Midland, Michigan - Dow Chemical Co. has reported sales down by 33 percent and 29 percent respectively in its Performance Products and Performance Systems businesses - which house the company's PU activities, for the third quarter of 2009 (Q3).
In Performance Products, sales were down 33 percent to $2400 million with volumes down 8 percent, mainly in North America and Europe. Polyurethanes sales were also down, the statement said, but volume remained flat compared with Q3 2008. Against the previous quarter, sales in the segment rose 16 percent with polyurethanes reporting double digit growth aided by stimulus programmes driving up construction demand, Dow said.
Performance Systems reported sales of $1500 million, down from $2200 million in Q3 2008, while volume was down 13 percent, mainly due to the continued global economic slowdown in the automotive, construction and housing industries, Dow said 22 Oct. Compared to Q2 2009, Dow's Polyurethane Systems unit reported a double-digit demand improvement in Russia. Stimulus packages and government incentives also led to volume gains in Automotive Systems. Sales were up 5 percent compared to Q2.
Overall sales were $12000 million, down 22 percent from Q3 2008 whilst net income rose to $799 million from $440 million in the same period in 2008.
"Dow once again delivered stronger sequential earnings due to our focus on aggressive price/volume management, accelerating cost reductions, especially with the Rohm and Haas integration," said Dow ceo, Andrew Liveris. "In addition, we are seeing pockets of volume growth in certain businesses versus the prior quarter, primarily in Advanced Materials, Performance Products and Performance Systems, which have benefited from the beginnings of a global economic recovery."
"The economic outlook for the rest of 2009 appears to be stabilising with strong growth in Asia Pacific, especially China, and other emerging geographies. Therefore, our 2009/2010
operating plans do not count on material improvements in market conditions, and we remain tightly focused on those factors we can control, such as costs, capital and cash flow management," Liveris concluded. (RD)