Dow reported earnings per share for the fouth quarter of $0.85 on an adjusted basis or $0.63 on an as-reported basis. This compares with earnings of $0.65 per share on an adjusted basis in the year-ago period, or $0.79 per share on an as-reported basis.
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EBITDA rose 15 percent versus the prior year on an adjusted basis, reaching a fourth quarter record of $2.4 billion, or $2.1 billion on an as-reported basis(3). Adjusted EBITDA grew in every operating segment, led by Agricultural Sciences (up 40 percent), Performance Materials & Chemicals (up 18 percent) and Performance Plastics (up 6 percent).
EBITDA margin expanded 218 basis points on an adjusted basis(4) versus the year-ago period, with increases across all operating segments, as the Company’s integration and targeted end-markets enabled continued price stability in a declining raw material environment.
Margin expansion was driven primarily by Agricultural Sciences (up 300 basis points), Consumer Solutions (up 279 basis points) and Infrastructure Solutions (up 203 basis points), due primarily to increased demand for advantaged technologies in key end-markets.
Sales were $14.4 billion, flat versus the same quarter last year, as volume increased in both developed geographies (up 4 percent) as well as emerging geographies (up 5 percent). Volume gains were offset by price declines driven primarily by Western Europe (down 14 percent), which included currency headwinds.
Dow expanded volume in most segments – led by Agricultural Sciences (up 9 percent). Double-digit increases in Epoxy and Polyurethanes drove volume gains in Performance Materials & Chemicals (up 7 percent). Demand also rose in Performance Plastics (up 3 percent).
Dow reported an operating rate of 86 percent for the quarter, up 4 percentage points versus the year-ago period – representing the fifth consecutive quarter of year-over-year operating rate increases. Gains were driven primarily by strong demand in Performance Plastics, coupled with ongoing productivity improvements in Performance Materials & Chemicals.
Cash flow from operations was $2.8 billion for the quarter – an increase of more than $500 million versus the year-ago period – demonstrating the Company’s ongoing focus on working capital efficiency.
Dow continued to drive shareholder remuneration actions, returning $1.6 billion to shareholders in the quarter through declared dividends and repurchases, and completing its $4.5 billion repurchase program in the period. This quarter, the Company announced a 14 percent dividend increase and expanded its share buyback program by an additional $5 billion. ■