The Dow Chemical Company (NYSE:DOW) Q4 2016 Earnings Conference Call - Final Transcript
Jan 26, 2017 • 09:00 am ET
Good day and welcome to The Dow Chemical Company's Fourth Quarter 2016 Earnings Call. (Operator Instructions). Also today's call is being recorded.
I would now like to turn the call over to Mr. Neal Sheorey. Please go ahead, sir.
Good morning, and welcome to The Dow Chemical Company's fourth quarter and full year earnings conference call. I am Neal Sheorey, VP of IR. As usual, we are making this call available to investors and the media via webcast. This call is the property of The Dow Chemical Company. Any redistribution, re-transmission or rebroadcast of this call in any form without Dow's express written consent is strictly prohibited.
On the call with me today are Andrew Liveris, Dow's Chairman and CEO; Howard Ungerleider, VC and CFO; and Jim Fitterling, President and COO. We have prepared slides to supplement our comments in this conference call. These slides are posted on our Investor Relations' Financial Reporting page. You can also access the slides through the link to our webcast.
(Forward-Looking Cautionary Statements)
In addition, some of our comments reference non-GAAP financial measures. A reconciliation to the most directly comparable GAAP financial measure and other associated disclosures are contained in our earnings release and on our website. Unless otherwise specified, all comparisons presented today will be on a year-over-year basis. Sales comparisons exclude divestitures and acquisitions. EBITDA, EBITDA margins, return on capital and earnings comparisons excludes certain items.
I will now turn the call over to Andrew.
Thank you, Neal. If you turn to slide three, good morning, everyone. The fourth quarter of 2016 capped another strong year of performance for Dow in which the full power of our business model was once again on display. We reached 17 consecutive quarters of EPS growth, 13 consecutive quarters of volume growth, another year of record EBITDA, and shareholder returns that have outpaced the industry and the market.
As you can see, the Dow team delivered exactly as we said we would in 2016. We have delivered this performance day in and day out against one of the most unpredictable and volatile macroeconomic environments in our history, mitigating risk and driving both top line and bottom line growth.
In a world of constant uncertainty, our focus on targeted markets, productivity and investing in strategic growth drivers has resulted in consistent performance, no matter the headwinds, and we have done this while rewarding our shareholders with substantial share repurchases and consistent increases in our dividend, now at a record level.
We are exiting 2016 with strong momentum and this bodes well for 2017. Our strategic agenda, our strength in portfolio and our determination to deliver served us well throughout 2016, as it has over the past four-plus years, and as it will continue to do so into 2017 and beyond.
Turning to slide four, this brings me to our results for the full year. Here are the headlines. Financially, we grew full year EPS for the fourth consecutive year. We achieved record full year EBITDA. We converted all