Company News
July 21, 2022
Dow Chemical Q2 Results
Dow reports second quarter 2022 results
FINANCIAL HIGHLIGHTS
• GAAP earnings per share (EPS) was $2.26; Operating EPS1 was $2.31, compared to $2.72 in the year-ago
period and $2.34 in the prior quarter. Operating EPS excludes significant items in the quarter, totaling $0.05 per
share, primarily related to digitalization program costs.
• Net sales were $15.7 billion, up 13% versus the year-ago period with gains in all operating segments and
regions. Sequentially, sales were up 3% with gains in all regions except Asia Pacific, which was impacted by
pandemic-related lockdowns in China.
• Local price increased 16% versus the year-ago period, reflecting gains in all operating segments, businesses,
and regions. Currency decreased net sales by 3% year-over-year due to broad-based strength of the U.S.
dollar. Sequentially, local price increased 6% with gains in all operating segments and regions.
• Volume was consistent with the year-ago period, as gains in Packaging & Specialty Plastics were primarily
offset by declines in Industrial Intermediates & Infrastructure. Sequentially, volume declined 2%, driven by
declines primarily in Europe and China.
• Equity earnings were $195 million, down $83 million from the year-ago period, primarily due to impacts from
pandemic-related lockdowns in China. Equity earnings were up $21 million from the prior quarter, driven by
gains at Sadara.
• GAAP Net Income was $1.7 billion. Operating EBIT1 was $2.4 billion, down $453 million versus the year-ago
period. Gains in the Performance Materials & Coatings segment were more than offset by higher raw material
and energy costs across the company as well as lower equity earnings. Sequentially, operating EBIT decreased
2%, as gains in Packaging & Specialty Plastics were more than offset by declines in Industrial Intermediates &
Infrastructure.
• Cash provided by operating activities – continuing operations was $1.9 billion, down $165 million year-overyear
and up $244 million compared to the prior quarter. Free cash flow1 was $1.4 billion.
• The Company’s proactive actions to redeem outstanding notes totaling $750 million have delivered an annual
interest expense reduction of $27 million and no substantive long-term debt maturities are due until 2027.
• Returns to shareholders totaled $1.3 billion in the quarter, comprised of $800 million in share repurchases and
$505 million in dividends.
CEO QUOTE
Jim Fitterling, chairman and chief executive officer, commented on the quarter:
“Team Dow once again delivered net sales growth both year-over-year and sequentially with price increases across
all operating segments and regions. Our competitive advantages and relentless focus on disciplined execution
enabled us to navigate the impacts of pandemic-related lockdowns in China, continued logistics constraints, and
higher energy and raw material costs. As a result, we increased our cash flow and our share buybacks sequentially.
“We continued to progress our strategy to grow our underlying earnings over the economic cycle by investing in
higher-return, faster-payback projects while capitalizing on long-term growth opportunities. As part of these efforts,
today we announced a series of circularity projects that will enable us to achieve approximately two thirds of our
2030 ‘Stop the Waste’ target as we capture growth for the sustainable and circular solutions our customers are
increasingly demanding.”
Polyurethanes & Construction Chemicals business net sales decreased compared to the year-ago period, as local
price gains were more than offset by local currency and lower volume due to planned maintenance turnaround
activity, third-party outages, and inflationary impacts on demand for consumer durables. Sequentially, net sales
declined as lower volumes from planned maintenance turnaround activity and third-party outages were partly offset
by higher local price.
OUTLOOK
“Looking ahead, the long-term fundamentals driving growth across our end markets remain attractive,” said
Fitterling. “While near-term market conditions are dynamic, we will continue to leverage our diverse, global portfolio
and flexible operating model to capitalize on attractive growth opportunities. The actions we’ve taken to enhance
the resiliency of our business position us well to deliver value across a variety of economic environments. Our
disciplined and balanced approach to capital allocation has delivered higher mid-cycle earnings, an improved credit
profile, and cash generation above pre-pandemic levels. Team Dow remains well-positioned to continue advancing
our “decarbonize and grow” strategy while delivering attractive shareholder remuneration.”
July 19, 2022
BASF Approves Final Phase of MDI Expansion
BASF confirms final phase of MDI expansion at Geismar Verbund site
- Annual production capacity to be increased to 600,000 metric tons by the middle of the decade
- Total investment of $780 million for the final expansion phase
FLORHAM PARK, NJ and GEISMAR, LA, July 19, 2022 – BASF is moving forward with the final phase of the expansion project for the methylene diphenyl diisocyanate (MDI) plant at its Verbund site in Geismar, Louisiana. With this third step of its multiphase capacity expansion, BASF will increase production capacity to 600,000 metric tons per year by the middle of the decade and support the ongoing growth of its North American MDI customers. The company kicked off the expansion project in 2018 with a staggered approach consisting of three investment phases. The investment in the final expansion phase from 2022 to 2025 amounts to $780 million.
“This investment underlines our commitment to North America and strengthens BASF’s supply reliability and the competitiveness of our customers’ value chains in the region,” said Michael Heinz, Chairman and Chief Executive Officer, BASF Corporation. “As one of BASF’s Verbund sites, the Geismar location is ideally suited for the expansion of our MDI production thanks to its existing infrastructure, reliable raw material supply, skilled workforce and strong community support.”
Leveraging state-of-the-art technology, the expansion will showcase the highest safety standards combined with advanced digitalization in its operations. BASF is now entering the final phase of the expansion, targeted for completion by the end of 2025.
“BASF is committed to growing and partnering with our North American MDI customers, be it in the construction and appliance, transportation, automotive, footwear or furniture sectors,” said Ramkumar Dhruva, President of BASF’s Monomers division. “With this integrated facility, we will continue to support our North American MDI customers by growing our capacity to meet their needs.”
The first phase of the expansion project involving the construction of a new MDI synthesis unit was put in operation in October of 2020. The second phase, which started operations in 2021, expanded several existing upstream units. With the third and final expansion phase, which includes several new upstream units and a splitter, the new overall MDI output of the Geismar complex will increase to 600,000 metric tons.
July 19, 2022
BASF Approves Final Phase of MDI Expansion
BASF confirms final phase of MDI expansion at Geismar Verbund site
- Annual production capacity to be increased to 600,000 metric tons by the middle of the decade
- Total investment of $780 million for the final expansion phase
FLORHAM PARK, NJ and GEISMAR, LA, July 19, 2022 – BASF is moving forward with the final phase of the expansion project for the methylene diphenyl diisocyanate (MDI) plant at its Verbund site in Geismar, Louisiana. With this third step of its multiphase capacity expansion, BASF will increase production capacity to 600,000 metric tons per year by the middle of the decade and support the ongoing growth of its North American MDI customers. The company kicked off the expansion project in 2018 with a staggered approach consisting of three investment phases. The investment in the final expansion phase from 2022 to 2025 amounts to $780 million.
“This investment underlines our commitment to North America and strengthens BASF’s supply reliability and the competitiveness of our customers’ value chains in the region,” said Michael Heinz, Chairman and Chief Executive Officer, BASF Corporation. “As one of BASF’s Verbund sites, the Geismar location is ideally suited for the expansion of our MDI production thanks to its existing infrastructure, reliable raw material supply, skilled workforce and strong community support.”
Leveraging state-of-the-art technology, the expansion will showcase the highest safety standards combined with advanced digitalization in its operations. BASF is now entering the final phase of the expansion, targeted for completion by the end of 2025.
“BASF is committed to growing and partnering with our North American MDI customers, be it in the construction and appliance, transportation, automotive, footwear or furniture sectors,” said Ramkumar Dhruva, President of BASF’s Monomers division. “With this integrated facility, we will continue to support our North American MDI customers by growing our capacity to meet their needs.”
The first phase of the expansion project involving the construction of a new MDI synthesis unit was put in operation in October of 2020. The second phase, which started operations in 2021, expanded several existing upstream units. With the third and final expansion phase, which includes several new upstream units and a splitter, the new overall MDI output of the Geismar complex will increase to 600,000 metric tons.
July 18, 2022
More On Carpenter/Recticel
CMA opens phase 2 investigation
Occasional information, Brussels, 18/07/2022 — 09:58 CET, 18.07.2022
As of this morning, the UK Competition and Markets Authority (the “CMA”) has published its decision that the remedy undertakings offered by Carpenter cannot be accepted by the CMA under the Enterprise Act 2002 and that it will refer the case to Phase 2 (the CMA’s publication can be found here.
This means that the CMA will investigate in more detail what impact the intended transaction will have on competition, and what remedy undertakings could be committed to by the parties in order to allow for clearance of the transaction.
Recticel is currently analyzing the impact of the CMA’s decision together with Carpenter and will provide an update about any further development in due time.
https://www.recticel.com/cma-opens-phase-2-investigation.html
July 18, 2022
More On Carpenter/Recticel
CMA opens phase 2 investigation
Occasional information, Brussels, 18/07/2022 — 09:58 CET, 18.07.2022
As of this morning, the UK Competition and Markets Authority (the “CMA”) has published its decision that the remedy undertakings offered by Carpenter cannot be accepted by the CMA under the Enterprise Act 2002 and that it will refer the case to Phase 2 (the CMA’s publication can be found here.
This means that the CMA will investigate in more detail what impact the intended transaction will have on competition, and what remedy undertakings could be committed to by the parties in order to allow for clearance of the transaction.
Recticel is currently analyzing the impact of the CMA’s decision together with Carpenter and will provide an update about any further development in due time.
https://www.recticel.com/cma-opens-phase-2-investigation.html
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