Dow Inc. Reports Impressive Q3 Results

By Bobby Samwell • Thursday, October 22 13:13 • Permanent Link

Dow’s third quarter showed a sharp year-over-year improvement in sales, profit and cash generation, with gains across all three operating segments.

Net sales rose to $11.27 billion from $9.97 billion a year earlier, an increase of $1.29 billion, or 13%. Local price was up 14%, while currency was flat and volume slipped 1%.

Net income came in at $525 million, up from $124 million in the prior-year quarter. Earnings per share increased to $0.62 from $0.08.

Operating EBIT jumped to $887 million from $180 million, a gain of $707 million. Operating EPS improved to $0.71 from a loss of $0.19 a year ago.

Cash provided by operating activities from continuing operations rose to $1.84 billion from $1.13 billion, an increase of $709 million. That was also $515 million higher than the second quarter. Free cash flow was $1.1 billion, and trailing 12-month cash flow conversion was 84%.

Dow returned $253 million to shareholders through dividends in the quarter.

By segment, Packaging & Specialty Plastics posted the biggest sales base, with revenue rising 18% to $5.78 billion from $4.89 billion. Operating EBIT in the segment climbed to $585 million from $199 million, up $386 million.

Industrial Intermediates & Infrastructure generated $3.06 billion in sales, up 8% from $2.83 billion, and swung to operating EBIT of $176 million from a loss of $47 million a year earlier, a $223 million improvement.

Performance Materials & Coatings sales increased 8% to $2.25 billion from $2.08 billion, while operating EBIT rose to $154 million from $80 million.

Within the quarter, Dow said local prices increased 17% in Packaging & Specialty Plastics, 16% in Industrial Intermediates & Infrastructure and 5% in Performance Materials & Coatings. Volumes rose 1% in Packaging & Specialty Plastics and 3% in Performance Materials & Coatings, but fell 7% in Industrial Intermediates & Infrastructure. As a result of these announcements, the company's shares have moved -1.01% on the market, and are now trading at a price of $30.38. Check out the company's full 8-K submission here.

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