- Dow reported earnings of $0.42 per share. This compares with earnings of $0.69 per share in the same quarter last year, or adjusted earnings of $0.62 per share (1).
- Sales were $13.6 billion, down 10 percent, or 7 percent on an adjusted sales (2) basis. The decline was led by Europe, which decreased 10 percent on the same basis driven by adverse currency conditions totaling more than $520 million.
- Volume declined 1 percent, or rose 2 percent on an adjusted basis. Volume was up in all geographic areas on the same basis, and increases were reported in Agricultural Sciences (up 7 percent), Performance Plastics (up 5 percent), Performance Materials (up 4 percent), and Coatings and Infrastructure Solutions (up 1 percent).
- Price declined 9 percent, with double-digit decreases in most businesses. Price was down in all geographic areas, led by Europe and Greater China, which declined 12 percent and 11 percent, respectively on an adjusted basis. Purchased feedstock and energy costs decreased by $1.2 billion versus the same quarter last year.
- The Company’s operating rate was 83 percent for the quarter, flat versus the year-ago period and up 5 percentage points versus the prior quarter.
- Equity earnings were $175 million, compared with $375 million in the year-ago period, or $289 million in the year-ago period excluding certain items. Dow Corning represented the largest driver of the decline, due to ongoing weakness in the polysilicon value chain.
- EBITDA (3) was $1.8 billion. Adjusted EBITDA margin (4) was essentially flat versus the year-ago period. Performance Plastics and Performance Materials both increased adjusted EBITDA margins versus the prior year, up 290 basis points and 150 basis points, respectively.
- Dow delivered $1.1 billion in cash flow from operations in the quarter. Year-to-date, Dow has increased cash flow from operations more than $650 million versus the year-ago period. In addition, the Company began to accelerate cost and cash interventions announced previously in the year, demonstrated by a $200 million sequential decline in operational expenses.
- The Company’s debt declined by nearly $250 million in the quarter, and its net debt (5) to total capitalization declined to 39.7 percent, in line with the Company’s previously stated target of less than 40 percent.
Dow Reports Third Quarter Results
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