Certain Items in the current quarter consisted of non-cash charges reflecting the adjustment of uncertain tax positions, a charge related to the early extinguishment of debt and a charge for implementation costs related to the Company’s restructuring programs. (See Supplemental Information at the end of the release for a description of Certain Items affecting results.)

Dow’s global operating rate was 82 percent, up 4 percentage points sequentially and down 1 percentage point versus the year-ago period.

Cash flow from operations increased nearly $500 million versus the year-ago period.

Research and Development (R&D) expenses were up 7 percent versus the same period last year, reflecting continued investments in Dow’s technology-driven segments, particularly Agricultural Sciences.

Selling, General and Administrative (SG&A) expenses rose 9 percent versus the year-ago period, led by increased investments in Agricultural Sciences.

Equity earnings were $230 million, versus $169 million in the same quarter last year, primarily reflecting gains in the Company’s cost-advantaged joint ventures in Kuwait.

Dow continued to drive deleveraging actions, reducing gross debt by $901 million in the quarter. In addition, interest expense declined $33 million versus the year-ago period due to ongoing debt reduction.

“Our performance this quarter demonstrates our team’s continuing determination to deliver earnings growth, despite ongoing uncertainties in the global economy,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “We are aggressively managing our businesses and driving near-term execution measures – demonstrated by this quarter’s marked improvement in both margins and profitability.

"We continue to deliver on our plan by implementing cost and cash flow actions, paying down debt, improving return on capital and taking firm decisions on our portfolio, as evidenced by our recently announced target of $1.5 billion in proceeds from divestitures in the near term. Collectively, our proactive, execution-focused actions position Dow well to navigate ongoing challenging market conditions and deliver value to our shareholders. We expect the results of these actions to accelerate throughout the year.”

Dow Chemical Company