||||||
| Other Noncurrent Liabilities | ||||||||
| Deferred income tax liabilities | 397 | 399 | ||||||
| Pension and other postretirement benefits - noncurrent | 4,689 | 4,932 | ||||||
| Asbestos-related liabilities - noncurrent | 727 | 788 | ||||||
| Operating lease liabilities - noncurrent | 1,023 | 1,032 | ||||||
| Other noncurrent obligations | 6,721 | 6,844 | ||||||
| Total other noncurrent liabilities | 13,557 | 13,995 | ||||||
| Stockholders’ Equity | ||||||||
| Common stock (authorized 5,000,000,000 shares of $0.01 par value each; issued 2024: 782,047,707 shares; 2023: 778,595,514 shares) | 8 | 8 | ||||||
| Additional paid-in capital | 9,055 | 8,880 | ||||||
| Retained earnings | 21,459 | 21,774 | ||||||
| Accumulated other comprehensive loss | (7,503) | (7,681) | ||||||
| Treasury stock at cost (2024: 81,956,017 shares; 2023: 76,302,081 shares) | (4,708) | (4,374) | ||||||
| Dow Inc.’s stockholders’ equity | 18,311 | 18,607 | ||||||
| Noncontrolling interests | 530 | 501 | ||||||
| Total equity | 18,841 | 19,108 | ||||||
| Total Liabilities and Equity | $ | 59,389 | $ | 57,967 | ||||
8
Dow Inc. and Subsidiaries
Consolidated Statements of Cash Flows
| In millions (Unaudited) | Nine Months Ended | |||||||
| Sep 30, 2024 | Sep 30, 2023 | |||||||
| Operating Activities | ||||||||
| Net income | $ | 1,236 | $ | 755 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 2,143 | 1,954 | ||||||
| Credit for deferred income tax | (134) | (817) | ||||||
| Earnings of nonconsolidated affiliates less than dividends received | 221 | 300 | ||||||
| Net periodic pension benefit credit | (143) | (69) | ||||||
| Pension contributions | (92) | (111) | ||||||
| Net gain on sales of assets, businesses and investments | (58) | (49) | ||||||
| Restructuring and asset related charges - net | 69 | 549 | ||||||
| Other net loss | 332 | 588 | ||||||
| Changes in assets and liabilities, net of effects of acquired and divested companies: | ||||||||
| Accounts and notes receivable | (818) | 365 | ||||||
| Inventories | (676) | 777 | ||||||
| Accounts payable | 601 | (859) | ||||||
| Other assets and liabilities, net | (589) | 153 | ||||||
| Cash provided by operating activities - continuing operations | 2,092 | 3,536 | ||||||
| Cash provided by operating activities - discontinued operations | 8 | 4 | ||||||
| Cash provided by operating activities | 2,100 | 3,540 | ||||||
| Investing Activities | ||||||||
| Capital expenditures | (2,173) | (1,598) | ||||||
| Investment in gas field developments | (157) | (175) | ||||||
| Purchases of previously leased assets | — | (5) | ||||||
| Proceeds from sales of property, businesses and consolidated companies, net of cash divested | 36 | 66 | ||||||
| Acquisitions of property and businesses, net of cash acquired | (121) | (103) | ||||||
| Investments in and loans to nonconsolidated affiliates | (25) | (4) | ||||||
| Distributions and loan repayments from nonconsolidated affiliates | — | 2 | ||||||
| Proceeds from sales of ownership interests in nonconsolidated affiliates | — | 63 | ||||||
| Purchases of investments | (1,381) | (1,291) | ||||||
| Proceeds from sales and maturities of investments | 2,386 | 1,244 | ||||||
| Other investing activities, net | (21) | (45) | ||||||
| Cash used for investing activities | (1,456) | (1,846) | ||||||
| Financing Activities | ||||||||
| Changes in short-term notes payable | (61) | (122) | ||||||
| Proceeds from issuance of short-term debt greater than three months | 114 | — | ||||||
| Payments on short-term debt greater than three months | (6) | — | ||||||
| Proceeds from issuance of long-term debt | 1,443 | 76 | ||||||
| Payments on long-term debt | (224) | (355) | ||||||
| Collections on securitization programs | 28 | 8 | ||||||
| Purchases of treasury stock | (494) | (500) | ||||||
| Proceeds from issuance of stock | 51 | 63 | ||||||
| Transaction financing, debt issuance and other costs | (13) | (1) | ||||||
| Employee taxes paid for share-based payment arrangements | (38) | (41) | ||||||
| Distributions to noncontrolling interests | (49) | (51) | ||||||
| Dividends paid to stockholders | (1,474) | (1,481) | ||||||
| Cash used for financing activities | (723) | (2,404) | ||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18 | (130) | ||||||
| Summary | ||||||||
| Decrease in cash, cash equivalents and restricted cash | (61) | (840) | ||||||
| Cash, cash equivalents and restricted cash at beginning of period | 3,048 | 3,940 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 2,987 | $ | 3,100 | ||||
| Less: Restricted cash and cash equivalents, included in "Other current assets" | 104 | 20 | ||||||
| Cash and cash equivalents at end of period | $ | 2,883 | $ | 3,080 | ||||
9
Dow Inc. and Subsidiaries
Net Sales by Segment and Geographic Region
| Net Sales by Segment | Three Months Ended | Nine Months Ended | ||||||||||||
| In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | ||||||||||
| Packaging & Specialty Plastics | $ | 5,516 | $ | 5,454 | $ | 16,461 | $ | 17,508 | ||||||
| Industrial Intermediates & Infrastructure | 2,962 | 3,035 | 8,921 | 9,590 | ||||||||||
| Performance Materials & Coatings | 2,214 | 2,130 | 6,609 | 6,603 | ||||||||||
| Corporate | 187 | 111 | 568 | 300 | ||||||||||
| Total | $ | 10,879 | $ | 10,730 | $ | 32,559 | $ | 34,001 | ||||||
| U.S. & Canada | $ | 4,149 | $ | 3,968 | $ | 12,470 | $ | 12,667 | ||||||
EMEAI 1 | 3,568 | 3,398 | 10,624 | 11,225 | ||||||||||
| Asia Pacific | 1,890 | 2,067 | 5,712 | 6,172 | ||||||||||
| Latin America | 1,272 | 1,297 | 3,753 | 3,937 | ||||||||||
| Total | $ | 10,879 | $ | 10,730 | $ | 32,559 | $ | 34,001 | ||||||
| Net Sales Variance by Segment and Geographic Region | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2024 | ||||||||||||||||||||||||
| Local Price & Product Mix | Currency | Volume | Total | Local Price & Product Mix | Currency | Volume | Total | |||||||||||||||||||
| Percent change from prior year | ||||||||||||||||||||||||||
| Packaging & Specialty Plastics | 1 | % | — | % | — | % | 1 | % | (4) | % | — | % | (2) | % | (6) | % | ||||||||||
| Industrial Intermediates & Infrastructure | — | — | (2) | (2) | (7) | (1) | 1 | (7) | ||||||||||||||||||
| Performance Materials & Coatings | (1) | — | 5 | 4 | (4) | (1) | 5 | — | ||||||||||||||||||
| Total | — | % | — | % | 1 | % | 1 | % | (5) | % | — | % | 1 | % | (4) | % | ||||||||||
| Total, excluding the Hydrocarbons & Energy business | — | % | — | % | 2 | % | 2 | % | (5) | % | (1) | % | 3 | % | (3) | % | ||||||||||
| U.S. & Canada | 2 | % | — | % | 3 | % | 5 | % | (4) | % | — | % | 2 | % | (2) | % | ||||||||||
EMEAI 1 | 2 | — | 3 | 5 | (5) | — | — | (5) | ||||||||||||||||||
| Asia Pacific | (2) | (1) | (6) | (9) | (6) | (1) | — | (7) | ||||||||||||||||||
| Latin America | (2) | — | — | (2) | (5) | — | — | (5) | ||||||||||||||||||
| Total | — | % | — | % | 1 | % | 1 | % | (5) | % | — | % | 1 | % | (4) | % | ||||||||||
| Net Sales Variance by Segment and Geographic Region | Three Months Ended Sep 30, 2024 | |||||||||||||
| Local Price & Product Mix | Currency | Volume | Total | |||||||||||
| Percent change from prior quarter | ||||||||||||||
| Packaging & Specialty Plastics | (1) | % | — | % | 1 | % | — | % | ||||||
| Industrial Intermediates & Infrastructure | (1) | — | 1 | — | ||||||||||
| Performance Materials & Coatings | (1) | 1 | (1) | (1) | ||||||||||
| Total | (1) | % | — | % | 1 | % | — | % | ||||||
| Total, excluding the Hydrocarbons & Energy business | (1) | % | — | % | 1 | % | — | % | ||||||
| U.S. & Canada | — | % | — | % | (1) | % | (1) | % | ||||||
EMEAI 1 | (2) | 1 | 1 | — | ||||||||||
| Asia Pacific | (3) | — | 2 | (1) | ||||||||||
| Latin America | (1) | — | 3 | 2 | ||||||||||
| Total | (1) | % | — | % | 1 | % | — | % | ||||||
1.Europe, Middle East, Africa and India.
10
Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
| Operating EBIT by Segment | Three Months Ended | Nine Months Ended | |||||||||||||||
| In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||
| Packaging & Specialty Plastics | $ | 618 | $ | 476 | $ | 1,926 | $ | 2,036 | |||||||||
| Industrial Intermediates & Infrastructure | (53) | 21 | 41 | 109 | |||||||||||||
| Performance Materials & Coatings | 140 | 179 | 327 | 280 | |||||||||||||
| Corporate | (64) | (50) | (160) | (206) | |||||||||||||
| Total | $ | 641 | $ | 626 | $ | 2,134 | $ | 2,219 | |||||||||
| Depreciation and Amortization by Segment | Three Months Ended | Nine Months Ended | |||||||||||||||
| In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||
| Packaging & Specialty Plastics | $ | 384 | $ | 321 | $ | 1,098 | $ | 961 | |||||||||
| Industrial Intermediates & Infrastructure | 155 | 134 | 443 | 391 | |||||||||||||
| Performance Materials & Coatings | 194 | 193 | 578 | 583 | |||||||||||||
| Corporate | 8 | 9 | 24 | 19 | |||||||||||||
| Total | $ | 741 | $ | 657 | $ | 2,143 | $ | 1,954 | |||||||||
| Operating EBITDA by Segment | Three Months Ended | Nine Months Ended | |||||||||||||||
| In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||
| Packaging & Specialty Plastics | $ | 1,002 | $ | 797 | $ | 3,024 | $ | 2,997 | |||||||||
| Industrial Intermediates & Infrastructure | 102 | 155 | 484 | 500 | |||||||||||||
| Performance Materials & Coatings | 334 | 372 | 905 | 863 | |||||||||||||
| Corporate | (56) | (41) | (136) | (187) | |||||||||||||
| Total | $ | 1,382 | $ | 1,283 | $ | 4,277 | $ | 4,173 | |||||||||
| Equity in Earnings (Losses) of Nonconsolidated Affiliates by Segment | Three Months Ended | Nine Months Ended | |||||||||||||||
| In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | |||||||||||||
| Packaging & Specialty Plastics | $ | 16 | $ | 50 | $ | 96 | $ | 90 | |||||||||
| Industrial Intermediates & Infrastructure | (17) | (63) | (63) | (219) | |||||||||||||
| Performance Materials & Coatings | 1 | 5 | 9 | 14 | |||||||||||||
| Corporate | 2 | 1 | 3 | 3 | |||||||||||||
| Total | $ | 2 | $ | (7) | $ | 45 | $ | (112) | |||||||||
| Reconciliation of "Net income" to "Operating EBIT" | Three Months Ended | Nine Months Ended | |||||||||||||||
| In millions (Unaudited) | Jun 30, 2024 | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | ||||||||||||
| Net income | $ | 458 | $ | 240 | $ | 327 | $ | 1,236 | $ | 755 | |||||||
| + Provision (credit) for income taxes | 150 | 84 | 90 | 145 | 253 | ||||||||||||
| Income before income taxes | $ | 608 | $ | 324 | $ | 417 | $ | 1,381 | $ | 1,008 | |||||||
| - Interest income | 42 | 36 | 44 | 143 | 186 | ||||||||||||
| + Interest expense and amortization of debt discount | 197 | 199 | 192 | 595 | 549 | ||||||||||||
| - Significant items | (56) | (154) | (61) | (301) | (848) | ||||||||||||
| Operating EBIT (non-GAAP) | $ | 819 | $ | 641 | $ | 626 | $ | 2,134 | $ | 2,219 | |||||||
11
Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
| Significant Items Impacting Results for the Three Months Ended Sep 30, 2024 | ||||||||||||||
| In millions, except per share amounts (Unaudited) | Pretax 1 | Net Income 2 | EPS 3 | Income Statement Classification | ||||||||||
| Reported results | $ | 324 | $ | 214 | $ | 0.30 | ||||||||
| Less: Significant items | ||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 4 | (79) | (62) | (0.09) | Cost of sales ($47 million); R&D ($1 million); SG&A ($7 million); Restructuring and asset related charges - net ($24 million) | ||||||||||
Indemnification and other transaction related costs 5 | (75) | (58) | (0.08) | Cost of sales | ||||||||||
| Total significant items | $ | (154) | $ | (120) | $ | (0.17) | ||||||||
| Operating results (non-GAAP) | $ | 478 | $ | 334 | $ | 0.47 | ||||||||
| Significant Items Impacting Results for the Three Months Ended Sep 30, 2023 | ||||||||||||||
| In millions, except per share amounts (Unaudited) | Pretax 1 | Net Income 2 | EPS 3 | Income Statement Classification | ||||||||||
| Reported results | $ | 417 | $ | 302 | $ | 0.42 | ||||||||
| Less: Significant items | ||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 4 | (82) | (64) | (0.09) | Cost of sales ($52 million); R&D ($1 million); SG&A ($29 million) | ||||||||||
Indemnification and other transaction related costs 6 | 21 | 21 | 0.03 | Sundry income (expense) - net | ||||||||||
| Total significant items | $ | (61) | $ | (43) | $ | (0.06) | ||||||||
| Operating results (non-GAAP) | $ | 478 | $ | 345 | $ | 0.48 | ||||||||
1."Income before income taxes."
2."Net income available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3."Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
4.Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes impairment charges related to the write-down of certain manufacturing assets in 2024.
5.Includes a charge related to an arbitration settlement agreement for historical product claims from a divested business.
6.Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
12
Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
| Significant Items Impacting Results for the Nine Months Ended Sep 30, 2024 | ||||||||||||||
| In millions, except per share amounts (Unaudited) | Pretax 1 | Net Income 2 | EPS 3 | Income Statement Classification | ||||||||||
| Reported results | $ | 1,381 | $ | 1,169 | $ | 1.65 | ||||||||
| Less: Significant items | ||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 4 | (226) | (177) | (0.25) | Cost of sales ($124 million); R&D ($3 million); SG&A ($30 million); Restructuring and asset related charges - net ($69 million) | ||||||||||
Indemnification and other transaction related costs 5 | (75) | (58) | (0.08) | Cost of sales | ||||||||||
Income tax related items 6 | — | 194 | 0.27 | Provision for income taxes | ||||||||||
| Total significant items | $ | (301) | $ | (41) | $ | (0.06) | ||||||||
| Operating results (non-GAAP) | $ | 1,682 | $ | 1,210 | $ | 1.71 | ||||||||
| Significant Items Impacting Results for the Nine Months Ended Sep 30, 2023 | ||||||||||||||
| In millions, except per share amounts (Unaudited) | Pretax 1 | Net Income 2 | EPS 3 | Income Statement Classification | ||||||||||
| Reported results | $ | 1,008 | $ | 694 | $ | 0.97 | ||||||||
| Less: Significant items | ||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 4 | (688) | (542) | (0.76) | Cost of sales ($115 million); R&D ($3 million); SG&A ($51 million); Restructuring and asset related charges - net ($549 million), offset by Sundry income (expense) - net ($30 million) | ||||||||||
Litigation related charges, awards and adjustments 7 | (177) | (138) | (0.19) | Cost of sales | ||||||||||
Indemnification and other transaction related costs 8 | 17 | 20 | 0.03 | Sundry income (expense) - net | ||||||||||
Income tax related items 9 | — | 57 | 0.08 | Provision for income taxes | ||||||||||
| Total significant items | $ | (848) | $ | (603) | $ | (0.84) | ||||||||
| Operating results (non-GAAP) | $ | 1,856 | $ | 1,297 | $ | 1.81 | ||||||||
1."Income before income taxes"
2."Net income available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3."Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
4.Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program. Also includes impairment charges related to the write-down of certain manufacturing assets in 2024 and certain gains and losses associated with previously impaired equity investments in 2023.
5.Includes a charge related to an arbitration settlement agreement for historical product claims from a divested business.
6.Reassessment of interest and penalties related to a tax matter in a foreign jurisdiction.
7.Includes a loss associated with legacy agricultural products groundwater contamination matters.
8.Primarily related to charges associated with agreements entered into with DuPont and Corteva as part of the separation and distribution which, among other matters, provides for cross-indemnities and allocations of obligations and liabilities for periods prior to, at and after the completion of the separation.
9.Related to deferred tax assets in a foreign jurisdiction partially offset by a remeasurement of uncertain tax positions.
13
Dow Inc. and Subsidiaries
Selected Financial Information and Non-GAAP Measures
| Significant Items Impacting Results for the Three Months Ended Jun 30, 2024 | ||||||||||||||
| In millions, except per share amounts (Unaudited) | Pretax 1 | Net Income 2 | EPS 3 | Income Statement Classification | ||||||||||
| Reported results | $ | 608 | $ | 439 | $ | 0.62 | ||||||||
| Less: Significant items | ||||||||||||||
Restructuring, implementation and efficiency costs, and asset related charges - net 4 | (56) | (43) | (0.06) | Cost of sales ($44 million); R&D ($1 million); SG&A ($11 million) | ||||||||||
| Total significant items | $ | (56) | $ | (43) | $ | (0.06) | ||||||||
| Operating results (non-GAAP) | $ | 664 | $ | 482 | $ | 0.68 | ||||||||
1."Income before income taxes."
2."Net income available for Dow Inc. common stockholders." The income tax effect on significant items was calculated based upon the enacted tax laws and statutory income tax rates applicable in the tax jurisdiction(s) of the underlying non-GAAP adjustment.
3."Earnings per common share - diluted," which includes the impact of participating securities in accordance with the two-class method.
4.Restructuring charges and implementation and efficiency costs associated with the Company's 2023 Restructuring Program.
Reconciliation of Free Cash Flow | Three Months Ended | Nine Months Ended | ||||||||||||
In millions (Unaudited) | Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2024 | Sep 30, 2023 | ||||||||||
| Cash provided by operating activities - continuing operations (GAAP) | $ | 800 | $ | 1,658 | $ | 2,092 | $ | 3,536 | ||||||
| Capital expenditures | (736) | (597) | (2,173) | (1,598) | ||||||||||
| Free Cash Flow (non-GAAP) | $ | 64 | $ | 1,061 | $ | (81) | $ | 1,938 | ||||||
Reconciliation of Cash Flow Conversion | Three Months Ended | |||||||||||||
In millions (Unaudited) | Dec 31, 2023 | Mar 31, 2024 | Jun 30, 2024 | Sep 30, 2024 | ||||||||||
| Cash provided by operating activities - continuing operations (GAAP) | $ | 1,628 | $ | 460 | $ | 832 | $ | 800 | ||||||
| Net income (loss) (GAAP) | $ | (95) | $ | 538 | $ | 458 | $ | 240 | ||||||
Cash flow from operations to net income (GAAP) 1 | N/A | 85.5 | % | 181.7 | % | 333.3 | % | |||||||
| Cash flow from operations to net income - trailing twelve months (GAAP) | 326.0 | % | ||||||||||||
| Operating EBITDA (non-GAAP) | $ | 1,216 | $ | 1,394 | $ | 1,501 | $ | 1,382 | ||||||
| Cash Flow Conversion (Cash flow from operations to Operating EBITDA) (non-GAAP) | 133.9 | % | 33.0 | % | 55.4 | % | 57.9 | % | ||||||
| Cash Flow Conversion - trailing twelve months (non-GAAP) | 67.7 | % | ||||||||||||
1.Cash flow from operations to net income is not applicable for the fourth quarter of 2023 due to a net loss for the period.
14