24.10.2014 • NewsDow ChemicalAndrew Liverisshale gas boom

Dow Chemical Profits from Low-Cost Positions in Q3

Dow Chemical continues to benefit from its low-cost positions and geographic diversification, CEO Andrew Liveris said in presenting earnings figures for the third quarter of 2014. This advantage, he said, enabled growth and improved operating rates over the three-month period.

The largest US chemical producer reported record EBITDA in Performance Plastics and Electronic and Functional Materials for the quarter, coupled with "significant improvement" in Performance Materials.

In particular, low raw material costs boosted earnings for the ninth consecutive quarter in Dow's plastics business. Third-quarter EBITDA in Performance Plastics rose 31%.

Like other US plastics producers, the Michigan-based group has ridden the shale gas boom to higher profitability as materials such as ethane and naphtha have come down and given it an edge over crude oil-dependent European rivals.

The CEO, however, told the news agency Reuters that Dow's European operations will benefit from the ongoing fall in oil prices.

"Our naphtha crackers (in Europe) will be making money they weren't a few months ago," he said, while adding that there could be some "short-term pressure" due to excess supply.

The performance of the petrochemical business may also help Dow ward off demands from hedge fund manager Daniel Loeb, who has repeatedly called on the chemical producer to separate the commodity raw material units from specialty chemicals businesses.

Additionally pleasing to the activist shareholder should be Dow's plan to cut fixed costs by $1 billion over the next three years.

Earlier this month, Liveris confirmed reports that the group planned to shed three more businesses toward its target of divesting assets worth $4.5-6 billion by 2015.

Free Virtual Event

Vaccine Manufacturing
Bioprocess Forum

Vaccine Manufacturing

Join global experts and innovators for a two-day virtual event exploring the latest breakthroughs and best practices in vaccine manufacturing. Discover how new technologies and process innovations are shaping the future of vaccine production, safety, and scalability.

Interview

Specialty Chemicals in a Shifting World
Adapting to Tariffs and Strengthening Regional Networks

Specialty Chemicals in a Shifting World

Jennifer Abril, President & CEO of SOCMA, discusses the impact of new tariffs and the importance of regional supply networks in the specialty chemical industry.

most read

Photo
19.03.2025 • News

Arkema Launches Acrylic Acid Purification Project

Arkema has announced the launch of its Carat Project at its Carling site in France. This initiative aims to enhance the capabilities and sustainability of the facility, which specializes in producing acrylic monomers and superabsorbent polymers.

Photo
28.07.2025 • NewsChemistry

VCI Welcomes US-EU Customs Deal

The German Chemical Industry Association (VCI) welcomes the fact that Ursula von der Leyen, President of the European Commission, and US President Donald Trump have averted the danger of a trade war for the time being.

Photo
22.04.2025 • News

BASF Divests Two Joint Ventures in China

BASF has divested its shares in the joint venture companies, BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China, to Verde Chemical Singapore Pte. Ltd.