Dow reports full-year and Q4 results

Andrew N. Liveris, Dow’s chairman and CEO, stated: "Dow saw deterioration in the macro environment mid-quarter and, in line with our stated commitments, we purposefully intervened. In the midst of uncertainty and significant destocking across customer supply chains, we maintained our focus on financial discipline and operating efficiency – evidenced by our tight management of working capital, focus on improving operating rates and significant cash flow generation.”

Dow delivered record full-year revenue of USD 60 billion, 19 % increase in earnings. Fourth Quarter revenue grew to USD 14.1 billion with record quarterly sales in emerging geographies, cash flow from operations of USD 2 billion.
 Sales in Coatings and Infrastructure Solutions were USD 1.6 billion, up 1 % compared with the year-ago period. Volume decreased 5 %, while price rose 6 %. Demand increased in Dow Construction Chemicals, driven by acrylic products in North America. Dow Coating Materials reported sales declines in architectural and industrial coatings due to lower demand globally, partly offset by pricing gains. Sales in the Performance Monomers business declined modestly, as reduced demand from the durable goods industry was partly offset by broad-based price increases in all geographic areas. Equity earnings were USD 102 million, largely reflecting the contribution from Dow Corning. This result is up slightly from the USD 96 million reported in the year-ago period. EBITDA for the segment was USD 177 million, which was reduced by a USD 60 million charge related to a warranty accrual adjustment of an exited business. This compares with EBITDA of USD 251 million in the same period last year.

In the fourth quarter 2011 the company reported a loss of USD 0.02 per share, or earnings of USD 0.25 per share excluding certain items. This compares with earnings of USD 0.37 per share in the year-ago period, or USD 0.47 per share excluding certain items. Sales were USD 14.1 billion, up 2 % versus the same quarter in the previous year. Sales excluding the impact of divestitures increased 5 % versus the year-ago period. Sales in emerging geographies were USD 5 billion, reaching a new quarterly record and representing 35 % of Dow’s global sales. Sales excluding divestitures rose 10 % in these regions, with growth across all operating segments. Volume declined 3 %, but was flat excluding the impact of divestitures. On the same basis, volume in emerging geographies grew 7 % led by China, which was up 12 %. This increase fully offset declines in Western Europe (down 5 %) and the United States (down 2 %). Price was up 5 %, more than offsetting a USD 476 million increase in purchased feedstock and energy costs. Price was up in all operating segments and in all geographic areas.

Andrew N. Liveris, Dow’s chairman and CEO, stated: "Dow saw deterioration in the macro environment mid-quarter and, in line with our stated commitments, we purposefully intervened. In the midst of uncertainty and significant destocking across customer supply chains, we maintained our focus on financial discipline and operating efficiency – evidenced by our tight management of working capital, focus on improving operating rates and significant cash flow generation. We derived strong benefit from our geographic footprint – delivering broad-based top-line gains and achieving record sales for both the quarter and the year in emerging regions, balancing considerable weakness in Western Europe. In addition, our significant U.S. market and feedstock advantage positioned us for success in the quarter and will continue to provide substantial value moving forward.”

Click here to see Dow’s Fourth Quarter 2011 and Full-Year Earnings Statement: