Dow Chemical 2012 Annual Report Download - page 68

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EBITDA for 2012 was a record $977 million, compared with $913 million in 2011. EBITDA increased as sales volume
growth in Seeds, Traits and Oils and Crop Protection combined with selling price increases more than offset increased
investment in R&D and SG&A to support continuing growth initiatives.
2011 Versus 2010
Agricultural Sciences sales were $5,655 million in 2011, up 16 percent from $4,869 million in 2010. Compared with 2010,
volume increased 11 percent and price increased 5 percent, with approximately one-third of the price increase due to currency.
All geographic areas reported sales growth and new sales records. Sales were particularly strong in Latin America, driven by a
22 percent increase in volume and a 9 percent increase in price. Double-digit sales growth was reported in the Crop Protection
and Seeds, Traits and Oils business platforms. Seeds, Traits and Oils reported a 27 percent increase in volume, reflecting the
ramp up of SmartStax® technology and continued growth in the corn, soybean and cotton seed businesses. New Crop
Protection products also reported strong volume growth, up 18 percent, with pyroxsulam herbicide, penoxsulam herbicide and
spinetoram insecticide all reporting double-digit growth.
EBITDA for 2011 was $913 million, compared with $640 million in 2010. EBITDA increased as strong volume gains in
the Seeds, Traits and Oils business, new Crop Protection product sales, and price increases more than offset the negative impact
of currency on costs and increased investment in R&D and SG&A to support growth initiatives.
Agricultural Sciences Outlook for 2013
Agricultural Sciences sales for 2013 are expected to grow above the levels achieved in 2012. A continuation of 2012 industry
momentum is anticipated as strong global demand for agricultural products and favorable crop commodity prices coupled with
sustained higher levels of farmer profitability fuel optimism for 2013. The Seeds,Traits and Oils business is expected to
continue to benefit from SmartStax® technology with strong corn portfolio sales growth forecast for the Americas and healthy
customer demand for cotton, soybean and healthy oils. The Crop Protection business is expected to experience continued
growth from sulfoxaflor insecticide, pyroxsulam herbicide, spinetoram insecticide, penoxsulam herbicide, and aminopyralid
herbicide. Investments in technology, capacity and geographic reach in the Seeds, Traits and Oils business remain a priority.
PERFORMANCE MATERIALS
The Performance Materials segment consists of the following businesses: Amines; Chlorinated Organics; Dow Automotive
Systems; Dow Formulated Systems; Dow Oil and Gas; Dow Plastic Additives; Epoxy; Oxygenated Solvents; Polyglycols,
Surfactants and Fluids; Polyurethanes; and Propylene Oxide/Propylene Glycol ("PO/PG"). The segment also includes the
results of Map Ta Phut Olefins Company Limited and a portion of the results of Sadara Chemical Company, both 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. See Note 5 to the Consolidated Financial Statements for additional information on this divestiture.
The segment included Dow Haltermann until it was fully divested at December 31, 2011.
Performance Materials
In millions 2012 2011 2010
Sales $ 13,608 $ 14,647 $ 13,957
Price change from comparative period (6)% 12 % 12%
Volume change from comparative period (1)% (7)% 5%
Volume change, excluding divestitures — % 1 % 15%
Equity earnings (loss) $ (92) $ (31) $ 16
EBITDA $ 1,036 $ 1,748 $ 1,714
Certain items impacting EBITDA $ (590) $ (119) $ (71)
2012 Versus 2011
Performance Materials sales were $13,608 million in 2012, down 7 percent from $14,647 million in 2011. Compared with
2011, price declined 6 percent with approximately 40 percent of the decline due to the unfavorable impact of currency. Lower
feedstock and energy and other raw material costs drove price decreases across all geographic areas and most businesses.
Amines, Epoxy and PO/PG experienced double-digit price decreases due to lower feedstock and energy and other raw material
costs as well as excess industry inventories. Polyglycols, Surfactants and Fluids reported slight price increases led by favorable
pricing in North America. Volume for 2012 was down 1 percent compared with 2011, reflecting the sale of Dow Haltermann in