Dow Chemical Co (NYSE:DOW) Q2 2020 Earnings Conference Call - Final Transcript
Jul 23, 2020 • 08:00 am ET
[Operator instructions] And our first question comes from David Begleiter with Deutsche Bank.
Good morning. Jim and Howard, on your modeling guidance for packaging, especially plastics, looking for volumes and sales both to be flat to up 5%. I guess that implies pricing is flat, but you did get pricing up in polyethylene in June and likely in July, maybe even August. So how is pricing flat sequentially given that tailwind from polyethylene? Thank you.
Morning, David. Thanks for the question. We do expect volumes to continue to improve like we saw in the second quarter. We are going to have a little bit of a tailwind from or a headwind from some turnaround costs that are in the third quarter.
Some turnaround activities have stretched through this year because of the COVID-related issues of workforce. But we do have pricing on the table for July and for August, up five in July, up five in August. We were successful in getting price up $0.04 in the month of June. And so I think we're watching what's happening there also with input costs and feedstock costs to see what the net is on integrated margin.
So this outlook would have the whole integrated margin relatively flat and all the increase on volume.
We'll take our next question from John Roberts with UBS.
You highlighted MobilityScience in both Slide 4 and Slide 9. You gave up most of Dow automotive in the DuPont separation. Do you still have a Dow automotive kind of integrated organization? Or is it just spread around all the businesses? And how big is automotive today? And what are your strategies there, longer term?
Morning, John. Thanks for the question. We do have a fair amount of business today into the automotive industry, the transportation industry, in the neighborhood of $2 billion to $2.5 billion of sales that goes in there. It's different than the mix of products that went with transportation and high-performance polymers to DuPont.
What went to DuPont was glass-bonding adhesives and crash-durable adhesives. But remember, we still have a very large platform of elastomers, silicones into a number of applications in the automotive construction, also polyurethanes and other materials that go into the interior of the cars, coatings for noise vibration and harshness. So what we did was we pulled together a mobility platform that we could put out to the industry to have that face to the industry. And then what we're doing is pulling the resources that know that industry together from the existing businesses to be able to focus on them and to drive that growth, especially as we see them making changes as they come out of this pandemic to really lean in on next-generation mobility platforms, vehicles and some of the needs that they have there.
Our next question comes from Jonas Oxgaard with Bernstein.
Wondering about Sadara. I'm looking at your Page 17, and debt is flat year over year. But according to the repayment schedule, you should