Dow CEO sees '07 economy on track to help demand
Tue Apr 10, 2007 12:32pm ET
NEW YORK, April 10 (Reuters) - Dow Chemical Chief Executive Andrew Liveris said overall international economic growth remained in line with company expectations to help boost demand for the chemical giant's products.
"For 2007 we've always felt it would be a decent demand year, not withstanding the (downturns in the automotive and housing sectors). That has continued," he told Reuters in an interview.
Demand from China continued to be strong, he said, and would offset any potential weakness in the U.S. economy.
More damaging to the company is the volatility in natural gas prices, he said. Gas, which the company uses both as a chemical feedstock and energy source, has seen its spot prices bounce between about $5.50 per million British thermal unit and nearly $8.00 in the past four months.
Liveris also reiterated that Dow was not in talks with any potential suitors regarding a leveraged buyout of the company, as was reported in a British newspaper over the weekend.
"We are in no discussions," he said.
Earlier on Tuesday, Dow announced it planned to form a joint venture with Chevron Phillips Chemical Co. in the polystyrene and styrene monomers businesses in the Americas.
Engineering News Archive