Dow Chemical Co has wrapped up a 2011 financial year in which its company-leading Performance Plastics unit produced mixed results.
The unit - which includes polyethylene and elastomers - saw its sales for 2011 grow almost 7% to about $16.3bn (€12.5bn), but pretax profit slipped almost 4% to about $3.4bn (€2.6bn).
Performance Plastics was the largest of Dow’s six operating units in 2001 with 27% of total sales. The unit’s pretax profit total also was the largest at Dow - and was nearly double that of the next closest unit.
Performance Plastics’ full-year performance was hurt by a fourth quarter in which sales fell about 6% and pretax profit tumbled almost 30%. In spite of the unit’s overall fourth-quarter performance, officials said in a news release that its PE business “reported another strong quarter of volume growth” in the Asia Pacific region as it continued to benefit from new capacity in
Dow’s Performance Materials unit - which includes polyurethane, epoxies and polymer additives - had a more consistent year in 2011, with sales growing almost 5% to $14.6bn (€11.2bn) and pretax profit increasing almost 2% to more than $1.7bn (€1.3bn). That unit ranked as Dow’s second-largest, with 24% of total sales.
Looking ahead to 2012, chairman and CEO Andrew Liveris was optimistic, especially in the area of feedstocks.
“Dow’s downstream, market-driven businesses are poised to capture value from improving North American feedstock dynamics,” Liveris said in the release. “We maintain our view that ethylene industry operating rates will tighten over the next several years – driving margin expansion.”
Dow already has announced plans to capitalize on new supplies of natural gas - which can be used to make ethylene - that are being developed throughout
In overall sales, Dow finished 2011 at just under $60bn (€46bn) - up almost 12% vs. 2010. The firm’s profit total of almost $2.8bn (€2.2bn) was almost 20% ahead of last year’s number.
But a tough fourth quarter - with a $20m (€15m) loss replacing a $26m (€20m) profit during the same quarter in 2010 - left the firm’s per-share stock price down about 1% to $33.60 in late trading on 2 February.
Liveris, however, remained resolute.
“We will continue to closely monitor global economic trends and expect challenges in
“Regardless, we will continue to intervene to ensure we deliver against our short- and long-term targets.”