Dow's Q4 Earnings and Revenues Miss Estimates on Lower Prices

Core Viewpoint - Dow Inc. reported a narrower loss in Q4 2024 compared to the previous year, but missed earnings estimates and faced declining sales due to macroeconomic challenges [1][2][10]. Financial Performance - Dow recorded a loss of $53 million or 8 cents per share in Q4 2024, an improvement from a loss of $105 million or 15 cents per share in Q4 2023 [1]. - Adjusted earnings per share were break-even, down from 43 cents a year ago, missing the Zacks Consensus Estimate of 23 cents [1][2]. - Net sales for the quarter were $10,405 million, a 2% decrease year over year, and below the Zacks Consensus Estimate of $10,427.5 million [2]. - For the full year 2024, revenues totaled $43 billion, down approximately 4% year over year, while earnings per share increased to $1.57 from 82 cents in the previous year [7]. Segment Performance - Packaging & Specialty Plastics: Sales fell 6% year over year to $5,315 million, below the estimate of $5,525.4 million, with volumes down 1% [4]. - Industrial Intermediates & Infrastructure: Sales were flat at $2,948 million, below the estimate of $2,961.9 million, with local prices down 1% [5]. - Performance Materials & Coatings: Revenues rose 4% year over year to $1,965 million, below the estimate of $2,055.9 million, with volumes increasing by 5% [6]. Cash Flow and Shareholder Returns - Cash and cash equivalents at the end of 2024 were $2,189 million, a decrease of around 27% from the prior year [8]. - Long-term debt increased to $15,711 million, up approximately 5% year over year [8]. - The company returned $492 million to shareholders in Q4 2024, totaling $2.5 billion for the year, which included $2 billion in dividends and $0.5 billion in share buybacks [9]. Future Outlook - Dow expects to benefit from the completion of growth projects and an increased focus on operational discipline in 2025, anticipating demand growth in packaging, energy, and electronics [10]. - The company plans to cut costs by $1 billion, including a workforce reduction of around 1,500 roles globally, and reduce capital spending plans by $300-$500 million in response to macroeconomic challenges [11]. Stock Performance - Dow's shares have declined by 23.4% over the past year, contrasting with a 0.2% decline in the Zacks Chemicals Diversified industry [12].