Dow Chemical 2011 Annual Report Download - page 136

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2010 Actual Versus 2009 Pro Forma
Coatings and Infrastructure Solutions sales were $6,596 million for 2010, up 6 percent from $6,243 million in 2009. Compared
with 2009, price was up 9 percent, while volume declined 3 percent. Price improved in all geographic areas. The price
improvement was most pronounced in Performance Monomers, driven by higher raw material costs, and Dow Coating
Materials, where raw material supply constraints led to a favorable pricing environment during 2010. Volume declined due to
the FTC required divestiture of a certain acrylic monomer and specialty latex assets on January 25, 2010 (related to the April 1,
2009 acquisition of Rohm and Haas) and the June 1, 2010 divestiture of the Powder Coatings business. Excluding these
divestitures, volume increased 7 percent compared with 2009. The increase in volume was primarily driven by Performance
Monomers as well as higher demand for insulation products, ion exchange resins and reverse osmosis membranes.
EBITDA for 2010 was $1,230 million, up from $648 million in 2009. Compared with 2009, higher prices, improved
operating rates, lower SG&A expenses and higher equity earnings from Dow Corning more than offset increases in raw
material costs. EBITDA was negatively impacted in 2010 by $15 million in adjustments to the 2009 restructuring plan and
$5 million in restructuring charges related to the divestiture of the specialty latex assets. EBITDA for 2009 was negatively
impacted by $262 million of restructuring charges primarily related to the Company’s actions to optimize facilities following
the acquisition of Rohm and Haas, an increase in cost of sales of $81 million related to the fair valuation of Rohm and Haas
inventories and $21 million of the Company's share of a restructuring charge recognized by Dow Corning.
Coatings and Infrastructure Solutions Outlook for 2012
Coatings and Infrastructure Solutions sales are expected to grow in 2012. Dow Building and Construction sales are expected to
increase driven by higher demand in insulation products and construction chemicals in emerging geographies and modest
growth in North America, offsetting declines in Western Europe impacted by macroeconomic concerns. Volume growth is
expected from increased sales of DOW POWERHOUSE™ solar shingle, which is expected to be in line with the gradual
recovery of new residential and commercial construction in the United States. Dow Coating Materials sales are also expected to
increase, especially in emerging geographies, driven by higher demand for architectural coating and by improved hiding
capabilities in paint from EVOQUE™ Pre-Composite Polymer Technology. Dow Water and Process Solutions sales are
expected to increase in all geographic areas, driven by higher demand for ion exchange resins and reverse osmosis membranes
used in large industrial water desalination and purification projects. Performance Monomers sales are expected to increase
driven by improved end-market conditions, especially in adhesives, coatings, and cleaning applications. Equity earnings from
Dow Corning are expected to be lower in 2012, as challenges in the polysilicon industry are expected to compress margins.
AGRICULTURAL SCIENCES
Dow AgroSciences is a global leader in providing agricultural crop protection and plant biotechnology products, pest
management solutions and healthy oils. The business invents, develops, manufactures and markets products for use in
agriculture, industrial and commercial pest management, and food service.
Agricultural Sciences
Actual Results
In millions
Sales
EBITDA
2011
$ 5,655
$ 913
2010
$ 4,869
$ 640
2009
$ 4,522
$ 573
Agricultural Sciences
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
$ 5,655
5%
11%
$ 4
$ 913
$ —
2010
$ 4,869
(4)%
11 %
$ 2
$ 640
$ —
2009
$ 4,537
(6)%
4 %
$ 2
$ 577
$ 15