Dow reports higher volumes for downstream silicones

Midland, Michigan – Dow Inc.’s performance materials & coatings segment has reported lower second quarter sales, despite higher volumes for downstream silicones.

For the quarter ended 30 June, the segment posted net sales of $2.1 billion (€1.8 billion), down 5% compared to last year, and despite a 1% positive contribution of exchange rates.

Volumes were down 3% year-over-year, as gains in downstream silicones were “more than offset” by lower volumes for coatings applications and in upstream siloxanes, Dow reported 24 July.

On a sequential basis, net sales were up 3% with gains in both businesses – consumer solutions and coating & performance monomers.

The higher sequential sales were driven by seasonally higher demand for architectural coatings and higher downstream silicones volumes.

At $152 million, operational earnings (EBIT) increased $6 million, or 4%, versus last year, driven by lower input costs, partially offset by lower volumes.

Sequentially, operational earnings increased substantially from $49 million to $152 million, driven by lower input costs and volume gains in both businesses, including “continued downstream silicones growth.”

Commenting on the full-year outlook, chair and CEO Jim Fitterling pointed to oversupply from newer market entrants who he said "are exporting to various regions at anti-competitive economics.”

This, he stressed, “requires broader industry engagement and additional regulatory action to restore 6competitive dynamics."