24 October 2013 13:29 [Source: ICIS news]
LONDON (ICIS)--US chemicals major Dow Chemical said on Thursday that its net income for the third quarter of the year had risen by 16% to $685m (€500m)compared to the same period in 2012, buoyed by strong performance plastics division performance.
Net sales for the quarter were up slightly at $13.7bn compared to $13.6bn in the third quarter of 2012.
The group's total earnings before interest, taxes, depreciation and amortisation (EBITDA) was reported at $1.83bn, a 2% year on year increase from the $1.80bn posted in the same quarter 2012, driven by a 32% rise in the performance plastics segment's EBITDA to $970m.
The coatings and infrastructure solutions division and the electronic and functional materials divisions also drove the EBITDA gain, Dow added.
Dow CEO Andrew Liveris said: “Through our integrated value chains and the diversity of our targeted end markets, we continue to demonstrate strong performance - particularly in emerging geographies, in our equity earnings, and in key downstream businesses such as electronics, coatings and infrastructure, and packaging.
“We continue to prioritise our resources to focus on these and other high growth markets,” he added.
Volumes declined by 2% year on year during the quarter, as gains for electronics and functional materials, coatings and infrastructure solutions and agricultural sciences were offset by falls for “hydrocarbon-sensitive” operating segments, particularly feedstocks and energy.
Price increases were achieved across most divisions, particularly performance plastics, which marked a 9% average price rise during the quarter.
Liveris also announced that the company is planning up to $4bn-worth in additional divestitures.
“We have identified targets and are moving forward with defined divestiture plans – actions valued at a minimum of $3 - $4bn,” he said.
“The world continues to show hesitant growth at best, particularly in the near term. Therefore, an unrelenting focus on targeted growth – with strategic investments in market-driven innovation and assets with low-cost positions – remains our pathway to expanded earnings and increasing shareholder returns,” he added.
($1 = €0.73)
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