Midland, Michigan — Dow Chemical's Performance Materials business, which contains polyurethanes, had a tough year in 2016 with earnings slumping.
Performance Materials & Chemicals saw sales fall 23% compared with 2015 to just over $9.2 billion. Looking at the division’s earnings before interest, taxes, debt and amortisation (ebitda) performance this plummeted 97% compared to 2015 reaching $134 m, Dow said.
Dow’s overall company sales for 2016 fell more than 1% to around $48.2 bn. The firm’s annual profit slumped 43% to $4.4 bn.
In the release, accompanying the figures, Dow Chairman and ceo Andrew Liveris said that the firm “is seeing early signs of positive economic momentum, with the US in expansionary mode.” These signs, he added, “are driven by the ongoing strength of the consumer and the tailwind of a new incoming administration promising structural reforms.”
Dow’s growth plans for 2017 include a massive expansion of PE capacity at its petrochemicals complex in Freeport, Texas.
Dow's pending merger with Wilmington, Delaware-based DuPont — another global plastics and chemicals giant — is expected to be completed in the first half of 2017. The combined firm then plans to split into three separate publicly traded companies, including one focused on materials, within two years of the completion date.
This is an edited version of a story which first appeared on Plasticsnews.com