MIDLAND, MI - The Dow Chemical Co. (Dow) delivered sales of $13.4 billion for the first quarter of 2010, representing a 33 percent increase compared with sales in the same period last year on a pro-forma basis excluding divestitures. Top-line growth was driven by a 16 percent increase in volume and a 17 percent increase in price. Sales increased in all geographic areas with increases ranging from 26 percent (Latin America) to 51 percent (Asia Pacific).
Double-digit volume increases were reported in all geographic areas and in all operating segments versus the first quarter of 2009, except Basic Plastics and Health and Agricultural Sciences. The combined Performance segments achieved a 26 percent increase in volume year-over-year, excluding Health and Agricultural Sciences, which was down from the record sales volumes of the first quarter 2009.
From a geographic perspective, North America and EMEA each delivered volume gains of 11 percent, while emerging geographies delivered volume growth of 27 percent versus one year ago. Strong demand growth was led by Greater China, which was up 46 percent. In addition, volume grew by 20 percent or more versus the same period last year in Brazil, India and Eastern Europe.
Broad-based pricing gains were achieved over the same period last year in all geographic areas and in Coatings and Infrastructure, Performance Systems, Performance Products, Basic Plastics, and Basic Chemicals.
Sequentially, sales increased 8 percent, with volume and price each up 4 percent. Compared with the last quarter, volume grew in North America and EMEA, while price was up in all areas except EMEA, which remained flat. Sales were also up across all operating segments, with the exception of Basic Chemicals, which decreased 2 percent.
Net income from continuing operations for the quarter was $552 million. This compares with net income from continuing operations of $24 million in the first quarter of 2009, and $178 million last quarter.
Sales in Coatings and Infrastructure were $1.2 billion, up 21 percent compared with the same period last year. Volume increased 16 percent, and price was up 5 percent. Year-over-year volume growth was reported across all geographic areas, led by Asia Pacific, EMEA and Latin America. Dow Coating Materials reported higher sales versus the same period last year, driven by both volume and price gains. While residential construction is recovering around the world, emerging geography demand growth outpaced that of developed regions. Dow Building and Construction reported higher year-over-year sales in most geographic areas, led by Asia Pacific and by the successfully launched next-generation STYROFOAM™ brand insulation in North America. In Dow Adhesives and Functional Polymers, demand was up in all geographic areas, driven by transportation and packaging applications. EBITDA for the segment was $116 million, which was reduced by restructuring charges of $5 million. This compares with EBITDA of $121 million in the same period last year, which included a charge of $1 million for restructuring activities.