- Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000, the Labor Department says.
- Economists surveyed by Dow Jones had expected payrolls to rise by 170,000.
- There were revisions. December’s big initially reported gain of 312,000 was knocked all the way down to 222,000, while November’s rose from 176,000 to 196,000.
- The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department.
The Urethane Blog
February 1, 2019
Table 4 – I&D Financial Overview
| Millions of U.S. dollars | Three Months Ended | Year Ended | ||||||||
| December 31, 2018 |
September 30, 2018 |
December 31, 2017 |
December 31, 2018 |
December 31, 2017 |
||||||
| Operating income | $ | 308 | $ | 431 | $ | 334 | $ | 1,716 | $ | 1,202 |
| EBITDA | 379 | 504 | 410 | 2,011 | 1,490 | |||||
Three months ended December 31, 2018 versus three months ended September 30, 2018 – EBITDA decreased $125 million versus the third quarter 2018. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $10 million. Volumes declined primarily due to planned maintenance partially offset by improved margins. Intermediate Chemicals results decreased approximately $65 million. Margins declined for most products, primarily acetyls and styrene. Oxyfuels & Related Products results decreased approximately $40 million. Margin declined primarily due to stronger ethanol pricing relative to crude oil and volume declined due to planned maintenance.
Three months ended December 31, 2018 versus three months ended December 31, 2017 – EBITDA decreased $31 million versus the fourth quarter 2017. Compared with the prior period, Propylene Oxide & Derivatives results decreased approximately $50 million with volumes declining due to 2018 planned maintenance. Intermediate Chemicals results increased approximately $35 million. Margins improved for most products and volume increased for acetyls and styrene. Oxyfuels & Related Products decreased by approximately $30 million with declines in both margins and volumes.
Full year ended December 31, 2018 versus full year ended December 31, 2017 – EBITDA increased $521 million versus 2017, setting an annual record for 2018. Compared with the prior period, Propylene Oxide & Derivatives results increased approximately $65 million with improved margins due to strong demand, tight market conditions and improved contracting strategies. Intermediate Chemicals results increased approximately $345 million driven by margin improvements in all products and improved contracting strategies. Tight industry conditions drove an increase of over 12% in acetyls prices and a styrene margin increase of 3 cents per pound. Oxyfuels & Related Products increased by approximately $100 million. Margins improved with crude oil pricing outpacing butane and volume increased with no planned maintenance in 2018.
http://lyondellbasell.mediaroom.com/index.php?s=43&item=1263
February 1, 2019
Payrolls surge by 304,000, smashing estimates despite government shutdown
https://www.cnbc.com/2019/02/01/nonfarm-payrolls-january-2019.html
February 1, 2019
Payrolls surge by 304,000, smashing estimates despite government shutdown
- Job growth in January shattered expectations, with nonfarm payrolls surging by 304,000, the Labor Department says.
- Economists surveyed by Dow Jones had expected payrolls to rise by 170,000.
- There were revisions. December’s big initially reported gain of 312,000 was knocked all the way down to 222,000, while November’s rose from 176,000 to 196,000.
- The unemployment rate ticked higher to 4 percent, a level where it had last been in June, a likely effect of the shutdown, according to the department.
https://www.cnbc.com/2019/02/01/nonfarm-payrolls-january-2019.html
January 31, 2019
DowDuPont -6% as Q4 sales finish flat, Q1 revs guided lower
DowDuPont (NYSE:DWDP) -6.4% pre-market after reporting Q4 revenues came in flat, hurt by lower customer demand for its appliances and automotive products as well as the drop in oil prices.
DWDP says Q4 sales in the materials science business, its biggest revenue generator, fell 1% Y/Y to $11.8B while volumes rose 1%, as margin compression in materials science, lower equity earnings and currency effects all weighed on EBITDA.
CFO Howard Ungerleider says additional headwinds came from a decline in the price of Brent crude and resulted in lower profit margins for its isocyanates and polyethylene products, and the weaker demand for the company’s appliances and automotive products were “more than normal season slowdown.”
Ungerleider also says the company expects global economic expansion to continue in 2019 at a moderately slower pace than 2018.
In a separate slide presentation, DWDP forecasts Q1 revenues falling by mid single digits vs. analyst consensus of a 5% increase, and sees operating EBITDA down by the low teens percentages.
https://seekingalpha.com/news/3428036-dowdupont-minus-6-percent-q4-sales-finish-flat-q1-revs-guided-lower#email_link
January 31, 2019
DowDuPont -6% as Q4 sales finish flat, Q1 revs guided lower
DowDuPont (NYSE:DWDP) -6.4% pre-market after reporting Q4 revenues came in flat, hurt by lower customer demand for its appliances and automotive products as well as the drop in oil prices.
DWDP says Q4 sales in the materials science business, its biggest revenue generator, fell 1% Y/Y to $11.8B while volumes rose 1%, as margin compression in materials science, lower equity earnings and currency effects all weighed on EBITDA.
CFO Howard Ungerleider says additional headwinds came from a decline in the price of Brent crude and resulted in lower profit margins for its isocyanates and polyethylene products, and the weaker demand for the company’s appliances and automotive products were “more than normal season slowdown.”
Ungerleider also says the company expects global economic expansion to continue in 2019 at a moderately slower pace than 2018.
In a separate slide presentation, DWDP forecasts Q1 revenues falling by mid single digits vs. analyst consensus of a 5% increase, and sees operating EBITDA down by the low teens percentages.
https://seekingalpha.com/news/3428036-dowdupont-minus-6-percent-q4-sales-finish-flat-q1-revs-guided-lower#email_link
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