The hottest loss was $1million. Dow said it achiev

Loss of $1million! Dow said it achieved "double growth" in the third quarter

loss of $1million! Dow said it achieved "double growth" in the third quarter

October 28, 2020

Dow released its financial report for the third quarter of 2020

• the loss per share calculated according to generally accepted accounting principles (GAAP) was US $0.04; Operating earnings per share was US $0.50, excluding the income or loss of important projects in the quarter with a total loss of US $0.54, which was caused by the failure of suspenders caused by the fall of floating grids per share. These projects mainly involved business restructuring and asset related expenses, as well as the net income from the stripping of railway infrastructure assets that did not generate turnover

• net sales were $9.7 billion, a year-on-year decrease of 10%, mainly due to the decline in local prices caused by the decline in global energy prices. Compared with the previous quarter, the sales volume of Dow (or "the company") in this quarter increased by 16%

• local prices fell 9% year-on-year. The currency exchange rate is stable. Local prices rose 5% month on month and benefited from monetary reasons, achieving an additional 2% increase

• sales volume decreased by 1% year-on-year. The growth rate was 9% month on month, and all business segments and regions achieved growth, which was due to the improvement of industrial demand in end markets such as furniture and bedding, home appliances, packaging, construction and automobiles

• equity income was $60million, an increase of $104million compared with a loss of $44million in the same period last year, mainly due to the improvement of the financial performance of the joint venture sadara

• GAAP net loss was $1million. Operating profit before interest and tax (EBIT) was $761million, compared with $1.1 billion in the same period last year. The original cost reduction target was offset by a narrower operating EBIT margin. From a month on month perspective, Dow's operating EBIT margin has improved, up 710 basis points, and all business segments have achieved growth

• cash generated from operating activities (i.e. going concern) was $1.8 billion, basically the same as that of the same period last year. The cash conversion rate increased to 119% in this quarter. Free cash flow was $1.5 billion, an increase of $156 million year-on-year

• the return on shareholder dividends for the quarter was $518million

• as of the end of the quarter, total cash and available committed liquidity exceeded $13.5 billion, with a month on month increase of more than $1.5 billion

• thanks to its strong cash flow generation capacity and prudent liquidity management, Dow has achieved a net debt improvement of more than $1.8 billion so far this year. Dow also continued to take active debt management actions and issued US $2billion of neutral debt bonds, so there will be no large amount of long-term debt maturity before the second half of 2024

• Dow completed the divestiture of its North American railway infrastructure assets, earning $315 million this quarter. Dow has also signed an agreement on the divestiture of marine and terminal businesses and assets in the Gulf coast of the United States, and is expected to earn cash income of $620million by the end of this year

CEO comments

Jim fittering, chairman and CEO of Dow, commented on the performance of this quarter:

"Dow's team achieved better month on month performance, which was significantly higher than the relatively low data in the second quarter. At the same time, compared with the same period last year, our operating cash flow was also relatively strong, thanks to the rebound in demand and our early actions in focusing on cash, reducing expenditure, repaying debt, etc. we improved our operating rate to meet the demand increase brought by the continuous recovery momentum. In In the polyethylene business area, our price increased by 12% month on month due to the still strong packaging demand; In the field of polyurethane business, our sales volume and profit margin have both increased, which is mainly due to the continuous improvement of consumer demand. "

"at the same time, through the implementation of business restructuring plan, we have improved our competitiveness and brought annualized EBITDA It is expected to reach US $300million. We also announced the second infrastructure asset divestiture plan, which will sell some marine and terminal businesses located in the Gulf coast of the United States. This is also based on our concept of finding the best owners of these assets. In this quarter, we also promoted sustainable development projects, created new business growth opportunities, created innovative solutions for customers, and improved our overall operational efficiency. "

outlook

fittering said: "As we enter the fourth quarter, our year-on-year growth momentum continues, our financial flexibility has improved, and we are still focused on cash management, which will continue to benefit us as the gradual recovery continues to advance in strength and breadth. I am very proud of the rigorous performance of Dow's team in the face of COVID-19 and many natural disasters. However, despite the substantial rebound in the third quarter, However, the recovery in various markets is uneven, and we expect this situation to continue in the short term. We will continue to strive firmly towards the established strategic and operational goals. In the face of the changing market environment, we are taking active and flexible measures, coupled with our fundamental competitive advantage, that is, the industry-leading flexibility of raw materials, as well as our extensive geographical coverage and participation in diversified end markets and technologies, which will enable us to continue to be based on our existing performance, promote the current domestic peek market has not been fully opened, and achieve our goals. "

about Dow

Dow (NYSE Code: Dow) combines global layout, asset integration and economies of scale with focused innovation and leading business positioning to achieve profitable growth and stability in other regions. The company aims to become the leading material science company in innovation, customer orientation, inclusiveness and sustainable development. Dow's plastics, industrial intermediates, coatings and silicone business portfolio provides a wide range of technology-based differentiated products and solutions to customers in high growth markets, including packaging, infrastructure and consumer care. Dow operates 109 manufacturing bases in 31 countries around the world, with about 36500 employees worldwide. Dow achieved sales of about $43billion in 2019. "Dow" or "company" means Dow Inc. and its subsidiaries