Dow Chemical 2011 Annual Report Download - page 78

44
PERFORMANCE MATERIALS
The Performance Materials segment consists of the following businesses: Amines; Chlorinated Organics; Dow Automotive
Systems; Dow Formulated Systems; Dow Plastic Additives; Epoxy; Oxygenated Solvents; Polyglycols, Surfactants and Fluids;
Polyurethanes; Dow Haltermann (which was fully divested by December 31, 2011); and Dow Oil and Gas. These businesses
produce a wide variety of products with a broad range of applications – adhesives, aircraft and runway deicing fluids,
automotive interiors and exteriors, carpeting, footwear, home furnishings, mattresses, personal care products, transportation,
waterproofing membranes and wind turbines. The segment also includes a portion of the results of the SCG-Dow Group, joint
ventures of the Company.
On June 17, 2010, Dow sold Styron to an affiliate of Bain Capital Partners. Businesses and products sold within the
Performance Materials segment included Emulsion Polymers (styrene-butadiene latex); Synthetic Rubber; and certain products
from Dow Automotive Systems; all of which were reported in the Performance Materials segment through the date of the
divestiture. On September 30, 2009, the Company completed the sale of its ownership interest in the OPTIMAL Group of
Companies, nonconsolidated affiliates, to Petroliam Nasional Berhad; a portion of the results were reported in the Performance
Materials segment through the date of the divestiture. See Note E to the Consolidated Financial Statements for additional
information on these divestitures.
Performance Materials
Actual Results
In millions
Sales
EBITDA
2011
$ 14,647
$ 1,748
2010
$ 13,957
$ 1,714
2009
$ 11,780
$ 1,568
Performance 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
Volume change, excluding divestitures
Equity earnings (loss)
EBITDA
Certain items impacting EBITDA
2011
$ 14,647
12 %
(7)%
1 %
$ (31)
$ 1,748
$ (119)
2010
$ 13,957
12%
5%
15%
$ 16
$ 1,714
$ (71)
2009
$ 11,900
(15)%
(14)%
N/A
$ 46
$ 1,567
$ 137
2011 Actual Versus 2010 Actual
Performance Materials sales were $14,647 million in 2011, up 5 percent from $13,957 million in 2010. Compared with 2010,
price increased 12 percent as significant increases in feedstock and other raw material costs drove double-digit price increases
in all geographic areas and most businesses. Increases were particularly strong in Chlorinated Organics due to increased pricing
in refrigerants, fluoropolymers and solvent applications. Compared with last year, volume declined 7 percent, reflecting the sale
of Emulsion Polymers, Synthetic Rubber and certain Dow Automotive Systems assets as part of the Styron divestiture
completed on June 17, 2010. Excluding the impact of this divestiture, volume was up 1 percent as demand drove modest gains
in North America and Latin America. Volume declined in EMEA due to continued economic weakness in Western Europe, and
in Asia Pacific due to government actions to control growth in the wind energy and construction industries. Epoxy reported
volume growth of 12 percent, driven primarily by increased demand for resins used in the automotive and electronic industries.