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Dow Chemical achieves 22% rise in sales at $13.8b

MUSCAT: Dow Chemical , a leading science and technology company, achieved sales of $13.8 billion in the fourth quarter of 2010, a 22 per cent increase, compared to the same period last year, excluding the impact of divestitures.

For the full-year 2010, Dow reported sales of $53.7 billion. Excluding divestitures, sales rose 26 per cent in 2010 versus the previous year, with double-digit gains in all operating segments except health and agricultural sciences, which rose 7 per cent.

Sales in the emerging geographies surpassed $16 billion in the year, setting an all-time record for the company.

Reported earnings for the quarter were $0.37 per share, compared to $0.08 per share in the same period last year.

The company earned $0.47 per share in the quarter, excluding certain items. This compares to earnings of $0.18 per share in the same quarter last year, excluding certain items.

Dow reported full-year earnings of $1.72 per share, or $1.97 per share excluding certain items. Reported earnings for 2009 were $0.32 per share, or $0.63 per share excluding certain items and discontinued operations.

Commenting on the company's outlook, Dow chairman and chief executive officer, Andrew N. Liveris, said: "Dow is well-positioned for the improving economic climate and will continue to benefit from growth in high-margin sectors, such as electronics and packaging, driven by innovative products and technologies, coupled with our expanding presence in emerging markets. We demonstrated the success of our strategy over the course of 2010, as volume grew and margins expanded in our combined Performance segments, and our Basics businesses benefited from advantaged feedstocks in a much improved demand environment."

Sales in plastic
At a company level, quarterly earnings before interest, taxes, depreciation and amortisation (Ebitda), excluding certain items rose $441 million, or 30 per cent, to $1.9 billion, representing the highest fourth quarter Ebitda since 2007 and year-over-year Ebitda margin expansion for seven consecutive quarters. Annual Ebitda excluding certain items totalled $7.5 billion, a 36 percent improvement versus 2009 Ebitda on a pro forma basis.

Sales in plastics were $2.9 billion, up 20 per cent from the same quarter last year. Volume increased 4 per cent, while price rose 16 per cent. Plastics Ebitda for the quarter was $765 million, which includes a $5 million charge related to the Styron divestiture.

Sales in performance products were $2.7 billion, up 23 per cent compared to the same quarter last year. Volume rose 11 per cent and price rose 12 per cent.

Performance systems sales were $1.6 billion, up 17 per cent compared to the same quarter last year. Volume increased 9 per cent and price was up 8 per cent.

© Times of Oman 2011