Company News

US companies doing better

Dow Chemical had sales of US$13.8 billion, up 22% compared to the same quarter the previous year. Top-line growth was driven by a 12% increase in volume and a 10% increase in price. All operating segments reported double-digit sales gains except Coatings and Infrastructure, which rose 6%. Double-digit sales increases were also reported in all geographic areas, with the largest gain in North America (25%). In Asia Pacific, volume was up 9%, driven by growth in Thailand (33%) and India (31%).

Growth in other emerging geographies continued to be robust, particularly for the Performance segments, which reported a combined 13% increase in volume. Volume growth also continued to be notable in Latin America and Eastern Europe, both of which reported double-digit increases. Sales in its plastics unit, which includes PE, PP, PC, PC blends, licensing and catalysts, were up 20% to US$2.9 billion. Volume increased 4%, while prices rose 16%.

In terms of market segments, electronic and speciality materials were US$1.3 billion, up 13%, driven entirely by volume. The recovery in electronics end-markets continued, with solid double-digit demand growth reported in all Electronic Materials business units. In Asia Pacific, the business continued to report strong demand growth, with volume increasing 25% versus the year-ago period. The strongest demand growth in this region continued to be in the Display Technologies and Growth Technologies business units, both of which delivered volume improvements of more than 45%, driven in part by trends toward miniaturisation that favour the business' advanced packaging growth platform. Electronic Materials achieved several customer wins in the quarter related to next-generation chemical mechanical planarisation pads, photoresists for leading edge memory production and optical films used in liquid crystal display (LCD) televisions.

Dow Corning announced its 2010 sales were US$6 billion and net income US$866 million, both records for the company. Fourth quarter results showed sales were a record US$1.58 billion, % higher than last year. Executive Vice-President, J. Donald Sheets, said, "Dow Corning's silicones business continued to grow, especially in electronics, life sciences, solar and industrial applications. Our strong performance in silicones is a direct result of Dow Corning's ability to deliver innovative silicone-based solutions and reach new geographic markets through our two-brand strategy."

ExxonMobil continued to deliver strong financial results, said its Chairman Rex Tillerson. It's fourth quarter earnings were US$9.3 billion, an increase of 53% from the prior year. In the chemical unit, which includes PE, PP and speciality elastomers, it recorded earnings of US$1.067 billion, an increase of US$351 million from the fourth quarter of 2009. For the full year, chemical earnings were a record US$4.9 billion, up US$2.6 billion from 2009. Improved margins increased earnings by US$2 billion while higher volumes increased earnings by an additional US$380 million. Prime product sales were up 1,066 kt from 2009 to 25,891 kt.

For PolyOne, last year was record breaking one with its revenues increasing by 27% to US$2.6 billion. Consolidated revenue growth was helped by a 6% increase in volume and higher selling prices.

Meanwhile, Eastman Chemical's sales revenue was up 23% to US$1.5 billion compared to 2009, leading its Chairman Jim Rogers to remark, "The strength of our portfolio of businesses was clearly demonstrated throughout 2010. We've established a new level of earnings performance for the company, and we are continuing our efforts to build upon these earnings. In addition, our solid balance sheet and expectation for continued strong cash generation position us for further earnings growth." Operating earnings in the fourth quarter were US$161 million compared to the loss of US$4 million in fourth quarter 2009.

In its speciality plastics business, which includes its copolyester products, sales revenue increased 26% due to higher volume and selling prices. Its full year 2010 sales revenue was US$5.8 billion, up 33% year-on-year. Operating earnings for full-year 2010 were US$862 million compared to US$345 million for 2009. For speciality plastics, sales revenue in 2010 increased by 39% primarily due to higher volume. Operating earnings jumped to US$93 million in 2010 compared to US$13 million in 2009.

Commenting on the outlook for first quarter and full year 2011, Rogers said, "We begin 2011 with a strengthening global economy and expected benefits from the combination of the restart of an olefin cracking unit, lower interest expense, a full year of results from our Genovique Specialties acquisition, our acetate tow expansion in Korea and strong market adoption of our Tritan copolyester products. We also face headwinds from expected volatility in raw material and energy costs, higher pension expense and costs related to growth projects."

Lubrizol's Advanced Materials unit, including Estane thermoplastic polyurethane, saw its sales increase 18% to US$1.5 billion, compared to the previous year. The unit's operating income went up by 35% to US$227 million.

For Celanese, its Advanced Engineered Materials unit, including Ticona engineering resins, had a sales growth of 37% putting its full year results to US$1.1 billion. Its operating profit also increased to US$184 million.