Dow Inc., a leading chemicals and materials manufacturer, reported a loss of $93 million in Q1 2023. This compares to a profit of $1,569 million in the same period a year ago. The company saw lower sales across its segments in the quarter due to weaker macroeconomic activity globally, which resulted in a 22% year-over-year decline in net sales to $11,851 million.
Segment Performance
Packaging & Specialty Plastics: The division’s sales fell 20% year over year to $6.1 billion in the reported quarter. Volumes were down 8% year-over-year while local prices fell 11% as gains in functional polymers were more than offset by reduced polyethylene and olefin prices. Currency reduced sales by 1%.
Industrial Intermediates & Infrastructure: Sales for the unit tumbled 25% year over year to $3.4 billion. Local prices fell 6% in the quarter. Volumes declined 17% on lower demand in industrial, consumer durables, and building and construction applications. Currency reduced sales by 2%.
Performance Materials & Coatings: Revenues from the division declined 25% year over year to $2.3 billion. Volumes fell 11% while local prices went down 12%. Volumes were impacted by declines in all regions. Currency reduced sales by 2%.
Financials
Dow had cash and cash equivalents of $3,319 million at the end of the quarter, up around 6% year over year. Long-term debt was $14,739 million, up around 4% year over year. Cash provided by operating activities from continuing operations was $531 million in the reported quarter. Dow also returned $621 million to shareholders in the quarter through dividends and share buybacks.
Outlook
Dow expects to continue benefiting from its operational and cost actions as it progresses through 2023. The company is making progress with its actions to deliver $1 billion in cost savings in 2023 and is benefiting from its advantaged feedstock positions. It expects oil and gas spread to further support its strategic cost-advantaged positions.