Dow delivers a 10th consecutive quarter of operating earnings and margin growth with the full impact of an integrated, diversified portfolio on display, according to CEO Andrew Liveris.
Highlights from Dow’s first quarter results include: earnings per share increase to $1.18 or $0.84 on an operating basis; record first quarter cash from operations; and earning before interest, taxes, depreciation and amortization (EBITDA) margins expand to highest levels since 2005 despite significant macroeconomic volatility.
“This performance underscores the power of our portfolio to deliver in the face of significant macroeconomic pressures, with issues like oil price declines and currency volatility, plus weather impacts in agriculture, all overcome in the quarter,” Liveris says. “Our targeted market participation strategy, together with the strength of our integrated portfolio, has created a company with higher and even more predictable earnings.”
Sales were $12.4 billion, down 14 percent driven primarily by price declines, due to changes in crude oil values and currency devaluations versus the dollar.
The segment reported EBITDA of $409 million, down 19 percent from $506 million in the year-ago period, primarily due to price and currency headwinds in most regions, as well as softer demand and a later start to the European season compared to the prior year.
Crop protection sales decreased 11 percent from negative currency impact coupled with volume declines in Europe, Middle East, Africa and India and the Americas, with current weather conditions resulting in a later start to the European season compared to the year-ago period.
Seeds sales decreased 14 percent in the quarter, as acreage switched from corn to soybeans in North America and Latin America. Higher crop yields and inventories coming into the planting season are resulting in lower crop commodity prices, which in turn, are leading to lower forecast planted acreage of corn across the Americas.
