• GAAP earnings per share (EPS) was $2.11; Operating EPS¹ was $2.34, compared to $1.36 in the year-ago
period. Operating EPS excludes certain items in the quarter, totaling $0.23 per share, primarily due to asset-
related charges.
• Net sales were $15.3 billion, up 28% versus the year-ago period, reflecting gains in all operating segments,
businesses and regions. Sequentially, net sales were up 6%, driven by gains in Performance Materials &
Coatings and Packaging & Specialty Plastics.
• Local price increased 28% versus the year-ago period, with gains in all operating segments, businesses and
regions. Sequentially, local price increased 2%, primarily driven by silicones and polyurethanes.
• Volume increased 3% versus the year-ago period, with gains in all operating segments and in the U.S. &
Canada and Latin America. Sequentially, volume was also up 5%, reflecting strong demand for silicones and
polyethylene applications.
• Equity earnings were $174 million, down $50 million from the year-ago period, primarily driven by impacts from
planned maintenance activity at Sadara. Equity earnings were down $50 million from the prior quarter driven
by lower polyethylene and MEG margins in Asia Pacific.
• GAAP Net Income was $1.6 billion. Operating EBIT 1 was $2.4 billion, up $865 million from the year-ago period
with gains in all operating segments. Sequentially, operating EBIT increased 7%, led by improvements in
Performance Materials & Coatings and Industrial Intermediates & Infrastructure as higher prices and lower
planned maintenance activity more than offset higher raw material and energy costs.
• Cash provided by operating activities – continuing operations was $1.6 billion, up $1.8 billion 2 year-over-year
due to increased earnings and an elective pension contribution in the year-ago period. Sequentially, cash
provided by operating activities decreased $945 million as higher dividends from joint ventures were more than
offset by working capital on increased sales and raw material costs. Free cash flow 1 was $1.3 billion.
• Returns to shareholders totaled $1.1 billion in the quarter, comprised of $513 million in dividends and
$600 million in share repurchases.
Jim Fitterling, chairman and chief executive officer, commented on the quarter:
“Entering our company’s 125 th year, Team Dow delivered top- and bottom-line growth sequentially and year-over-
year in the first quarter, demonstrating the advantage of our differentiated portfolio, feedstock flexibility and
continued focus on disciplined execution. Despite higher energy costs, we captured healthy end-market demand
and achieved solid volume growth, price gains and margin expansion.
“In addition, today we published our annual benchmarking that demonstrates Dow delivered on our financial targets
with top-quartile EBITDA margins, return on capital, free cash flow yield, shareholder remuneration, and debt
reduction. We also recently announced a new $3 billion share repurchase program – a direct result of our
performance as well as our balanced and disciplined capital allocation approach.”
Packaging & Specialty Plastics segment net sales in the quarter were $7.6 billion, up 25% versus the year-ago
period. Local price increased 24% year-over-year with gains in both businesses and all regions. Continued strong
end-market demand drove a 4% year-over-year volume increase, with gains in energy sales, olefins, and
polyethylene, primarily in the U.S. & Canada. Currency decreased net sales by 3%. On a sequential basis, the
segment delivered a 6% net sales increase, driven by robust demand in both businesses, including polyethylene
demand, across industrial and consumer packaging applications.
Equity earnings were $110 million, up $4 million compared to the year-ago period. For the principal joint ventures,
gains from increased elastomer margins at the Thai joint ventures were offset by lower integrated polyethylene
margins at Sadara and the Kuwait joint ventures. On a sequential basis, equity earnings decreased by $20 million
due to higher raw material costs impacting polyethylene margins at the principal joint ventures.
Operating EBIT was $1.2 billion, up $6 million versus the year-ago period, with Op. EBIT margins down 400 basis
points year-over-year, as price increases in the U.S. & Canada and Latin America were partly offset by rising raw
materials and energy costs in all regions. Sequentially, Op. EBIT was down $208 million and Op. EBIT margins
declined by 390 basis points, primarily due to higher raw material and energy costs in Europe.
Packaging and Specialty Plastics business delivered higher net sales versus the year-ago period, led by local price
gains in all regions as well as in industrial & consumer packaging and flexible food & beverage packaging
applications. Volumes declined slightly year-over-year, as growth in the U.S. & Canada was more than offset by
declines in Asia Pacific. Sequentially, the business increased revenue on volume gains in all regions. Price
increases in functional polymers were more than offset by price declines in polyethylene.
Hydrocarbons & Energy business delivered a net sales increase compared to the year-ago period, driven primarily
by higher local prices in olefins and aromatics. Sequentially, sales increased due to higher olefin volume and price,
primarily in Europe, the Middle East, Africa and India.2
Industrial Intermediates & Infrastructure segment net sales in the quarter were $4.5 billion, up 25% versus the year-
ago period. Local price improved 29% year-over-year with gains in both businesses and in all regions. Currency
decreased sales by 5%. Volume was up 1% year-over-year as improved supply availability from the impacts of
Winter Storm Uri in the prior year were offset by planned maintenance activity at Sadara. On a sequential basis,
net sales were down 1%, as local price gains in both businesses were offset by the lower supply availability from
Sadara.
Equity earnings were $62 million, down $53 million compared to the year-ago period due to lower supply availability
from planned maintenance activity at Sadara. On a sequential basis, equity earnings decreased by $28 million due
to lower MEG margins.
Operating EBIT was $661 million, an increase of $335 million compared to the year-ago period, primarily due to
strong pricing momentum in both businesses, driving Op. EBIT margins up 560 basis points year-over-year.
Sequentially, Op. EBIT was up $66 million, and Op. EBIT margins improved by 150 basis points, as strong prices
and lower planned maintenance activity offset pressure from higher raw material and energy costs.
Polyurethanes & Construction Chemicals business delivered higher net sales compared to the year-ago period,
driven by local price gains in all regions and across all key value chains. Volume declined year-over-year, primarily
due to the lower supply availability from Sadara. Sequentially, net sales declined as local price gains and strong
demand for construction and industrial applications were more than offset by the lower supply availability from
Sadara due to planned maintenance activity.
Industrial Solutions business delivered increased net sales year-over-year, with local price gains in all regions.
Volume also increased globally, driven by strong demand in industrial, agriculture and coatings markets, as well as
improved supply availability from the impacts of Winter Storm Uri in the year-ago period. Sequential net sales were
flat as local price gains and demand growth in the pharmaceutical, mobility and home and industrial cleaning end-
markets were offset by the lower supply availability from Sadara.
Performance Materials & Coatings segment net sales in the quarter were $3 billion, up 44% versus the year-ago
period. Local price increased 39% year-over-year, with gains in both businesses and in all regions. Volume
increased 8% year-over-year on stronger demand for silicones and coatings applications combined with improved
supply availability from the impact of Winter Storm Uri in the year-ago period. Currency decreased net sales by 3%.
On a sequential basis, net sales were up 19% with local price gains in both businesses. Volume increased
sequentially due to strong consumer demand and increased supply availability of siloxanes upon the completion of
planned maintenance activity in the prior quarter.
Operating EBIT was $595 million, compared to $62 million in the year-ago period, as Op. EBIT margins increased
1,660 basis points due to strong price gains and robust demand for both silicones and coatings offerings.
Sequentially, Op. EBIT improved $300 million and Op. EBIT margins improved 800 basis points due to local price
gains and lower impact from planned maintenance activity.
Consumer Solutions business delivered higher net sales year-over year, with local price gains in all regions and
applications. Volume also improved across all regions, driven by improved siloxane supply and strong demand for
personal care applications. Sequentially, net sales were up with increases in local p rice and volume. Improved
supply availability of siloxanes versus the prior quarter enabled the business to capture stronger demand across all
major end-markets.
Coatings & Performance Monomers business delivered increased net sales compared to the year-ago period, with
local price gains in all regions. Volume increased year-over-year on improved supply availability of monomers from
the impact of Winter Storm Uri in the year-ago period. Sequentially, the business delivered flat sales as local price
gains for architectural coatings were offset by lower monomers volumes due to maintenance activity.
OUTLOOK
“Looking ahead, we see strong demand across our end-markets,” said Fitterling. “While the geopolitical environment
remains dynamic, our global scale, cost-advantaged positions, and industry-leading feedstock and derivative
flexibility continue to enable resilient financial and operating performance. At the same time, we are advancing our
strategy to decarbonize and grow underlying earnings by more than $3 billion in the transition to a more sustainable
world. Dow is well-positioned to achieve mid-cycle earnings above pre-pandemic levels as we capture increasing
demand for low-carbon, sustainable and circular innovations.”
