Company News
February 2, 2025
Tempur Sealy and Mattress Firm Deal Good to Go
Tempur Sealy $4B deal for Mattress Firm cleared by federal judge
Feb. 01, 2025 10:22 AM ETTempur Sealy International, Inc. (TPX) StockBy: Rob Johnson, SA News Editor
Update at 2:04 p.m. ET. Adds statement from Tempur Sealy.
A federal judge on Friday cleared Tempur Sealy International’s (NYSE:TPX) $4B takeover of Mattress Firm, rejecting the Federal Trade Commission’s claim that the combination would harm consumers.
U.S. District Judge Charles Eskridge ruled that the companies cannot close the transaction until Feb. 7 to give the FTC time to appeal the decision.
The judge did not disclose his reasons for the decision, which was filed under seal. He cited confidential and proprietary information for his ruling, adding that a redacted version of his full decision will be released Tuesday.
When the deal was first announced in May 2023, Tempur Sealing said it expected the deal to close in the second half of last year.
The FTC sought to block the deal, citing “multiple deal documents” that showed Tempur Sealy’s plans to limit rivals’ access to Mattress Firm and lose access to the single most important retail channel.
“We are pleased the court ruled in favor of completing our previously announced transaction with Tempur Sealy, which we expect to close in the near future,” Mattress Firm Chief Executive John Eck said in a statement to Seeking Alpha.
“We are pleased that the United States District Court for the Southern District of Texas has declined to enjoin our acquisition of Mattress Firm,” Tempur Sealy said in a statement to Seeking Alpha. “Despite the FTC’s ongoing efforts to block the transaction, we will make every effort to close it as soon as possible.”
The FTC did not immediately respond to a request for comment by Seeking Alpha.
January 30, 2025
Olin Epoxy Comments
Olin Announces Fourth Quarter 2024 Results
Jan. 30, 2025 4:05 PM ETOlin Corporation (OLN)
Highlights
- Fourth quarter 2024 net income of $10.7 million, or $0.09 per diluted share
- Quarterly adjusted EBITDA of $193.4 million
CLAYTON, Mo., Jan. 30, 2025 /PRNewswire/ — Olin Corporation (OLN) announced financial results for the fourth quarter ended December 31, 2024. Fourth quarter 2024 reported net income was $10.7 million, or $0.09 per diluted share, which compares to fourth quarter 2023 reported net income of $52.9 million, or $0.43 per diluted share. Fourth quarter 2024 adjusted EBITDA of $193.4 million excludes depreciation and amortization expense of $129.2 million and restructuring charges of $10.3 million. Fourth quarter 2023 adjusted EBITDA was $210.1 million. Sales in the fourth quarter 2024 were $1,671.3 million, compared to $1,614.6 million in the fourth quarter 2023. Full year 2024 reported net income was $108.6 million, or $0.91 per diluted share, which compares to full year 2023 reported net income of $460.2 million, or $3.57 per diluted share.
Ken Lane, President, and Chief Executive Officer, said, “While we expect challenging industry conditions to continue into 2025, we will stay focused on optimizing our core businesses through our value-first commercial approach as well as controlling our costs as we described during our Investor Day in December. We remain confident in our ability to generate higher trough-level earnings and cash flow despite the difficult environment.”
Lane continued, “We expect first quarter 2025 results from our Chemicals businesses to be lower than fourth quarter 2024 as our disciplined market participation continues. Our Chlor Alkali business expects sequentially lower chlorine and caustic soda volumes and continued pricing pressure on ethylene dichloride (EDC). As we announced at our Investor Day in December, Olin will enter the domestic polyvinyl chloride (PVC) resin market in the first quarter 2025 through our EDC tolling agreement. This pilot initiative expands our chlorine optionality, upgrades the value of Olin EDC and will guide our PVC resin go-to-market strategy in the coming years.
“Global epoxy demand remains weak, and our U.S. and European Epoxy business remains significantly challenged by subsidized Asian competition. Our Epoxy business focus remains on maximizing the chlor alkali integration value, continuing to reduce our costs and growing our formulated solutions business.
EPOXY
Epoxy sales for the fourth quarter 2024 were $282.2 million, compared to $313.1 million in the fourth quarter 2023. The decrease in sales was primarily due to lower volumes and pricing. Fourth quarter 2024 segment loss was ($27.4) million, compared to segment loss of ($23.1) million in the fourth quarter 2023. The $4.3 million decrease in segment results was primarily due to lower volumes and pricing, partially offset by lower raw material and operating costs. Epoxy fourth quarter 2024 results included depreciation and amortization expense of $13.1 million compared to $13.0 million in the fourth quarter 2023.
January 30, 2025
Dow Earnings Call Urethane Highlights
Dow Inc. (DOW) Q4 2024 Earnings Conference Call Transcript
Jan. 30, 2025 11:21 AM ETDow Inc. (DOW) Stock
Dow Inc. (NYSE:DOW) Q4 2024 Earnings Conference Call January 30, 2025 8:00 AM ET
Company Participants
Andrew Riker – VP, IR
Jim Fitterling – Chairman and Chief Executive Officer
Karen S. Carter – Chief Operating Officer
Jeff Tate – Chief Financial Officer
Jim Fitterling
Thank you, Andrew. Beginning on Slide 3, there’s a lot to unpack in our results this quarter, so let me first walk through the headlines. In the fourth quarter, Team Dow delivered our fifth consecutive quarter of year-over-year volume growth despite continued weak macroeconomic conditions. Net sales were $10.4 billion, which is down 2% versus the year ago period, and reflects pricing pressure seen across the industry in the quarter.
Local price was down 3% year-over-year and sequentially with declines across all our operating segments. Operating EBITDA was $1.2 billion, which is approximately flat compared to the same period last year. Cash flow from continuing operations was $811 million, resulting in free cash flow of $44 million. Returns to shareholders totaled $492 million of dividends in the quarter, and our total CapEx spend was $767 million.
As you saw in our numbers this quarter, we also had a non-cash tax adjustment impacting net income and EPS. Jeff will provide more details on that later in this call. Throughout the quarter, we announced additional actions that continued to support the optimization of our global portfolio for growth, while maintaining a best owner mindset. For example, we continued to ramp up operating rates at our Texas-8 cracker and Glycol 2 unit. We completed the sale of our flexible packaging laminating adhesive business to Arkema for an enterprise value of approximately $150 million. And we’ve designed a definitive agreement with Macquarie Asset Management for the sale of a minority stake in select U.S. Gulf Coast infrastructure assets for which we expect to receive cash proceeds of up to $3 billion.
And driven by persistently weak global macroeconomic conditions, we announced a strategic review of select European assets, primarily in our polyurethanes business, where demand has been structurally challenged over the past five years, making it the highest cost region for several of our key businesses. We are also postponing a maintenance turnaround at one of our ethylene crackers in Europe. This decision will result in us idling this asset starting in second quarter until market dynamics improve.
And today we announced targeted actions to reduce our costs by $1 billion and our CapEx by $300 million to $500 million. Collectively, the additional actions are focused on reinforcing our long-term competitiveness as we continue to navigate this prolonged economic downturn.
Turning to Slide 4. In 2024, Team Dow continued to advance both our near-term priorities and our long-term strategy to become a stronger, more innovative company. We delivered net sales of $43 billion, operating EBIT of $2.6 billion, and year-over-year volume growth of 3%, excluding merchant hydrocarbon sales. Earlier in 2024, we began construction at our Path2Zero investment in Fort Saskatchewan, Alberta. When complete, the project is expected to generate approximately $1 billion in incremental EBITDA annually by 2030.
Dow is also recognized externally through industry-leading awards and certifications. Last year, we earned 12 Edison Awards for Innovation and Great Place to Work and Fortune, named out as one of the top 25 world’s best workplaces. Team Dow navigated several challenges over the past year, including weather-related and supply chain disruptions, and continued uncertainty in many regions and markets that we serve. And in response to evolving market dynamics and sluggish demand recovery in Europe, we demonstrated our best owner mindset with more than 20 proactive actions to address higher cost assets.
I remain confident in our company’s ability to foster a sustainable future, achieve long-term profitable growth, and enhance shareholder returns.
Now, I’m pleased to turn it over to Karen S. Carter, Dow’s Chief Operating Officer, who will provide an overview of our operating segment performance on Slide 5.
Karen S. Carter
Thank you, Jim. I’m pleased to join you all today. And before I begin, I’d like to mention what an honor it is to be named Dow’s Chief Operating Officer. I look forward to engaging with many of you, our owners, in the near future. In my more than 30 years at Dow, I have progressed through the organization to most recently leading PNSP, the company’s largest operating segment. And I have worked across a broad range of businesses and functions, including global leadership positions within the building and construction and consumer electronics and markets, as well as Dow’s polyethylene franchise. This has given me a deep appreciation for our company’s competitive advantages, the strength of our innovation engine, and our commitment to delivering profitable growth.
As COO, my priorities are to further strengthen our customer engagement, accelerate the commercialization of Dow’s innovation pipeline, and enhance reliability and productivity. I am committed to driving business and operational results, while progressing our strategic priorities to deliver long-term value for our shareholders.
Moving to the Industrial Intermediates & Infrastructure segment. We benefited from strong global energy demand, as well as stable consumer and pharma demand. We also experienced typical seasonal improvements for deicing, while agricultural and coatings applications saw normal seasonal declines. Looking at fourth quarter results, local price declined 1% year-over-year, while volume was up 1% year-over-year. This was driven by improved supply availability in our Industrial Solutions business as we finished ramping-up our Glycol-2 unit ahead of schedule. Those gains were partly offset by continued softness in the Polyurethanes and Construction Chemicals business.
Operating EBIT for the segment increased $69 million versus the year-ago period. Results were primarily driven by higher operating rates and improved supply availability in the Industrial Solutions business. And in the Performance Materials & Coating segment, volume was up 5% with strong gains across both architectural coatings and downstream silicones. We achieved this despite global weakness in building and construction end-markets as high-interest rates continue to pressure spending in residential markets. Operating EBIT increased $52 million compared to the year-ago period, driven by volume gains and lower fixed costs.
Jeff Tate
In the Industrial, Intermediates & Infrastructure segment, we anticipate lower margins in our polyurethanes business from higher energy costs as well as lower catalyst sales in our Industrial Solutions business. In the quarter, we have planned maintenance activity scheduled at our ethylene oxide asset in Freeport, Texas, which will enable the start-up of additional alkoxylation capacity in the US Gulf Coast. This new capacity is one of the near-term growth investments we outlined at our last Investor Day and should support higher sales beginning in the second-quarter.
On a final note, last week the US Gulf Coast was impacted by a powerful winter storm. Our manufacturing sites have managed well, but we continue to monitor any further developments both at our sites, as well as across the industry. The current guidance does not include any impact favorable or unfavorable stemming from the storm.
Jim Fitterling
Thank you, Jeff. On Slide 8, in the midst of the prolonged downturn and slower-than-expected economic recovery that our industry is experiencing. Now it’s taking several key actions to further reduce our costs and reinforce our long-term competitiveness through the economic cycle.
First and foremost, we’re taking additional targeted actions aimed at improving our margins. We announced today that we will implement cost reductions of $1 billion on an annual run-rate basis by 2026. These actions will be primarily focused on third-party contract labor and purchase services. In addition, we are targeting the elimination of approximately 1,500 Dow roles. Last quarter, we announced that we would kick-off a strategic evaluation of our European asset footprint, and we’re on-track to provide an update on this work by mid-2025.
Lastly, as we complete our in-flight higher return growth projects this year, we’re also taking actions to preserve our strong financial foundation. We intend to recalibrate our CapEx deployment to match the current demand and macroeconomic conditions and we’ll do so by reducing our 2025 spending by $300 million to $500 million compared to our previously disclosed target of $3.5 billion. We will keep CapEx spending roughly at these levels until we see a clear recovery materialize across broad portions of the end-markets that we serve.
Turning to Slide 9. We continue our ongoing practice of reviewing our global portfolio. Last month, Dow entered into a definitive agreement to sell 40% equity stake in select infrastructure assets to Macquarie Asset Management, a leading global infrastructure investor. We anticipate the transaction will close by mid-2025. This newly formed infrastructure-focused company named Diamond Infrastructure Solutions is comprised of assets that support a wide range of services at five of Dow’s manufacturing sites along the US Gulf Coast. The new company will operate within Dow and has a dedicated management team with priorities in support of Diamond Infrastructure Solutions strategy.
Importantly, Dow will maintain operational control to ensure our standards for safe and reliable operations are upheld. This transaction is expected to generate approximately $2.4 billion of initial cash proceeds for Dow. Macquarie Asset Management has the option to increase their minority equity stake to 49% within six months of closing, which would increase cash proceeds to approximately $3 billion for Dow if exercised. The long-term partnership leverages Dow’s operational excellence and Macquarie Asset Management’s world leading infrastructure positions to generate incremental operational efficiencies, as well as future growth opportunities with existing and new customers. With enhanced financial flexibility from this partnership, Dow is in a strong position to continue to invest in growth and deliver enhanced returns to our shareholders, particularly as market conditions improve.
Closing on Slide 10, as we navigate a challenging near-term environment, we are committed to a disciplined and balanced approach to delivering our cash and capital allocation priorities. Our ability to proactively manage in an extended economic downturn will position Dow well for long-term success. As I mentioned earlier, last week we postponed a maintenance turnaround at one of our ethylene crackers in Europe. This decision will result in us idling this asset starting in second quarter until market dynamics improve. This reduction in planned turnaround spending will keep 2025 turnaround spending levels in-line with the prior year. We will continue to match supply with profitable demand until margins improve.
We continue to take proactive strategic actions to optimize our global footprint, drive operational performance and reduce our costs and capital expenditures. In 2025, our additional cost actions and reduced CapEx spending will help us to enhance near-term cash-flow, margins and earnings growth, while remaining committed to our long-term strategic priorities.
In addition, our signed agreement with Macquarie Asset Management further strengthens Dow’s financial flexibility and the potential to generate up to $3 billion in cash proceeds in 2025. This transaction is consistent with Dow’s best owner mindset and track-record of delivering unique to Dow cash-flow levers to mitigate cyclical volatility. We’re optimistic that we will continue to see demand growth in attractive end-markets such as packaging, energy and electronics. And once completed, our near-term growth investments, representing higher-return and quicker payback projects will enable improved underlying earnings and margins across the cycle.
With a differentiated portfolio and proactive actions to support our solid financial foundation, we are confident in our ability to deliver on all of our capital allocation priorities, including our industry-leading dividend. At the same time, we will continue to maintain our focus on operating and financial discipline to drive long-term shareholder value to ensure that we remain well-positioned for the cycle recovery.
Chris Parkinson
Great. Thank you so much. Jim, just want to dive a little deeper. I think we did it last-time, just how you’re thinking about some of the EU assets by country. And I think last summer you were going over the Netherlands and Germany. And there are a lot of strategic reviews going on in Intercontinental Europe right now. So just trying to think about the — how you fit into like the larger picture in terms of these developments and how they’re basically panning out over the next several years? Thank you.
Jim Fitterling
Sure. That’s a great question, Chris. If you look at the EU, obviously, the number one challenge is energy competitiveness. And so, relatively speaking, Spain has a pretty decent advantage right now from an energy standpoint. So there, we’re looking with our partners at Repsol and how do we reduce the combined cost between the two of us on operations in Spain. When you get to the Netherlands, while we announced the idling of a cracker to avoid the turnaround cost this year, I don’t want you to assume that that’s the answer to the European strategic review and if that really is just something that we have the ability to do this year to manage through the short-term situation.
The Netherlands has been pretty competitive throughout and our cost positions have been pretty good there. So we just have to look at the market for ethylene. We’re a net merchant ethylene seller, we got to look at those balances and we’ve got to look at the propylene market and balances and that will drive what we decide to do there. I’d say that the Netherlands as a country still very focused on energy and discussions recently. They still have a focus themselves on adding nuclear power generating capability, which I think is going to help them with their energy costs.
On Germany, a lot is going to depend on this election at the end of February. I think it’s shaping up that there will be a change in the German government. And if you look at what happened post-COVID, Germany moved fast to take action when the Russian supply on gas was stopped and now has five LNG import facilities operating and it’s really shifted the balance on LNG imports. However, the LNG import costs are $10 to $15 a million BTU into Europe. So longer-term, we have to look at what else can we do in Germany structurally to get the cost-down.
I think it’s going to require state action to make that happen. I don’t think the EU is going to do something that drives this. I think it’s going to require the states pushing back and there’s no state that has more heft in this discussion than Germany.
Frank Mitsch
Yes, thank you. Good morning and congratulations, Karen, on your new role. Jim, I want to ask about the III segment in terms of the first-quarter. You’re calling out $100 million sequential headwinds, mostly from one-offs excluding higher energy. Can you talk about what you’re seeing in terms of the pace of business between the polyurethanes and Construction and Industrial Solutions segments? One would thought this US Gulf Coast freeze would be fantastic for your de-icing business, etc. So can you give us — absent kind of these one-offs, what is really going on in those businesses as we sit here in the first-quarter?
Jim Fitterling
Karen, why don’t you unpack that?
Karen S. Carter
Yes. No, thanks for that question. So if I look at the first-quarter and I’ll take polyurethanes and construction chemicals first. We’re not really seeing any signs of demand recovering despite the interest-rate cuts in the US and Europe. And as you know, we have several applications in that business that are really sensitive to interest rates. So whether you’re talking about betting and furniture, but also obviously in the housing applications as well. And if you think about US home affordability, it remains at its historic lows, but then also interest rates there are above 7%.
We also saw in the fourth quarter automotive start to slow. And if you think about that from a US perspective, those inventories are at 10 years high — 10-year highs. And so that’s one of the reasons that we announced on the last earnings the strategic review of our European footprint, really where we’re looking at polyurethanes in particular. And so then if I pivot to DIS there, what I would say is that overall demand really does remain stable. We are seeing some green shoots and global energy demand and also pharma demand, which is really good for us.
De-icing, as you indicated, is a seasonal tailwind. So we’ll see if the cold weather continues to persist. But then one of the things that’s notable in the first-quarter around DIS is that we do have increased turnaround there where we’re taking our unit and Seadrift down. So that will result in a tailwind for us. So I would say overall, on the polyurethane side, just continuing to see challenging market demand, market macros. But then also on the Industrial Solutions side, with the continued ramp of Glycol-2 that’s now fully back, we should see a tailwind there. But again, some of that is being muted with the turnaround that we see in first-quarter.
Aleksey Yefremov
Thanks. Good morning, everyone. I wanted to clarify if your $1 billion cost-reduction target includes the European actions that you will be discussing in the middle of 2025 or would those European actions be in addition to the $1 billion?
Jim Fitterling
You’ll have them in addition. I think there are some things that will probably have a little bit of overlap, but the asset discussions will be in addition to what we’ve just announced.
January 30, 2025
Dow Q4 Results
Dow reports fourth quarter 2024 results
Jan. 30, 2025 6:00 AM ETDow Inc. (DOW)
MIDLAND, Mich., Jan. 30, 2025 /PRNewswire/ — Dow (NYSE: DOW):
FINANCIAL HIGHLIGHTS
- Net sales were $10.4 billion, down 2% year-over-year, reflecting declines in Packaging & Specialty Plastics. Sequentially, net sales were down 4%, led by seasonal declines in Performance Materials & Coatings.
- Volume increased 1% compared to the year-ago period, with gains in most regions. Sequentially, volume decreased 1%, led by seasonally lower demand in Performance Materials & Coatings, partly offset by improved supply availability in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure.
- Local price was down 3% year-over-year and sequentially, with declines in all operating segments.
- Equity losses were $51 million, down $44 million compared to the year-ago period, primarily driven by lower integrated margins at our Thai joint ventures. Sequentially, equity earnings were down $53 million, driven by lower earnings at our principal joint ventures.
- GAAP net loss was $35 million, or $0.08 per share, including significant items totaling $0.08, primarily from restructuring and efficiency costs. Operating earnings per share¹ was $0.00. Both earnings per share and operating earnings per share include higher-than-expected non-cash tax adjustments of $0.27, primarily related to Argentina, amplified by inflation.
- Op. EBIT1 was $454 million, down $105 million year-over-year, primarily driven by lower prices, which were partly offset by higher operating rates and lower spending. Sequentially, Op. EBIT was down $187 million, reflecting lower integrated margins in Packaging & Specialty Plastics and seasonally lower demand in Performance Materials & Coatings.
- Cash provided by operating activities – continuing operations was $811 million, down $817 million year-over-year, primarily driven by a significant prior period working capital release from destocking. Sequentially, cash from operating activities was up $11 million.
- Returns to shareholders totaled $492 million of dividends in the quarter.
- The Company delivered 2024 full year net sales of $43.0 billion compared to $44.6 billion in 2023. GAAP net income was $1.2 billion, up from $660 million in 2023. Operating EBIT was $2.6 billion, down from $2.8 billion last year. Cash provided by operating activities – continuing operations was $2.9 billion compared to $5.2 billion in 2023. The Company delivered returns to shareholders of $2.5 billion, comprised of $2 billion in dividends and $0.5 billion in share repurchases in 2024.
SUMMARY FINANCIAL RESULTS
| Three Months Ended Dec 31 | Three Months Ended Sep 30 | ||||
| In millions, except per share amounts | 4Q24 | 4Q23 | vs. SQLY [B / (W)] | 3Q24 | vs. PQ [B / (W)] |
| Net Sales | $10,405 | $10,621 | $(216) | $10,879 | $(474) |
| GAAP Income (Loss) Net of Tax | $(35) | $(95) | $60 | $240 | $(275) |
| Operating EBIT¹ | $454 | $559 | $(105) | $641 | $(187) |
| Operating EBIT Margin¹ | 4.4 % | 5.3 % | (90) bps | 5.9 % | (150) bps |
| Operating EBITDA¹ | $1,205 | $1,216 | $(11) | $1,382 | $(177) |
| GAAP Earnings (Loss) Per Share | $(0.08) | $(0.15) | $0.07 | $0.30 | $(0.38) |
| Operating Earnings Per Share¹ | $0.00 | $0.43 | $(0.43) | $0.47 | $(0.47) |
| Cash Provided by Operating Activities – Cont. Ops | $811 | $1,628 | $(817) | $800 | $11 |
| 1. Op. Earnings Per Share, Op. EBIT, Op. EBIT Margin and Op. EBITDA, Free Cash Flow and Cash Flow Conversion are non-GAAP measures. See page 6 for further discussion. |
CEO QUOTE
Jim Fitterling, chair and chief executive officer, commented on the quarter:
“Despite persistently weak macroeconomic conditions, Team Dow delivered our fifth consecutive quarter of year-over-year volume growth, leveraging our cost-advantaged footprint to capture resilient demand for high-value applications. In December, we signed a definitive agreement for the sale of a minority stake in select U.S. Gulf Coast infrastructure assets for expected cash proceeds of up to approximately $3 billion. The partnership represents a new business model designed to drive operational efficiencies and growth with new customers, while providing near-term financial flexibility. We also announced a strategic review of select European assets, and today we are announcing additional actions to deliver $1 billion of targeted cost reductions. These collective actions represent a continuation of Dow’s commitment to maintaining our strong financial foundation and supplementing near-term cash flow.”
SEGMENT HIGHLIGHTS
Packaging & Specialty Plastics
| Three Months Ended Dec 31 | Three Months Ended Sep 30 | ||||
| In millions, except margin percentages | 4Q24 | 4Q23 | vs. SQLY [B / (W)] | 3Q24 | vs. PQ [B / (W)] |
| Net Sales | $5,315 | $5,641 | $(326) | $5,516 | $(201) |
| Operating EBIT | $447 | $664 | $(217) | $618 | $(171) |
| Operating EBIT Margin | 8.4 % | 11.8 % | (340) bps | 11.2 % | (280) bps |
| Equity Earnings (Losses) | $(15) | $40 | $(55) | $16 | $(31) |
Packaging & Specialty Plastics segment net sales in the quarter were $5.3 billion, down 6% versus the year-ago period. Local price decreased 5% year-over-year, primarily driven by lower functional polymers and polyethylene prices. Segment volume was down 1% year-over-year, as polyethylene demand growth was more than offset by lower merchant hydrocarbons and non-recurring licensing revenue. On a sequential basis, net sales were down 4%, primarily driven by lower polyethylene prices.
Equity losses were $15 million, a decrease of $55 million compared to the prior year, led by lower integrated margins at the Thai joint ventures. Sequentially, equity earnings were down $31 million, driven by lower earnings at our principal joint ventures.
Op. EBIT was $447 million, a decrease of $217 million compared to the year-ago period, driven by lower integrated margins, licensing revenue, and reduced equity earnings. Sequentially, Op. EBIT decreased by $171 million, due to lower integrated margins and equity earnings, partly offset by the restart of a cracker in Texas and lower planned maintenance activity.
Packaging and Specialty Plastics business reported a net sales decrease versus the year-ago period, driven by lower functional polymers and polyethylene prices, primarily in Asia Pacific, partly offset by higher demand for flexible food and specialty packaging in all regions except Latin America. Sequentially, net sales decreased, as higher demand for industrial and consumer packaging was more than offset by lower prices.
Hydrocarbons & Energy business reported a net sales decline compared to the year-ago period, driven by lower merchant olefins demand and aromatics prices. Sequentially, net sales decreased, as higher third-party olefins demand from improved supply availability after the restart of a cracker in Texas was more than offset by lower olefins and aromatics prices.
Industrial Intermediates & Infrastructure
| Three Months Ended Dec 31 | Three Months Ended Sep 30 | ||||
| In millions, except margin percentages | 4Q24 | 4Q23 | vs. SQLY [B / (W)] | 3Q24 | vs. PQ [B / (W)] |
| Net Sales | $2,948 | $2,948 | $0 | $2,962 | $(14) |
| Operating EBIT | $84 | $15 | $69 | $(53) | $137 |
| Operating EBIT Margin | 2.8 % | 0.5 % | 230 bps | (1.8) % | 460 bps |
| Equity Earnings (Losses) | $(39) | $(57) | $18 | $(17) | $(22) |
Industrial Intermediates & Infrastructure segment net sales were $2.9 billion, flat versus the year-ago period. Local price declined 1% year-over-year. Volume increased 1% year-over-year, driven by improved supply availability in Industrial Solutions, partially offset by lower volumes in Polyurethanes & Construction Chemicals. On a sequential basis, net sales were flat as seasonal increases in deicing fluid demand offset local price declines and seasonally lower volumes in building & construction.
Equity losses for the segment were $39 million, an improvement of $18 million versus the year-ago period, driven by improved MEG margins at the Kuwait joint ventures. Equity losses in the prior quarter were $17 million. Sequentially, the earnings decline was primarily driven by price declines in Asia Pacific at Sadara.
Op. EBIT increased $69 million versus the year-ago period, primarily driven by higher operating rates and improved supply availability in our Industrial Solutions business. On a sequential basis, Operating EBIT increased by $137 million, driven by lower planned maintenance activity and higher operating rates that were partially offset by local price declines.
Polyurethanes & Construction Chemicals business reported a decrease in net sales compared to the year-ago period, driven by lower volumes primarily in Asia Pacific and Europe, the Middle East, Africa and India (EMEAI). Sequentially, net sales decreased, driven by seasonally lower demand in building & construction applications.
Industrial Solutions business reported an increase in net sales compared to the year-ago period, as local price declines were more than offset by volume gains in all regions on improved supply availability following the restart and continued ramp-up from an outage at Louisiana Operations. Sequentially, net sales increased, driven by higher ethylene oxide project-related catalyst sales and seasonally higher demand for deicing fluids, partly offset by local price declines.
Performance Materials & Coatings
| Three Months Ended Dec 31 | Three Months Ended Sep 30 | ||||
| In millions, except margin percentages | 4Q24 | 4Q23 | vs. SQLY [B / (W)] | 3Q24 | vs. PQ [B / (W)] |
| Net Sales | $1,965 | $1,894 | $71 | $2,214 | $(249) |
| Operating EBIT | $(9) | $(61) | $52 | $140 | $(149) |
| Operating EBIT Margin | (0.5) % | (3.2) % | 270 bps | 6.3 % | (680) bps |
| Equity Earnings (Losses) | $2 | $6 | $(4) | $1 | $1 |
Performance Materials & Coatings segment net sales in the quarter were $2 billion, up 4% versus the year-ago period. Local price decreased 2% year-over-year, primarily driven by lower prices in Consumer Solutions. Volume was up 5% year-over-year, driven by gains in both businesses. On a sequential basis, net sales were down 11%, primarily from seasonally lower demand.
Op. EBIT increased $52 million versus the year-ago period, driven by volume gains as well as lower fixed costs. Sequentially, Op. EBIT decreased $149 million, driven by seasonally lower demand and operating rates.
Consumer Solutions business reported an increase in net sales versus the year-ago period, driven by volume gains across all downstream end markets, led by infrastructure, home care, and electronics, as well as in upstream siloxanes. Sequentially, net sales decreased primarily driven by lower seasonal demand.
Coatings & Performance Monomers business reported an increase in net sales compared to the year-ago period, driven by higher merchant monomers volumes in the U.S. & Canada, which were partly offset by lower volumes in EMEAI. Sequentially, net sales decreased, primarily from seasonally lower demand for pavement markings and architectural coatings.
OUTLOOK
“We remain confident that Dow will benefit from the completion of our near-term incremental growth projects and an enhanced focus on operational discipline in 2025. In addition, we are optimistic that we will see further demand growth in attractive end markets such as packaging, energy and electronics,” said Fitterling. “Our differentiated portfolio and strong balance sheet enable us to deliver on all our capital allocation priorities, including an industry-leading dividend. Until we see more definitive indications of a true recovery taking hold – and in order to deliver improved margins – we are taking actions to reduce our costs by $1 billion as well as our 2025 CapEx plans by $300 – 500 million. We will complete these actions while staying the course on our long-term strategic priorities. Our proactive interventions are necessary for Dow to continue to successfully navigate this economic downcycle.”
January 26, 2025
3Z Brands Acquires Southerland
Phoenix company buys Nashville mattress manufacturer
3Z Brands to use local office as East Coast e-commerce hub
- William Williams
- Dec 18, 2024
Nashville-based mattress manufacturing company Southerland has been sold for an undisclosed sum.
According to a release, Phoenix-based 3Z Brands is the new owner. 3Z bills itself as a manufacturer, wholesaler, retailer, and direct-to-consumer distributor of sleep products.
In addition to Nashville, Southerland offers manufacturing facilities in Phoenix, Tualatin (Ore.) and Oklahoma City. The company serves wholesale customers in 43 states.
With the acquisition, 3Z will have Southerland’s Nashville location serve as the company’s East Coast e-commerce hub. The release does not note if Southerland will now operate with the 3Z moniker.
The sale comes 3.5 years after Southerland announced plans to lease space in an Antioch facility off Interstate 24, with the move made to increase production capacity by more than a third and yield up to 40 new jobs.
That relocation was necessitated by the November 2020 sale for $6.5 million of the North Davidson County property at which Southerland operated for nearly 50 years (read here). The seller was an LLC that had no affiliation with Southerland.
“This partnership strengthens our ability to serve our loyal customers with the quality they expect while giving us access to new resources and expertise to help us grow,” Bryan Smith, Southerland president, said in the release.
“Together, we’re well-positioned to continue delivering excellence, with exciting opportunities to bring our products to even more customers nationwide.”
With an office also in New York, 3Z operates a portfolio of brands that include Helix, Brooklyn Bedding, Leesa, Birch, Bear, and Nolah.
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