Midland, Michigan -- Dow Chemical Co. has reported 2010 second quarter (Q2) sales up 23 percent year-on-year in its Performance Systems business and up 35 percent in its Performance products business to $1800 million and $2800 million, respectively.
Dow's performance businesses both include polyurethane activities.
Performance Systems reported volumes up 13 percent and prices rose 10 percent, a 3 Aug Dow statement said. The company's Automotive Systems business, part of the Performance Systems division, reported a significant increase in sales, "led by polyurethane glass bonding adhesives and foams," the statement said. Q2 earnings were up to $223 million, including a $15 million pretax gain on the sale of Styron, from $212 million in the second quarter of 2009.
Dow sold its polystyrene plastic Styron business to Bain Capital for around $1630 million in early March 2010.
Dow's Performance Products segment for raw materials reported a strong increase in sales for polyurethane, driven mainly by price gains. Results for polyurethanes were impacted by several planned turnarounds in Q2, as well as higher raw material costs, Dow added. Earnings increased to $328 million from £212 million a year earlier, including a $26 million pretax gain on the sale of Styron, offset by a $12 million 2009 restructuring charge.
Overall the chemical giant reported sales of $13 600 million in the second quarter of 2010 (Q2), a 26 percent increase compared to the same period last year, a 3 Aug company statement said.
Double-digit sales increases were reported in all geographic areas, ranging from a 14 percent gain in Latin America to a 31 percent gain in North America, Dow said. Top line growth, the statement said, was driven by a 7 percent increase in volume and a 19 percent increase in price.
Dow ceo Andrew Liveris said strong demand growth in North America and Europe, combined with continued demand in emerging economies, drove improvements in all of Dow's operating segments.
"The power of our new portfolio was clearly evident, with the combined performance businesses delivering nearly three-quarters of our EBITDA results," Liveris said in the statement.
The Dow ceo added that the company is on course with its strategic goals and has exceeded its target of divesting $5000 million in non-strategic assets in less than two years. (RD)
PIC: Dow ceo Andrew Liveris.