Dow Chemical 2015 Annual Report Download - page 54

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almost entirely by the unfavorable impact of currency) and increased investment in SG&A to support continuing growth
initiatives.
Agricultural Sciences Outlook for 2016
Agricultural Sciences sales for 2016 are expected to be flat with the levels achieved in 2015, despite a projected decline in the
global agriculture industry. A continuation of the market dynamics experienced in 2015 are expected in 2016 and will sustain
low crop commodity prices and declining industry growth rates in the short-term. Currency headwinds are also expected to
continue in the short-term due to the strengthening U.S. dollar. The Crop Protection business expects continued sales growth
from new insecticides, N-SERVETM Nitrogen Stabilizer and cereal, corn and soybean herbicides. The Seeds business expects
modest growth in corn and soybean seeds and lower sales of cotton seeds.
U.S. federal regulatory approvals have been obtained for the commercialization of ENLIST™ Corn, Soybeans and Cotton,
including the U.S. Environmental Protection Agency's ("EPA") registration of ENLIST DUO™ for use with ENLIST™ Corn
and Soybeans in 15 key states. The Company has also secured approval of the registration of ENLIST E3™ Soybeans in
Argentina and approval of the registration of ENLIST™ Soybean Seeds and Corn Seeds in Brazil. Regulatory approvals for
ENLIST™ products in certain other countries are still pending. After the EPA’s registration of ENLIST DUO™ for use with
ENLIST™ Corn and Soybeans, the National Resources Defense Council, Center for Food Safety and other organizations filed
suit against the EPA to set aside the registration in the United States Court of Appeals for the Ninth Circuit (the "Court"), and
Dow AgroSciences intervened in the cases. In late November 2015, the EPA filed a motion to vacate and remand the
registration to the EPA. Dow AgroSciences opposed the motion to vacate the registration. On January 25, 2016, the Court
denied the EPA’s motion to vacate the registration, so the ENLIST DUO™ registration for use with ENLIST™ Corn and
Soybeans remains fully intact.
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 2015 2014 2013
Sales $ 4,379 $ 4,639 $ 4,562
Price change from comparative period (7)% (1)% (2)%
Volume change from comparative period 1 % 3 % 3 %
Equity earnings $ 91 $ 281 $ 107
EBITDA $ 1,048 $ 1,130 $ 933
Certain items impacting EBITDA $ (59) $ 82 $ —
EBITDA excluding certain items $ 1,107 $ 1,048 $ 933
2015 Versus 2014
Consumer Solutions sales were $4,379 million in 2015, down from $4,639 million in 2014. Sales decreased 6 percent from
2014, with volume up 1 percent and price down 7 percent (with more than 60 percent of the price decline due to the
unfavorable impact of currency). Volume increases in North America and EMEAI were partially offset by decreases in Asia
Pacific and Latin America. Consumer Care volume increased as higher demand in the personal care market sector and for
cellulosics used in the pharmaceutical applications more than offset lower demand in the home care market sector and for
cellulosics used in industrial applications, which declined ahead of a plant closure in Institute, West Virginia. Dow Automotive
Systems reported volume growth in both businesses and in all geographic areas, except Latin America, as customer demand for
light-weighting technologies and lower oil prices drove automotive industry growth, most notably in North America and
Europe. Dow Electronic Materials volume decreased slightly due to weakened demand for Interconnect Technologies and
Display Technologies which more than offset healthy demand in Semiconductor Technologies resulting from strong silicon
wafer growth in mobile device applications, notably in Asia Pacific, and Growth Technologies. Price declined in all businesses
and all geographic areas. Price declined in Consumer Care and Dow Automotive Systems due to continued competitive pricing
and the unfavorable impact of currency in EMEAI. Price declined in Dow Electronic Materials due to the continued
competitive pricing and the unfavorable impact of currency, primarily the Japanese yen.