Pricing pressures intense – CFO, Dow Chemicals
December 06, 2008 - United States Of America
At a recent Citigroup chemicals conference, Mr Geoffery Merszei, CFO, Dow Chemicals said that the company could push through the price increases it had announced earlier in the early months of the current year, but was reversing many of those now.
He said that the industry was witnessing intense pricing pressure due to shrinking demand and a slump in oil prices. A lot of the price increases implemented over the early months of 2008 will have to be reversed due to the above two factors he said.
Earlier, in the year the company had announced two rounds of price hikes of 20 and 25 percent respectively due to the unprecedented rise in raw material prices of their products using oil as key feedstock material.
The CFO said that Dow was successful in having half of the price increases implemented in spite of the tough market conditions, but added by saying that since then, demand along with prices were seeing a down trend.
Geoffery E. Merszei is Executive Vice President and Chief Financial Officer of The Dow Chemical Company. He is also a member of Dow's Board of Directors, its Executive Committee, and Environment Health & Safety Committee. He has executive oversight for Dow's activities in Europe.
He is a member of Dow's Executive Leadership Committee, which is responsible for corporate strategy and financial performance. He is also Chairman of the Company's Business Operations Committee and serves on the Geography and People operational committees