Dow Misses Q4 EPS, Revenue Expectations

Core Insights - Dow reported disappointing earnings for Q4 2024, with adjusted EPS of $0, missing analysts' expectations of $0.24, and total revenue of $10.4 billion, below the forecast of $10.51 billion, reflecting a challenging macroeconomic environment [2][3] Financial Performance - Adjusted EPS for Q4 2024 was $0, a 100% decrease from $0.43 in Q4 2023 [3] - Total revenue was $10.4 billion, down 2.1% from $10.62 billion in Q4 2023 [3] - Operating EBIT decreased to $454 million, an 18.8% decline from $559 million in the previous year [3] - Cash from operations fell by 50.2% to $811 million, compared to $1.63 billion in Q4 2023 [3] Business Overview - Dow operates in various segments including packaging & specialty plastics, industrial intermediates & infrastructure, and performance materials & coatings, which helps mitigate market risks through diversification [4] - The company is focusing on sustainability and innovation, with projects aimed at achieving net-zero emissions [5] Segment Performance - The packaging & specialty plastics segment, which constitutes over half of Dow's revenue, saw a 6% year-over-year decline in net sales due to lower pricing in Asia Pacific [6] - Industrial intermediates & infrastructure maintained stable net sales, with EBIT improving by $69 million [6] - Performance materials & coatings experienced a 4% increase in net sales year-over-year, although there was an 11% sequential decline [7] Macroeconomic Challenges - The macroeconomic environment remains difficult, particularly in Europe and China, affecting demand and pricing across Dow's segments [8] - Unplanned operational disruptions, such as the Texas cracker outage, have necessitated adjustments to maintain supply chain efficiency [8] Future Outlook - Dow's management did not provide specific guidance on revenue or earnings but emphasized strategic initiatives in high-growth markets like electronics and packaging [9] - The company plans to reduce capital expenditure for 2025 by $300 million to $500 million and aims to cut annual costs by $1 billion through operational efficiency improvements [9]