On The Call: Dow Chemical CEO Andrew Liveris

The Associated Press

Dow Chemical Co., the nation's largest chemical manufacturer, sells insulation, coatings and advanced construction materials to homeowners and commercial builders.

During a third-quarter conference call with analysts Thursday, Dow CEO Andrew Liveris discussed building trends.

QUESTION: Do you see gradual improvement in North American construction in the fourth quarter?

RESPONSE: "Well, we have two views to construction. One is our building construction business, which as you know, there is a piece of it that is new-builds and there is a piece of it — a big piece of it — that is DIY (do-it-yourself).

"The DIY is doing just fine ... as people spend more on their current houses. The new-builds are tepid, and therefore are creating all sorts of effects on the other side of the shop, which is coatings.

"On the DIY, we are seeing improvement in architectural coatings demand, but not so good on the new-builds and not so good on the commercial side...We believe the DIY side is sustainable and the new-builds will start coming back as we go into 2010 on the residential side, but will be tempered by the commercial side."