Dow Inc. (DOW) Bundle
A Brief History of Dow Inc.
Company Overview
Dow Inc. operates as a global chemical company, providing a wide range of materials and solutions across various industries. As of 2024, Dow has established itself as a leader in sustainability and innovation within the chemical sector.
Recent Financial Performance
In the third quarter of 2024, Dow Inc. reported net sales of $10.879 billion, a slight increase of 1% compared to $10.730 billion in the same quarter of 2023. For the first nine months of 2024, net sales totaled $32.559 billion, down from $34.001 billion in the previous year, reflecting a decrease of approximately 4% year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $10.879 billion | $10.730 billion | $32.559 billion | $34.001 billion |
| Net Income | $214 million | $302 million | $1.169 billion | $694 million |
| Earnings per Share | $0.30 | $0.42 | $1.65 | $0.97 |
| Operating EBIT | $641 million | $626 million | $2.134 billion | $2.219 billion |
Segment Performance
Dow's financial results are further segmented into various operational divisions. The Packaging & Specialty Plastics segment reported net sales of $5.516 billion in Q3 2024, up from $5.454 billion in Q3 2023. However, for the first nine months of 2024, this segment's sales fell to $16.461 billion from $17.508 billion in the previous year.
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | 9M 2024 Net Sales | 9M 2023 Net Sales |
|---|---|---|---|---|
| Packaging & Specialty Plastics | $5.516 billion | $5.454 billion | $16.461 billion | $17.508 billion |
| Industrial Intermediates & Infrastructure | $2.962 billion | $3.035 billion | $8.921 billion | $9.590 billion |
| Performance Materials & Coatings | $2.214 billion | $2.130 billion | $6.609 billion | $6.603 billion |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Dow generated $2.100 billion from operating activities, a decrease from $3.540 billion in the same period of 2023. The company maintained cash and cash equivalents of $2.883 billion as of September 30, 2024.
| Cash Flow Summary | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash Provided by Operating Activities | $2.100 billion | $3.540 billion |
| Cash Used for Investing Activities | ($1.456 billion) | ($1.846 billion) |
| Cash Used for Financing Activities | ($723 million) | ($2.404 billion) |
Strategic Developments
In 2024, Dow announced the acquisition of Circulus Holdings, a mechanical recycling company, for approximately $130 million, showcasing its commitment to sustainability initiatives. Additionally, the company repurchased $94 million of its common stock in Q3 2024 as part of its ongoing share repurchase program, which has an authorization of up to $3 billion.
Credit Ratings
As of September 30, 2024, Dow's credit ratings were affirmed by major agencies, reflecting a stable outlook:
| Rating Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| Fitch Ratings | BBB+ | F1 | Stable |
| Moody’s Ratings | Baa1 | P-2 | Stable |
| Standard & Poor’s | BBB | A-2 | Stable |
Dividends
Dow has consistently paid dividends, with a dividend of $0.70 per share declared on October 10, 2024, payable on December 13, 2024. This aligns with the company's strategy of returning approximately 45% of Operating Net Income to shareholders through dividends.
| Dividend Declaration | Amount (per share) | Payment Date |
|---|---|---|
| October 10, 2024 | $0.70 | December 13, 2024 |
| August 14, 2024 | $0.70 | September 13, 2024 |
| April 11, 2024 | $0.70 | June 14, 2024 |
| February 15, 2024 | $0.70 | March 8, 2024 |
A Who Owns Dow Inc. (DOW)
Major Shareholders
As of 2024, Dow Inc. (DOW) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 7.9% |
| Institutional Investor | State Street Corporation | 4.2% |
| Mutual Fund | Fidelity Investments | 3.1% |
| Individual Shareholders | Other Individual Shareholders | 76.3% |
Stock Ownership Breakdown
As of September 30, 2024, Dow Inc. had approximately 782 million shares outstanding. The breakdown of stock ownership is detailed in the table below:
| Ownership Category | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 225 million | 28.8% |
| Mutual Funds | 95 million | 12.2% |
| Individual Investors | 462 million | 59.0% |
Recent Shareholder Actions
In 2024, Dow Inc. repurchased approximately $494 million of its common stock during the first nine months, reflecting its strategy to enhance shareholder value. The company has authorized up to $3 billion for share repurchases, with about $931 million remaining available as of September 30, 2024.
Dividends
Dow Inc. has consistently paid dividends to its shareholders. The following table summarizes the dividends declared and paid in 2024:
| Declaration Date | Record Date | Payment Date | Amount (per share) |
|---|---|---|---|
| February 15, 2024 | February 29, 2024 | March 8, 2024 | $0.70 |
| April 11, 2024 | May 31, 2024 | June 14, 2024 | $0.70 |
| August 14, 2024 | August 30, 2024 | September 13, 2024 | $0.70 |
| October 10, 2024 | November 29, 2024 | December 13, 2024 | $0.70 |
Financial Performance Indicators
For the third quarter of 2024, Dow Inc. reported net income available for common stockholders of $214 million, or $0.30 per share. The company’s cash flows and liquidity remain strong, with cash and cash equivalents totaling $2.883 billion as of September 30, 2024. The following table illustrates key financial metrics for Dow Inc.:
| Metric | Value (Q3 2024) |
|---|---|
| Net Income | $214 million |
| Earnings Per Share (EPS) | $0.30 |
| Cash and Cash Equivalents | $2.883 billion |
| Share Repurchase Amount | $94 million |
| Total Dividends Paid (2024) | $1.474 billion |
Dow Inc. (DOW) Mission Statement
The mission of Dow Inc. is to deliver a sustainable future through innovative solutions in materials science, enabling a diverse range of customers and industries to thrive. The company focuses on building a sustainable and inclusive society, leveraging its expertise in chemistry and materials science to solve global challenges.
Financial Performance Overview
As of September 30, 2024, Dow Inc. reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $10,879 million | $10,730 million | $32,559 million | $34,001 million |
| Net Income | $240 million | $327 million | $1,236 million | $755 million |
| Earnings Per Share | $0.30 | $0.42 | $1.65 | $0.97 |
| Operating EBIT | $641 million | $626 million | $2,134 million | $2,219 million |
| Cash and Cash Equivalents | $2,883 million | $2,987 million | - | - |
Strategic Goals
Dow Inc. aims to enhance its sustainability initiatives by investing in innovative technologies and partnerships that reduce environmental impact and promote circular economy practices. The company has set specific targets for carbon emissions reductions and aims to achieve net-zero emissions by 2050.
Dividend Policy
Dow Inc. maintains a consistent dividend policy, declaring dividends quarterly. In 2024, the following dividends were declared:
| Declaration Date | Record Date | Payment Date | Amount (per share) |
|---|---|---|---|
| February 15, 2024 | February 29, 2024 | March 8, 2024 | $0.70 |
| April 11, 2024 | May 31, 2024 | June 14, 2024 | $0.70 |
| August 14, 2024 | August 30, 2024 | September 13, 2024 | $0.70 |
| October 10, 2024 | November 29, 2024 | December 13, 2024 | $0.70 |
Research and Development Investment
In 2024, Dow Inc. allocated significant resources to research and development, focusing on innovations that support sustainability and product performance:
| Period | R&D Expenses |
|---|---|
| Q3 2024 | $208 million |
| Q3 2023 | $197 million |
| YTD 2024 | $608 million |
| YTD 2023 | $616 million |
Environmental Initiatives
Dow Inc. is committed to reducing its environmental footprint through various initiatives:
- Carbon Reduction: Aiming for a 30% reduction in greenhouse gas emissions by 2030.
- Circular Economy: Investment in recycling technologies and partnerships to increase the use of recycled materials.
- Sustainable Products: Development of products that meet sustainability standards and reduce environmental impact.
Market Position and Competitive Landscape
Dow Inc. operates in a highly competitive market with a focus on materials science. Its strategic positioning includes:
- Global Reach: Operations in over 160 countries.
- Diverse Portfolio: Products across multiple sectors including packaging, infrastructure, and consumer goods.
- Innovation Leadership: Focused on R&D to drive product innovation and sustainability.
With these strategic initiatives and financial performance metrics, Dow Inc. aims to fulfill its mission and enhance shareholder value while contributing positively to society and the environment.
How Dow Inc. (DOW) Works
Business Overview
Dow Inc. operates primarily in the materials science sector, producing a wide range of chemical, plastic, and agricultural products. The company is segmented into various operational areas including Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials & Coatings.
Financial Performance
As of the third quarter of 2024, Dow Inc. reported the following financial outcomes:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $10,879 million | $10,730 million | $32,559 million | $34,001 million |
| Operating EBIT | $641 million | $626 million | $2,134 million | $2,219 million |
| Net Income | $240 million | $327 million | $1,236 million | $755 million |
| Earnings Per Share | $0.30 | $0.43 | $1.65 | $0.97 |
| Cash Provided by Operating Activities | $2,100 million | $3,540 million | $2,100 million | $3,540 million |
Segment Performance
Dow's operational segments contributed variably to its financial results:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | 9M 2024 Net Sales | 9M 2023 Net Sales |
|---|---|---|---|---|
| Packaging & Specialty Plastics | $5,516 million | $5,454 million | $16,461 million | $17,508 million |
| Industrial Intermediates & Infrastructure | $2,962 million | $3,035 million | $8,921 million | $9,549 million |
| Performance Materials & Coatings | $2,214 million | $2,130 million | $6,609 million | $6,603 million |
| Corporate | $187 million | $111 million | $568 million | $300 million |
Cash and Liquidity
As of September 30, 2024, Dow Inc. held cash and cash equivalents of $2,883 million, down from $2,987 million at the end of 2023. The company maintains robust liquidity with access to $12.7 billion in cash and committed liquidity sources.
Dividends and Share Repurchase
Dow Inc. declared dividends of $0.70 per share in 2024, with total dividends paid amounting to $1,474 million in the first nine months. The company has also repurchased $494 million of its common stock in the same period.
Debt and Credit Ratings
As of September 30, 2024, Dow's credit ratings are as follows:
| Agency | Long-Term Rating | Short-Term Rating | Outlook |
|---|---|---|---|
| Fitch Ratings | BBB+ | F1 | Stable |
| Moody's Ratings | Baa1 | P-2 | Stable |
| Standard & Poor’s | BBB | A-2 | Stable |
Research and Development
Research and development expenses for the third quarter of 2024 totaled $208 million, compared to $197 million in the same period in 2023. For the first nine months of 2024, R&D expenses were $608 million, slightly down from $616 million in 2023.
Environmental and Strategic Initiatives
Dow Inc. has made investments in sustainability, including the acquisition of Circulus Holdings for approximately $130 million, aimed at enhancing its recycling capabilities. The company continues to optimize its global asset footprint and evaluate its environmental impact.
How Dow Inc. (DOW) Makes Money
Revenue Segments
Dow Inc. generates revenue through various segments, primarily focusing on the following:
- Packaging & Specialty Plastics
- Industrial Intermediates & Infrastructure
- Performance Materials & Coatings
- Corporate Operations
Packaging & Specialty Plastics
In the first nine months of 2024, net sales for Packaging & Specialty Plastics were $16,461 million, down from $17,508 million in the same period of 2023. The operating EBIT for this segment was $1,926 million, compared to $2,036 million in the previous year. Key drivers included:
- Local price decreased by 4%.
- Volume decreased by 2%.
In the third quarter of 2024, net sales were $5,516 million, a slight increase of 1% from $5,454 million in the third quarter of 2023. The operating EBIT increased to $618 million from $476 million, attributed to lower raw material costs and higher selling prices despite an unplanned ethylene facility outage.
Industrial Intermediates & Infrastructure
For the first nine months of 2024, this segment reported net sales of $8,921 million, down from $9,590 million in 2023. Operating EBIT was $41 million, a decrease from $109 million. The segment faced challenges such as:
- Local prices decreased by 7%.
- Volume increased by 1%.
In the third quarter of 2024, net sales were $2,962 million, down 2% from $3,035 million in the same quarter of the previous year, with an operating EBIT loss of $53 million.
Performance Materials & Coatings
This segment achieved net sales of $6,609 million in the first nine months of 2024, slightly up from $6,603 million. Operating EBIT stood at $327 million, an increase from $280 million. Key factors included:
- Volume increased by 5%.
- Local price decreased by 4%.
In the third quarter of 2024, net sales were $2,214 million, a 4% increase from $2,130 million in the same quarter of 2023.
Corporate Operations
The corporate segment primarily includes the company's insurance operations. For the first nine months of 2024, net sales were $568 million, up from $300 million the previous year. The operating EBIT for this segment was a loss of $160 million, improved from a loss of $206 million in 2023.
Financial Summary
Below is a summary of Dow Inc.'s financial performance for the third quarter of 2024:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Operating EBIT (Q3 2024) | Operating EBIT (Q3 2023) |
|---|---|---|---|---|
| Packaging & Specialty Plastics | $5,516 million | $5,454 million | $618 million | $476 million |
| Industrial Intermediates & Infrastructure | $2,962 million | $3,035 million | $(53) million | $21 million |
| Performance Materials & Coatings | $2,214 million | $2,130 million | $140 million | $179 million |
| Corporate | $187 million | $111 million | $(64) million | $(50) million |
| Total | $10,879 million | $10,730 million | $641 million | $626 million |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, cash provided by operating activities was $2,092 million, down from $3,536 million in 2023. Capital expenditures during the same period totaled $2,173 million, resulting in a free cash flow of $(81) million.
Debt and Shareholder Returns
As of September 30, 2024, Dow Inc. had long-term debt of $16,164 million and had repurchased $494 million of common stock in the first nine months of 2024. The company declared a dividend of $0.70 per share in August 2024.
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Article updated on 8 Nov 2024
Resources:
- Dow Inc. (DOW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Dow Inc. (DOW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Dow Inc. (DOW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.