The Urethane Blog

Dow Posts Q4 Results

Specific to PU:


Performance Materials & Chemicals

Performance Materials & Chemicals reported fourth quarter sales of $3.9 billion, up 5 percent versus the year-ago period, with gains in all geographic regions.

Polyurethanes achieved record fourth quarter sales on double-digit revenue growth with gains in all regions. Strong operational performance enabled growth from solid market demand and ongoing industry supply disruptions. Productivity actions and improving demand in Epoxy delivered double-digit sales gains with growth in all regions. Collectively, these sales gains more than offset declines in Industrial Solutions from fewer projects in concentrated solar power applications, as well as decreased de-icing sales due to warmer weather.



Earnings Per Share Rise 31 Percent vs. 4Q13 on an Adjusted Basis, Reaching $0.85, or $0.63 on an As-Reported Basis;

Company Delivers Record 4Q and Full-Year Adjusted EBITDA with Increases across All Operating Segments;

Reports Ninth Consecutive Quarter of Year-Over-Year Adjusted EPS, EBITDA and EBITDA Margin Increases


The Dow Chemical Company (NYSE: DOW):

Fourth Quarter 2014 Highlights

  • Dow reported earnings per share of $0.85 on an adjusted basis(1) or $0.63 on an as-reported basis. This compares with earnings of $0.65 per share on an adjusted basis in the year-ago period, or $0.79 per share on an as-reported basis.
  • EBITDA rose 15 percent versus the prior year on an adjusted basis(2), reaching a fourth quarter record of $2.4 billion, or $2.1 billion on an as-reported basis(3). Adjusted EBITDA grew in every operating segment, led by Agricultural Sciences (up 40 percent), Performance Materials & Chemicals (up 18 percent) and Performance Plastics (up 6 percent).
  • EBITDA margin expanded 218 basis points on an adjusted basis(4) versus the year-ago period, with increases across all operating segments, as the Companys integration and targeted end-markets enabled continued price stability in a declining raw material environment. Margin expansion was driven primarily by Agricultural Sciences (up 300 basis points), Consumer Solutions (up 279 basis points) and Infrastructure Solutions (up 203 basis points), due primarily to increased demand for advantaged technologies in key end-markets.
  • Sales were $14.4 billion, flat versus the same quarter last year, as volume increased in both developed geographies (up 4 percent) as well as emerging geographies (up 5 percent). Volume gains were offset by price declines driven primarily by Western Europe (down 14 percent), which included currency headwinds.
  • Dow expanded volume in most segments led by Agricultural Sciences (up 9 percent). Double-digit increases in Epoxy and Polyurethanes drove volume gains in Performance Materials & Chemicals (up 7 percent). Demand also rose in Performance Plastics (up 3 percent).
  • Dow reported an operating rate of 86 percent for the quarter, up 4 percentage points versus the year-ago period representing the fifth consecutive quarter of year-over-year operating rate increases. Gains were driven primarily by strong demand in PerformancePlastics, coupled with ongoing productivity improvements in Performance Materials & Chemicals.
  • Cash flow from operations was $2.8 billion for the quarter an increase of more than $500 million versus the year-ago period demonstrating the Companys ongoing focus on working capital efficiency.
  • Dow continued to drive shareholder remuneration actions, returning $1.6 billion to shareholders in the quarter through declared dividends and repurchases, and completing its $4.5 billion repurchase program in the period. This quarter, the Company announced a 14 percent dividend increase and expanded its share buyback program by an additional $5 billion.


Andrew N. Liveris, Dows chairman and chief executive officer, stated:

Dow achieved a record end to a strong year, with another quarter of year-over-year operating EPS, EBITDA and EBITDA margin growth. This is nine quarters in a row of these metrics increasing year over year. Our operating model of integration with geographic and market diversification showed its superiority during volatile commodity environments, as evidenced by demand growth in most segments. Our strategic decisions continued to drive long-term value across Dows integrated, diversified portfolio, while our self-help and productivity measures are firmly delivering cash and lowering costs.

We are delivering on the commitments we have made even as we ramped up the pace of investment in our long-term growth projects. In addition, we announced two significant transactions in the quarter in our drive toward delivering our target of $7 billion to $8.5 billion of released value through aggressive portfolio management measures. Collectively, these achievements underscore Dows fundamental drive to maximize shareholder value-creation at every turn.