Executive Summary
In Q2 2024, Dow Inc reported revenues of $10.92 billion, marking a 1.39% increase from the previous quarter but a 4.42% decline year-over-year. Despite the revenue growth, gross profit saw a significant drop of 14.30% YOY, emphasizing continued pressure on margins within the chemicals segment. The company's strategic re-evaluation and focus on cost efficiencies have led to a 20.18% increase in operating income from the previous quarter, suggesting an adaptation to the challenging market conditions. Management expressed optimism about adjusting production based on end-market demand, especially within the packaging segment.
Net income for the quarter was $439 million, translating to EPS of $0.62βdown 15.07% QOQ and 8.82% YOY. The significant year-over-year decline in profit margins raises concerns about pricing power in a competitive market, highlighting the importance of innovative product solutions to drive recovery.
Key Performance Indicators
Revenue
10.92B
QoQ: 1.39% | YoY:-4.42%
Gross Profit
1.32B
12.13% margin
QoQ: 3.68% | YoY:-14.30%
Operating Income
661.00M
QoQ: 20.18% | YoY:-7.03%
Net Income
439.00M
QoQ: -14.92% | YoY:-9.48%
EPS
0.62
QoQ: -15.07% | YoY:-8.82%
Revenue Trend
Margin Analysis
Key Insights
- **Current Quarter Revenue**: $10.92 billion
- **QOQ Change**: +1.39% (from $10.65 billion in Q1 2024)
- **YOY Change**: -4.42% (from $11.44 billion in Q2 2023)
- **Gross Profit**: $1.32 billion
- **Gross Profit Margin**: 12.13%, improving from Q1 but down from 14.6% YOY.