- Dow reported earnings of $1.87 per share or adjusted earnings of $0.64 per share (1). This compares with earnings of $0.55 per share in the same quarter last year.
- Results this quarter were impacted by the final resolution of the K-Dow arbitration and Dow’s receipt of a direct cash payment of nearly $2.2 billion. Dow subsequently applied this award to debt reduction, driving the Company’s net debt (2) to total capitalization down to 36.4 percent.
- Dow generated $3.7 billion in cash flow from operations in the quarter. Year to date, the Company has generated $4.2 billion in cash flow from operations, representing an improvement of $2.8 billion compared with the prior year.
- Sales were $14.6 billion, flat versus the year-ago period. Sales gains were led by Agricultural Sciences, which was up 10 percent in the quarter and achieved a first-half sales record of nearly $4 billion. Sales also grew in Performance Materials (up 1 percent).
- Volume increased 2 percent with gains in most geographic areas. Volume growth in emerging geographic areas rose 9 percent, led by double-digit growth in Latin America (up 12 percent). Volume also increased in Asia Pacific (up 7 percent).
- Price decreased 2 percent, with currency representing nearly one-third of the decline. The Feedstocks and Energy operating segment led the decrease (down 4 percent), due to a declining feedstock cost environment.
- EBITDA (3) was $4.2 billion, or $2.1 billion on an adjusted basis (4), up nearly 9 percent versus the prior year. Adjusted EBITDA margin (5) expanded nearly 110 basis points. EBITDA gains were led by Performance Plastics, which achieved $1 billion in EBITDA in the quarter (up 33 percent) and expanded EBITDA margins by 700 basis points versus the same quarter last year.
- Equity earnings were $228 million, versus $148 million in the year-ago period.
Dow Reports Second Quarter Results
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