Midland, Michigan – Dow Chemical Co. reported a 16% increase in sales, despite a decline in net income.
The firm reported $13.8 billion (€11.7 billion) in second quarter sales, up from about $12 billion in the same period for 2016. Net income, however, dropped to $1.36 billion from $3.23 billion.
Excluding the addition of Dow Corning's silicones business, sales rose 8% overall year-over-year and showed increases across all operating segments and geographic areas.
Volume also increased by 3%, excluding the impact of acquisitions.
"This quarter extended Dow's track record of execution," Andrew Liveris, Dow chairman and CEO, said in a statement. "We have now achieved nearly five years—19 consecutive quarters—of year-over-year operating earnings growth and nearly 4 years—15 consecutive quarters—of volume growth."
For the six-month period, sales increased to $27.1 billion, up from $22.7 billion in 2016. Net income, however, decreased to $2.27 billion, compared to $3.5 billion last half year.
Dow's Performance Materials & Chemicals segment reported second quarter growth, with $2.6 billion in sales, up from $2.3 billion in the same period of 2016. Prices also increased 10% and volumes grew 3%. Polyurethanes grew by double digits in all geographic areas, a result that Dow attributes, in part, to strong demand and price increases downstream.
The firm's Performance Plastics segment also reported second quarter gains in sales to $5.1 billion, up 8% compared to 2016. Price increased by 7% and volume grew by 1%.
As Dow prepares to finalise its merger with DuPont Co., Liveris said his firm is well-positioned for a seamless transition, both financially and operationally.
"Going into the merger close, Dow is coming from a position of incredible strength, with a proven track record of success," Liveris said in a statement. "We have the right strategy, the right long-term growth drivers and the right portfolio. Dow has never been better positioned to continue delivering for our customers, employees, communities and shareholders."
Dow employs about 56,000 people in 34 countries. It operates 189 sites worldwide and recorded 2016 sales of about $48 billion.