Dow Inc. DOW said Thursday it had net income of $647 million, or 85 cents a share, in the fourth quarter, down from $1.761 billion, or $2.32 a share, in the year-earlier period. Adjusted per-share earnings came to 46 cents, below the 57 cent FactSet consensus. Sales fell to $11.859 billion from $14.364 billion, also below the $12.001 billion FactSet consensus. “In the fourth quarter, Team Dow continued to proactively navigate slowing global growth, challenging energy markets, and destocking,” CEO Jim Fitterling said in a statement. “In response, we shifted our focus to cash generation in the quarter as we lowered operating rates, implemented cost savings measures, and prioritized higher-value products where demand remained resilient.” The result was $2.1 billion of cash flow from operations, he said. Looking to 2023, the company is seeing signs of moderating inflation in the U.S., an improving outlook for energy in Europe and reopening in China. Dow is aiming to achieve $1 billion of cost cuts in the year. The stock has gained 1.2% in the last 12 months, while the S&P 500 SPX has fallen 7%.
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