Q2 2024 Earnings Summary
Reported on Jul 25, 2024 (Before Market Open)
Pre-Earnings Price$53.32Last close (Jul 24, 2024)
Post-Earnings Price$50.78Open (Jul 25, 2024)
Price Change
$-2.54(-4.76%)
- North American polyethylene demand is exceeding 5 billion pounds, indicating a significant step-up in total domestic demand plus exports.
- Exports now account for about 45% of total demand in 2023, up from 30% historically, highlighting strong export growth.
- Increasing consumption in Mexico due to manufacturing reshoring is boosting volumes, with expectations for continued steady improvement in the U.S. market.
- Dow's free cash flow generation has been weak, with a positive $109 million in free cash flow in Q2, and the company expects a working capital cash outflow of $600 million to $800 million, potentially constraining financial flexibility.
- Ongoing weakness in siloxanes pricing in Asia due to oversupply and slower-than-expected demand recovery may continue to impact margins in the Performance Materials & Coatings segment.
- Continuing significant capital investments despite near-term economic weakness and a slower-than-expected global recovery could lead to overcapacity and pressure on returns if demand does not increase as anticipated.
Research analysts covering DOW.