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The Dow Chemical Co. is headquartered in Midland.
(File | MLive.com)
MIDLAND, MI — The Dow Chemical Co. has reported its earnings for the second quarter of 2014, the seventh consecutive quarter of earnings growth and margin expansion, according to company officials.
Dow officials on Wednesday, July 23, reported earnings of 73 cents per share, or 74 cents per share on an adjusted basis. This compares with earnings of $1.87 per share versus the year-ago period, or adjusted earnings of 64 cents per share — representing a year-over-year increase of 16 percent, the Dow news release states.
Dow officials also reported $14.9 billion in sales, up 2 percent versus the year-ago period, or 3 percent on an adjusted basis, with increases in all operating segments. And EBITDA grew to $2.2 billion, with increases in most operating segments, the release states.
Cash flow from operations was $1.4 billion for the quarter, Dow officials said. Year-to-date, Dow has returned $3 billion to shareholders through declared dividends and share repurchases.
Andrew N. Liveris
Andrew N. Liveris, Dow's chairman and chief executive officer, issued the following statement in response to the company's second quarter results:
"Our results reflect excellent progress against Dow's near-term priorities, and clearly illustrate our ongoing drive to execute self-help actions that are delivering growth on both the top and bottom line.
Our performance highlights the Company- and segment-specific actions we are executing to grow profitability through an intense focus on EVA momentum, and this constant drumbeat has already delivered a more than 150 basis point improvement in return on capital year over year on an adjusted basis.
As we drive these ongoing improvements to return on capital, we will further accelerate shareholder value creation and increasingly reward our shareholders — evidenced by the $3 billion we have returned year to date."
In the first quarter of 2014, Dow reported earnings of 79 cents per share, up from 46 cents per share in the same quarter last year, or adjusted earnings of 69 cents per share — a 14 percent increase from the year-ago period.
Here are a few more second quarter highlights from Dow's release:
- Sales were $14.9 billion, up 2 percent versus the year-ago period, or 3 percent on an adjusted basis. Gains were reported in all operating segments, led by Performance Plastics, which was up 4 percent, and Electronic and Functional Materials, which was up 5 percent. Agricultural Sciences also increased sales, rising 3 percent in the quarter and achieving a first-half sales record of $4 billion.
- The company reported adjusted sales gains in most geographic areas, with increases reported both in developed regions, up 3 percent, and in emerging regions, up 2 percent. Gains were led by Western Europe, up 6 percent, and the United States, up 5 percent.
- EBITDA was $2.2 billion, up 5 percent on an adjusted basis versus the year-ago period. EBITDA rose in most operating segments, led by Performance Materials, up 36 percent as a result of ongoing productivity actions, as well as improved pricing and demand. Performance Plastics and Electronic and Functional Materials also drove EBITDA gains, up 6 percent and 19 percent, respectively.
- Adjusted EBITDA margin expanded more than 40 basis points to 15 percent year over year, as productivity and growth actions more than offset the impact of a greater than $350 million increase in purchased feedstock and energy costs, coupled with a $100 million impact from unplanned outages at Dow's ethylene facilities in Plaquemine, Louisiana.
Read Dow Chemical's full report here.
— Heather Jordan covers business for MLive/The Saginaw News/The Bay City Times. She can be reached at 989-450-2652 or hjordan@mlive.com. Follow her on Twitter and Facebook.