MOSCOW (MRC) -- Dow Chemical (Midland, Michigan), the world's petrochemical major, said it delivered sequential and year-over-year top- and bottom-line growth for its third quarter, as per the company's press release.
Volume increased 2%, driven by gains in Packaging & Specialty Plastics and Performance Materials & Coatings. The company generated higher cash flow from operations and achieved sales growth across all segments and geographies, during the quarter. Gross debt was reduced by more than USD1.1 billion in the quarter.
Looking ahead, the company said it is well-positioned to increase earnings, cash flow and returns as it decarbonize footprint and achieve 2030 and 2050 carbon emissions reduction targets.
"We continue to see robust end-market demand that is expected to extend into 2022, coupled with near-term logistics constraints and low inventory levels across our value chains," said Jim Fitterling, CEO.
Third quarter operating earnings per share was USD2.75, compared to USD0.50 in the year-ago period. On average, 21 analysts polled by Thomson Reuters expected the company to report profit per share of USD2.56, for the quarter. Analysts' estimates typically exclude special items. Operating EBIT improved to USD2.89 billion from USD761 million. Net income to common stockholders was USD1.68 billion or USD2.23 per share compared to a loss of USD25 million or USD0.04 per share.
Net sales were USD14.8 billion, up 53% versus from last year, with gains in all operating segments and regions. Analysts expected revenue of USD14.25 billion, for the quarter. Packaging & Specialty Plastics segment net sales were USD7.7 billion, up 69% from prior year.
As MRC informed previously, earlier this month, Dow and Haldor Topsoe partnered to promote the circular economy. About 300 million tons of plastic waste is produced every year on a global scale. The partnership between Dow and Topsoe marks a new initiative to efficiently convert waste plastics to circular plastics, keeping them out of the environment and responsibly reclaiming their value. Plans include Dow to proceed with the design and engineering for a 10,000 ton per year market development unit using Haldor Topsoe’s PureStepTM technology to purify pyrolysis oil feedstock derived from waste plastics for use in circular products.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,638,370 tonnes in the first eight months of 2021, up by 10% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 989,570 tonnes in the first eight months of 2021, up by 30% year on year. Deliveries of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas shipments of injection moulding PP random copolymers decreased significantly.
Dow combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company's ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow's portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately USD39 bn in 2020.