Mich. -- At its 2012 Investor Forum, The Dow Chemical Co. shared with investors
“strategic interventions and key catalysts that will enable Dow to achieve
near-term targets and drive sustainable earnings growth.”
have built a more simplified organization – concentrating only on those things
that increase cash flow, improve return on capital and drive earnings growth,”
said Dow Chairman and CEO Andrew N. Liveris.
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the event, Liveris presented several key drivers that will fuel Dow’s near-term
says it has deployed $2.5 billion of “aggressive” measures in 2012. These
actions are expected to deliver $1 billion in cost and cash “interventions” in
2013, of which $500 million will impact EBITDA. With nearly 40 project
cancellation and plant shutdowns announced this year, the Company is taking
swift steps to improve asset utilization, drive down structural costs –
particularly in Europe – and enhance return on capital.
company says it remains on schedule to restart its St. Charles Operations
ethylene cracker, which is expected to deliver a $150 million increase in
EBITDA in 2013. Taken on the whole, Dow’s U.S. Gulf Coast investments in
ethylene and propylene integration, coupled with favorable shale gas dynamics,
are expected to deliver $2 billion in additional EBITDA in 2017. The company
also reaffirmed that its Sadara joint venture remains on track, with an
anticipated construction workforce peak of about 60,000 people next year, and
operations slated for start-up in 2015.
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the last several years, Dow says it has successfully rebalanced its innovation
pipeline toward commercialization. Today, programs in the implementation stage
of Dow’s R&D pipeline represent a net present value of $7 billion – an
approximate $200 million increase versus 2011. Importantly, the company has
also reduced exploration programs. In addition, Dow has announced it is halting
growth projects where significant market shifts and government policies have
triggered fundamental changes, such as alternative energy.