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| 8-K - DOW CHEMICAL CO /DE/ | tdcc_form8ksegrecast2010.htm |
EXHIBIT 99.1
Beginning in the fourth quarter of 2010, The Dow Chemical Company (“Dow” or the “Company”) is changing its reportable segments due to recent changes in the Company’s organization. The following segment changes are being made:
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Segment name changed from Basic Plastics to Plastics
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Segment name changed from Basic Chemicals to Chemicals and Energy
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Segment name changed from Hydrocarbons and Energy to Hydrocarbons
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Energy moved from Hydrocarbons to Chemicals and Energy
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Construction-related cellulosics moved from Electronic and Specialty Materials to Coatings and Infrastructure
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Transportation adhesives moved from Coatings and Infrastructure to Performance Systems
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Certain new business development initiatives moved from Performance Products to Coatings and Infrastructure
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The reporting changes are reflected in the following Corporate Profile and selected segment information for 2010 and 2009 by quarter, as if the change had taken place as of January 1, 2009. The segment information provided for the first quarter of 2009 has been provided on a pro forma basis, reflecting the April 1, 2009 acquisition of Rohm and Haas Company.
Corporate Profile
Dow combines the power of science and technology with the “Human Element” to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses deliver a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2009, Dow had annual sales of $44.9 billion and employed approximately 52,000 people worldwide. The Company’s more than 5,000 products are manufactured at 214 sites in 37 countries across the globe. The following descriptions of the Company’s eight operating segments include a representative listing of products for each business.
ELECTRONIC AND SPECIALTY MATERIALS
Applications: chemical mechanical planarization (CMP) pads and slurries • chemical processing aids and intermediates • electronic displays • food and pharmaceutical processing and ingredients • home and personal care ingredients • hygiene and infection control • photolithography materials • printed circuit board materials • process and materials preservation • semiconductor packaging, connectors and industrial finishing • water purification
Dow Electronic Materials is a leading global supplier of materials for chemical mechanical planarization; materials used in the production of electronic displays, including brightness films, diffusers, metalorganic light emitting diode (LED) precursors and organic light emitting diode (OLED) materials; products and technologies that drive leading edge semiconductor design; materials used in the fabrication of printed circuit boards; and integrated metallization processes critical for interconnection, corrosion resistance, metal finishing and decorative applications. These enabling materials are found in applications such as consumer electronics, flat panel displays and telecommunications.
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Products: ACuPLANE™ CMP slurries; AR™ antireflective coatings; AUROLECTROLESS™ immersion gold process; COPPER GLEAM™ acid copper plating products; CYCLOTENE™ advanced electronics resins; DURAPOSIT™ electroless nickel process; ENLIGHT™ products for photovoltaic manufacturers; EPIC™ immersion photoresists; INTERVIA™ photodielectrics for advanced packaging; LITHOJET™ digital imaging processes; OPTOGRADE™ metalorganic precursors; VISIONPAD™ CMP pads
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Specialty Materials is a portfolio of businesses characterized by a vast global footprint, a broad array of unique chemistries, multi-functional ingredients and technology capabilities, combined with key positions in the pharmaceuticals, food, home and personal care, water and energy production, and industrial specialty industries. These technology capabilities and market platforms enable the businesses to develop innovative solutions that address modern societal needs for sufficient and clean water, air and energy, material preservation and improved health care, disease prevention, nutrition and wellness. The businesses’ global footprint and geographic reach provide multiple opportunities for value growth. Specialty Materials consists of five global businesses: Dow Water and Process Solutions, Dow Home and Personal Care, Dow Microbial Control, Dow Wolff Cellulosics and Performance Materials.
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Products and Services: Acrolein derivatives; ACUDYNE™ hair fixative resins; ACULYN™ rheology modifiers; ACUMER™ scale inhibitors and dispersants; ACUSOL™ detergent polymers, dispersants, opacifiers and rheology modifiers; AMBERCHROM™ chromatography resins; AMBERJET™, AMBERLITE™, AMBERLYST™ and DOWEX™ ion exchange resins; ANGUS™ nitroalkanes and derivatives; AQUCAR™ water treatment microbiocides; ASC METATIN™ dimethyltin catalyst; AUTOMATE™ liquid dyes; BIOBAN™ biocide for material preservation; CELLOSIZE™ hydroxyethyl cellulose; CLEAR+STABLE™ carboxymethyl cellulose; Divinylbenzene; DOW™ electrodeionization; DOW™ ultrafiltration; DUOLITE™ pharmaceutical grade resins; DURAGREEN™ and DURAPLUS™ floor care polymers; ECOSMOOTH™ silk conditioning polymers; ECOSURF™ biodegradable surfactants; ETHOCEL™ ethylcellulose polymers; FILMTEC™ reverse osmosis membrane elements; GLUTEX™ sanitizers and cleaners; KATHON™ preservatives; KLARIX™ algicides; METHOCEL™ cellulose ethers; NEOLONE™ preservatives for personal care; OPULYN™ opacifiers; POLYOX™ water-soluble resins; PRIMENE™ amines; Quaternaries; SATISFIT™ Weight Care Technology; SILVADUR™ antimicrobial; Sodium borohydride products; SOFTCAT™ polymers; SOLTERRA™ Boost inorganic SPF booster; SOLTEX™ waterproofing polymer; SUNSPHERES™ SPF boosters; UCARE™ polymers; UCARHIDE™ opacifier; UCON™ fluids; VENPURE™ reducing agents; VERSENE™ chelating agents; Vinylbenzyl chloride; VINYZENE™ antimicrobials for plastics; WALOCEL™ cellulose polymers; WALSRODER™ nitrocellulose; ZINCLEAR™ IM zinc oxide dispersions
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The Electronic and Specialty Materials segment also includes the Company’s share of the results of Dow Corning Corporation, a joint venture of the Company.
COATINGS AND INFRASTRUCTURE
Applications: building and construction, insulation and weatherization, roofing membrane systems, adhesives and sealants • cellulosic-based construction additives • construction materials (vinyl siding, vinyl windows, vinyl fencing) • flexible and rigid packaging • general mortars and concrete, cement modifiers and plasters, tile adhesives and grouts • house and traffic paints • leather, textile, graphic arts and paper • metal coatings • pipeline coatings • processing aids for plastic production • tapes and labels • transportation and corrosion protection
Dow Adhesives and Functional Polymers is a portfolio of businesses that primarily manufacture sticking and bonding solutions for a wide range of applications, including adhesive tapes and paper labels, flexible packaging and leather, textile and imaging. These products are supported with market recognized best-in-class technical support and end-use application knowledge. Many of the businesses’ water-borne technologies are well-positioned to support more environmentally preferred applications.
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Products: ADCOTE™ and AQUA-LAM™ laminating adhesives; MOR-FREE™ solventless adhesives; ROBOND™ acrylic adhesives; SERFENE™ barrier coatings; Solvent-based polyurethanes and polyesters; TYMOR™ tie resins
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Dow Building and Construction is comprised of three global businesses – Dow Building Solutions, Dow Construction Chemicals and Dow Solar Solutions – which offer extensive lines of industry-leading insulation, housewrap, sealant and adhesive products and systems, as well as construction chemical solutions and building-integrated photovoltaics. Through its strong sales support, customer service and technical expertise, Dow Building Solutions provides meaningful solutions for improving the energy efficiency in homes and buildings today, while also addressing the industry’s emerging needs and demands. Additionally, Dow Construction Chemicals provides solutions for increased durability, greater water resistance and lower systems costs. As a leader in insulation solutions, the businesses’ products help curb escalating utility bills, reduce a building’s carbon footprint and provide a more comfortable indoor environment. Dow Solar Solutions is focused on developing the next generation of solar energy products to solve global energy challenges.
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Products: AQUASET™ acrylic thermosetting resins; CELLOSIZE™ hydroxyethyl cellulose; DOW™ latex powders; FROTH-PAK™ polyurethane spray foam; GREAT STUFF™ polyurethane foam sealant; INSTA-STIK™ roof insulation adhesive; METHOCEL™ cellulose ethers; POWERHOUSE™ solar shingle; RHOPLEX™ aqueous acrylic polymer emulsions; STYROFOAM™ brand insulation products (including extruded polystyrene and polyisocyanurate rigid foam sheathing products); THERMAX™ insulation; TILE BOND™ roof tile adhesive; WEATHERMATE™ weather barrier solutions (housewraps, sill pans, flashings and tapes)
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Dow Coating Materials is the largest coatings supplier in the world and a premier supplier of raw materials for architectural paints and industrial coatings. The business manufactures and delivers solutions that leverage high quality, technologically advanced product offerings for paint and coatings. The business also offers technologies used in industrial coatings, including packaging, pipelines, wood, automotive, marine, maintenance and protective industries. The business is also the leader in the conversion of solvent to water-based technologies, which enable customers to offer more environmentally friendly products, including low volatile organic compound (VOC) paints and other sustainable coatings.
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Products: ACRYSOL™ rheology modifiers; AVANSE™, ELASTENE™, PRIMAL™ and RHOPLEX™ acrylics; CELLOSIZE™ hydroxyethyl cellulose; CELLOSOLVE™ and the CARBITOL™ and DOWANOL™ series of oxygenated solvents; D.E.H.™ curing agent and intermediates; D.E.R.™ and D.E.N.™ liquid and epoxy resins; FORTEGRA™ Epoxy Tougheners; OROTAN™ and TAMOL™ dispersants; ROPAQUE™ opaque polymers; TRITON™, TERGITOL™, DOWFAX™ and ECOSURF™ SA surfactants
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HEALTH AND AGRICULTURAL SCIENCES
Applications: agricultural seeds, traits (genes) and oils • control of weeds, insects and plant diseases for agriculture and pest management
Dow AgroSciences is a global leader in providing agricultural and plant biotechnology products, pest management solutions and healthy oils. The business invents, develops, manufactures and markets products for use in agriculture, industrial and commercial pest management, and food service.
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Products: AGROMEN™ seeds; BRODBECK™ seed; CLINCHER™ herbicide; DAIRYLAND™ seed; DELEGATE™ insecticide; DITHANE™ fungicide; Dow AgroSciences™ SmartStax™; FORTRESS™ fungicide; GARLON™ herbicide; GLYPHOMAX™ herbicide; GRANITE™ herbicide; HERCULEX™ I, HERCULEX™ RW and HERCULEX™ XTRA insect protection; KEYSTONE™ herbicides; LAREDO™ fungicide; LONTREL™ herbicide; LORSBAN™ insecticides; MILESTONE™ herbicide; MUSTANG™ herbicide; MYCOGEN™ seeds; NEXERA™ canola and sunflower seeds; PHYTOGEN™ cottonseeds; PROFUME™ gas fumigant; RENZE™ seed; SENTRICON™ termite colony elimination system; SIMPLICITY™ herbicide; STARANE™ herbicide; TELONE™ soil fumigant; TORDON™ herbicide; TRACER™ NATURALYTE™ insect control; TRIUMPH™ seed; VIKANE™ structural fumigant; WIDESTRIKE™ insect protection
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The Health and Agricultural Sciences segment also includes the results of the AgroFresh business, providing a portfolio of products used for maintaining the freshness of fruits, vegetables and flowers.
PERFORMANCE SYSTEMS
Applications: automotive interiors, exteriors, under-the-hood and body engineered systems • bedding • caps and closures • food and specialty packaging • footwear • furniture • gaskets and sealing components • manufactured housing and modular construction • medical equipment • mining • pipe treatment • pressure sensitive adhesives • transportation • vinyl exteriors • waterproofing membranes • wire and cable insulation and jacketing materials for power utility and telecommunications
Dow Automotive Systems is a leading global provider of technology-driven solutions that meet consumer demand for vehicles that are safer, stronger, quieter, lighter, more comfortable and stylish. The business provides plastics, adhesives, glass bonding systems, emissions control technology, films, fluids, structural enhancement and acoustical management solutions to original equipment manufacturers, tier, aftermarket and commercial transportation customers. With offices and application development centers around the world, Dow Automotive Systems provides materials science expertise and comprehensive technical capabilities to its customers worldwide.
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Products: AERIFY™ diesel particulate filters; BETAFOAM™ NVH acoustical foams; BETAMATE™ structural adhesives; BETASEAL™ glass bonding systems; DOW™ polyethylene resins; IMPAXX™ energy management foam; INSPIRE™ performance polymers; INTEGRAL™ adhesive films; ISONATE™ pure and modified methylene diphenyl diisocyanate (MDI) products; MAGNUM™ ABS resins; PELLETHANE™ thermoplastic polyurethane elastomers; Premium brake fluids and lubricants; PULSE™ engineering resins; SPECFLEX™ semi-flexible polyurethane foam systems
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Dow Elastomers offers a unique set of elastomers, specialty films and plastic additive products for customers worldwide. The business is focused on delivering innovative solutions that allow for differentiated participation in multiple industries and applications. The business offers a broad range of performance elastomers and plastomers, specialty copolymers, synthetic rubber, specialty resins, and films and plastic additives. Key applications include adhesives, transportation, building and construction, packaging and consumer durables.
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Products: ADVASTAB™ thermal stabilizer; AFFINITY™ polyolefin plastomers (POPs); AMPLIFY™ functional polymers; DOW™ Adhesive Film; DOW™ Backing Layer Film; DOW™ Medical Device Film; DOW™ Medical Packaging Film; DOW™ very low density polyethylene; ENGAGE™ polyolefin elastomers; ENLIGHT™ polyolefin encapsulant films; INFUSE™ olefin block copolymers; INTEGRAL™ adhesive films; NORDEL™ hydrocarbon rubber; NYLOPAK™ nylon barrier films; OPTICITE™ films; PARALOID™ EXL impact modifier; PRIMACOR™ copolymers; PROCITE™ window envelope films; PULSE™ engineering resins; SARAN™ barrier resins; SARANEX™ barrier films; TRENCHCOAT™ protective films; TRYCITE™ polystyrene film; TYBRITE™ clear packaging film; TYRIN™ chlorinated polyethylene; VERSIFY™ plastomers and elastomers
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Dow Formulated Systems manufactures and markets custom formulated, rigid and semi-rigid, flexible, integral skin and microcellular polyurethane foams and systems and tailor-made epoxy solutions and systems. These products are used in a broad range of applications including appliances, athletic equipment, automotive, bedding, construction, decorative molding, furniture, shoe soles and wind turbines.
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Products: AIRSTONE™ epoxy systems; Encapsulants and chemical compositions; ENFORCER™ Technology and ENHANCER™ Technology for polyurethane carpet and turf backing; HYPERKOTE™, TRAFFIDECK™ and VERDISEAL™ waterproofing systems; HYPOL™ hydrophilic polyurethane prepolymers; RENUVA™ Renewable Resource Technology; SPECFIL™ urethane components; SPECFLEX™ copolymer polyols; SPECTRIM™ reaction moldable products; VORACOR™ and VORALAST™ polyurethane systems and VORALAST™ R renewable content system; VORAMER™ industrial adhesives and binders; VORASTAR™ polymers; XITRACK™ polyurethane rail ballast stabilization systems
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Dow Wire and Cable is the world’s leading provider of polymers, additives and specialty oil technology-based solutions for electrical and telecommunication applications. Through its suite of polyolefin ENDURANCE™ products, the business sets industry standards for assurance of longevity, efficiency, ease of installation and protection in the transmission, distribution and consumption of power, voice and data. In addition to world-class power, telecommunications and flame retardant/specialty cable applications, the business supports its product offerings with solid research, product development, engineering and market validation expertise.
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Products: ENGAGE™ polyolefin elastomers; NORDEL™ hydrocarbon rubber; SI-LINK™ and REDI-LINK™ moisture crosslinkable polyethylene-based wire and cable insulation compounds; TYRIN™ chlorinated polyethylene; UNIGARD™ flame retardant compound for specialty wire and cable applications
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The Performance Systems segment also includes the results of Dow Fiber Solutions, providing differentiated fibers and process improvements to the textile industry, and Dow Oil and Gas, providing products for use in exploration and production, refining and gas processing, transportation, and fuel and lubricant performance.
On March 2, 2010, Dow announced the entry into a definitive agreement to sell Styron to an affiliate of Bain Capital Partners; the transaction closed on June 17, 2010. Businesses and products sold included Synthetic Rubber and certain products from Dow Automotive Systems, which were reported in the Performance Systems segment through the date of the divestiture.
PERFORMANCE PRODUCTS
Applications: adhesives • aircraft and runway deicing fluids • appliances • carpeting • chelating agents • chemical intermediates • civil engineering • cleaning products • coated paper and paperboard • composites • construction • corrosion inhibitors • detergents, cleaners and fabric softeners • electrical castings, potting and encapsulation and tooling • electrical laminates • electronics • flavors and fragrances • flooring • footwear • gas treatment • heat transfer fluids • home and office furnishings • industrial coatings • mattresses • metalworking fluids • packaging • sealants • surfactants
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The Amines business is the world’s largest producer of ethanolamines, ethyleneamines and isopropanolamines used in a wide variety of applications, including gas treatment, heavy-duty liquid detergents, herbicide formulations for the agricultural industry and personal care products.
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Products: Alkyl alkanolamines; Ethanolamines; Ethyleneamines; Isopropanolamines; Piperazine; VERSENE™ chelating agents
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The Emulsion Polymers business provided a broad line of styrene-butadiene products supporting customers in paper and paperboard applications, as well as carpet and artificial turf backings.
On March 2, 2010, Dow announced the entry into a definitive agreement to sell Styron to an affiliate of Bain Capital Partners; the transaction closed on June 17, 2010. Businesses sold included Emulsion Polymers (styrene-butadiene latex), which was reported in the Performance Products segment through the date of the divestiture.
The Epoxy business is the world’s largest producer of epoxy resins and intermediates. The business is the most feedstock-integrated supplier in the world. Epoxies provide good adhesion and coating protection over a range of environmental conditions, making them ideal for applications such as transportation, marine and civil engineering.
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Products: D.E.H.™ epoxy curing agents or hardeners; D.E.N.™ epoxy novolac resins; D.E.R.™ epoxy resins (liquids, solids and solutions); Epoxy intermediates (acetone, allyl chloride, epichlorohydrin and phenol); Epoxy resin waterborne emulsions and dispersions; FORTEGRA™ epoxy tougheners; Glycidyl methacrylate (GMA)
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The Oxygenated Solvents business offers a full range of acetone derivatives, alcohols, esters, and ethylene- and propylene-based glycol ether products. The business is the industry leader in solvent products used in cleaning products, inks, electronics, mining, paints and coatings, personal care and other applications.
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Products: Acetic esters; Acetone derivatives; Alcohols; Aldehydes; Butyl CARBITOL™ and Butyl CELLOSOLVE™ solvents; Carboxylic acids; DOWANOL™ glycol ethers; ECOSOFT™ IK solvent; PROGLYDE™ DMM solvent; UCAR™ propionates
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The Performance Monomers business produces specialty monomer products that are sold externally as well as consumed internally as building blocks used in downstream polymer businesses. The business’ products are used in several applications, including cleaning materials, personal care products, paints, coatings and inks.
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Products: Acrylic acid/acrylic esters; ACUMER™, ACUSOL™, DURAMAX™, OPTIDOSE™, ROMAX™ and TAMOL™ dispersants; Methyl methacrylate
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The Polyglycols, Surfactants and Fluids business is one of the world’s leading suppliers of polyglycols and surfactants, with a broad range of products and technology and a proven record of performance and economy. The business also produces a broad line of lubricants, hydraulic fluids, aircraft deicing fluids and thermal fluids, with some of the most recognized brand names in the industry. Product applications include chemical processing, cleaning, heating, cooling, food and beverage processing, fuel additives, paints and coatings, pharmaceuticals and silicone surfactants.
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Products: AMBITROL™ and NORKOOL™ coolants; CARBOWAX™ and CARBOWAX SENTRY™ polyethylene glycols and methoxypolyethylene glycols; DOW™ polypropylene glycols; DOW™ SYMBIO base fluid; DOWFAX™, TERGITOL™ and TRITON™ surfactants; DOWFROST™ and DOWTHERM™ heat transfer fluids; ECOSURF™ biodegradable surfactants; SYNALOX™ lubricants; UCAR™ deicing fluids; UCON™ fluids
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The Polyurethanes business is a leading global producer of polyurethane raw materials. Dow’s polyurethane products are used in a broad range of applications including appliance, athletic equipment, automotive, bedding, construction, decorative molding, furniture and shoe soles.
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Products: ECHELON™ polyurethane prepolymer; ISONATE™ methylene diphenyl diisocyanate (MDI); MONOTHANE™ single component polyurethane elastomers; PAPI™ polymeric MDI; Propylene glycol; Propylene oxide; RENUVA™ Renewable Resource Technology; VORANATE™ isocyanate; VORANOL™ VORACTIV™ polyether and copolymer polyols
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The Performance Products segment also includes the results of Dow Haltermann, a provider of world-class contract manufacturing services to companies in the fine and specialty chemicals and polymers industries, and SAFECHEM, a wholly owned subsidiary that manufactures closed-loop systems to manage the risks associated with chlorinated solvents. The segment also includes a portion of the results of the OPTIMAL Group of Companies (through the September 30, 2009 divestiture of this group of joint ventures) and the SCG-Dow Group, joint ventures of the Company.
PLASTICS
Applications: adhesives • appliances and appliance housings • agricultural films • automotive parts and trim • beverage bottles • bins, crates, pails and pallets • building and construction • coatings • consumer and durable goods • consumer electronics • disposable diaper liners • fibers and nonwovens • films, bags and packaging for food and consumer products • hoses and tubing • household and industrial bottles • housewares • hygiene and medical films • industrial and consumer films and foams • information technology • oil tanks and road equipment • plastic pipe • textiles • toys, playground equipment and recreational products • wire and cable compounds
The Polyethylene business is the world’s leading supplier of polyethylene-based solutions through sustainable product differentiation. With multiple catalyst and process technologies, the business offers customers one of the industry’s broadest ranges of polyethylene resins.
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Products: ASPUN™ fiber grade resins; ATTANE™ ultra low density polyethylene (ULDPE) resins; CONTINUUM™ bimodal polyethylene resins; DOW™ high density polyethylene (HDPE) resins; DOW™ low density polyethylene (LDPE) resins; DOWLEX™ polyethylene resins; ELITE™ enhanced polyethylene (EPE) resins; TUFLIN™ linear low density polyethylene (LLDPE) resins; UNIVAL™ HDPE resins
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The Polypropylene business, a major global polypropylene supplier, provides a broad range of products and solutions tailored to customer needs by leveraging Dow’s leading manufacturing and application technology, research and product development expertise, extensive market knowledge and strong customer relationships.
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Products: DOW™ homopolymer polypropylene resins; DOW™ impact copolymer polypropylene resins; DOW™ random copolymer polypropylene resins; INSPIRE™ performance polymers; UNIPOL™ PP process technology; SHAC™ and SHAC™ ADT catalyst systems
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The Styrenics business, the global leader in the production of polystyrene resins, is uniquely positioned with geographic breadth and participation in a diversified portfolio of applications.
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Products: Licensing and supply of related catalysts, process control software and services for the Mass ABS process technology; STYRON A-TECH™ and C-TECH™ advanced technology polystyrene resins and a full line of STYRON™ general purpose polystyrene resins; STYRON™ high-impact polystyrene resins
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On March 2, 2010, Dow announced the entry into a definitive agreement to sell Styron to an affiliate of Bain Capital Partners; the transaction closed on June 17, 2010. Businesses sold included Styrenics (polystyrene, acrylonitrile butadiene styrene, styrene acrylonitrile and expandable polystyrene), Polycarbonate and Compounds and Blends, as well as the Company’s 50 percent ownership interest in Americas Styrenics LLC, a nonconsolidated affiliate; all of which were reported in the Plastics segment through the date of the divestiture.
The Plastics segment also includes the results of the Plastics Licensing and Catalyst business and the Polycarbonate and Compounds and Blends business (through the June 17, 2010 divestiture of Styron). It also includes the results of Equipolymers, Americas Styrenics LLC (through the June 17, 2010 divestiture of Styron) and Univation Technologies, LLC (which licenses the UNIPOL™ polyethylene process and sells related catalysts, including metallocene catalysts), as well as a portion of the results of EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C. and the SCG-Dow Group, all joint ventures of the Company.
CHEMICALS AND ENERGY
Applications: agricultural products • alumina • automotive antifreeze and coolant systems • carpet and textiles • chemical processing • dry cleaning • household cleaners and plastic products • inks • metal cleaning • packaging, food and beverage containers • paints, coatings and adhesives • personal care products • petroleum refining • pharmaceuticals • plastic pipe • power • protective packaging • pulp and paper manufacturing • soaps and detergents • water treatment
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The Chlor-Alkali/Chlor-Vinyl business focuses on the production of chlorine for consumption by downstream Dow derivatives, as well as production, marketing and supply of ethylene dichloride, vinyl chloride monomer and caustic soda. These products are used for applications such as alumina production, pulp and paper manufacturing, soaps and detergents and building and construction. Dow is the world’s largest producer of both chlorine and caustic soda.
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Products: Caustic soda; Chlorine; Ethylene dichloride (EDC); Hydrochloric acid; Vinyl chloride monomer (VCM)
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The Energy business supplies power, steam and other utilities, principally for use in Dow’s global operations.
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Products: Power, steam and other utilities
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The Ethylene Oxide/Ethylene Glycol business is the world’s largest producer of purified ethylene oxide, principally used in Dow’s downstream performance derivatives. Dow is also a key supplier of ethylene glycol to MEGlobal, a 50:50 joint venture and a world leader in the manufacture and marketing of merchant monoethylene glycol and diethylene glycol. Ethylene glycol is used in polyester fiber, polyethylene terephthalate (PET) for food and beverage container applications, polyester film, and aircraft and runway deicers.
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Products: Ethylene oxide (EO); Ethylene glycol (EG); METEOR™ EO/EG process technology and catalysts
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The Chemicals and Energy segment also includes the results of the Chlorinated Organics business. Also included in the Chemicals and Energy segment are the results of MEGlobal and a portion of the results of EQUATE Petrochemical Company K.S.C., The Kuwait Olefins Company K.S.C. and the OPTIMAL Group of Companies (through the September 30, 2009 divestiture of this group of joint ventures), all joint ventures of the Company.
HYDROCARBONS
Applications: polymer and chemical production
The Hydrocarbons business encompasses the procurement of natural gas liquids and crude oil-based raw materials, as well as the supply of monomers, principally for use in Dow’s global operations. The business regularly sells its by-products and buys and sells products in order to balance regional production capabilities and derivative requirements. The business also sells products to certain Dow joint ventures. Dow is the world leader in the production of olefins and aromatics.
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Products: Benzene; Butadiene; Butylene; Cumene; Ethylene; Propylene; Styrene
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The Hydrocarbons segment also includes the results of Compañía Mega S.A. and a portion of the results of The Kuwait Olefins Company K.S.C. and the SCG-Dow Group, joint ventures of the Company.
On March 2, 2010, Dow announced the entry into a definitive agreement to sell Styron to an affiliate of Bain Capital Partners; the transaction closed on June 17, 2010. Businesses and products sold included certain styrene monomer assets, which were reported in the Hydrocarbons segment through the date of the divestiture.
Corporate includes the results of Ventures (which includes new business incubation platforms focused on identifying and pursuing new commercial opportunities); Venture Capital; non-business aligned technology licensing and catalyst activities; the Company’s insurance operations and environmental operations; and certain corporate overhead costs and cost recovery variances not allocated to the operating segments. In 2009, Corporate also included the results of the Salt business, which the Company acquired with the April 1, 2009 acquisition of Rohm and Haas and sold to K+S Aktiengesellschaft on October 1, 2009.
™ Trademarks of The Dow Chemical Company (“Dow”) or an affiliated company of Dow.
SmartStax is a trademark of Monsanto Technology LLC
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Selected Segment Information
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Year ended
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In millions (Unaudited)
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Mar. 31, 2009 (1)
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June 30, 2009
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Sept. 30, 2009
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Dec. 31, 2009
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Dec. 31, 2009 (1)
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Mar. 31, 2010
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June 30, 2010
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Sept. 30, 2010
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Sept. 30,
2010
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Sales by operating segment
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Electronic and Specialty Materials
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$ | 898 | $ | 1,059 | $ | 1,147 | $ | 1,135 | $ | 4,239 | $ | 1,179 | $ | 1,278 | $ | 1,303 | $ | 3,760 | |||||||||||||||||||||
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Coatings and Infrastructure
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1,116 | 1,355 | 1,426 | 1,276 | 5,173 | 1,285 | 1,437 | 1,408 | 4,130 | ||||||||||||||||||||||||||||||
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Health and Agricultural Sciences
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1,461 | 1,204 | 796 | 1,076 | 4,537 | 1,369 | 1,276 | 948 | 3,593 | ||||||||||||||||||||||||||||||
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Performance Systems
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1,290 | 1,469 | 1,551 | 1,592 | 5,902 | 1,675 | 1,808 | 1,599 | 5,082 | ||||||||||||||||||||||||||||||
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Performance Products
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2,000 | 2,066 | 2,420 | 2,579 | 9,065 | 2,789 | 2,754 | 2,621 | 8,164 | ||||||||||||||||||||||||||||||
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Plastics
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2,029 | 2,371 | 2,636 | 2,889 | 9,925 | 3,022 | 2,993 | 2,618 | 8,633 | ||||||||||||||||||||||||||||||
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Chemicals and Energy
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688 | 661 | 644 | 823 | 2,816 | 839 | 847 | 867 | 2,553 | ||||||||||||||||||||||||||||||
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Hydrocarbons
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885 | 835 | 1,133 | 1,039 | 3,892 | 1,165 | 1,151 | 1,430 | 3,746 | ||||||||||||||||||||||||||||||
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Corporate
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443 | 302 | 293 | 57 | 1,095 | 94 | 74 | 74 | 242 | ||||||||||||||||||||||||||||||
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Total
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$ | 10,810 | $ | 11,322 | $ | 12,046 | $ | 12,466 | $ | 46,644 | $ | 13,417 | $ | 13,618 | $ | 12,868 | $ | 39,903 | |||||||||||||||||||||
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EBITDA(2) by operating segment
|
|||||||||||||||||||||||||||||||||||||||
|
Electronic and Specialty Materials
|
$ | 92 | $ | 142 | $ | 386 | $ | 390 | $ | 1,010 | $ | 360 | $ | 426 | $ | 402 | $ | 1,188 | |||||||||||||||||||||
|
Coatings and Infrastructure
|
121 | 39 | 235 | 123 | 518 | 138 | 230 | 247 | 615 | ||||||||||||||||||||||||||||||
|
Health and Agricultural Sciences
|
363 | 140 | 5 | 69 | 577 | 384 | 196 | (12 | ) | 568 | |||||||||||||||||||||||||||||
|
Performance Systems
|
101 | 210 | 206 | 149 | 666 | 205 | 225 | 227 | 657 | ||||||||||||||||||||||||||||||
|
Performance Products
|
150 | 216 | 438 | 303 | 1,107 | 288 | 330 | 429 | 1,047 | ||||||||||||||||||||||||||||||
|
Plastics
|
122 | 405 | 590 | 548 | 1,665 | 718 | 696 | 731 | 2,145 | ||||||||||||||||||||||||||||||
|
Chemicals and Energy
|
(5 | ) | (107 | ) | 195 | 20 | 103 | 120 | 100 | 181 | 401 | ||||||||||||||||||||||||||||
|
Hydrocarbons
|
- | (65 | ) | 457 | (1 | ) | 391 | - | (1 | ) | 2 | 1 | |||||||||||||||||||||||||||
|
Corporate
|
(178 | ) | (384 | ) | (275 | ) | (255 | ) | (1,092 | ) | (432 | ) | (321 | ) | (425 | ) | (1,178 | ) | |||||||||||||||||||||
|
Total
|
$ | 766 | $ | 596 | $ | 2,237 | $ | 1,346 | $ | 4,945 | $ | 1,781 | $ | 1,881 | $ | 1,782 | $ | 5,444 | |||||||||||||||||||||
|
EBITDA excluding certain items(3) by operating segment
|
|||||||||||||||||||||||||||||||||||||||
|
Electronic and Specialty Materials
|
$ | 121 | $ | 285 | $ | 386 | $ | 390 | $ | 1,182 | $ | 368 | $ | 426 | $ | 402 | $ | 1,196 | |||||||||||||||||||||
|
Coatings and Infrastructure
|
122 | 292 | 235 | 123 | 772 | 143 | 230 | 247 | 620 | ||||||||||||||||||||||||||||||
|
Health and Agricultural Sciences
|
363 | 125 | 5 | 69 | 562 | 384 | 196 | (12 | ) | 568 | |||||||||||||||||||||||||||||
|
Performance Systems
|
101 | 240 | 205 | 149 | 695 | 205 | 210 | 227 | 642 | ||||||||||||||||||||||||||||||
|
Performance Products
|
150 | 311 | 298 | 305 | 1,064 | 291 | 316 | 429 | 1,036 | ||||||||||||||||||||||||||||||
|
Plastics
|
122 | 406 | 590 | 613 | 1,731 | 718 | 686 | 729 | 2,133 | ||||||||||||||||||||||||||||||
|
Chemicals and Energy
|
(5 | ) | (32 | ) | 8 | 14 | (15 | ) | 120 | 100 | 181 | 401 | |||||||||||||||||||||||||||
|
Hydrocarbons
|
- | - | - | (1 | ) | (1 | ) | - | (1 | ) | 2 | 1 | |||||||||||||||||||||||||||
|
Corporate
|
(28 | ) | (74 | ) | (172 | ) | (195 | ) | (469 | ) | (406 | ) | (283 | ) | (294 | ) | (983 | ) | |||||||||||||||||||||
|
Total
|
$ | 946 | $ | 1,553 | $ | 1,555 | $ | 1,467 | $ | 5,521 | $ | 1,823 | $ | 1,880 | $ | 1,911 | $ | 5,614 | |||||||||||||||||||||
|
Equity in earnings (losses) of nonconsolidated affiliates by operating segment
|
|||||||||||||||||||||||||||||||||||||||
|
Electronic and Specialty Materials
|
$ | 5 | $ | 58 | $ | 94 | $ | 133 | $ | 290 | $ | 113 | $ | 112 | $ | 98 | $ | 323 | |||||||||||||||||||||
|
Coatings and Infrastructure
|
1 | 1 | 1 | - | 3 | 1 | 1 | - | 2 | ||||||||||||||||||||||||||||||
|
Health and Agricultural Sciences
|
1 | - | 2 | (1 | ) | 2 | 2 | (1 | ) | 2 | 3 | ||||||||||||||||||||||||||||
|
Performance Systems
|
(3 | ) | 6 | 3 | (2 | ) | 4 | - | 2 | (2 | ) | - | |||||||||||||||||||||||||||
|
Performance Products
|
1 | 7 | 19 | 4 | 31 | 7 | 2 | (7 | ) | 2 | |||||||||||||||||||||||||||||
|
Plastics
|
23 | 35 | 55 | (1 | ) | 112 | 65 | 59 | 63 | 187 | |||||||||||||||||||||||||||||
|
Chemicals and Energy
|
40 | 9 | 45 | 69 | 163 | 98 | 54 | 92 | 244 | ||||||||||||||||||||||||||||||
|
Hydrocarbons
|
(2 | ) | 6 | 11 | 18 | 33 | 24 | 20 | 6 | 50 | |||||||||||||||||||||||||||||
|
Corporate
|
(1 | ) | - | (6 | ) | (1 | ) | (8 | ) | (6 | ) | (5 | ) | (1 | ) | (12 | ) | ||||||||||||||||||||||
|
Total
|
$ | 65 | $ | 122 | $ | 224 | $ | 219 | $ | 630 | $ | 304 | $ | 244 | $ | 251 | $ | 799 | |||||||||||||||||||||
| (1 | ) |
Pro forma amounts reflecting the combination of historical information of Dow and Rohm and Haas Company due to the April 1, 2009 acquisition.
|
|||||||||||||||||||||||||||||||||||||
|
(2
|
)
|
The Company uses EBITDA (which Dow defines as earnings before interest, income taxes, depreciation and amortization) as its measure of profit/loss for segment reporting purposes. EBITDA includes all operating items related to the businesses, except depreciation and amortization, and excludes items that principally apply to the Company as a whole. A reconciliation of EBITDA to "Income from Continuing Operations Before Income Taxes" is provided below:
|
|||||||||||||||||||||||||||||||||||||
|
In millions
|
1Q09 (1) | 2Q09 | 3Q09 | 4Q09 | 2009 (1) | 1Q10 | 2Q10 | 3Q10 |
3Q 2010 YTD
|
||||||||||||||||||||||||||||||
|
EBITDA
|
$ | 766 | $ | 596 | $ | 2,237 | $ | 1,346 | $ | 4,945 | $ | 1,781 | $ | 1,881 | $ | 1,782 | $ | 5,444 | |||||||||||||||||||||
|
- Depreciation and amortization
|
756 | 763 | 752 | 804 | 3,075 | 757 | 734 | 716 | 2,207 | ||||||||||||||||||||||||||||||
|
+ Interest income
|
15 | 9 | 6 | 12 | 42 | 7 | 10 | 7 | 24 | ||||||||||||||||||||||||||||||
|
- Interest expense and amortization of debt discount
|
543 | 525 | 488 | 404 | 1,960 | 376 | 367 | 362 | 1,105 | ||||||||||||||||||||||||||||||
|
Income from Continuing Operations Before Income Taxes
|
$ | (518 | ) | $ | (683 | ) | $ | 1,003 | $ | 150 | $ | (48 | ) | $ | 655 | $ | 790 | $ | 711 | $ | 2,156 | ||||||||||||||||||
| (3 | ) |
EBITDA impact of certain items:
|
|||||||||||||||||||||||||||||||||||||
|
In millions
|
1Q09 (1) | 2Q09 | 3Q09 | 4Q09 | 2009 (1) | 1Q10 | 2Q10 | 3Q10 |
3Q 2010 YTD
|
||||||||||||||||||||||||||||||
|
Cost of sales:
|
|||||||||||||||||||||||||||||||||||||||
|
Impact of Hurricanes Gustav and Ike
|
$ | (2 | ) | - | - | - | $ | (2 | ) | - | - | - | - | ||||||||||||||||||||||||||
|
Fair valuation of Rohm and Haas inventories
|
- | $ | (209 | ) | - | - | (209 | ) | - | - | - | - | |||||||||||||||||||||||||||
|
Labor-related litiation matter
|
- | - | - | - | - | - | - | $ | (50 | ) | $ | (50 | ) | ||||||||||||||||||||||||||
|
Goodwill impairment losses
|
- | - | - | $ | (7 | ) | (7 | ) | - | - | - | - | |||||||||||||||||||||||||||
|
Restructuring charges
|
(21 | ) | (662 | ) | - | (8 | ) | (691 | ) | $ | (16 | ) | $ | (13 | ) | - | (29 | ) | |||||||||||||||||||||
|
Purchased in-process research and development charges
|
- | - | - | (7 | ) | (7 | ) | - | - | - | - | ||||||||||||||||||||||||||||
|
Transaction, integration and other acquisition costs
|
(128 | ) | (86 | ) | $ | (47 | ) | (45 | ) | (306 | ) | (26 | ) | (37 | ) | (35 | ) | (98 | ) | ||||||||||||||||||||
|
Dow Corning restructuring
|
(29 | ) | - | - | - | (29 | ) | - | - | - | - | ||||||||||||||||||||||||||||
|
Equipolymers impairment
|
- | - | - | (65 | ) | (65 | ) | - | - | - | - | ||||||||||||||||||||||||||||
|
Sundry income - net:
|
|||||||||||||||||||||||||||||||||||||||
|
Gain on sale of TRN
|
- | - | 457 | - | 457 | - | - | - | - | ||||||||||||||||||||||||||||||
|
Gain on sale of OPTIMAL
|
- | - | 328 | 11 | 339 | - | - | - | - | ||||||||||||||||||||||||||||||
|
Gain on divestiture of Styron
|
- | - | - | - | - | - | 51 | 2 | 53 | ||||||||||||||||||||||||||||||
|
Loss on early extinguishment of debt
|
- | - | (56 | ) | - | (56 | ) | - | - | (46 | ) | (46 | ) | ||||||||||||||||||||||||||
|
Total
|
$ | (180 | ) | $ | (957 | ) | $ | 682 | $ | (121 | ) | $ | (576 | ) | $ | (42 | ) | $ | 1 | $ | (129 | ) | $ | (170 | ) | ||||||||||||||
12