Dow Chemical 2013 Annual Report Download - page 54

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• Dow AgroSciences received registration in the United States for sulfoxaflor, a new insecticidal active ingredient that offers
extremely effective control of many important sap-feeding insect pests.
• Dow and its joint venture partner Tasnee Sahara Olefins Company announced the mechanical completion of the first
acrylic monomer production facility in the Middle East. The plant will help provide a reliable, cost-advantaged supply of
acrylic emulsion polymers for coatings and adhesives applications to support growth in emerging geographies.
• Dow AgroSciences and Monsanto Company reached new cross-licensing agreements to enable the creation of next-
generation SmartStax® corn, including additional insect protection and access to Dow AgroSciences' new ENLIST™
Weed Control System herbicide-tolerant trait, pending regulatory approval.
• Dow inaugurated its new Northeast Technology Center, a state-of-the-art innovation hub for Dow’s Advanced Materials
businesses. Located in Collegeville, Pennsylvania, the technology center is one of Dow’s largest global research and
development hubs and serves key end-markets including electronics, consumer non-durables, infrastructure, transportation
and energy.
• Dow Packaging and Specialty Plastics launched Pack Studios Freeport, the first of four Pack Studio centers around the
globe, to help customers turn packaging ideas into innovative solutions. Once fully launched, studios will be located in
Freeport, Texas; São Paulo, Brazil; Horgen, Switzerland; and Shanghai, China.
• Dow’s SILVADUR™ antimicrobial technology for fabrics and EVOQUE™ Pre-Composite Polymer Technology for paints
won R&D 100 Awards.
• The Polyurethanes business launched two expansion projects to meet customer needs in Asia Pacific and the United States.
The business will construct a polyether polyols facility at the Company’s Map Ta Phut, Thailand site. In addition, the
Company will increase its polyol and copolymer capacity as a result of debottlenecking at its Freeport, Texas facility.
• Dow Water and Process Solutions announced the global launch of TEQUATIC™ PLUS fine particle filter. The cost-
effective, high-performance filter will be supported by a new manufacturing center in Menlo Park, California.
• On July 30, 2013, the Company announced that Bill Banholzer, Chief Technology Officer and Executive Vice President,
had elected to retire. A. N. Sreeram was named Corporate Vice President of Research and Development, effective August
1, 2013.
• On December 31, 2013, Carol Williams, Executive Vice President, Manufacturing and Engineering, Supply Chain and
Environmental, Health and Safety ("EH&S") relinquished her line responsibilities and will retire from Dow later in 2014.
Dow’s results of operations and financial condition for the year ended December 31, 2013 are described in further detail in the
following discussion and analysis.
RESULTS OF OPERATIONS
Net Sales
Net sales for 2013 were $57.1 billion, up 1 percent from $56.8 billion in 2012, with price up 1 percent and volume flat. Price
increases in Performance Plastics (up 4 percent) and Agricultural Sciences (up 1 percent) more than offset price declines in
Feedstocks and Energy (down 3 percent), Electronic and Functional Materials (down 2 percent) and Coatings and Infrastructure
Solutions (down 1 percent). Performance Materials prices remained flat. Price increased in North America and Latin America
(both up 2 percent), which more than offset a decline in Asia Pacific (down 2 percent). Prices in EMEA remained flat. Volume
was mixed by operating segment, with increases in Agricultural Sciences (up 11 percent), Electronic and Functional Materials
and Coatings and Infrastructure Solutions (both up 4 percent) offset by volume declines in Feedstocks and Energy (down 5
percent), Performance Plastics (down 3 percent) and Performance Materials (down 2 percent). Excluding the impact of a recent
divestiture, Performance Plastics volume was down 1 percent. Volume increased in Latin America (up 8 percent), Asia Pacific
(up 4 percent) and North America (up 1 percent), which was offset by a decline in EMEA (down 5 percent).
Net sales for 2012 were $56.8 billion, down 5 percent from $60.0 billion in 2011, with price down 3 percent and volume down
2 percent. Price was unfavorably impacted by currency, which contributed to more than 60 percent of the price decrease. Price
declined in all geographic areas, with the largest decrease in Asia Pacific (down 5 percent), and all operating segments except
Agricultural Sciences (up 3 percent) with the most pronounced decreases in Coatings and Infrastructure Solutions and
Performance Materials (both down 6 percent). The decline in volume reflected the impact of recent divestitures including: the