Midland, Michigan - Dow Chemical Co. reported record sales for the second quarter, but said energy and feedstock costs surged 42 percent, or $2400 million, compared with the same quarter last year. This was, "the largest year-over-year increase in the company's history," said Dow's Q2 results statement.
In Polyurethane Systems, Dow had double-digit volume growth, aided byrecent acquisitions, but also as a result of rising demand inapplications such as insulation for oil and gas pipelines andrefrigerated transport.
Total sales for Dow Chemical Co. for the second quarter rose 23 percent from the same period last year to $16 400 million. Double-digit price increases were recorded in all operating segments and all geographic areas, the company said in its 25 July results announcement.
Volumes grew 5 percent, said Dow, with 12-percent growth in outside North America, including an 11-percent volume increase in Europe.
Earnings (EBIT) in Dow's combined Performance segments rose compared with Q2 2007, despite "substantial increases in raw material and supply chain costs," the company commented.
In Performance Plastics, which includes the group's polyurethane business, Q2 sales of $4400 million were 18 percent up on Q2 2007. Prices increased 11 percent, with gains in all geographic areas, while volume rose 7 percent, with particular strength in Europe and Asia Pacific.
Dow said that, "Despite robust price gains across the segment, selling prices continued to lag significant increases in raw material and supply chain costs."