Dow posts higher silicone sales on downstream demand

Midland, Michigan – Dow Inc. has reported higher second-quarter sales in its Performance Materials & Coatings business, driven by increased demand for downstream silicones.

Segment sales rose 11% year-on-year to $2.36 billion (€2 billion), supported by a 6% increase in volumes and a 4% rise in local prices, the US chemicals group announced 23 July.

Volume growth was driven by both ‘consumer solutions’ and ‘coatings & performance materials’ businesses within the segment, "led by growth in downstream silicones," Dow said.

Operating EBIT, however, fell to $133 million from $152 million a year earlier, due in part to higher costs and the shutdown of its Barry, UK, upstream siloxanes plant. (ERJ report)

According to Dow, benefits from its ongoing cost-saving initiatives were more than offset by higher fixed costs, including planned turnaround activity and costs associated with the shutdown of the Barry siloxanes facility.

Within the segment, the 'consumer solutions business' increased sales year-on-year, driven by higher volumes in downstream silicones.

The gains were led by demand from consumer, electronics and home-care applications, Dow said.

The coatings & performance monomers business also reported higher sales across all regions, supported by increased prices and volumes for acrylic monomers and architectural coatings.

At group level, Dow reported second-quarter net sales of $12.1 billion, up 20% year-on-year, while operating EBIT increased to $1.6 billion from a year-earlier loss, driven primarily by higher prices and the company's "self-help initiatives."

Looking ahead, CEO Karen Carter said Dow expects the benefits from its ‘Transform to Outperform’ programme (ERJ report) to accelerate through the second half of the year and into 2027.

"We now expect to generate approximately $200 million more in benefits from Transform to Outperform this year," Carter said, adding that total in-year benefits from self-help initiatives are expected to exceed $1.3 billion.