Midland, Michigan — Dow had sales of $10.8bn in the third quarter of 2019. This is 15% lower than the same period in 2018. Operating EBIT across the business fell by 31%, to $1.6bn.
Difficult conditions and looser isocyanate supply hit Dow in Q3 2019
Dow CEO Jim Fitterling described the business environment as difficult. 'We grew volume in our packaging, polyurethanes and silicones businesses,' he said. 'We leveraged our industry-leading feedstock flexibility in the US and Europe. Further, we continued to drive down our cost, completing the $1.365 bn cost synergy programme.' The company also removed $40m of stranded costs in the quarter.
Polyurethanes is accounted for in the company's industrial intermediates & infrastructure business. Sales in the business fell by 14% between the third quarters of 2018 and 2019, to $3.45 bn. This compares with $3.91bn in the third quarter 2018.
Operating EBIT in the division declined by 59% to $193m in the third quarter of 2019. This compares with $466m in the 2018 period.
Modest volumes growth in the polyurethanes & construction chemicals segment were more than offset by price declines. Prices of isocyanates and polyols fell across the world.
The US and Canada led volume growth. More MDI was available in the quarter after plant turnarounds in the third quarter of 2018. Volume growth continued in polyurethane systems for the 25th consecutive year, the company said.
Higher costs and lower selling prices compressed margins and hit operating EBIT.