Speciality chemicals leader Dow Chemical, which is merging with DuPont, has reported profits of $888 million for the first quarter (Q1) of the year, as against $169 million during Q1 2016, marking an increase of 425 per cent.

Sales were $13.2 billion, up 23 per cent versus the year-ago period, reflecting the addition of Dow Corning’s silicones business.

Operating EBITDA rose 20 per cent to $2.7 billion, driven primarily by broad-based consumer-driven demand.

Price rose 7 per cent, while volume grew 4 percent, excluding the impact of acquisitions, reflecting continued demand drivers in Dow’s key end-use markets of packaging, transportation, infrastructure, consumer care and electronic materials.

Andrew Liveris, Dow’s chairman and chief executive officer, stated: “This quarter we delivered an all-time record in operating EBITDA. Our results underscore the strength of Dow’s portfolio and the levers we have in place to maintain agility in a rapidly changing business environment.”

“Dow’s operational and financial results reflect the strength of our broad geographic footprint, robust consumer-driven demand aligned with our core material science markets and a focused productivity agenda.

“Our disciplined execution against our strategy continues to deliver a fundamental shift in our growth trajectory. We have now extended our streak of year-over-year operating EPS growth to 18 consecutive quarters and achieved 14 consecutive quarters of year-over-year volume gains,” he added.

“The global economy is showing signs of positive momentum, with excellent leading indicators across much of the world – though geopolitical risks and volatility will persist. The strength and resilience of our portfolio, combined with our consumer-led market focus, will continue to serve us well in this environment,” Liveris concluded.

Meanwhile, Dow and DuPont progressed their proposed merger transaction. The companies achieved key regulatory approvals; reiterated their commitment to the $3 billion cost synergy target; and mutually agreed that all the intended spin-offs will occur within 18 months of closing, with the post-merger Materials Science Company expected to be the first spin-off if it would not adversely impact the value of the intended spin-off transactions. – TradeArabia News Service