Dow Implements Cost-Reduction Plans, Anticipates Annual Savings of Approximately $250 Million
02 Abril 2012 - 8:00AM
UK Regulatory
TIDMDOW
Dow Implements Cost-Reduction Plans, Anticipates Annual Savings
of Approximately $250 Million
Actions Reinforce Dow's Previously Announced Cash Flow
Intervention Capabilities
The Dow Chemical Company (NYSE:DOW) announced today that it is
implementing cost reductions in line with its commitment to
actively manage its portfolio and in response to continued weakness
in the European economy. Actions will include closing certain
manufacturing plants in Europe, North America and Latin America, as
well as canceling a selection of capital projects and implementing
workforce reductions, as part of the Company's previously announced
cost-reduction efforts and its Efficiency for Growth program
initiated in 2011.
Dow anticipates that it will save approximately $250 million
annually from these actions. The savings are in addition to the
$500 million in cash flow that Dow already delivered in 2011 from
the inception in May 2011 of its Efficiency for Growth program, and
are part of the Company's goal to deliver an additional $250
million of cash flow from cost interventions in 2012. The Company
anticipates that approximately 900 positions will be eliminated
worldwide, and in the first quarter, Dow will take charges totaling
approximately $350 million for asset impairments and write-offs,
severance and other costs related to these measures.
"These actions, while difficult, are in full alignment with our
commitment to continually manage our portfolio to adapt to changing
and volatile economic conditions, as we are seeing particularly in
Western Europe, and to preferentially invest in our fast-growing,
technology-rich businesses," said Andrew N. Liveris, Dow's chairman
and chief executive officer. "Today's announcement further
demonstrates our resolve and ability to take swift, strategic cash
flow interventions that will keep Dow solidly on a trajectory to
deliver $10 billion in EBITDA in the near term."
Dow will shut down three plants that produce STYROFOAMtm Brand
Insulation products located in Estarreja, Portugal; Balatonfuzfo,
Hungary; and Charleston, Illinois; and idle a plant in Terneuzen,
The Netherlands. Dow will also close its toluene diisocyanate (TDI)
plant in Camaçari, Brazil. In addition to these closures, Dow will
consolidate certain other assets in its Polyurethanes and Epoxy
businesses, optimizing their operations while remaining focused on
meeting customer needs and sourcing through non-impacted assets.
These actions are expected to take place over the next two
years.
About Dow
Dow (NYSE: DOW) combines the power of science and technology 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 delivers 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 2011, Dow had annual sales of $60 billion and
employed approximately 52,000 people worldwide. The Company's more
than 5,000 products are manufactured at 197 sites in 36 countries
across the globe. References to "Dow" or the "Company" mean The Dow
Chemical Company and its consolidated subsidiaries unless otherwise
expressly noted. More information about Dow can be found at
www.dow.com.
Note: The forward-looking statements contained in this document
involve risks and uncertainties that may affect the Company's
operations, markets, products, services, prices and other factors
as discussed in filings with the Securities and Exchange
Commission. These risks and uncertainties include, but are not
limited to, economic, competitive, legal, governmental and
technological factors. Accordingly, there is no assurance that the
Company's expectations will be realized. The Company assumes no
obligation to provide revisions to any forward-looking statements
should circumstances change, except as otherwise required by
securities and other applicable laws.
For editorial information:Rebecca Bentley,
989-638-8568rmbentley@dow.comorGreg Baldwin,
989-638-0745gbaldwin@dow.com
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