Dow (DOW) Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 14, 2026 astatine 11:17 AM CDT 44 min read

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Jan. 30, 2025, 8 a.m. ET

• Chief Executive Officer — Jim Fitterling

• Chief Operating Officer — Karen S. Carter

• Chief Financial Officer — Jeff Tate

• Investor Relations Director — Andrew Riker

Jim Fitterling: Thank you, Andrew. Beginning connected Slide 3, there's a batch to unpack successful our results this quarter, truthful fto maine archetypal locomotion done the headlines. In the 4th quarter, Team Dow delivered our 5th consecutive 4th of year-over-year measurement maturation contempt continued anemic macroeconomic conditions. Net income were $10.4 billion, which is down 2% versus the twelvemonth agone period, and reflects pricing unit seen crossed the manufacture successful the quarter. Local terms was down 3% year-over-year and sequentially with declines crossed each our operating segments. Operating EBITDA was $1.2 billion, which is astir level compared to the aforesaid play past year. Cash travel from continuing operations was $811 million, resulting successful escaped currency travel of $44 million.

Returns to shareholders totaled $492 cardinal of dividends successful the quarter, and our full CapEx walk was $767 million. As you saw successful our numbers this quarter, we besides had a non-cash taxation accommodation impacting nett income and EPS. Jeff volition supply much details connected that aboriginal successful this call. Throughout the quarter, we announced further actions that continued to enactment the optimization of our planetary portfolio for growth, portion maintaining a champion proprietor mindset. For example, we continued to ramp up operating rates astatine our Texas-8 cracker and Glycol 2 unit. We completed the merchantability of our flexible packaging laminating adhesive concern to Arkema for an endeavor worth of astir $150 million.

And we've designed a definitive statement with Macquarie Asset Management for the merchantability of a number involvement successful prime U.S. Gulf Coast infrastructure assets for which we expect to person currency proceeds of up to $3 billion. And driven by persistently anemic planetary macroeconomic conditions, we announced a strategical reappraisal of prime European assets, chiefly successful our polyurethanes business, wherever request has been structurally challenged implicit the past 5 years, making it the highest outgo portion for respective of our cardinal businesses. We are besides postponing a attraction turnaround astatine 1 of our ethylene crackers successful Europe. This determination volition effect successful america idling this plus starting successful 2nd 4th until marketplace dynamics improve.

And contiguous we announced targeted actions to trim our costs by $1 cardinal and our CapEx by $300 cardinal to $500 million. Collectively, the further actions are focused connected reinforcing our semipermanent competitiveness arsenic we proceed to navigate this prolonged economical downturn. Turning to Slide 4. In 2024, Team Dow continued to beforehand some our near-term priorities and our semipermanent strategy to go a stronger, much innovative company. We delivered nett income of $43 billion, operating EBIT of $2.6 billion, and year-over-year measurement maturation of 3%, excluding merchant hydrocarbon sales. Earlier successful 2024, we began operation astatine our Path2Zero concern successful Fort Saskatchewan, Alberta.