DOW Inc. Q3 FY2023 results: revenue $10.7 billion, down 24.0% on the year

DOW Inc. (DOW) reported revenue of $10.7 billion for Q3 FY2023, the quarter ended 30 September 2023, down 24.0% on the same quarter a year earlier. Net income was $302 million, down 59.1% on the year, and diluted earnings per share $0.42. The figures are the company's own, from the 10-Q it filed with the SEC on 25 October 2023.

Revenue$10.7 billiondown 24.0%

Net income$302 milliondown 59.1%

Diluted EPS$0.42

QuarterQ3 FY2023ended 30 September 2023

The quarter, against the one before and a year earlier

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Revenue	10,730	11,420	n/a	n/a
Cost of revenue	9,592	9,875	n/a	n/a
Gross profit	1,138	1,545	n/a	n/a
Gross margin	10.6%	13.5%	n/a
Research and development	197	205	n/a	n/a
Selling, general and administrative	380	408	n/a	n/a
Interest expense	192	172	n/a	n/a
Pre-tax income	417	711	n/a	n/a
Income tax	90.0	210	n/a	n/a
Effective tax rate	21.6%	29.5%	n/a
Net income	302	485	n/a	n/a
Net margin	2.8%	4.2%	n/a
Diluted EPS	$0.42	$0.68	n/a	n/a

$ million except per share. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Operating cash flow	1,658	1,347	n/a	n/a
Depreciation and amortisation	565	565	n/a	n/a
Buybacks	125	250	n/a	n/a
Dividends paid	492	493	n/a	n/a
Dividend per share	$0.70	$0.70	n/a	n/a
Diluted shares, weighted	708m	710m	n/a	n/a
Shares outstanding at period end	701m	703m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q3 FY2023	Q2 FY2023	A year earlier	Change on the year
Total assets	58,288	58,294	n/a	n/a
Cash and equivalents	3,080	2,924	n/a	n/a
Receivables	5,343	5,539	n/a	n/a
Inventory	6,211	6,487	n/a	n/a
Goodwill	8,580	8,615	n/a	n/a
Long-term debt including finance leases	14,592	14,735	n/a	n/a
Operating lease liabilities	1,020	1,036	n/a	n/a
Shareholders' equity	19,567	19,997	n/a	n/a

Quarterly results, the last 12 quarters

	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026
Revenue	11,420	10,730	10,621	10,765	10,915	10,879	10,405	10,431	10,104	9,973	9,460	9,794
Cost of revenue	9,875	9,592	9,646	9,488	9,591	9,809	9,470	9,760	9,521	9,242	8,912	9,154
Gross profit	1,545	1,138	975	1,277	1,324	1,070	935	671	583	731	548	640
Gross margin	14%	11%	9%	12%	12%	10%	9%	6%	6%	7%	6%	7%
R&D	205	197	213	204	196	208	202	200	188	191	173	181
SG&A	408	380	411	442	390	396	353	366	347	340	339	417
Interest expense	172	192	197	199	197	199	216	216	209	221	219	219
Pre-tax income	711	417	-352	449	608	324	219	-374	-659	70.0	-1,548	-390
Tax rate	30%	22%	n/a	-20%	25%	26%	116%	n/a	n/a	-77%	n/a	n/a
Net income	485	302	-97.0	516	439	214	-44.0	-307	-835	62.0	-1,534	-533
Net margin	4%	3%	-1%	5%	4%	2%	-0%	-3%	-8%	1%	-16%	-5%
Diluted EPS	$0.68	$0.42	-$0.15	$0.73	$0.62	$0.30	-$0.08	-$0.44	-$1.18	$0.08	-$2.16	-$0.74
Operating cash flow	1,347	1,658	1,656	464	836	800	814	91.0	-470	1,127	284	1,124
Capital expenditure	n/a	n/a	n/a	714	723	736	767	685	662	564	568	503
Free cash flow	n/a	n/a	n/a	-250	113	64.0	47.0	-594	-1,132	563	-284	621
Buybacks	250	125	125	200	200	94.0	0.0	0.0	0.0	0.0	0.0	n/a
Dividends paid	493	492	491	493	491	490	492	494	496	249	251	252
Shares outstanding	703m	701m	702m	703m	701m	700m	704m	707m	709m	711m	718m	721m
Filing	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 September 2023, filed 25 October 2023, accession 0001751788-23-000140: the filing on EDGAR. All of DOW Inc.'s filings: EDGAR company page.

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