Dow has outlined a $1 billion cost-reduction initiative as part of its strategy to enhance efficiency and navigate ongoing economic challenges. The company reported a 2% year-over-year decline in net sales for the fourth quarter of 2024, with total revenue reaching $10.4 billion. The decline was primarily driven by a 6% decrease in net sales in Dow’s Packaging & Specialty Plastics segment.

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Despite lower sales, Dow saw a 1% increase in volume compared to the prior year, though local prices declined 3% across all segments. The company also reported a GAAP net loss of $35 million for the quarter, partially due to lower margins at its Thai joint ventures.

As part of its cost-reduction efforts, Dow is implementing strategic changes, including a new business model for its U.S. Gulf Coast infrastructure assets and a review of its European operations. The company also plans to streamline its workforce, with a reduction of approximately 1,500 positions, or 4% of its global workforce.

"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," said Jim Fitterling, Dow's chair and CEO. "In addition, we are optimistic that we will see further demand growth in attractive end markets such as packaging, energy and electronics."