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Dow Seek Together ™ Dow reports first quarter 2021 results FINANCIAL HIGHLIGHTS • • • • • • • April 22 , 2021 GAAP earnings per share ( EPS ) was $ 1.32 ; Operating EPS¹ was $ 1.36 , compared to $ 0.59 in the year - ago period . Operating EPS excludes certain items in the quarter , totaling $ 0.04 per share , related to restructuring implementation costs and digital acceleration spending . Net sales were $ 11.9 billion , up 22 % versus the year - ago period , driven by local price gains across all operating segments , businesses and regions . Sequentially , net sales were up 11 % with gains in all segments and regions . Local price increased 19 % versus the year - ago period , reflecting gains in all operating segments . Sequentially , improvements in all operating segments , businesses and regions drove a 14 % increase . Volume was in line with the year - ago period as demand growth in Packaging & Specialty Plastics was offset by supply constraints in Industrial Intermediates & Infrastructure and Performance Materials & Coatings due to the impact of Winter Storm Uri on the U.S. Gulf Coast . Equity earnings were $ 224 million , up $ 313 million compared to the year - ago period , primarily driven by margin expansion in polyurethanes and polyethylene at the Sadara and Kuwait joint ventures . GAAP Net Income was $ 1.0 billion . Operating EBIT¹ was $ 1.6 billion , up from $ 843 million in the year - ago period , primarily driven by margin expansion in Packaging & Specialty Plastics and Industrial Intermediates & Infrastructure . Dow elected to contribute $ 1 billion to its U.S. pension plans , and announced it will freeze its U.S. plans for active employees as of December 31 , 2023. These actions and the subsequent remeasurement of the U.S. plans effectively reduce the Company's pension liability by $ 2.3 billion and decrease its full year 2021 pension expense by approximately $ 200 million , inclusive of a curtailment gain . Cash used for operating activities – continuing ops . was $ 228 million . Excluding the $ 1 billion elective pension contribution , cash from ops was more than $ 750 million . The Company's ongoing prioritization of cash resulted in a cash flow conversion¹ of 76 % on a trailing twelve - month basis . • Dividend returns to shareholders totaled $ 521 million in the quarter . . The Sadara joint venture successfully completed its debt reprofiling and is now expected to be cash flow self - sufficient - providing an approximately $ 350 million cash tailwind to Dow in 2021 . SUMMARY FINANCIAL RESULTS In millions , except per share amounts 1Q21 Three Months Ended March 31 vs. SQLY 1Q20 [ B / ( W ) ] Three Months Ended December 31 vs. PQ 4Q20 [ B / ( W ) ] Net Sales $ 11,882 $ 9,770 GAAP Income , Net of Tax $ 1,006 $ 258 $ 2,112 $ 748 $ 10,706 $ 1,176 $ 1,254 Operating EBIT1 $ 1,554 $ 843 $ 711 $ 1,054 $ ( 248 ) $ 500 Operating EBIT Margin¹ 13.1 % 8.6 % 450 bps 9.8 % 330 bps Operating EBITDA¹ $ 2,271 $ 1,567 $ 704 $ 1,780 GAAP Earnings Per Share $ 1.32 $ 0.32 $ 1.00 $ 1.65 Operating Earnings Per Share¹ $ 1.36 $ 0.59 $ 0.77 $ 0.81 $ 491 $ ( 0.33 ) $ 0.55 Cash Provided by ( Used for ) $ ( 228 ) $ 1,236 $ ( 1,464 ) $ 1,656 $ ( 1,884 ) Operating Activities - Cont . Ops 1. Op . Earnings Per Share , Op . EBIT , Op . EBIT Margin , Op . EBITDA , Free Cash Flow and Cash Flow Conversion are non - GAAP measures . See page 6 for further discussion . ⓇTM Trademark of The Dow Chemical Company ( " Dow " ) or an affiliated company of Dow 1