Dow Inc. is off to a good start in 2022, posting strong financial results for the first quarter of the year.
Overall sales at Dow, a major materials supplier based in Midland, Mich., were $15.3 billion for the quarter, up almost 29 percent vs. the same period in 2021. The firm's profit for the quarter was up 54 percent to $1.56 billion.
"We've really seen good demand strength, even in our functional polymers outside of packaging," Dow Chief Financial Officer Howard Ungerleider said in an April 21 phone interview with Plastics News. "Inflation is affecting costs across the board, but it doesn't seem to be affecting demand. Consumers had built up savings these last couple of years."
Dow, entering its 125th year in business, delivered top and bottom-line growth sequentially and year-over-year, Chairman and CEO Jim Fitterling said in a news release. That demonstrates the advantage of its "differentiated portfolio, feedstock flexibility and continued focus on disciplined execution."
"Despite higher energy costs, we captured healthy end-market demand and achieved solid volume growth, price gains and margin expansion," he added.
First-quarter sales in Dow's Packaging & Specialty Plastics unit — including polyethylene resin — were up almost 25 percent to $7.6 billion. The unit's pretax operating earnings were flat at $1.2 billion.
Officials said the P&SP unit saw 4 percent volume growth in the quarter, due in part to industrial and consumer packaging and flexible food and beverage packaging.
Like many petrochemical firms, Dow is seeing supply chain constraints in shipping and other areas and higher feedstock costs based on oil and natural gas.