Dow Chemical 2014 Annual Report Download - page 68

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approximately $145 million, with approximately half of the purchase price to be paid in the first quarter of 2015 and the
remaining portion to be paid in two equal installments in February 2016 and February 2017. The acquisition of Coodetec's seed
business is expected to advance the development of Dow AgroSciences' soybean program and strengthen the Company’s
position in the corn market segment.
On October 2, 2014, the Company announced the AgroFresh business is being marketed for divestment, in line with the
Company's plans to divest non-strategic businesses and assets.
CONSUMER SOLUTIONS
The Consumer Solutions segment consists of three global businesses – Consumer Care, Dow Automotive Systems and Dow
Electronic Materials – and includes a portion of the Company’s share of the results of Dow Corning, a joint venture of the
Company. Consumer Care includes Dow Home, Institutional & Personal Care Solutions; Dow Pharma and Food Solutions; and
SAFECHEM. Dow Automotive Systems includes Adhesives and Performance Solutions. Dow Electronic Materials includes
Semiconductor Technologies, Interconnect Technologies, Display Technologies and Growth Technologies.
Consumer Solutions
In millions 2014 2013 2012
Sales $ 4,639 $ 4,562 $ 4,518
Price change from comparative period (1)% (2)% (1)%
Volume change from comparative period 3 % 3 % (4)%
Equity earnings $ 281 $ 107 $ 87
EBITDA $ 1,130 $ 933 $ 773
Certain items impacting EBITDA $ 82 $ — $ (144)
2014 Versus 2013
Consumer Solutions sales were $4,639 million in 2014, up from $4,562 million in 2013. Sales increased 2 percent from 2013,
with volume up 3 percent and price down 1 percent (with more than one-third of the price decline due to currency). Volume
increased in all businesses and all geographic areas, except Latin America. Volume gains in Dow Automotive Systems were
driven by continued recovery in the North America transportation sector and modest recovery in Europe. Dow Electronic
Materials volume increased primarily due to higher demand for photolithography materials and chemical mechanical
planarization pads, which more than offset lower demand for films and filters and organic light-emitting diode ("OLED")
materials. Volume increased in Consumer Care due to strong demand for cellulosics used in food and pharmaceutical
applications. Price declines were driven by Dow Electronic Materials, primarily in Asia Pacific due to continued competitive
pricing pressure and the weakening Japanese yen. Price remained flat in Consumer Care and Dow Automotive Systems. Price
gains in North America were more than offset by declines in EMEAI and Asia Pacific.
EBITDA for 2014 was $1,130 million, up from $933 million in 2013. Compared with 2013, EBITDA increased as higher sales
volume, increased equity earnings from Dow Corning and lower R&D expenses more than offset lower selling prices. EBITDA
in 2014 was impacted by a $155 million gain related to Dow Corning’s adjustment of its implant liability and a $73 million
charge related to asset impairments in Dow Electronic Materials. See Notes 8, 9 and 11 to the Consolidated Financial
Statements for additional information on these items.
2013 Versus 2012
Consumer Solutions sales were $4,562 million for 2013, up from $4,518 million in 2012. Sales increased 1 percent from 2012,
with volume up 3 percent and price down 2 percent (with more than one-third of the price decline due to currency). Volume
increased in all businesses. Volume gains in Asia Pacific and North America more than offset small declines in EMEAI and
Latin America. Dow Electronic Materials volume increased primarily due to higher demand for OLED materials used in
consumer electronics. Dow Automotive Systems volume increased as a result of stronger demand in the North American
transportation sector. Volume increased in Consumer Care due to strong demand for cellulosics used in food and
pharmaceutical applications. Price declines in Asia Pacific, primarily due to the weakening Japanese yen, and Latin America
more than offset increases in North America and EMEAI. Price decreased in all businesses, except Dow Automotive Systems.
The decrease in price was driven by continued competitive pressure in Dow Electronic Materials and price/volume
optimization efforts in Consumer Care, notably cellulosics.
EBITDA for 2013 was $933 million, up from $773 million in 2012. Compared with 2012, EBITDA increased as higher sales
volume, higher equity earnings from Dow Corning and lower R&D and SG&A expenses more than offset lower selling prices
and higher feedstock and energy costs. EBITDA in 2012 was negatively impacted by $136 million of 4Q12 Restructuring