Dow Latin America Q3 sales slip, emerging markets driving recovery

Date:10-29-2009


US company Dow Chemical (NYSE: DOW) reported pro forma sales of US$1.38bn in Latin America in the third quarter 2009, down 29% from US$1.95bn in the prior-year period, the company said in a statement.

Prices and volumes decreased 28% and 1% respectively in region over the same comparison.

Compared to the second quarter this year, Latin America pro forma sales increased 15% in Q3. Prices in the region rose 3%, while sales volumes were up 12% compared to Q2, according to the companys Q3 webcast presentation.

"There has been a strong rebound in demand in emerging geographies," chairman and CEO Andrew Liveris said during the webcast.

Liveris added that emerging markets played an important role in Dows performance in the quarter, especially Latin America, China, Southeast Asia, India and the Middle East.

"Brazil was another bright spot, with volume growth of 18% versus the last quarter. China and Brazil [economies] have rebounded really quickly," the executive added.
According to Liveris, mature economies like Western Europe and the US continue to face more difficult challenges.

Global sales dropped 22% year-on-year to US$12bn in Q3. Sales improved 6% from the prior quarter, the company said.

Net income increased 86% from US$428mn in 3Q08 to US$795mn.

The global operating rate improved 3 percentage points to 78%, in part as a result of volume growth in key operating segments in developing economies such as Brazil, China and IMEA (India, Middle East and Africa), Dow said in the statement.

"Our new business portfolio was one of the key drivers of success in this quarter," Liveris said.

The executive added that Dow has achieved over 110% of the cost synergy goal for the integration of Philadelphia-based specialty chemicals firm Rohm and Haas, which began six months ago.

Dow completed the US$16bn acquisition of Rohm and Haas in April.

Dow Latin America was established in 1957 with regional headquarters in São Paulo. The firm makes and sells a range of chemicals, plastics and agricultural products and services to consumer markets.

The company has five manufacturing plants in Argentina, 11 in Brazil, one in Chile, two in Colombia and two in Mexico in addition to laboratories, research centers and business centers in these countries, as well as in Ecuador, Costa Rica, Peru, Puerto Rico and Venezuela.