Dow experienced a 9% decline in sales during the initial quarter of 2024, dropping from $11.85 billion in the same period of 2023 to $10.76 billion this year, despite a 1% increase in volumes. However, there were positive indicators with a 1% uptick in sales compared to the fourth quarter of 2023. Operating earnings before interest and taxes (EBIT) decreased by 5% from $708 million in the first quarter of 2023 to $674 million this year.

Within the industrial intermediates & infrastructure (II&I) sector, encompassing polyurethanes, sales declined to $3.0 billion, marking an 11% decrease from the $3.38 billion recorded in the first quarter of 2023. Sequentially, there was a 2% increase from the previous quarter's sales figure of $2.95 billion. The segment witnessed a 4% increase in volume year-on-year, primarily driven by advancements in the polyurethanes & construction chemical business, notably in the EMEAI region. Despite volume gains, local price reductions for the polyurethane segment resulted in an overall sales decrease.

Operating EBIT for the II&I segment decreased from $123 million in the first quarter of 2023 to $87 million this year, reflecting a 29% decline. Dow attributed this drop in EBIT primarily to lower prices, although partially mitigated by reduced costs for energy and feedstocks.

Jim Fitterling, the company’s chair and CEO, remarked, “In the first quarter, we observed improving demand, maintained pricing, and benefited from lower feedstock and energy costs. Our globally advantageous cost positions contributed to higher operating rates, resulting in sequential volume growth and margin expansion across our diverse portfolio.”

Source: DOW