Midland, Michigan – Dow Chemical Co. has achieved higher sales and volumes in the three months of 2017, including in its elastomers business, the US group reported 27 April.
Dow Elastomers, which is part of the group’s Performance Plastics segment, registered volume growth across all geographic areas. The gains were linked to higher demand in transport, consumer goods and footwear market sectors, according to Dow’s first quarter results filing.
Performance Plastics sales rose 20% to $5.0 billion (€4.6 billion) compared to the prior-year first quarter. Revenues increased in all businesses except Dow Electrical and Telecommunications and in all geographic areas except Latin America. Pricing increased 15% across all geographic areas.
The segment’s quarterly review did not include specific details about the financial performance of Dow Elastomers.
In the silicones arena, meanwhile, Dow hit its target of $400 million ‘cost synergy run-rate’ from the integration of Dow Corning.
Dow took full ownership of Dow Corning, a former 50:50 silicones joint venture with Corning, in June 2016.
The Dow Corning business reported sales of $1.3 billion in the first three months of the year, with gross profit of $350 million and net income of $112 million.
Group net sales rose 23% to $13.2 billion compared to first quarter 2016. Excluding the addition of Dow Corning's business, sales rose 11%, with increases in all segments except agricultural sciences.
Prices rose 7%, with price gains in Performance Plastics, Performance Materials and Chemicals, and Infrastructure Solutions.
Operating earnings before interest, taxes, deductions and amortisation (EBITDA) increased 20% to $2.7 billion, an all-time record, chairman and CEO Andrew Liveris said in the first quarter statement.
Earnings, he said, were driven by consumer-driven demand, increased pricing, cost controls and productivity measures, the contribution of Dow Corning's silicones business and higher equity returns.