Midland, Michigan - Dow Chemical Co. has reported third quarter sales of £15 100 million, a 17-percent increase from the same period in 2010. All operating segments and geographic areas reported double-digit sales, the company said in a 27 Oct results report.
Earnings (EBITDA) in Q3 were $2100 million, which Dow said contributed to "record" year-to-date earnings of $6800 million, up 21 percent year-on-year.
Volume growth in Latin America (7 percent) and Asia Pacific (5 percent) offset decreases in the US and Western Europe, which were each down 3 percent. Volume growth in emerging geographies was led by China (12 percent), India (11 percent) and Brazil (10 percent).
"We achieved record EBITDA for both the quarter and year to date. This performance demonstrates that our strategy is delivering results, as we commercialise our R&D pipeline, strengthen our balanced and integrated portfolio, build upon our formidable feedstock advantage, and drive efficiencies throughout our business to deliver earnings growth," commented Andrew Liveris, Dow ceo, in the report.
In its coating and infrastructure solutions business, sales for the quarter were $1900 million, with volume down 4 percent and price up 14 percent, Dow said. Earnings were $372 million, down $10 million from the year before.
Within the segment, building and construction report a double-digit price gain overall, with increases in all geographic areas. Lower demand in North America and EMEA (Europe, Middle East and Africa) was offset by growth in emerging regions. Dow's coating materials business reported double-digit price gains across all areas except EMEA.
In the performance materials business, Q3 sales were $3700 million, with volume down 3 percent and price 15 percent. Dow noted that volume growth in Latin America and North America was offset by declines in EMEA and Asia Pacific. Earnings for the business were $478 million in the third quarter, down from $513 million during Q3 2010.
The automotive systems segment reported price and volume expansion in all geographic areas and recorded gains for its polyurethane-based formulations. In the polyurethanes sector, there were strong price gains globally and a slight gain in volume, Dow said. In North America, the business reported double-digit volume growth driven by demand in furniture and bedding applications.
Asked about Dow's excess capacity in isocyanates in a 27 Oct conference call, Liveris said that the company is "working its way through" this capacity and expects to see margins similar to those 5 or 6 years ago by 2012 or 2013.