{"id":31381,"date":"2022-04-26T11:45:32","date_gmt":"2022-04-26T09:45:32","guid":{"rendered":"https:\/\/php8.plastv.de\/?p=31381"},"modified":"2022-04-26T11:45:32","modified_gmt":"2022-04-26T09:45:32","slug":"dow-reports-first-quarter-2022-results","status":"publish","type":"post","link":"https:\/\/plas.tv\/?p=31381","title":{"rendered":"Dow reports first quarter 2022 results"},"content":{"rendered":"


<\/span>\u2022<\/span> GAAP earnings per share (EPS) was $2.11; Operating EPS\u00b9 was $2.34, compared to $1.36 in the year-ago<\/span>
period. Operating EPS excludes certain items in the quarter, totaling $0.23 per share, primarily due to asset-<\/span>
related charges.<\/span><\/span>
\u2022<\/span> Net sales were $15.3 billion, up 28% versus the year-ago period, reflecting gains in all operating segments,<\/span>
businesses and regions. Sequentially, net sales were up 6%, driven by gains in Performance Materials &<\/span>
Coatings and Packaging & Specialty Plastics.<\/span><\/span>
\u2022<\/span> Local price increased 28% versus the year-ago period, with gains in all operating segments, businesses and<\/span>
regions. Sequentially, local price increased 2%, primarily driven by silicones and polyurethanes.<\/span><\/span>
\u2022<\/span> Volume increased 3% versus the year-ago period, with gains in all operating segments and in the U.S. &<\/span>
Canada and Latin America. Sequentially, volume was also up 5%, reflecting strong demand for silicones and<\/span>
polyethylene applications.<\/span><\/span>
\u2022<\/span> Equity earnings were $174 million, down $50 million from the year-ago period, primarily driven by impacts from<\/span>
planned maintenance activity at Sadara. Equity earnings were down $50 million from the prior quarter driven<\/span>
by lower polyethylene and MEG margins in Asia Pacific.<\/span><\/span>
\u2022<\/span> GAAP Net Income was $1.6 billion. Operating EBIT<\/span> 1<\/span> was $2.4 billion, up $865 million from the year-ago period<\/span>
with gains in all operating segments. Sequentially, operating EBIT increased 7%, led by improvements in<\/span>
Performance Materials & Coatings and Industrial Intermediates & Infrastructure as higher prices and lower<\/span>
planned maintenance activity more than offset higher raw material and energy costs.<\/span><\/span>
\u2022<\/span> Cash provided by operating activities \u2013 continuing operations was $1.6 billion, up $1.8 billion<\/span> 2<\/span> year-over-year<\/span>
due to increased earnings and an elective pension contribution in the year-ago period. Sequentially, cash<\/span>
provided by operating activities decreased $945 million as higher dividends from joint ventures were more than<\/span>
offset by working capital on increased sales and raw material costs. Free cash flow<\/span> 1<\/span> was $1.3 billion.<\/span><\/span>
\u2022<\/span> Returns to shareholders totaled $1.1 billion<\/span> in the<\/span> quarter, comprised of $513 million in dividends and<\/span>
$600 million in share repurchases.<\/span><\/span><\/strong>
<\/span><\/p>\n

Jim Fitterling, chairman and chief executive officer, commented on the quarter:<\/span><\/span><\/span>
\u201cEntering our company\u2019s 125<\/span> th<\/span> year, Team Dow delivered top- and bottom-line growth sequentially and year-over-<\/span>
year in the first quarter, demonstrating the advantage of our differentiated portfolio, feedstock flexibility and<\/span>
continued focus on disciplined execution. Despite higher energy costs, we captured healthy end-market demand<\/span>
and achieved solid volume growth, price gains and margin expansion.<\/span><\/span><\/span>
\u201cIn addition, today we published our annual benchmarking that demonstrates Dow delivered on our financial targets<\/span>
with top-quartile EBITDA margins, return on capital, free cash flow yield, shareholder remuneration, and debt<\/span>
reduction. We also recently announced a new $3 billion share repurchase program \u2013 a direct result of our<\/span>
performance as well as our balanced and disciplined capital allocation approach.\u201d<\/span><\/span><\/span><\/span>
<\/span>
Packaging & Specialty Plastics segment net sales in the quarter were $7.6 billion, up 25% versus the year-ago<\/span>
period. Local price increased 24% year-over-year with gains in both businesses and all regions. Continued strong<\/span>
end-market demand drove a 4% year-over-year volume increase, with gains in energy sales, olefins, and<\/span>
polyethylene, primarily in the U.S. & Canada. Currency decreased net sales by 3%. On a sequential basis, the<\/span>
segment delivered a 6% net sales increase, driven by robust demand in both businesses, including polyethylene<\/span>
demand, across industrial and consumer packaging applications.<\/span><\/span><\/span>
Equity earnings were $110 million, up $4 million compared to the year-ago period. For the principal joint ventures,<\/span>
gains from increased elastomer margins at the Thai joint ventures were offset by lower integrated polyethylene<\/span>
margins at Sadara and the Kuwait joint ventures. On a sequential basis, equity earnings decreased by $20 million<\/span>
due to higher raw material costs impacting polyethylene margins at the principal joint ventures.<\/span><\/span><\/span>
Operating EBIT was $1.2 billion, up $6 million versus the year-ago period, with Op. EBIT margins down 400 basis<\/span>
points year-over-year, as price increases in the U.S. & Canada and Latin America were partly offset by rising raw<\/span>
materials and energy costs in all regions. Sequentially, Op. EBIT was down $208 million and Op. EBIT margins<\/span>
declined by 390 basis points, primarily due to higher raw material and energy costs in Europe.<\/span><\/span><\/span>
<\/span><\/p>\n

Packaging and Specialty Plastics business delivered higher net sales versus the year-ago period, led by local price<\/span>
gains in all regions as well as in industrial & consumer packaging and flexible food & beverage packaging<\/span>
applications. Volumes declined slightly year-over-year, as growth in the U.S. & Canada was more than offset by<\/span>
declines in Asia Pacific. Sequentially, the business increased revenue on volume gains in all regions. Price<\/span>
increases in functional polymers were more than offset by price declines in polyethylene.<\/span><\/span><\/span>
Hydrocarbons & Energy business delivered a net sales increase compared to the year-ago period, driven primarily<\/span>
by higher local prices in olefins and aromatics. Sequentially, sales increased due to higher olefin volume and price,<\/span>
primarily in Europe, the Middle East, Africa and India.<\/span><\/span><\/span><\/span>2<\/span><\/span><\/p>\n

Industrial Intermediates & Infrastructure segment net sales in the quarter were $4.5 billion, up 25% versus the year-<\/span>
ago period. Local price improved 29% year-over-year with gains in both businesses and in all regions. Currency<\/span>
decreased sales by 5%. Volume was up 1% year-over-year as improved supply availability from the impacts of<\/span>
Winter Storm Uri in the prior year were offset by planned maintenance activity at Sadara. On a sequential basis,<\/span>
net sales were down 1%, as local price gains in both businesses were offset by the lower supply availability from<\/span>
Sadara.<\/span><\/span><\/span>
<\/span><\/p>\n

Equity earnings were $62 million, down $53 million compared to the year-ago period due to lower supply availability<\/span>
from planned maintenance activity at Sadara. On a sequential basis, equity earnings decreased by $28 million due<\/span>
to lower MEG margins.<\/span><\/span><\/span>
<\/span><\/p>\n

Operating EBIT was $661 million, an increase of $335 million compared to the year-ago period, primarily due to<\/span>
strong pricing momentum in both businesses, driving Op. EBIT margins up 560 basis points year-over-year.<\/span>
Sequentially, Op. EBIT was up $66 million, and Op. EBIT margins improved by 150 basis points, as strong prices<\/span>
and lower planned maintenance activity offset pressure from higher raw material and energy costs.<\/span><\/span><\/span>
Polyurethanes & Construction Chemicals business delivered higher net sales compared to the year-ago period,<\/span>
driven by local price gains in all regions and across all key value chains. Volume declined year-over-year, primarily<\/span>
due to the lower supply availability from Sadara. Sequentially, net sales declined as local price gains and strong<\/span>
demand for construction and industrial applications were more than offset by the lower supply availability from<\/span>
Sadara due to planned maintenance activity.<\/span><\/span><\/span>
<\/span><\/p>\n

Industrial Solutions business delivered increased net sales year-over-year, with local price gains in all regions.<\/span>
Volume also increased globally, driven by strong demand in industrial, agriculture and coatings markets, as well as<\/span>
improved supply availability from the impacts of Winter Storm Uri in the year-ago period. Sequential net sales were<\/span>
flat as local price gains and demand growth in the pharmaceutical, mobility and home and industrial cleaning end-<\/span>
markets were offset by the lower supply availability from Sadara.<\/span><\/span><\/span><\/span>
<\/span><\/p>\n

Performance Materials & Coatings segment net sales in the quarter were $3 billion, up 44% versus the year-ago<\/span>
period. Local price increased 39% year-over-year, with gains in both businesses and in all regions. Volume<\/span>
increased 8% year-over-year on stronger demand for silicones and coatings applications combined with improved<\/span>
supply availability from the impact of Winter Storm Uri in the year-ago period. Currency decreased net sales by 3%.<\/span><\/span><\/p>\n

On a sequential basis, net sales were up 19% with local price gains in both businesses. Volume increased<\/span>
sequentially due to strong consumer demand and increased supply availability of siloxanes upon the completion of<\/span>
planned maintenance activity in the prior quarter.<\/span><\/span><\/span>
<\/span><\/p>\n

Operating EBIT was $595 million, compared to $62 million in the year-ago period, as Op. EBIT margins increased<\/span>
1,660 basis points due to strong price gains and robust demand for both silicones and coatings offerings.<\/span>
Sequentially, Op. EBIT improved $300 million and Op. EBIT margins improved 800 basis points due to local price<\/span>
gains and lower impact from planned maintenance activity.<\/span><\/span><\/span>
<\/span><\/p>\n

Consumer Solutions business delivered higher net sales year-over year, with local price gains in all regions and<\/span>
applications. Volume also improved across all regions, driven by improved siloxane supply and strong demand for<\/span>
personal care applications. Sequentially, net sales were up with increases in local p rice and volume. Improved<\/span>
supply availability of siloxanes versus the prior quarter enabled the business to capture stronger demand across all<\/span>
major end-markets.<\/span><\/span><\/span>
<\/span><\/p>\n

Coatings & Performance Monomers business delivered increased net sales compared to the year-ago period, with<\/span>
local price gains in all regions. Volume increased year-over-year on improved supply availability of monomers from<\/span>
the impact of Winter Storm Uri in the year-ago period. Sequentially, the business delivered flat sales as local price<\/span>
gains for architectural coatings were offset by lower monomers volumes due to maintenance activity.<\/span><\/span><\/span><\/span>
<\/span><\/p>\n

OUTLOOK<\/span><\/span>
\u201cLooking ahead, we see strong demand across our end-markets,\u201d said Fitterling. \u201cWhile the geopolitical environment<\/span>
remains dynamic, our global scale, cost-advantaged positions, and industry-leading feedstock and derivative<\/span>
flexibility continue to enable resilient financial and operating performance. At the same time, we are advancing our<\/span>
strategy to decarbonize and grow underlying earnings by more than $3 billion in the transition to a more sustainable<\/span>
world. Dow is well-positioned to achieve mid-cycle earnings above pre-pandemic levels as we capture increasing<\/span>
demand for low-carbon, sustainable and circular innovations.\u201d<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Entering our company\u2019s 125 th year, Team Dow delivered top- and bottom-line growth sequentially and year-over-year in the first quarter…<\/p>\n","protected":false},"author":2,"featured_media":21420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,16],"tags":[],"series":[],"class_list":["post-31381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-plas-tv-meldungen-auf-der-startseite-unterhalb-slider","category-plast-tv-textmeldungen"],"_links":{"self":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/31381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31381"}],"version-history":[{"count":1,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/31381\/revisions"}],"predecessor-version":[{"id":31382,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/posts\/31381\/revisions\/31382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=\/wp\/v2\/media\/21420"}],"wp:attachment":[{"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31381"},{"taxonomy":"series","embeddable":true,"href":"https:\/\/plas.tv\/index.php?rest_route=%2Fwp%2Fv2%2Fseries&post=31381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}