The Dow Chemical Company Q3 2009 Earnings Call Transcript

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2009-10-22 12:40:20.0

Tags: Call Transcript, The Dow Chemical Co., Earnings, Citigroup Inc., Semiconductors, Sales Strategy, Food & Beverage, Hardware, Sales, Manufacturing, Seeking Alpha

Question-and-Answer Session

Operator

Yes, thank you, sir. (Operator instructions). We will take our first question from P.J. Juvekar with Citi.

P.J. Juvekar – Citi

Good morning. In Electronics, did you have any new contract wins in either 32-nanometer or 22-nanometer fabs?

Andrew Liveris

No, P.J., we did not. And fundamentally what we are seeing there is no significant market share changes or competitor wins. In fact, third quarter '09 versus third quarter '08 we only saw about a 2% price decline against the entire semiconductor technologies businesses. Now, we don't break out specific pricing effects we've had, but equally in slurry, there was no significant slurry market share shifts in either wins for either us or anyone else. And while I've got this whole point, we think the outlook for 2010 is improving much quicker than we anticipated earlier this year. Our forecast for silicone and semiconductor sales are predicting double-digit positive growth for 2010. Gartner, the research group, is predicting actually a forecast in silicon consumption of 22% in 2010, which is one of the strongest rebounds that the entire industry would have seen in a downturn. So we are very well poised to grab that.

P.J. Juvekar – Citi

Great, thank you. So no change in market share. And just quickly on Ag, farmer incomes have dropped, so do you expect the sort of weakness that you saw in Ag to last into next year? Thank you.

Andrew Liveris

P.J., on Ag there was a lot of factors impacting the Q3, none of these ideally we believe, is this, lots of one-time is in here, the corn soybean shifted our (inaudible) in Brazil, for example. So no. We believe the dynamic on Ag remains intact as I said on my remarks, food, seed, fuel, as well as of course nutrition factors are all driving and we have a tremendous couple of big events next year, SmartStax are referred to and we also got DHT which I didn't refer to, so we believe we will benefit from a growing need for food and farm products.

Operator

We will take our next question from Robert Koort with Goldman Sachs.

Robert Koort Goldman Sachs

Thanks very much. And complements to Howard on the slide deck here. It has a lot of helpful information so we appreciate that. Particularly on slide #14, when you guys walked through your volume bridge from the second quarter, you showed quite a bit of pick-up. I'm wondering if you could tell me what we might expect on a seasonal basis? Is this truly underlying growth or is it just a seasonal issue?

 

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