Dow reported a net loss of USD73m for the first quarter (Q1) on a slump in volumes and sales prices in key segments and important geographies, said the company.
Net sales for the largest US chemical company were down 22% at USD11,851m reflecting, Dow said, declines in all its operating segments driven by lower macroeconomic activity.
Sales were flat sequentially, however, with sales gains in performance products and plastics packaging products offsetting a decline in sales of more durable products and those for industry and for infrastructure. Lower consumer demand hit Dow’s Plastics & Packaging segment hard in the first quarter particularly outside the US and Canada, and lower polyethylene (PE) margins hit earnings.
Lower demand from industrial customers, from building and construction and for consumer durables, impacted Industrial Intermediates & Infrastructure sales. Performance Materials & Coating segment sales were down also.Dow said its group-wide sale volumes were down 11% compared with the year earlier period led by a 15% decline in Europe, the Middle East, Africa and India (EMEAI) but were up 2% sequentially.
Prices in local currencies were down 10% year on year and 4% sequentially “with declines in all operating segments and regions due to industry supply additions amidst continued soft global economic conditions”.
Operating earnings before interest and tax, at USD708m, were down USD1.7bn year on year due to lower local prices and the fact that operating rates had been reduced to match market dynamics.
We remind, Dow announced it has selected Linde as its industrial gas partner for the supply of clean hydrogen and nitrogen for its proposed net-zero carbon emissions integrated ethylene cracker and derivatives site in Fort Saskatchewan, Alberta, Canada.
mrchub.com