Dow will initiate a restructuring program during this quarter. This program includes a 6% reduction in Dow’s global workforce as well as actions to exit uncompetitive assets. Dow Chairman and Chief Executive Officer Jim Fitterling said “While these are difficult decisions, they are necessary to maintain competitiveness while the economic recovery gains traction.”
In the second quarter, net sales were $8.4 billion, down 24% versus the year-ago period driven by both local price and volume declines, as the COVID-19 pandemic dramatically impacted results.
Fitterling said “Our proactive cost and cash interventions enabled us to continue to maximize our financial flexibility through the pandemic. We delivered another quarter of improved year-over-year cash flow from operations as we have every quarter since spin. We maintained our liquidity position, further reduced our net debt, and we progressed our strategic priorities by announcing an agreement to divest certain rail infrastructure assets.”
Fitterling added “Based on what we’ve seen in the second quarter and into July, we continue to expect a gradual and uneven recovery and, therefore, remain intensely focused on the actions within our control and maximizing our operational advantages. Our disciplined approach to cash generation and capital allocation, in addition to our structural cost improvements, will continue to serve as a solid foundation for us to weather this downturn and position us to capture significant value as markets lift.”