Dow Chemical reported Q2 net profit down 62%, adjusted net up 16%

LONDON (ICIS)–Dow Chemical’s second quarter net income fell 62% as reported to $882m including the gain on the K-Dow joint venture arbitration resolution taken in the prior year quarter, the US company said on Wednesday.

Excluding the prior year gain and certain other items, adjusted net income was up 16% at $893m from $770m, Dow said

Earnings before interest, tax, depreciation and amortisation (EBITDA) were up 5% on an adjusted basis at $2.2bn, with earnings from the company’s performance materials businesses growing most strongly on productivity gains as well as improved pricing and demand.

The company’s adjusted EBITDA margin for the quarter was 40 points higher at 15% on productivity gains and despite higher feedstock and energy costs coupled with a $100m impact from the unplanned outages at Dow’s cracker in Plaquemine, Louisiana.

Group sales were up 2% at $14.9bn and were higher for all business segments and in most geographic regions, Dow said.

Europe sales were up 6% year on year, sales in the US up 5% while emerging market sales were up 2%.

“Our operating priorities are delivering strong results despite ongoing slow growth and volatility in the global marketplace,” CEO Andrew Liveris said.