Financial News

Dow reports 2Q results

August 15, 2011

Dow Chemical’s coatings and infrastructure business unit sales were $1.6 billion in the second-quarter of 2011. Excluding the impact of divestitures, sales were up 14 percent, completely driven by price gains, the company said. Double-digit sales gains were reported in Dow Adhesives and Functional Polymers, Dow Building and Construction, and Dow Coating Materials. Volume growth in Dow Building and Construction and Dow Coating Materials continued to be restrained by soft demand from construction and architectural end-markets in developed regions.

Dow Adhesives and Functional Polymers reported volume growth in all geographic areas, except EMEA, with the largest gain in Asia Pacific. The business also reported a double-digit increase in price, reflecting actions taken in response to high raw material costs. Dow Building and Construction reported demand growth across all geographic areas except North America, where new construction starts remain significantly depressed. The business reported a double-digit volume gain in Asia Pacific, driven primarily by demand in China. Results for the business were partly impacted by ongoing investment in Dow Powerhouse solar shingles. Dow Coating Materials reported price gains across all geographic areas as the business responded to a sharp rise in raw materials costs. In architectural coatings, volume gains were reported in Latin America, Asia Pacific and EMEA, while industry conditions remained difficult in North America. Industrial coatings volume fell as a result of strong pricing initiatives to offset higher raw material costs, particularly in the epoxy chain. EBITDA for the segment was $231 million, which compares with EBITDA of $230 million in the same period last year.

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