EUROPEAN PLASTICS NEWS
Published: October 23, 2014 10:15 am ET
Updated: October 23, 2014 10:18 am ET
Dow Chemical Co. has announced its third quarter results for 2014 showing a 5 percent increase on the third quarter of 2013, rising to $14.4 billion from $13.7 billion.
Sales gains for the Midland, Mich.-based company were led by the company’s performance plastics division, up 9 percent on the same period of 2013 to $3.9 billion, and performance materials division, up 8 percent.
Earnings before taxes, depreciation and amortization (EBITDA) for the quarter grew to $2.3 billion, up 24 percenton the previous year. Performance plastics achieved record quarterly adjusted EBITDA results, up 31 percent. Performance materials EBITDA grew 61 percent with the company citing increases in most businesses.
Dow's packaging and specialty plastics unit reported double-digit gains in the hygiene and medical and pipe market sectors, as well as continued growth in the food and specialty packaging market sector. Meanwhile market demand in transportation and hot-melt adhesives drove increased sales in Dow elastomers.
Sales in developed countries grew 4 percent, led by gains in North America, where sales rose 7 percent. Dow states that sales in emerging geographies increased 6 percent, due primarily to strength in Performance Plastics in Latin America.
Andrew N. Liveris, Dow’s chairman and CEO, said: “Dow delivered a strong quarter of top and bottom-line growth. Our low-cost positions and geographic diversification enabled growth and improving operating rates in the quarter. Record EBITDA in Performance Plastics and Electronic and Functional Materials, coupled with significant improvement in Performance Materials again this quarter, demonstrates the value of our strategy to be low cost and fully integrated in key products while adding value through technology in key markets.”
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