Dow Inc., a leading materials science company, announced its financial results for the third quarter of 2024. While the company reported a slight increase in net sales, challenges in certain segments and regions impacted overall profitability.

Despite facing headwinds like an unplanned cracker outage in Texas and a softening macroeconomic environment, especially in Europe and China, Dow managed to deliver its fourth consecutive quarter of year-over-year volume growth.

Their net sales were up by 1% at $10.9 billion Year on Year (YoY), their production volume too increased by 1% YoY.

Segment Highlights

• Packaging & Specialty Plastics: Net sales increased 1% year-over-year, driven by higher polyethylene sales. Operating EBIT increased $142 million due to higher integrated margins.

• Hydrocarbons & Energy: Net sales decreased compared to the year-ago period, driven by lower third-party aromatics and energy sales.

• Industrial Intermediates & Infrastructure: Net sales decreased 2% year-over-year, driven by lower volumes in Polyurethanes & Construction Chemicals. Operating EBIT decreased $74 million.

• Performance Materials & Coatings: Net sales increased 4% year-over-year, driven by volume gains. Operating EBIT decreased $39 million due to higher raw material costs.

The company expects to continue operating with discipline and leverage its global scale and cost advantages. Dow’s strong financial position will drive countercyclical growth investments in high-value sectors and regions, projected to generate over $3 billion in underlying earnings by 2030.

Jim Fitterling, chair and CEO commented on the quarter “In the third quarter, Team Dow delivered our fourth consecutive quarter of year-over-year volume growth, while managing ongoing macroeconomic softness and an unplanned cracker outage in Texas. Our cost-advantaged footprint in the Americas continues to provide a strong competitive edge, enabling Dow to capture demand growth in attractive markets. However, a meaningful recovery has yet to materialize in Europe and China. In addition, Europe’s regulatory environment has led to increasing challenges across many sectors and value chains. Since 2023, we have proactively taken targeted actions to optimize our global asset footprint. Consistent with our bestowner mindset, we are announcing a strategic review of select assets in Europe, primarily those in our Polyurethanes business. We will continue to optimize our global footprint, while maximizing cash generation as we make progress on our higher-return investments that will drive long-term shareholder value.”