27 July 2011 12:32 [Source: ICIS news]
LONDON (ICIS)--Profits at Dow Chemical rose 63% year on year in the second quarter of 2011 on the back of near record high sales and improved margins, the US company said on Wednesday.
Dow reported net income of $1.1bn (€759m) for the three months to the end of June, up from $659m during the same period a year earlier. Global revenues topped $16bn, the company said, up from $13.6bn in 2010. Meanwhile, sales in emerging markets hit $4.9bn, a record for Dow.
“Our transformed portfolio, underpinned by our cost-advantaged and flexible operations, is now performing at a new level,” said Dow chairman and CEO Andrew Liveris.
“This is fuelling higher-growth, higher-margin performance through superior market-reach, customer intimacy and innovation," he added. "We’re delivering all of this while maintaining our steadfast commitment to enhance financial flexibility by paying down debt, and increasing shareholder remuneration. Coupled with the strength of our integrated business model, Dow is firmly on the right strategic path of sustained earnings growth.”
The company also continued to cut its long-term debt, a key strategic goal. Debt stood at $18.5bn at the end of the quarter, compared to $20.6bn at the end of December 2010.
A total of $4bn of debt has been paid down in 2011 so far, Dow said, reducing interest payments by $250m a year. The company has $661m in debt repayments to make in the year to June 2012, compared to the $1.76bn it was due to pay off in the year ending December 2011.
On 25 July, Dow and its partner Saudi Aramco announced board-level approval for a new $20bn joint-venture petrochemicals project in the kingdom, which they believe will add $500m each in annual revenues upon completion.
$1 = €0.69
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