Dow Q1 Highlights: 22% Sales Decline, Earnings Beat, Challenging Macro & More

Dow Inc DOW reports first-quarter FY23 sales decline of 22.4% year-over-year to $11.85 billion, beating the consensus of $11.35 billion.
Adjusted EPS was $0.58, beating the consensus of $0.36.
Volume decreased 11% Y/Y, led by a 15% decline in Europe, the Middle East, Africa, and India (EMEAI).
Local price declined 10% Y/Y and 4% sequentially.
Operating EBIT fell by 70.7% Y/Y to $708 million, and margin contracted 990 bps compared to 1Q22 to 6%.
Packaging & Specialty Plastics sales decreased 20% Y/Y to $6.1 billion, and the operating EBIT margin was 10.5%, down by 570 bps.
Industrial Intermediates & Infrastructure sales fell 25% Y/Y to $3.4 billion, and the operating EBIT margin contracted by 1,100 bps to 3.6%.
Performance Materials & Coatings sales were down 25% Y/Y to $2.3 billion, and the operating EBIT margin was 1.5%, down by 1,800 bps.
The company's decline in all operating segments reflects slower global macroeconomic activity.
DOW's cash provided by operating activities for the quarter was $535 million, compared to $1.6 billion a year ago. Free cash flow was $91 million.
The company returned $621 million in the quarter, including $496 million in dividends and $125 million in share repurchases.
"We will remain flexible, responding quickly as conditions evolve, and expect oil and gas spread to further support our strategic cost-advantaged positions. Importantly, the underlying long-term growth fundamentals in our market verticals remain intact as we advance both our Decarbonize and Grow and Transform the Waste strategies to raise our underlying earnings profile by $3 billion across the economic cycle," commented chairman and CEO Jim Fitterling.
Price Action: DOW shares are trading lower by 3.05% at $53.70 on the last check Tuesday.

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