Midland, Michigan -- Dow Chemical Co. said sales of performance products, which includes its polyurethane raw materials, were up 29 percent in the second quarter.
Sales reached $3200 million, while pricing increased 20 percent, which Dow said in its 27 July quarterly report was a result of pricing initiatives to offset higher raw material costs. Earnings (EBITDA) for the performance products segment was $387 million, compared to $330 million in Q2 2010.
Polyurethane sales growth was driven by double-digit price gains in all geographic areas, although Dow did not specify sales figures. Polyurethane volume growth was led by North America and Latin America, as Dow said the business benefited from tight supply conditions in the PU industry.
Sales in performance systems were $1900 million, up 19 percent from Q2 2010. Pricing for the segment was up 17 percent. Dow's automotive systems group achieved double-digit volume growth in Latin America, primarily driven by demand increase in Brazil and Mexico, the company said. EBITDA was $260 million, which was a quarterly record for the segment, up from $225 million in Q2 2010.
In the coatings and infrastructure segment, which includes chemicals for polyurethane coatings, sales were up 14 percent at $1600 million. Double-digit sales growth was reported in adhesives and functional polymers, and coating materials, according to the report. EBITDA was $231 million, up from $230 million in Q2 2010.
For the company as a whole, Q2 sales were $16 000 million, up 18 percent from the same period last year, which Dow said was the second highest quarter in the company's history. Volume grew 9 percent, Dow said, with gains in all operating segments excluding coatings and infrastructure, and chemicals and energy.
"This marked another quarter of tremendous progress for Dow. We delivered significant and broad-based top-line growth, and reached a new quarterly sales record in emerging geographies," said Andrew Liveris, ceo of Dow.
He added, "We remain firmly on the trajectory to reach our near-term earnings targets, as evidenced by EBITDA growth of nearly 25 percent - up in every operating segment - as well as overall margin expansion for the company."
Volume increased in all geographic areas, the company said in the report, with the highest growths in Latin America (23 percent) and Asia Pacific (11 percent).
Sales in emerging geographies reached $4900 million, which Dow said was a new quarterly record. Growth was led by Latin America, which increased by more than 35 percent.