Michigan, US – A cost-cutting plan has been announced by Dow, with the aim of reducing costs by $1bn/year by 2026. About 1500 jobs will be eliminated.
“In the midst of the prolonged downturn and slower than expected economic recovery that our industry is experiencing, Dow is taking several key actions to further reduce our costs and reinforce our long-term competitiveness through the economic cycle,” said Jim Fitterling, the company’s chair and CEO.
The strategic review of its European polyurethanes assets announced in October 2024 is still ongoing, he said, with an update expected by the middle of the year. Any cuts will be in addition to the $1bn.
Looking at the company’s financial performance, sales fell to $10.4bn in the fourth quarter of 2024, a drop of 2.0% on the $10.6bn achieved in the same quarter a year earlier, reflecting lower pricing across the industry. However, volumes were up by 1%, with gains reported in most regions. Operating EBIT fell by 19% to $454m from the 2023 quarter’s $559m.
For the full year, sales declined from 2023’s $44.6bn to $43.0bn in 2024, a drop of 3.6%. Operating EBIT was down 7.1% to $2.6bn, from the previous year’s $2.8bn.