Dow posts profits of US$24 mln in Q1-09

02-May-09

In a surprise announcement, Dow Chemical Co. has posted a profit of US$24 mln in Q1-09, as compared to the loss of US$1.52 bln in Q4-08. The recovery was aided by gains in its agricultural segment, lower raw materials costs and rapid actions to reduce costs and tightly manage operations. Dow Advanced Materials, a subsidiary created after the Rohm & Haas buyout, reported a loss of US$58 mln. As early as December 2008, Dow announced closure of 20 facilities worldwide, cutting of 5,000 full-time jobs and thousands of contractors, and divestment of several businesses to deal with declined product demand. Spending in the quarter had been cut by US$270 mln from a year ago levels, while purchased feedstock and energy costs were down 49%. Sales were at US$9.09 bln, down from US$14.82 bln recorded in the same quarter last year. Performance plastics posted Q1 sales of US$2.4 bln, a 39% decrease from the same period last year. Dow Automotive and Dow Building Solutions reported substantial volume declines, as the global slowdown in new vehicle sales and construction activity continued. Sales in performance chemicals decreased 35% to US$1.5 bln from US$2.3 bln posted in the same period last year. Basic plastics sales decreased 47% to US$1.8 bln, from US$3.5 bln in the same period last year. Basic chemicals sales decreased 49% yoy to US$801 mln compared with US$1.6 bln in 2008.