(RTTNews) - Dow (DOW) reported a fourth quarter GAAP loss of $1.5 billion compared to a loss of $35 million, prior year. GAAP loss per share was $2.15 compared to a loss of $0.08. Operating EBITDA declined to $741 million from $1.2 billion, prior year. The company posted an operating loss per share of $0.34, for the quarter. Analysts on average expected the company to report a loss per share of $0.51, for the quarter. Analysts' estimates typically exclude special items.
Net sales were $9.46 billion compared to $10.41 billion, prior year. The company noted that its net sales were down 9% year-over-year, reflecting declines in all operating segments.
Dow announced a comprehensive plan to simplify how it operates and streamline its end-to-end processes. Transform to Outperform aims to simplify operating model through a redesigned organizational structure, resulting in a reduction of third party resources and approximately 4,500 Dow roles.
Transform to Outperform targets the addition of at least $2 billion in near-term Op. EBITDA. The company expects approximately $1.1-1.5 billion in one-time costs associated with Transform to Outperform, including approximately $600-800 million in severance for approximately 4,500 Dow roles and approximately $500-700 million in other one-time costs. The company expects benefits to be accretive to 2025 earnings levels and $1 billion cost savings program.
In pre-market trading on NYSE, Dow shares are down 2.7 percent to $27.01.
For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
