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Dow Announces First Quarter 2022 Financial Results

 Last Update: 2022-05-22
 Source: Internet
 Author: User

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Financial Summary

Earnings per share on a GAAP basis were $2.
11; operating earnings per share were $2.
34, compared with $1.
36 a year earlier
.
Operating EPS excludes certain item costs for the quarter of $0.
23 per share, primarily related to asset-related charges
.

Net sales were $15.
3 billion, up 28% year over year, with growth across all operating segments, business segments and regions
.
Net sales increased 6% sequentially, primarily driven by growth in the Performance Materials and Coatings, Packaging and Specialty Plastics operating segments
.

Local prices rose 28% year-on-year, with increases across all operating segments, business segments and regions
.
Local prices rose 2% month-on-month, mainly driven by the Silicones and Polyurethanes business units
.

Volumes were up 3 percent year over year, with growth in all operating segments, as well as in the U.
S.
, Canada and Latin America
.
Volumes were up 5% sequentially, reflecting strong demand in silicone and polyurethane applications
.

Equity income was $174 million, down $50 million year-over-year, primarily due to Sadara's planned overhaul projects
.
Equity earnings decreased by $50 million sequentially, primarily due to lower polyethylene and ethylene glycol margins in Asia Pacific markets
.

　　GAAP net income was $1.
6 billion
.
Operating earnings before interest and taxes (EBIT) were $2.
4 billion, up $865 million year-over-year, with growth across all operating segments
.
Operating EBIT rose 7% sequentially, as higher prices and lower planned maintenance activities in the Performance Materials and Coatings, Industrial Intermediates and Infrastructure operating segments outweighed the impact of higher raw material and energy costs
.

　　Cash from operating activities (ie, continuing operations) was $1.
6 billion, an increase of $1.
8 billion year over year due to higher earnings and prior-year optional pension expenses
.
The sequential decrease of $945 million was due to the fact that the increase in the dividend from the joint venture was less than the impact of the working capital required for the increase in sales and the cost of raw materials
.
Free cash flow was $1.
3 billion
.

　　Total returns to shareholders for the quarter were $1.
1 billion, including $513 million in dividends and $600 million in share repurchases
.

　　CEO Commentary

　　Chairman and Chief Executive Officer of The Dow Company

　　Mr.
Jim Fitterling

　　"This year marks the 125th anniversary of Dow's founding.
The Dow team achieved excellent results in the first quarter of both year-on-year and quarter-on-quarter growth in revenue and profit, demonstrating our continued focus on product portfolio differentiation, raw material flexibility, and rigorous operations.
We have
captured healthy demand dynamics in end markets despite rising energy costs, with solid volume growth, higher prices and improved margins
.
”

　　"In addition, we today released annual performance benchmarks showing that Dow's prior quartile EBITDA margin, return on capital, free cash flow yield, shareholder return and debt reduction achieved our financial goals
.
We We also recently announced a new $3 billion share repurchase program, which is a direct result of our strong performance and our balanced and disciplined capital allocation strategy
.
"

　　Outlook

　　"Looking ahead, we see strong demand across end markets," said Fitterling.
"
While the geopolitical environment remains dynamic, our global scale, cost advantage, and flexibility in raw materials and derivatives will continue to allow our Financial and operating performance remain resilient
.
At the same time, we are advancing our decarbonization strategy to exceed $3 billion in core earnings growth
as we transition to a sustainable world.
With continued and growing demand for innovative technologies in the circular economy, Dow is well-positioned to deliver mid-year earnings above pre-pandemic levels
.
"

　　Dow Announces First Quarter 2022 Financial Results

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