Dow Chemical 2013 Annual Report Download - page 53

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Price increased 1 percent in 2013 compared with 2012, driven by increases in Performance Plastics (up 4 percent) and
Agricultural Sciences (up 1 percent).
Volume remained flat in 2013 compared with 2012, with mixed results by operating segment. Excluding the impact of a
divestiture, volume increased in all geographic areas except EMEA (down 5 percent).
On May 6, 2013, the Company and Petrochemical Industries Company (K.S.C.) ("PIC") entered into a Deed providing for
payment of the Company's claims against PIC under the K-Dow arbitration. On May 7, 2013, the Company confirmed the
receipt of a $2.195 billion cash payment from PIC. The cash was utilized for debt reduction measures.
The Company delivered $7.8 billion of cash from operating activities in 2013, which includes the impact of the K-Dow
arbitration award, and ended the year with $5.9 billion of cash and cash equivalents. Interest expense and amortization of debt
discount declined $168 million compared with 2012 as the Company reported a $3 billion reduction in total debt in 2013.
On February 13, 2013, the Board of Directors approved a share buy-back program, authorizing up to $1.5 billion to be spent on
the repurchase of the Company's common stock over a period of time. As a result, the Company repurchased $307 million of
common stock during 2013.
Other notable highlights from 2013 include:
• On March 14, 2013, the Company announced the Dow Polypropylene Licensing and Catalysts business was being
marketed for divestment, as part of the Company's ongoing commitment to portfolio management. The business was sold
to W.R. Grace and Co. on December 2, 2013 for $490 million, net of working capital adjustments and costs to sell.
• On March 18, 2013, the Company announced its intention to build several new Performance Plastics production units on
the U.S. Gulf Coast, further connecting the Company's U.S. manufacturing operations with cost-advantaged feedstocks
resulting from increasing supplies of shale gas in North America. These production units will support expected profitable
growth of the Company's high value Performance Plastics franchise. On August 27, 2013, the Company announced the
location of these four new production units:
Dow Packaging and Specialty Plastics: An ELITE™ polymer production unit will be built in Freeport, Texas; and
a Low Density Polyethylene (LDPE) production unit will be built in Plaquemine, Louisiana.
Dow Elastomers: A NORDEL™ metallocene ethylene propylene diene monomer ("EPDM") production unit will
be built in Plaquemine, Louisiana; and a High Melt Index (HMI) AFFINITY™ polymer production unit will be
built in Freeport, Texas.
• On June 17, 2013, the Company announced the signing of the main financing for Sadara Chemical Company ("Sadara")
whereby Sadara entered into definitive agreements with certain export agencies, commercial banks and the Public
Investment Fund of the Kingdom of Saudi Arabia for approximately $10.5 billion of additional project financing
("Additional Project Financing"). The Additional Project Financing closed on June 28, 2013, bringing the total project
financing for Sadara to approximately $12.5 billion.
• On December 2, 2013, the Company announced the planned carve-out of a portion of its chlorine chain, including the
Company's U.S. Gulf Coast Chlor-Alkali/Chlor-Vinyl business, the global Chlorinated Organics business and the Epoxy
business, in preparation for transactions involving select chlorine and derivative businesses over the next 12-24 months.
• Dow was named to the Dow Jones Sustainability World Index - the 13th time the Company has received this recognition
since the index was launched.
• Dow earned an A+ Rating by UN Global Compact Communication on Progress for its 2012 Global Reporting Initiative
(GRI) Sustainability Report - the 6th year in a row Dow has received this designation.
• Dow was named to the Thomson Reuters 2013 Top 100 Global Innovators - the Company has received this recognition in
each of the three years since the program was launched.
• Dow was named by Chief Executive Magazine as one of the 40 best companies for leaders for the second consecutive year.
• Dow was awarded the 2013 U.S. Presidential Green Chemistry Challenge Award for its EVOQUE™ Pre-Composite
Polymer Technology which helps coatings formulators improve paint performance while using less titanium dioxide.