Dow Inc. (DOW) total revenue jumps 53% in third quarter

Highlights

  • Dow Inc’s (NYSE: DOW) net sales were up 53% YoY to US$14.8 billion, and the GAAP EPS was US$2.23 in the quarter.

  • The GAAP net income was US$1.7 billion, while the operating EBIT1 was US$2.9 billion, up over US$2.1 billion from the comparable period of last year.

  • Equity earnings were up by US$189 million to US$249 million from the year-ago period, mainly due to margin expansion at Sadara and the Kuwait joint ventures.

Commodity chemical company Dow Inc. (DOW) on Thursday posted third-quarter total revenue of US$14.8 billion boosted by its top- and-bottom-line growth.

Chairman and CEO Jim Fitterling said a new strategic plan outlined during the investor conference earlier this month would give further impetus to decarbonize its footprint and expand earnings.

He said it could help increase the underlying EBITDA by over US$3 billion. The aim is to capture the demand for low- to zero-carbon emissions products across geographies while continuing to deliver the financial priorities, Fitterling said.

Third-quarter Highlights

Dow’s net sales were up 53% YoY to US$14.8 billion, and the GAAP EPS was US$2.23 in the quarter.

The company said that the local price rose by 50% year-over-year, reflecting gains in all operating segments and regions. Also, the volume has increased by 2% from the year-ago period, helped by gains in packaging and specialty plastics, performance materials, and coatings.

Equity earnings were up by US$189 million to US$249 million from the year-ago period, mainly due to margin expansion at Sadara and the Kuwait joint ventures, Dow said in a release.

The GAAP net income was US$1.7 billion, while the operating EBIT1 was US$2.9 billion, up over US$2.1 billion from the comparable period of last year.

The company said gains were recorded across all operating segments and businesses, showing margin growth and improved equity earnings.

In addition, cash from operating activities was US$2.7 billion, up by US$958 million YoY.

It was an increase of US$698 million from the prior quarter. The free cash flow was US$2.3 billion.

It also said the gross debt reduced by over US$1.1 billion in the quarter.

Returns to shareholders totaled US$918 million in the quarter, including US$518 million in dividends and US$400 million in share repurchases.

Also Read: American Airlines Group (AAL) posts third-quarter profit of US$169 million

Dow’s net sales were up 53% YoY to US$14.8 billion, and the GAAP EPS was US$2.23 in the third quarter.

Source: Pixabay

Also Read: Danaher (DHR), AT&T (T) profit soars in Q3, beat expectations

Stock Performance

The Dow stock gained around 4.4% year-to-date. It was trading at US$58.28, down 2.69%, at 2:12 pm ET on Thursday.

Its 52-week highest and lowest stock prices were US$71.38 and US$44.33, respectively.

The P/E ratio is 10.69, and the forward P/E one-year ratio is 6.98. The EPS is US$5.44, while the annualized dividend is US$2.80, and the current dividend yield is 4.75%.

Its ex-dividend date is Nov 29, 2021, payable on Dec 10, 2021.

Dow Inc. has a market cap of US$43.37 billion.

Also Read: SAP SE (SAP) raises guidance, Union Pacific (UNP) posts higher profits

Bottomline

While the US economic recovery is on track, many companies dependent on the larger stability of the markets have made significant strides in recent months. For instance, industrial and utility sectors are closely tied to economic health, and as such, the swift recovery of the economy is giving them the growth impetus.  However, investors should exercise due diligence before investing in stocks.

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