FINANCIAL HIGHLIGHTS

？ GAAP loss per share was $0.15; operating earnings per share (EPS)1

 was $0.43, compared to $0.46 in the

year-ago period and $0.48 in the prior quarter. Operating EPS excludes significant items in the quarter, totaling

$0.58 per share, primarily from a one-time non-cash settlement charge aligned to our pension de-risking plans.

？ Net sales were $10.6 billion, down 10% versus the year-ago period, reflecting declines in all operating

segments due to slower global macroeconomic activity. Sales were down 1% sequentially, as price and

volume gains in Packaging & Specialty Plastics were more than offset by seasonal demand declines in

Performance Materials & Coatings.

？ Volume increased 2% versus the year-ago period, with gains across all regions except Asia Pacific, which was

flat. Sequentially, volume decreased by 1%, including the impact to our Bahía Blanca, Argentina site due to a

severe, unexpected storm in December.

？ Local price decreased 13% year-over-year, with declines in all operating segments, due to lower feedstock and

energy costs. Sequentially, local price was flat, reflecting modest gains in most regions.

？ Currency increased 1% year-over-year and was flat sequentially.

？ Equity losses were $7 million, compared to equity losses of $43 million in the year-ago period, primarily due to

improved equity earnings at the Kuwait joint ventures. Sequentially, equity losses were flat.

？ GAAP net loss was $95 million. Operating EBIT1

 was $559 million, down $42 million year-over-year, primarily

driven by lower prices. Sequentially, Op. EBIT was down $67 million, as gains in Packaging & Specialty

Plastics were more than offset by seasonally lower volumes in Performance Materials & Coatings.

？ Cash provided by operating activities – continuing operations was $1.6 billion, down $450 million year-overyear and down $30 million compared to the prior quarter. Free cash flow1

 was $870 million.

？ Returns to shareholders totaled $616 million in the quarter, including $491 million in dividends and $125 million

in share repurchases.

？ The Company delivered 2023 full year net sales of $44.6 billion compared to $56.9 billion in 2022. GAAP net

income was $660 million, down from $4.6 billion in 2022. Operating EBIT was $2.8 billion, down from

$6.6 billion last year. Cash provided by operating activities – continuing operations was $5.2 billion compared

to $7.5 billion in 2022. The Company delivered returns to shareholders of $2.6 billion through $2 billion in

dividends and $625 million in share repurchases in 2023.

CEO QUOTE

Jim Fitterling, chair and chief executive officer, commented on the quarter:

“In the fourth quarter, Team Dow continued to advance our strategic, financial and operational priorities in a

challenging and dynamic macroeconomic environment. We saw year-over-year volume improvements in the

quarter, delivered our goal of $1 billion in targeted cost actions for the year, and took actions to further de-risk our

pension plans. With our continued focus on cash generation, we achieved a cash flow to EBITDA conversion of

96% in 2023, which enabled free cash flow of $870 million and returns to shareholders of $616 million in the

quarter. We also hit a key milestone towards advancing our long-term Decarbonize & Grow strategy with the final

investment decision for our Path2Zero project in Fort Saskatchewan, Alberta, where construction will begin this

year. The strength of our balance sheet allows us to navigate the bottom of the cycle and have the strength to

invest and capitalize on the next upside in the global economy.”

SEGMENT HIGHLIGHTS

Packaging & Specialty Plastics 

Packaging & Specialty Plastics segment net sales in the quarter were $5.6 billion, down 7% versus the year-ago

period. Local price decreased 11% year-over-year, driven by lower prices globally. Currency increased net sales

by 1%. Volume increased 3% year-over-year, led by higher packaging demand, primarily in the U.S. & Canada and

Latin America. On a sequential basis, net sales increased by 3% led by higher merchant sales of hydrocarbons, as

well as higher polyethylene prices in all regions.

Equity earnings were $40 million, down $16 million compared to the year-ago period and down $10 million on a

sequential basis, primarily due to planned maintenance turnaround activity at the Thai joint ventures.

Operating EBIT was $664 million, an increase of $9 million compared to the year-ago period. Sequentially, Op.

EBIT increased by $188 million, driven by higher integrated polyethylene margins, the impact of planned

maintenance turnaround activity in the third quarter, and higher licensing revenue.

Packaging and Specialty Plastics business reported a net sales decline versus the year-ago period, as higher

demand for industrial and consumer packaging in all regions was more than offset by lower polyethylene prices.

Sequentially, net sales increased slightly due to higher polyethylene prices and licensing revenue, which were

partially offset by reduced polyethylene supply availability.

Hydrocarbons & Energy business reported a net sales decline compared to the year-ago period, primarily driven

by lower third-party power and steam sales in the U.S. & Canada and Europe, the Middle East, Africa and India

(EMEAI). Sequentially, net sales increased due to higher merchant olefins and aromatics sales, primarily in the

U.S. & Canada. 

Industrial Intermediates & Infrastructure

Industrial Intermediates & Infrastructure segment net sales were $2.9 billion, down 19% versus the year-ago

period. Local price declined 17% year-over-year. Volume was down 2% year-over-year driven by reduced supply

availability. On a sequential basis, net sales declined 3% as seasonal increases in deicing fluid demand and

volume gains in mobility were more than offset by seasonally lower volumes in building & construction as well as

local price declines, primarily in EMEAI.

Equity losses for the segment were $57 million, compared to equity losses of $96 million in the year-ago period,

primarily driven by improved equity earnings at the Kuwait joint ventures. Sequentially, equity losses improved by

$6 million, primarily driven by improved equity earnings at the Kuwait joint ventures, which were partly offset by

reduced equity earnings at Sadara.

Operating EBIT was $15 million, compared to $164 million in the year-ago period, driven by lower local prices in

both businesses and reduced supply availability in Industrial Solutions. On a sequential basis, Op. EBIT was down

$6 million driven by seasonally lower volumes in building & construction which were partly offset by seasonally

higher demand for deicing fluid and higher demand for mobility applications.

Polyurethanes & Construction Chemicals business reported a net sales decrease compared to the year-ago period,

driven by lower prices in all geographic regions which were partly offset by broad-based business and geographic

volume gains. Sequentially net sales declined, driven by lower local prices in EMEAI.

Industrial Solutions business reported a decrease in net sales compared to the year-ago period, driven by reduced

supply availability due to a continued outage at Louisiana Operations, lower demand for industrial applications, and

local price declines. Sequentially, net sales declined as increased catalyst sales, seasonally higher deicing fluid

demand and higher demand for mobility applications were more than offset by volume declines from lower supply

availability.

Performance Materials & Coatings

Performance Materials & Coatings segment net sales in the quarter were $1.9 billion, down 8% versus the yearago period. Local price decreased 12% year-over-year with declines in both businesses. Currency increased net

sales by 1%. Volume was up 3% year-over-year, driven by higher volumes in project-driven building & construction

end-markets. On a sequential basis, net sales were down 11%, primarily driven by seasonally lower volumes in

both businesses.

Operating EBIT was a loss of $61 million, compared to a loss of $130 million in the year-ago period, driven by

lower costs as well as reduced planned maintenance turnaround activity. Sequentially, Op. EBIT decreased

$240 million, primarily driven by seasonally lower volumes.

Consumer Solutions business reported a decrease in net sales versus the year-ago period, primarily driven by

lower siloxanes prices. Sequentially, net sales declined, driven by softer demand and seasonally lower volumes.

Coatings & Performance Monomers business reported a decrease in net sales compared to the year-ago period,

driven by local price declines which were partly offset by higher volumes, primarily in the U.S. & Canada and

EMEAI. Sequentially, net sales decreased, driven by seasonally lower volumes in building & construction and

traffic paint end-markets.

OUTLOOK

“In 2024, we will maintain our commitment to financial and operational discipline as we continue to navigate

dynamic market conditions. While we expect softness in industrial and durable goods demand to continue in the

first quarter, we are encouraged by early positive signals in areas including construction, automotive and consumer

electronics,” said Fitterling. “Our strong balance sheet and cash generation give us the flexibility to cover all of our

capital allocation priorities as we progress through the economic cycle and advance our Decarbonize & Grow and

Transform the Waste strategies. These projects are expected to deliver more than $3 billion in underlying earnings

annually by 2030. Our cost-advantaged footprint, leadership in attractive end markets, and strategic growth

investments position the Company well to create long-term value.”