Bangkok--6 Dec--Siam PR Consultant
Dow Delivers Earnings Per Share Increase of 17 Percent Year Over Year; Focus in Key End-Use Markets Such as Packaging, Coatings and Infrastructure and Electronics Drives Sales, EBITDA Growth; Company Generates $1.4 Billion in Cash Flow from Operations in the Quarter, $5.6 Billion Year to Date
The Dow Chemical Company (NYSE: DOW) reported earnings for the quarter were $0.49 per share or $0.50 per share on an adjusted basis. This compares with prior-year earnings per share of $0.42 and represents year-over-year growth of 17 percent.
Sales were $13.7 billion, up 1 percent, or up 2 percent on an adjusted basis versus the prior year. Sales increases in Agricultural Sciences (up 8 percent), as well as Coatings and Infrastructure Solutions and Performance Plastics (each up 6 percent) drove sales gains at a segment level. Sales also rose in most geographic areas, with a 5 percent increase reported in emerging geographies, led by Latin America.
Volume declined 2 percent, or 1 percent excluding the impact of divestitures. Volume gains were reported in Electronic and Functional Materials (up 6 percent) and Coatings and Infrastructure Solutions and Agricultural Sciences (each up 5 percent). This growth was offset by lower volume in other operating segments, led by Feedstocks and Energy.
The Company reported price increases of 3 percent. Pricing gains were led by Performance Plastics (up 9 percent) and Agricultural Sciences (up 3 percent), with increases achieved in most operating segments.
Dow reported EBITDA of $1.8 billion, up 2 percent versus the prior year. Performance Plastics drove the EBITDA increase, with a 32 percent gain compared with the year-ago period. Coatings and Infrastructure Solutions and Electronic and Functional Materials also reported increases, up 15 percent and 5 percent, respectively.
Andrew N. Liveris, Dow?s chairman and chief executive officer, stated ?Dow continued to demonstrate positive momentum with our drive to execute self-help measures in a slow-growth world, achieving strong cash flow, as well as year-over-year earnings growth for the fourth consecutive quarter. Through our integrated value chains and the diversity of our targeted end markets, we continue to demonstrate strong performance ? particularly in emerging geographies, in our equity earnings, and in key downstream businesses such as Electronics, Coatings and Infrastructure, and Packaging. We continue to prioritize our resources to focus on these and other high-growth markets.
?Over the last 12 months, using return on capital as our lens, we have pruned non-strategic businesses such as the recently announced divestiture of our Polypropylene Licensing and Catalysts business, and deemphasized low-growth, commoditizing businesses, such as the announcements we have made on the chlorine value chain. We have identified targets and are moving forward with defined divestiture plans ? actions valued at a minimum of $3 - $4 billion. The proceeds of these divestitures will create further capacity for the Company to generate returns to shareholders.
?Our cash priorities remain intact: rewarding our shareholders, reducing interest payments from our debt structure and funding organic growth.?
For the Company outlook, Mr.Liveris said, ?In an unpredictable global business environment, Dow has proven its agility and focus ? actively managing every aspect of our enterprise to deliver ongoing earnings momentum. Our focus on self-help continues unabated: prioritizing our portfolio through a sharp ROC lens, maintaining the momentum of our cost and cash actions, liberating cash and deploying it to our capital structure and our shareholders.