You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: And we have prepared slides to supplement our comments today.
I'm Pankaj Gupta, Dow investor relations vice president.
Because these statements are based on current assumptions and factors that involve risks and uncertainties.
Dow's Forms 10-Q and 10-K include detailed discussions of principal risks and uncertainties which may cause such differences.
Unless otherwise specified, all financials, where applicable, excludes significant items.
We will also refer to non-GAAP measures.
On Slide 2, you will see our agenda for the call.
Jim will begin by reviewing our fourth quarter and full year highlights, and operating segment performance.
Howard will then share our outlook and modeling guidance.
And then Jim will discuss how we will continue to execute on our priorities to deliver value growth.
Beginning with Slide 3.
In the fourth quarter, Dow once again delivered top and bottom-line growth year over year, with sales growth and margin expansion in every operating segment.
Our results reflect the strength and resilience of our advantaged portfolio and the incredible efforts of the Dow team, as we continue to ensure well-being and safety of our team and our communities.
We delivered year-over-year sales growth of 34% with gains in every operating segment, business, and region.
While volume declined 4% year over year due to supply constraints from several factors, including our own maintenance, lingering effects of weather-related outages, and global logistics challenges, we continued to see robust underlying demand across our end markets, particularly for higher-margin downstream and sustainability-led applications.
Prices were up 39% year over year, reflecting gains in all operating segments, businesses, and regions.
Our discipline and agility enabled us to navigate the supply constraints and logistics challenges I just mentioned, dual control actions in China, and rising energy costs.
We delivered operating EBIT growth of $1.2 billion year over year with margin expansion in every operating segment.
Equity earnings were also up year over year with margin expansion at our joint ventures in Saudi Arabia, Thailand, and Kuwait.
These results translated into significant cash generation for the quarter, with cash flow from operations of $2.6 billion, up $901 million year over year, and cash flow conversion of 88%.
And we returned $912 million to shareholders in the quarter, including $512 million through our industry-leading dividend and $400 million in share repurchases.
Our performance in the fourth quarter capped a record year for Dow, which you will see highlighted on Slide 4.
In 2021, Team Dow capitalized on the economic recovery, achieving record sales and earnings performance despite pandemic-driven uncertainty and industrywide weather-related challenges.
Our focus on cash flow and disciplined capital allocation enabled us to continue to deliver on our financial priorities.
We achieved $7.1 billion of cash flow from operations, bringing our total cash flow from operations since spin to $18 billion.
We enhanced our balance sheet by reducing gross debt by another $2.4 billion in the year, bringing down gross debt by more than $5 billion since spin.
We have also no substantive debt maturities until 2026.
We proactively funded our U.S. pension plans and successfully executed Sadara's debt reprofiling, lowering Dow's guarantees by more than $2 billion.
Dow has returned a total $7.3 billion to shareholders since spin through our dividend and share repurchases, including $3.1 billion in 2021.
And we kept capex well within D&A as we continue to invest in our higher-return and faster-payback growth investments.
In 2021, we achieved a return on invested capital of greater than 22% on strong earnings growth.
As we turn the corner on the pandemic, we do so with a strong balance sheet and a deliberate and disciplined strategy to decarbonize and grow.
We achieved this record financial performance in 2021 while advancing our ESG leadership.
Importantly, we announced our disciplined strategy to decarbonize our assets while improving underlying EBITDA by more than $3 billion as we capitalize on our participation in attractive, high-growth end markets and sustainability-driven solutions.
Our ESG efforts continue to be recognized externally as we were recently recognized by JUST Capital for the third year.
Dow earns the top spot in the chemicals sector overall, as well as the No.
1 position in the workers and stakeholders in governance categories in the industry.
I'm extremely proud of Team Dow's dedication to deliver for our customers and drive value for all of our stakeholders.
We will build on these achievements in 2022 as we advance our ambition.
Moving to our operating segment performance for the fourth quarter on Slide 5.
In the packaging and specialty plastics segment, operating EBIT was $1.4 billion, up $662 million year over year, primarily due to margin improvement and partly offset by lower-supply volumes.
Sequentially, operating EBIT was down $512 million, and operating EBIT margins declined by 520 basis points on lower olefin and co-product pricing, combined with higher raw material costs and energy costs.
The packaging and specialty plastics business reported higher net sales year over year, driven by price gains in all regions, as well as in key applications, such as flexible food, industrial, and consumer packaging.
Volume declined year over year, primarily in Asia-Pacific, due to supply constraints.
Moving to the industrial intermediates and infrastructure segment, operating EBIT was 595 million, up 299 million year over year, primarily due to continued price strength.
Sequentially, operating EBIT was down $118 million, and operating EBIT margins declined 280 basis points, primarily driven by higher energy costs in Europe and our planned maintenance turnaround activity.
The polyurethanes and construction chemicals business increased net sales compared to the year-ago period on broad-based price gains in all regions.
Volume declines were primarily due to a planned transition, away from a low-margin co-producer contract and our planned maintenance turnaround activity.
The industrial solutions business delivered a net sales improvement compared to the year-ago period with local price gains in all regions.
Volume was flat year over year as higher volume from a renewable energy contract was offset by fewer licensing and catalysts sales.
And finally, the performance materials and coatings segment reported operating EBIT of $295 million compared to 50 million in the year-ago period, as margins increased 900 basis points due to strong price momentum for silicones and coatings offerings.
Sequentially, operating EBID improved $11 million as price gains were partly offset by our planned maintenance turnaround activity.
The consumer solutions business achieved higher net sales year over year, with local price gains in all regions and across end market applications.
Volume declined as strong demand, particularly for industrial, electronics, and personal care applications, was offset by lower supply availability due to our own decision to pull forward maintenance activity to coincide with dual-control actions in China.
The coatings and performance monomers business achieved increased net sales year over year, as higher raw material costs and strong industry demand led to price gains in all regions.
and Canada, was more than offset by lower merchant sales of acrylic monomers, partly due to Dow's own higher captive use.
Turning to Slide 6, our diversified portfolio continues to enable us to capitalize on attractive end market trends with higher-margin downstream products.
Our four primary market verticals are each growing at rates of 1.3 to 1.5 times GDP and benefiting from sustainability macro trends.
We are meeting this demand with higher-margin solutions, such as functional polymers, alkoxylates, surfactants, polyurethane systems, sustainable coatings, and performance silicones.
In the packaging vertical, demand for lower carbon emissions, recyclable, and circular materials are driving demand for Dow's industry-leading plastics portfolio and in-house application design capabilities.
Dow's broad suite of products and hybrid innovations targeting infrastructure will continue to benefit from government investments and incentives, with particular demand resiliency in the Americas, Europe, as well as in the Middle East, Africa, and India.
We see global demand across the diverse consumer market vertical remaining at elevated levels, particularly for applications like electronics, 5G, appliances, pharma, and home care, where several of Dow's growth investments are targeted.
And in mobility, Dow's portfolio of specialty silicones, polyurethanes, and elastomers is uniquely positioned to benefit from growing electric and autonomous vehicle trends.
Importantly, these attractive market verticals are supported by favorable balances across our key value chains, with continued strength across consumer and industrial end markets, which we'll see on Slide 7.
We expect the economic recovery to continue as forecasts call for above historical average global GDP growth in 2022.
While the omicron variant has resulted in some near-term disruption, we do not expect it to materially change the current recovery path, particularly as global immunization levels and treatment options continue to increase.
Several factors support continued strength across our end markets.
Consumer balance sheets remain healthy, with significant pent-up demand driven by more than $5 trillion in additional savings accumulated through the pandemic.
Manufacturing growth is expected to remain robust, supported by increasing investments in infrastructure and accelerated adoption for 5G, EV, and sustainability trends.
And with retail inventories remaining low and backlogs elevated, easing supply chain issues should unleash additional volume growth in 2022, as manufacturing activity increases to meet strong consumer demand.
This will certainly be a focus for Dow as we work closely with our customers to fill order backlogs and replenish inventories to meet the robust demand and increased service levels.
Turning to Slide 8.
In the first quarter, we expect these demand trends to drive growth, particularly following the Chinese Lunar New Year.
Demand remains resilient in packaging and specialty plastics.
Although domestic polyethylene supply improved through the fourth quarter, comonomer supply remains constrained.
And trade sources are predicting another year of higher-than-average turnaround activity.
These factors, coupled with improvements in shipping logistics that will help meet demand in the export market, are leading to more constructive supply and-demand balances domestically.
Equity earnings are expected to be lower sequentially due to rising feedstock costs impacting Asian olefin margins.
And we anticipate higher raw material and energy costs, particularly in Europe and Asia.
Altogether, we anticipate an approximately $200 million impact versus the prior quarter for this segment.
Utilizing our best-in-class feedstock flexibility and our differentiated portfolio, Dow will continue to be agile to mitigate potential volatility and meet demand.
In industrial intermediates and infrastructure, strong demand for our high-value materials in appliances, construction, pharma, home care, and energy applications, combined with tight supply and increased global infrastructure investment, are supporting a constructive demand outlook.
We anticipate approximately a $100 million benefit in this segment from completed turnarounds in the fourth quarter, including Sadara's isocyanate facility and several in our core polyurethane business.
And we expect the elevated energy costs in Europe will be a $75 million impact versus the prior quarter for this segment.
In performance materials and coatings, increasing industrial activity and consumer demand for electronics and construction continues to outpace supply for our differentiated silicone products.
The industry also anticipates resilient demand for architectural coatings as rebuilding from low inventory levels in preparation for the Northern Hemisphere spring and summer months.
The completion of our turnaround in the fourth quarter at our siloxane facility in China will allow us to take advantage of tight global market conditions as silicon metal supplies improve and energy curtailments in China continue to ease.
We will also be executing a turnaround at our methacrylates facility in Deer Park.
All in, we expect a $25 million net tailwind versus the prior quarter from turnarounds for this segment.
Turning to the full year.
We're continuing to provide our best estimates of several income statement and cash flow drivers.
Notably, we expect lower equity earnings sequentially due to margin compression versus the tighter conditions in 2021, particularly in Asia as oil remains constructive, putting upward pressure on the naphtha-based feedstock costs in the region.
Total turnaround spending for the year will be up approximately $100 million versus 2021 as we have another heavy turnaround year with three crackers slated for maintenance activity and increased inflationary pressure on materials and labor.
Net interest expense is expected to be approximately $600 million, benefiting from our proactive deleveraging actions since spin.
For cash flow, we anticipate higher joint venture dividends from increased earnings in 2021 and a $1 billion tailwind toward pension-related items following our actions last year.
Continued investment in our digital initiatives will drive efficiency and enable us to achieve our $300 million EBITDA run rate on the program by 2025.
We will also complete the spending portion of our restructuring program which is now delivering a full $300 million EBITDA run rate as we enter 2022.
And finally, as we highlighted at our investor day, we anticipate increasing our capital expenditures to $2.2 billion, well within our DNA target, as we continue to advance our higher return, faster payback projects, and execute on our decarbonize and grow strategy.
Overall, the macroeconomic backdrop remains favorable in 2022.
And Dow is well positioned due to our global footprint, feedstock flexibility, productivity programs, and sustainable solutions for our customers.
We will continue to leverage these advantages as we navigate higher oil prices and continue to deal with inflation and logistics challenges.
And as the year progresses, we intend to drive operating rates and service levels higher and do expect widening oil to gas spreads.
Turning to Slide 10.
At our investor day in October, we laid out our disciplined strategy to decarbonize and grow the company, supported by a series of inflight earnings growth programs that will drive over $3 billion in underlying EBITDA growth.
In 2022, our capital and operating investments are on track to deliver $200 million to $300 million in run-rate EBITDA and will serve higher-margin, differentiated applications where demand is accelerating, as customers work to reduce their own carbon footprint.
In packaging and specialty plastics, our Fort Saskatchewan expansion completed last year will deliver a full year of earnings growth to support increasing polyethylene demand.
And our FCDh pilot plant in Louisiana will start up this year to produce propylene for coatings, electronics, and durables end markets.
Notably, the technology enables lower capex, opex, and CO2 emissions compared to conventional PDH technologies.
These projects serve faster-growing, more sustainable market segments, such as renewables, to drive lower carbon emissions for our customers.
For example, our endurance compounds for cable systems support next-generation, longer-life, and lower-carbon emissions infrastructure, including on and offshore wind farms, by reducing the cable manufacturing carbon emissions footprint by 80%.
And our ENGAGE elastomers deliver 35% improved performance and efficiency for solar photovoltaic applications.
In industrial intermediates and infrastructure, our alkoxylates and PU systems expansion projects are closely linked with brand owner demand for higher value, differentiated downstream applications across home and consumer care, agricultural, and infrastructure end markets.
For example, our surfactants offer an improved environmental profile for leading brand owner laundry and home care products.
And our polyurethane system, PASCAL technology, enables up to 10% greater energy efficiency and appliances without raising manufacturing costs.
In performance materials and coatings, we're expanding capacity in formulated solutions for coatings and silicones through incremental debottlenecking projects.
Our products enable higher-performing, more sustainable solutions, targeting mobility, consumer, and infrastructure end markets.
For example, FASTRACK coatings enable autonomous mobility infrastructure and have approximately 45% lower greenhouse gas emissions.
And our DOWSIL technology enables higher-density, lower-cost battery packs for the fast-growing electric vehicle market.
Finally, as Howard mentioned, our restructuring program and digital investment will continue to support our low-cost operating model and top-quartile cost structure.
Turning to Slide 11.
The increasing demand for sustainable products represents a significant growth opportunity for Dow with attractive pricing that will support longer-term, higher-quality earnings.
Our customers are looking for opportunities to enhance their sustainability.
And we are meeting those needs with lower-carbon emissions solutions beginning with our own operations.
Our Alberta project will decarbonize approximately 20% of Dow's global ethylene capacity while growing our global polyethylene supply by about 15%.
We are also working with our suppliers to reduce our Scope 3 carbon emissions.
To date, we have more than 150 supplier agreements in place and have adopted third-party frameworks like CDP, together for sustainability and EcoVadis to drive tangible improvements in environmental performance along the value chain.
We continue to advance a circular economy for plastics and see a consistent trend across our brand owner customer base toward redesigning packages to be recyclable and incorporating 30% post-consumer recycled content in their packaging by 2030.
Six of our largest sites have now received International Sustainability and Carbon Certification PLUS recognition for tracking the use of sustainable feedstocks.
We're advancing our partnership with Mura Technology to scale advanced recycling solutions and secure circular product supply.
Mura broke ground on the new plant with an expected start-up around the end of the year.
Earlier this month, we announced an investment in Mr. Green Africa, the first recycling company in Africa to be a Certified B Corporation, which includes socially responsible waste collection and plans to codevelop new flexible plastic packaging that will enable more sustainable packaging solutions.
A first-of-its-kind investment for Dow in Africa, this business model will be scaled to other developing regions around the world.
We continue to grow our recyclable offerings, recently doubling sales with Chinese laundry brand, Liby, and increasing our addressable market opportunities.
And like the partnerships, Dow recently announced to source pyrolysis oil from Gunvor and New Hope Energy.
These investments in circularity are examples of our progress and solid foundation as we grow and scale circular solutions.
To close, on Slide 12, 2021 was an outstanding year for Team Dow.
We delivered record financial performance and continued our disciplined execution of our strategic priorities.
Building on this foundation, we're focused on advancing our plan to decarbonize our assets and grow earnings.
Our competitive advantage enables us to meet the increasing needs of our customers and consumers who are demanding more circular and sustainable products while we work to achieve zero carbon emissions in our own operations.
And as we look ahead, our priorities remain consistent.
Our focus on profitable growth, while maintaining a low-cost position and best-owner mindset, will enable us to deliver on our earnings growth levers.
We'll continue to maintain our balanced and disciplined approach to capital allocation, driving higher returns for the company and our shareholders while retaining the financial flexibility that has served us well.
And we'll continue to advance our leadership in ESG with a clear path to achieve our zero carbon circularity and sustainability targets.
The world and our customers are demanding a more sustainable future.
As we execute our ambition, I am confident that we will create significant, long-term value for all of our stakeholders.
Operator, please provide the Q&A instructions.

user
q4 sales rose 34 percent to $14.4 billion.
industrial intermediates & infrastructure segment net sales in quarter were $4.5 billion, up 30% versus year-ago period.
qtrly net sales up 34% versus year-ago period, with improvement in every operating segment, business and region.
performance materials & coatings segment net sales in quarter were $2.6 billion, up 26% versus year-ago period.
in 2022, we expect continued demand strength across our end markets.
logistics constraints are expected to ease throughout year to fulfill elevated order backlogs and pent-up customer demand.
in 2022, expect continued demand strength across end markets, supported by growing industrial production and sustained consumer spending.
logistics constraints expected to ease throughout year to fulfill elevated order backlogs and pent-up customer demand.

assistant