Dow Continues Margin Expansion But Lower Oil Prices Weigh On Outlook

During the fourth quarter, Dow's global operating rate stood at 86%, up 400 basis points from the year-ago quarter. This was the key factor that drove the net improvement of around 220 basis points in its consolidated adjusted EBITDA margin over the last three months of 2013. Q4 2014 was Dow's ninth consecutive quarter of year-on-year EBITDA margin growth. However, we believe that margin pressures due to lower oil prices, especially in the Performance Plastics division, could spoil its party thi...