Dow Chemical reports record cash earnings in Q1
EBITDA for the quarter was reported at $3.1 billion. Operating EBITDA was $2.4 billion. Gains were reported in Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals, as well as, Performance Plastics.
The company said margin expansion in operating EBITDA was driven by high-value, differentiated products even though sales were down 14% to $12.4 billion due to price declines caused by lower crude oil prices and the strong US dollar. Demand, on the other hand, grew across all geographic regions.
Dow also announced that it signed an agreement to divest a substantial portion of its chlorine value chain with Olin Corporation.
The company returned $977 million to its shareholders during the quarter.
Andrew N. Liveris, Dow’s chairman and chief executive officer, said, “Dow delivered a tenth consecutive quarter of operating earnings and margin growth with the full impact of an integrated, diversified portfolio on display. Demand for our high-margin, technology-driven businesses, coupled with our low-cost integration delivered margin expansion. 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 agriculture, all overcome in the quarter.”
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