Dow Chemical 2011 Annual Report Download - page 133

39
ELECTRONIC AND FUNCTIONAL MATERIALS
The Electronic and Functional Materials segment consists of two businesses – Dow Electronic Materials and Functional
Materials – and includes a portion of the Company’s share of the results of Dow Corning Corporation, a joint venture of the
Company. Dow Electronic Materials is a leading global supplier of materials for chemical mechanical planarization; materials
used in the production of electronic displays, including brightness films, diffusers, metalorganic light emitting diode precursors
and organic light emitting diode materials; products and technologies that drive leading edge semiconductor design; materials
used in the fabrication of printed circuit boards; and integrated metallization processes critical for interconnection, corrosion
resistance, metal finishing and decorative applications. These enabling materials are found in applications such as consumer
electronics, flat panel displays and telecommunications. Dow Electronic Materials includes Display Technologies, Growth
Technologies, Interconnect Technologies and Semiconductor Technologies. Functional Materials is a portfolio of businesses
characterized by a vast global footprint, a broad array of unique chemistries, multi-functional ingredients and technology
capabilities, combined with key positions in the pharmaceuticals; food, home and personal care; and industrial specialties.
These technology capabilities and market platforms enable the businesses to develop innovative solutions that address modern
societal needs for clean water and air; material preservation; and improved health care, disease prevention, nutrition and
wellness. Functional Materials includes Dow Home and Personal Care, Dow Microbial Control, Dow Wolff Cellulosics and
Performance Additives.
Electronic and Functional Materials
Actual Results
In millions
Sales
EBITDA
2011
$ 4,599
$ 1,084
2010
$ 4,203
$ 1,052
2009
$ 3,074
$ 654
Electronic and Functional Materials
2011 Actual Versus 2010 Actual
2010 Actual Versus 2009 Pro Forma
In millions
Sales
Price change from comparative period
Volume change from comparative period
Equity earnings
EBITDA
Certain items impacting EBITDA
2011
$ 4,599
6%
3%
$ 104
$ 1,084
$ —
2010
$ 4,203
—%
20%
$ 106
$ 1,052
$ (8)
2009
$ 3,509
(4)%
(16)%
$ 79
$ 656
$ (131)
2011 Actual Versus 2010 Actual
Electronic and Functional Materials sales were $4,599 million for 2011, up from $4,203 million in 2010. Sales increased
9 percent, with price up 6 percent (with approximately one-third of the increase due to currency) and volume up 3 percent.
Price increased in all geographic areas and most major business units in response to increasing raw material costs. Volume
increased across all geographic areas, except EMEA, driven by higher demand for consumer electronics, specialty polymers
and specialty cellulosics used in food and pharmaceutical applications that more than offset lower demand for home and
personal care products. EBITDA for 2011 was $1,084 million, up from $1,052 million in 2010. EBITDA improved from last
year as price increases and volume growth more than offset higher raw material costs, higher SG&A expenses, increased
investment in growth initiatives and slightly lower earnings from Dow Corning. EBITDA in 2010 was negatively impacted by
an $8 million adjustment to the 2009 restructuring charge related to the closure of a small manufacturing facility.