Dow Chemical 2011 Annual Report Download - page 75

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Coatings and Infrastructure Solutions
Actual Results
In millions
Sales
EBITDA
2011
$ 7,200
$ 1,167
2010
$ 6,596
$ 1,230
2009
$ 5,598
$ 604
Coatings and Infrastructure Solutions
2011 Actual Versus 2010 Actual
2010 Actual Versus 2009 Pro Forma
In millions
Sales
Price change from comparative period
Volume change from comparative period
Volume change, excluding divestitures
Equity earnings
EBITDA
Certain items impacting EBITDA
2011
$ 7,200
13 %
(4)%
(1)%
$ 321
$ 1,167
$ (60)
2010
$ 6,596
9 %
(3)%
7 %
$ 343
$ 1,230
$ (20)
2009
$ 6,243
(9)%
(16)%
N/A
$ 215
$ 648
$ (364)
2011 Actual Versus 2010 Actual
Coatings and Infrastructure Solutions sales were $7,200 million in 2011, up from $6,596 million in 2010. Sales increased
9 percent with price improving 13 percent and volume decreasing 4 percent. The increase in price was broad-based, with
double-digit gains across all geographic areas, more than offsetting higher feedstock and other raw material costs. Volume was
lower primarily due to the June 1, 2010 divestiture of the Powder Coatings business and the FTC required divestiture of certain
acrylic monomer and specialty latex assets on January 25, 2010. Excluding these divestitures, volume was down 1 percent
compared with 2010. Dow Building and Construction sales were higher as prices increased in response to rising raw material
costs. Volume improved slightly as higher demand for construction materials in Latin America and Asia Pacific was offset by
continued weak demand in the North American housing and construction industries. Dow Coating Materials sales increased due
to higher prices which more than offset a decrease in volume due to lower demand for architectural and industrial coatings
driven by weak residential construction conditions, and lower home improvement spending in North America and Europe. Dow
Water and Process Solutions sales were higher across all geographic areas, especially in EMEA and Asia Pacific (most notably
in Greater China), driven by increased demand for ion exchange resins and reverse osmosis membranes used in industrial water
purification projects. Performance Monomers sales increased due to higher prices, with double-digit increases across all
geographic areas and products. Volume decreased in all geographic areas except Asia Pacific, as the business shed low margin
contracts to free up capacity for internal supply.
EBITDA for 2011 was $1,167 million, down from $1,230 million in 2010. EBITDA was negatively impacted in 2011 by a
$60 million charge for a warranty accrual adjustment related to an exited business. Results in 2010 were negatively impacted
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. Compared with last year, higher selling prices were offset by higher feedstock and other raw material
costs, lower volume, ongoing investment in DOW POWERHOUSE™ solar shingle, slightly lower equity earnings from Dow
Corning, and the absence of earnings from divested businesses. See Notes C and D to the Consolidated Financial Statements
for additional information on restructuring charges and the acquisition of Rohm and Haas.