Dow Chemical's Q2 net income falls by 19%

31-Jul-06

USA's largest chemical manufacturer Dow Chemical, has had a very bad Q2 performance as the company's net income fell by 19%. Lst year Dow's net income fell from US$1.27 bln to US$1.02 bln. Dow has pinned the blame on 'unrelenting' energy price rises that led to increases in feedstock costs at a speed that 'out-paced the company's ability to raise prices. For example price of co-monomers for polyethylene spiked by an estimated US$250 million year-to-date from the same period last year, and on the other hand particularly polyethylene witnessed market-driven limits on the price increases.