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 $0.62—down 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.