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Dow second quarter results

Hydrocarbon Engineering,


Dow has reported earnings of US$ 0.73 /share. This compares with earnings of US$ 1.87 /share versus the year ago period, representing an increase of 16% year on year. Results in the same quarter last year reflect the receipt of the K-Dow arbitration resolution.

Sales were US$ 14.9 billion, up 2% versus the same period a year ago. Gains were reported in all operating segments, led by Performance Plastics and Electronics and Functional Materials. Agricultural Sciences also increased sales, rising 3% in the quarter and achieving a first half sales record of US$ 4 billion.

Dow reported adjusted sales gains in most geographic areas, with increases reported both in developed regions and in emerging regions. Gains were led by Western Europe and the US.

EBITDA was US$ 2.2 billion versus the same period a year ago. EBITDA rose in most operating segments, led by Performance Materials, as a result of ongoing productivity actions, as well as improved pricing and demand. Performance Plastics and Electronic and Functional Materials also drove EBITA gains, up 6% and 19% respectively.

Cash flow from operations was US$ 1.4 billion for the quarter. Year to date, Dow has returned US$ 3 billion to shareholders through declared dividends and share repurchases.

Feedstocks and energy

Sales in Feedstocks and Energy were US$ 2.5 billion, down 4% versus the same time last year. Price declined 4% sure to falling monomers, while volume was flat. Volume gains in EO/EG were offset by decreases in hydrocarbons associated with lower operating rates and a lighter feedslate in Europe.

Equity earnings were SU$ 105 million, up from US$ 52 million in the same quarter last year. EBITA for the segment was US$ 193 million, an increase from US$ 134 million in the year ago period.


Andrew N. Liveris, chairman and CEO, Dow said, ‘our results reflect excellent progress against Dow’s near term priorities, and clearly illustrate our ongoing drive to execute self help actions that are delivering growth on both the top and bottom line. Our performance highlights the company, and segment specific actions we are executing to grow profitability through an intense focus on EVA momentum, and this constant drumbeat has already delivered a more than 150 basis point improvement return on capital year on year on an adjusted basis. As we drive these ongoing improvements to return on capital, we will further accelerate shareholder value creation and increasingly reward our shareholders, evidenced by the US$ 3 billion we have returned year to date.’


Liveris said, ‘our operating priorities are delivering strong results despite ongoing slow growth and volatility in the global marketplace. We remain focused on these priorities as we continue to execute against our business by business plans, maximising value through a balanced mix of differentiated technology and integrated, advantaged value chains.

‘Strategically, our key high return growth projects, such as the launch of Enlist, the Sadara joint venture and our investments on the US Gulf Coast, all remain on schedule and on budget, with 2015 serving as a major startup year for all three.

‘Simultaneously, we are focused on driving portfolio improvements, monetising non-strategic businesses and releasing additional value from our assets and joint ventures. We are working on multiple fronts with multiple teams, with these efforts underlining our focus on creating value, and increasingly and consistently rewarding our shareholders.’

Adapted by Claira Lloyd

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