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Part II
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS, continued
32
For the first half of 2016, which reflects the majority of the northern hemisphere season, the company expects Agriculture sales
to be mid-single digits percent lower with operating earnings in the low-teens percent below 2015 as local price gains and the
benefit of cost actions are more than offset by lower insecticide and soybean volumes and currency. Crop protection's volume
forecast assumes a continued impact from the shutdown of the LaPorte manufacturing facility. Volumes will be more challenged
in the first quarter, due to the strong start in North America corn seed which benefited the fourth quarter of 2015, and due to crop
protection in Brazil.
Full year 2016 segment net sales are expected to be down mid-single digits percent and full year operating earnings are expected
to be about flat as local price gains and cost actions are offset by currency headwinds and lower volumes.
ELECTRONICS & COMMUNICATIONS
(Dollars in millions) 2015 2014 2013
Net sales $ 2,070 $ 2,381 $ 2,534
Operating earnings $ 359 $ 336 $ 314
Operating earnings margin 17% 14% 12%
2015 2014
Change in net sales from prior period due to:
Local Price and Product Mix (4)% (7)%
Currency (2)% (1)%
Volume (7)% 2 %
Portfolio and Other — % — %
Total change (13)% (6)%
2015 versus 2014 Full year 2015 segment net sales of $2.1 billion decreased $0.3 billion, or 13 percent, primarily due to competitive
pressures impacting Solamet® paste and lower pricing from the pass-through of lower metals prices and the negative impact of
currency, partially offset by volume growth in Tedlar® film photovoltaics and products for the consumer electronics market.
2015 operating earnings and operating earnings margin increased as cost reductions and continued productivity improvements
more than offset lower sales.
2014 versus 2013 Full year 2014 segment net sales of $2.4 billion decreased $0.2 billion, or 6 percent, as volume growth in
several product lines was more than offset by pass-through of lower metals prices and by competitive pressures impacting Solamet®
paste.
2014 operating earnings and operating earnings margin increased due to volume growth and productivity improvements. These
were partly offset by the absence of $20 million of OLED technology licensing income realized during 2013.
Outlook In 2016 the company expects the photovoltaic market to remain strong with module installations forecasted to increase
mid-teens percent driving strong growth in Tedlar® film in photovoltaics. Segment results are expected to continue to be negatively
impacted by declines in Solamet® paste with the impact lessening in the second half of the year due to more favorable year-over-
year comparisons and expected new product introductions. The company anticipates consumer electronics markets will have a
weaker start to the year but strengthen in the second half as channel inventories are worked off.
Full year 2016 segment net sales are expected to be about flat as strong volume growth in Tedlar® film for photovoltaics is offset
by lower sales of Solamet® paste and lower metals pricing. Full year operating earnings are expected to be in the low-twenty
percent range higher from increased volume and cost reductions and continued productivity improvements.