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Dow reports net sales up 53% YOY in Q3 2021
Source:Adsale Plastics Network    Editor:JK    Date:01.Nov.2021

Dow has reported its results of the third quarter of 2021. Its net sales were US$14.8 billion, up 53% versus the year-ago period and 7% sequentially, with gains in all operating segments and regions.


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Dow has reported its results of Q3 2021.


Major financial highlights:

 

  • GAAP earnings per share (EPS) was US$2.23; Operating EPS was US$2.75, compared to US$0.50 in the year-ago period. Operating EPS excludes certain items in the quarter, totaling US$0.52 per share, primarily related to an early extinguishment of debt

  • Local price increased 50% versus the year-ago period and 5% sequentially, reflecting gains in all operating segments, businesses and regions, driven by tight supply and demand dynamics across key value chains

  • Volume increased 2% versus the year-ago period, driven by gains in Packaging & Specialty Plastics and Performance Materials & Coatings. Sequentially, volume was also up 2%, reflecting ongoing economic recovery and continued underlying end-market demand strength, partly offset by supply and global logistics constraints

  • Equity earnings were US$249 million, up US$189 million from the year-ago period, primarily driven by margin expansion at Sadara and the Kuwait joint ventures. Equity earnings were down US$29 million from the prior quarter as Sadara gains were more than offset primarily by a planned maintenance turnaround at a Kuwait

  • joint venture

  • GAAP Net Income was US$1.7 billion. Operating EBIT was US$2.9 billion, up more than US$2.1 billion from the year-ago period. Gains were posted across all operating segments and businesses, reflecting margin expansion and increased equity earnings. Sequentially, operating EBIT increased 2%, on gains in Industrial Intermediates & Infrastructure and Performance Materials and Coatings

  • Cash provided by operating activities – continuing operations was US$2.7 billion, up US$958 million year-over-year and an increase of US$698 million compared to the prior quarter. Free cash flow was US$2.3 billion

  • Gross debt was reduced by more than US$1.1 billion in the quarter. Proactive liability management actions to tender existing notes have resulted in no substantive long-term debt maturities due until 2026 and reduced annual interest expense by more than US$60 million

  • Returns to shareholders totaled US$918 million in the quarter, comprised of US$518 million in dividends and US$400 million in share repurchases

 

Moreover, Dow has recently outlined a strategic plan to increase underlying EBITDA by more than US$3 billion across the cycle through the implementation of a phased and disciplined approach to decarbonize its footprint and grow earnings.

 

“We continue to see robust end-market demand that is expected to extend into 2022, coupled with near-term logistics constraints and low inventory levels across our value chains,” stated Jim Fitterling, Chairman and Chief Executive Officer of Dow. “Looking ahead, Dow is well-positioned to increase earnings, cash flow and returns as we decarbonize our footprint and achieve our 2030 and 2050 carbon emissions reduction targets.”

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