Chemical companies report strong growth
Canadian PlasticsCanadian Plastics
Riding on the surge of high oil and feedstock prices, a number of chemical companies recently reported record earni...
Riding on the surge of high oil and feedstock prices, a number of chemical companies recently reported record earnings for the third quarter. Dow Chemical Co., the largest U.S. chemical maker, announced profit had surged 86% in the third quarter, compared to the same period last year. Dow’s net income rose to US$617 million, up from $332 million a year earlier. Plastics and chlorine plants operated at near capacity, and the company’s profit margins rose for the seventh consecutive quarter.
Nova Chemicals Corp. reported a net income of $56 million for Q3, compared with a net income of $27 million in the second quarter of 2004. Nova reported a net loss of $65 million for the third quarter of 2003.
"We experienced stronger demand in all of our markets and hit an all-time quarter high for polyethylene volume in a period that is normally limited by summer slowdowns," said Jeff Lipton, Nova Chemicals’ president and CEO.
While Nova’s olefins/polyolefins business has rebounded strongly, the company’s Styrenics business reported a net loss of $10 million in the third quarter.
Exxon Mobil Corp reported that its net income for the third quarter rose 56%, to 5.68 billion, although the majority of that income is derived from oil and gas sales.