Wednesday, April 28, 2010

Just One Word: Plastics

April 28 (Bloomberg) -- Dow Chemical Co., the largest U.S. chemical maker, reported first-quarter profit that surged more than analysts estimated, boosted by higher sales of commodity plastics and rebounding demand in the U.S. and Europe. About 64 percent of Dow’s sales were outside North America last year.

Profit surged to $718 million from $122 million in the basic-plastics segment, the world’s largest producer of polyethylene used in bags and packaging. Dow’s plastics benefited as costs for natural gas, a key raw material in the U.S., were lower relative to oil, the ingredient used in Europe and Asia, said P.J. Juvekar, a New York-based analyst at Citigroup Global Markets.
“Basic plastics vastly exceeded our expectations,” Juvekar said today in a report. He rates the shares “buy.”

MP: The chart above shows that
Dow Chemical has increased 140% in the last year compared to the DJIA, which has increased 40%.

HT: Erik Babocsi


At 4/29/2010 1:20 AM, Anonymous Geoffrey G. Humphreys said...

Hello Dr. Perry,

I just ran across your blog today, and I'm really quite impressed at the depth and scope of your coverage.


At 4/29/2010 10:58 AM, Anonymous Benny The Man said...

Lots of big companies reporting good earnings..and S&P 600 up 15 percent on year (probably more by now--big rally today).

Die, recession, die, die, die.

At 4/29/2010 11:46 AM, Anonymous gettingrational said...

My wife has a shopping bag that states: "Canvas: the new plastic"!

At 5/02/2010 7:57 AM, Blogger juandos said...

"Just One Word: Plastics"...

Yeah, consider this plastic: Introducing X-FLEX Blast Protection System From Berry Plastics

December 3, 2008

Franklin, MA - Berry Plastics Corporation, the industry's leading manufacturer of flexible films and tapes, has introduced X-FLEX Blast Protection System, an innovative, peel-and-stick solution that is designed specifically to absorb energy and mitigate debris hazards during a significant blast event.


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