Dow Chemical 2014 Annual Report Download - page 6
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chain remains on track to close by year-end 2015.
This is a historic event for our Company, which was
founded 118 years ago with chlorine as its primary
product. As part of our portfolio activities, we remain
committed to optimizing our joint ventures, either
through acquisition — like we are currently doing with
Univation — or by diluting or divesting our ownership.
We formed new operating segments to better align our
businesses within their key, integrated chemical and
plastics value chains and end-market orientation —
further enhancing our portfolio, including how we report
to our owners, as well as generating greater returns.
• Capturing productivity, reducing costs and
demand momentum. We drove productivity
programs in every part of the organization shedding
non-strategic assets such as our railcar fleet, and since
2012, shutting down 27 facilities and achieving more
than $200 million in fixed cost reductions. In 2015,
we expect to achieve $300 million in productivity
improvements part of the three-year, $1 billion
commitment we made in November. In addition, with
five quarters in a row of increasing operating rates as
our proof point, Dow’s 2014 operating performance
was solid on every front including record
environmental health and safety achievements.
Considering our operating leverage of more than
$200 million for every 1 percent improvement in
operating rates, it is clear Dow is well positioned
to capture significant upside in our operating income
as demand responds to lower oil which we view
as a tailwind for global demand and our products.
2010 2011 2012 2013 2014
1Q 2Q 3Q 4Q1Q 2Q 3Q 4Q1Q 2Q 3Q 4Q1Q 2Q 3Q 4Q1Q 2Q 3Q 4Q
Increasing Annual Dividend to $1.68/Share
~ 19% CAGR
0.42
0.37
0.32
0.25
0.15
• Continuously increasing returns for shareholders.
In 2014, we delivered a record $6 billion to shareholders
through declared dividends and share repurchases. This
is the culmination of multiple actions during the year,
including two dividend increases restoring Dow’s
dividend to pre-crisis levels and the completion of our
previously committed share repurchase program. Since
2009, we have increased our dividend by 19 percent
on a compound basis, reinforcing our firm resolve to
maintain a leading dividend yield for our industry. We
reinforced this as our driving momentum with the
expansion of our share repurchase program in the
fourth quarter adding a $5 billion tranche we expect
to complete in line with our aggressive portfolio actions.
4 The Dow Chemical Company