Dow Posts Positive Second-Quarter Results
MIDLAND, MI - The Dow Chemical Co. has reported sales of $13.6 billion in the second quarter of 2010, a 26 percent increase compared with the same period last year. Top-line growth was driven by a seven percent increase in volume and a 19 percent increase in price. Double-digit sales gains were reported in all geographic areas, ranging from 14 percent (Latin America) to 31 percent (North America).
Broad-based price increases were also achieved in all geographic areas, led by North America and EMEA, which were up 20 and 21 percent, respectively. All operating segments reported double-digit price increases except Health and Agricultural Sciences (down five percent) and Electronic and Specialty Materials (down one percent).
At a company level, demand grew seven percent, led predominantly by the combined Performance segments, which achieved 12 percent volume growth versus the same period last year. The strongest increase was reported in Electronic and Specialty Materials, which achieved 20 percent volume growth versus the year-ago period.
Demand growth continued to be particularly strong in North America and EMEA, where volume was up 11 percent and eight percent, respectively. Asia Pacific posted gains of five percent, while volume growth in Latin America in the combined Performance segments was more than offset by a decline in volume related to an unplanned outage that limited polyethylene production in Basic Plastics.
Net income from continuing operations for the quarter was $659 million, up significantly compared with a net loss from continuing operations of $435 million in the second quarter of 2009, and net income from continuing operations of $552 million last quarter.
"Dow continued its earnings growth trajectory in the second quarter, with double-digit sales gains, continued progress in growth synergies and above-target structural cost reductions driving higher results," said Andrew N. Liveris, Dow's Chairman and Chief Executive Officer. "Strong demand growth in North America and Europe, combined with continuing demand momentum in emerging economies, drove revenue improvements across all of our operating segments.”
Broad-based price increases were also achieved in all geographic areas, led by North America and EMEA, which were up 20 and 21 percent, respectively. All operating segments reported double-digit price increases except Health and Agricultural Sciences (down five percent) and Electronic and Specialty Materials (down one percent).
At a company level, demand grew seven percent, led predominantly by the combined Performance segments, which achieved 12 percent volume growth versus the same period last year. The strongest increase was reported in Electronic and Specialty Materials, which achieved 20 percent volume growth versus the year-ago period.
Demand growth continued to be particularly strong in North America and EMEA, where volume was up 11 percent and eight percent, respectively. Asia Pacific posted gains of five percent, while volume growth in Latin America in the combined Performance segments was more than offset by a decline in volume related to an unplanned outage that limited polyethylene production in Basic Plastics.
Net income from continuing operations for the quarter was $659 million, up significantly compared with a net loss from continuing operations of $435 million in the second quarter of 2009, and net income from continuing operations of $552 million last quarter.
"Dow continued its earnings growth trajectory in the second quarter, with double-digit sales gains, continued progress in growth synergies and above-target structural cost reductions driving higher results," said Andrew N. Liveris, Dow's Chairman and Chief Executive Officer. "Strong demand growth in North America and Europe, combined with continuing demand momentum in emerging economies, drove revenue improvements across all of our operating segments.”
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