Dow Inc.

greetings and welcome to the dow first quarter 2024 earnings conference call at this time all participants are in a listen only mode a brief question and answer session will follow the formal presentation if you would like to ask a question at that time please press star followed by one on your telephone keypad and as a reminder this conference is being recorded i would now like to turn it over to Dow Investor Relations Vice President, Pankaj Gupta. Mr. Gupta, you may begin.

Good morning. Thank you for joining today. The accompanying slides are provided through this webcast and posted on our website. I'm Pankaj Gupta, Dow's outgoing Investor Relations Vice President. Leading today's call are Jim Finneling, Dow's Chair and Chief Executive Officer, and Jeff Tate, Chief Financial Officer. Also joining is our new Investor Relations Vice President, And Riker, who you may remember, was a member of our IR team a few years ago. Please note, our comments contain forward-looking statements and are subject to the related cautionary statement contained in the earnings news release and slides. Please refer to our public filings for further information about principal risks and uncertainties. Unless otherwise specified, all financials, where applicable, exclude significant items. We will also refer to non-GAAP measures. The reconciliation of the most directly comparable GAAP financial measure and other associated disclosures are contained in the earnings news release and slides that are posted on our website. On slide two is our agenda for today's call. Jim will review our first quarter results and operating segment performance. Jeff will then provide an update on the macroeconomic environment and modeling guidance, as well as the results of our annual benchmarking. Jim will then provide an update on key milestones for our long-term strategy, which positions us well to deliver growth through the cycle. Following that, we will take your questions. Now let me turn the call over to Jim.

Thank you, Pankaj, beginning on slide three. In the first quarter, Team Dow delivered sequential volume growth and margin expansion. We strategically increased operating rates to capture improving demand, we maintained pricing, and we benefited from lower feedstock and energy costs. These results reflect the strength of our advantage portfolio, including our participation in diverse end markets and our cost advantage positions around the world. Net sales were $10.8 billion, down 9 percent versus the year-ago period, but up 1 percent sequentially, driven by gains in performance materials and coatings and industrial intermediates and infrastructure. volume increased 1% year-over-year, and excluding hydrocarbons and energy, volume increased 5% with gains in all regions. This marks a second consecutive quarter of year-over-year volume growth. Sequentially, volume increased 1% and excluding hydrocarbons and energy was up 3%, led by gains in performance materials and coatings. Local price decreased 10% year-over-year and was flat sequentially, as modest gains in Europe, the Middle East, Africa, and India, or EMEA, were offset by declines in Asia Pacific, the United States, and Canada. Operating EBIT for the quarter was $674 million, down $34 million year-over-year, driven by lower prices in all regions. Sequentially, operating EBIT was up $115 million, reflecting gains in performance materials and coatings and industrial intermediates and infrastructure. We delivered cash flow from operations of $460 million in the quarter, resulting in a 94% cash flow conversion on a trailing 12-month basis. This reflects our focus on cash flow generation and enabled $693 million in returns to shareholders. We also advanced our long-term strategy with our higher return, highly capital efficient Path to Zero project in Fort Saskatchewan, Alberta, where construction started earlier this month. Now turning to our operating segment performance on slide four. In the packaging and specialty plastic segment, operating EBIT was $605 million, down $37 million compared to the year-ago period, primarily due to lower integrated margins. Local price declines were primarily driven by lower energy and feedstock costs globally. Volume decreased year-over-year, driven by declines in the hydrocarbons and energy business. This was primarily due to prioritizing higher-value downstream derivative polymer sales, as well as lighter feed-slate cracking in Europe. Sequentially, operating EBIT decreased by $59 million as improved polyethylene integrated margins were more than offset by expected lower non-recurring licensing revenue and higher planned maintenance activity. Moving to the industrial intermediates and infrastructure segment, Operating EBIT was $87 million compared to $123 million in the year-ago period. Results were driven by lower prices in both businesses, which were partly offset by three items, lower energy and feedstock costs, improved equity earnings, and volume gains in polyurethanes and construction chemicals. Sequentially, operating EBIT was up $72 million, driven by improved equity earnings and lower energy and feedstock costs, primarily in EMEA. And in the performance materials and coating segment, operating EBIT was $41 million, up $6 million compared to the year-ago period, driven by volume growth and higher operating rates. Volume was up year-over-year, driven by gains primarily in the United States, Canada, and Latin America. Sequentially, operating EBIT increased to $102 million, driven by higher seasonal volumes and overall improved demand. Now I'll turn it over to Jeff to review our outlook and actions.