Dow Chemical 2012 Annual Report Download - page 23
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 |
 |
Enhancing Financial Flexibility
The Company continues to drive down interest expenses
by proactively retiring higher cost debt. Dow has reduced
annual interest by $250 million since 2009. We believe
this progress – together with Dow’s continued focus on
deleveraging – contributed to the upgrade of the Company’s
circuit ratings by Moody’s in the third quarter of this year.
• We reduced $613 million of gross debt.
• We generated nearly $8 billion in cash flow over the
two-year period ended December 31, 2012.
• We increased our dividends declared per share in 2012
by 34 percent versus 2011.
In addition, we were awarded $2.16 billion by the
International Court of Arbitration of the International
Chamber of Commerce (ICC), as Petrochemical
Industries Company of Kuwait (PIC) was found liable
for failure to close the K-Dow transaction. The final
award – which will include additional interest and
costs owed to Dow – is expected to be finalized in
2013. We plan to use this award to pay down debt,
increasingly reward our shareholders and fund
prioritized growth.
$1.75B
34%
Increase in dividends declared
1 Cumulative Capital Expenditure reduction from 2011 actual
2 2014 Capital Expenditure plan is to be determined
$1B
Decrease Capital
Expenditures and
Growth Spending
reduction target for 20131
reduction in 20121
announced in October
announced in April
Continuing to focus on
operational excellence
$750MM
for Growth
$750MM
Execute Cost
Reduction Program
Total Levers: $2.5B Delivering Results Target Savings
Total Target Market Impact: $1.75B
}
}
}$0
$100
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2012
Cost Measures (Run Rate) Cash Measures (Cumulative)
1H 2013 2H 2013 20142
Cost and Cash Flow Measures
($ in billions)
21
2012 Annual Report