DOW
Vibrant growth for sales, earnings in Q1 / Packaging and specialities post sharp gains / Economic recovery to benefit business in Q2
Dow CEO Jim Fitterling said the results demonstrate the “continued focus and agility” of the company (Photo: Dow)
US chemical group Dow (Midland, Michigan; www.dow.com) said net sales in the first quarter of 2021 rose nearly 11% to almost USD 12 bn (EUR 9.9 bn) versus the final three months of 2020 and climbed more than 21% on the year-earlier period. This was the second straight report of annual growth following declines during the pandemic.

Operating EBIDTA grew at a quarterly rate of 27% to more than USD 2 bn, which was 45% higher than in the first quarter of 2020. GAAP earnings per share of USD 1.32 were down 20% versus Q4 2020 but up nearly 25% from a year ago.

Jim Fitterling, Dow chairman and CEO, said the results demonstrated the “continued focus and agility” of the company, which entered the current quarter with increasing momentum. “We expect the broadening economic recovery, aided by vaccine distribution progress and tight market fundamentals, to continue to benefit our businesses.”

He lauded the company’s response to “the unusual industry-wide disruption from Winter Storm Uri”, noting that Dow brought assets back online within a week and reached pre-storm operating rates by the end of the quarter. “And despite supply constraints, we saw demand growth as the economic recovery continued to broaden, most notably in packaging, construction, mobility, electronics and consumer durables end-markets.”

According to Plasteurope.com’s Polyglobe database (www.polyglobe.net), Dow currently has 80% of polyolefin capacity available at its US complex in Freeport, Texas.
Packaging and specialities soar
The company reported net sales of USD 6 bn at the packaging and speciality plastics division, a quarterly rise of more than 18% and a jump of 32% on the year. Operating EBIT at the unit surged 57% from the previous three months and more than doubled from the first quarter of 2020. On the year, “volume increased 5%, with gains in both businesses and all regions except Latin America,” the company said.

The polyurethanes and construction chemicals business achieved a double-digit net sales increase compared to the year-ago period, led by strong local price gains in PU, Dow reported without further specification.

Industrial intermediates and infrastructure activities – home to PU activities as well as chlor-alkali and vinyl – saw net sales rise 3% on the quarter to USD 3.6 bn, which was up 18% on the year; EBIT of USD 326m grew 10% on the quarter and 88% on the year.

Net sales at the performance materials and coatings of USD 2.1 bn were nearly 5% higher on the quarter and up 3% on the year, the company said. EBIT increased 25% from the final three months of 2020 but fell nearly 62% from Q1 2020.

03.05.2021 Plasteurope.com [247563-0]
Published on 03.05.2021
Dow: Chemiekonzern verzeichnet starken JahresauftaktGerman version of this article...

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