Dubai - August 10, 2008
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The Dow Chemical Company (NYSE: DOW) today announced its second quarter 2008 earnings results, which reported record sales increase for the company. Sales for the second quarter rose 23 percent from the same period last year to US$16.4 billion. Double-digit price increases were recorded in all operating segments and all geographic areas.
Dow's IMEA sales rose close to 65 percent from the same period last year to US$487 million. Moreover, year-over-year sales volume for the India, Middle East & Africa (IMEA) region was up 47 percent, the highest increase across all geographies. The region played a significant role in driving strong volume gains seen in the Performance Chemicals and Basic Chemicals Business.
Commenting on the Company's outlook, Dow's chairman and chief executive officer Andrew N. Liveris said: "The surge in oil prices from first to second quarter added another $1 billion of cost sequentially, and we reacted quickly by announcing two broad-based price increase initiatives, adjusting plant operating rates and implementing additional cost-cutting measures. The fast implementation of these price increases limited margin compression over our hydrocarbon and energy costs to approximately $130 million in the quarter. This is a remarkable performance when you consider that this is only 1 to 2 percent of our total quarterly hydrocarbon and energy costs.
"These short-term actions, in addition to key elements of Dow's strategy, such as our large global footprint, our investments in Performance businesses and our asset light ventures, enabled us to weather unparalleled increases in hydrocarbons, supply chain and other costs," added Liveris.
"As the Middle East petrochemicals industry continues to evolve and expand, we will continue to stay committed to focus on our strategy for diversification in the Middle East and support the earnings of our company, said," said John Dearborn, president, India, Middle East & Africa (IMEA), The Dow Chemical Company. "Significant and recent developments, such as our acquisition of Rohm and Haas, which will create the leading specialty chemicals and advanced materials company in the world and K-Dow Petrochemicals, our new joint venture with Petrochemical Industries Company (PIC) of Kuwait will continue to support our intense focus on growth to effectively manage our businesses, consistently deliver innovation and continuously grow with our customers in the Middle East."
Dow has eight current and proposed Middle East joint ventures in the UAE, Egypt, Kuwait, Libya as well as in Saudi Arabia, where Dow and Saudi Aramco are in the negotiation phase for the formation of a joint venture company to build, own and operate a world-scale chemicals and plastics production complex in the Eastern Province. From the opening of its first commercial office in Cairo in the early 70s to its facility in Jebel Ali in Dubai and its 10 year partnership in Kuwait with EQUATE, Dow has established a solid presence in the Middle East petrochemicals industry.
Notes to Editors:
Dow Q2 2008 milestones include:
- Dow Chemical IMEA GmbH appointed Donald Mascarenhas head for Emergency Services & Security (ES&S) and Environment, Health & Safety (EH&S) Implementation process for the Middle East and North Africa (MENA) region.
- Dow in the Middle East launched DOWLEX™ PE-RT, a class of polyethylene for pipe applications for elevated temperatures at the Middle East Plastic Pipes conference.
- Dow in Middle East won the 'Best Workplace Practices' award at the 5th CSR Summit 2008 in Dubai in recognition of the company's innovative and distinctive internal practices.
- As an active community member, Dow, through its charitable arm, The Dow Chemical Company Foundation committed KD 200,000 to the Lothan Youth Achievement Center (LoYAC) in Kuwait. This charitable commitment is in line with Dow's thirteen-year presence in Kuwait through EQUATEPetrochemical Company K.S.C, a joint venture company established with the petrochemical arm of the Kuwait Petroleum Corporation.
- Dow continued to support the Young Arab Leaders (YAL) through its support towards the launch of three multi-faceted development programs targeted at youth, media and corporate companies in the Middle East and the US. The programs include: the YAL Media Internship Exchange Program (YALMIEP), Arab American Business Fellowship (AABF) and the YAL Innovation and Entrepreneurship Pilot Program.
About Dow
®™* Trademark of The Dow Chemical Company ("Dow") or an affiliated company of Dow
Note: The forward-looking statements contained in this document involve risks and uncertainties that may affect the Company's operations, markets, products, services, prices and other factors as discussed in filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. Accordingly, there is no assurance that the Company's expectations will be realized. The Company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
For further information on Dow:
Hani Wassim
The Dow Chemical Company
t +971.4.312. 3668
Gaya Subramaniam
GolinHarris
t +971.4.332.3308
gsubramaniam@golinharris.com
