Midland, Michigan – Dow Chemical generated sales of $14.8bn in the third quarter of 2021 up 52.8% on the same period last year. Operating EBIT across the business rose by 279% to $2.9bn.
Dow marched on in Q3
CEO Jim Fitterling said the company had managed to grow despite disruption from hurricanes on the Gulf coast, and global supply chain disruption because of its feedstock flexibility and structural cost advantages. ‘We generated higher cash flow and achieved sales growth across all business segments and geographies,’ he said.
In the company's industrial intermediates & infrastructure division, which includes its polyurethane and construction chemicals business, sales rose by 46.5% between the third quarter of 2020 and the third quarter of 2021 to $4.48bn in the third quarter of 2021. This compares with $3.06bn in the equivalent period in 2020.
Operating EBIT in the division increased by 586%, reaching $713m in the third quarter of 2021. This compares with $104m in the equivalent period in 2020.
Sales in the polyurethanes and construction chemicals business were up and prices rose because of tight supply and demand dynamics in key value chains, the company said. Volumes were down as the company moved away from low-margin products, weather related shutdowns and third-party supply constraints which affected customers.
Away from these results, Fitterling stressed the company's intention to move towards a more circular business model. [Dow's] strategic plan is to increase underlying EBITDA by more than £3bn across the cycle… by decarbonising and growing earnings,’ he said. ‘Our strategy enables us to capture demand for circular and low- to zero-carbon emission products.'