Silicones, elastomers contribute to Dow Q1 gains

Midland, Michigan – Dow increased net sales by 28% year-on-year to $15.3 billion in the first quarter of 2022, reflecting gains in all operating segments, the US polymers & chemicals group reported 21 April.

Operating earnings (EBIT) came in at $2.4 billion, up $865 million from the year-ago period, again

with gains recorded in all operating segments.

Rubber, elastomer and related materials contributed to the performance, including a strengthening in volumes and pricing for silicones and polyurethanes.

At its Performance Materials & Coatings segment, the US group posted a 44% increase in first quarter net sales, to $3 billion, and a steep rise in operating EBIT to $595 million – compared to $62 million a year ago.

The performance was helped by “strong price gains and robust demand” for silicone materials, according to the US group’s statement.

Dow’s silicones business also benefited from increased supply availability of siloxanes, following completion of planned maintenance activity in the preceding quarter.

Within its Packaging & Specialty Plastics segment, Dow reported net sales in the first quarter of $7.6 billion, up 25% versus the prior-year period.

Operating EBIT was $1.2 billion, up $6 million versus a year-ago, with margins impacted by higher raw material and energy costs, particularly in Europe.

Among the first-quarter gains at the Packaging & Specialty Plastics unit, Dow reported “increased elastomer margins” at its Thai joint venture with SCG Chemicals Co.

The SCG-Dow JV produces styrene-butadiene latex as well as Dow’s Affinity polyolefin plastomers and Engage polyolefin elastomers.

Commenting on Dow’s first-quarter group-wide, chairman and CEO Jim Fitterling said: “Despite higher energy costs, we captured healthy end-market demand and achieved solid volume growth, price gains and margin expansion.”