METHOS
Forumer storico
Ci sono movimenti in vista per il debito ineos
http://uk.reuters.com/article/allBreakingNews/idUKL452822720090204
http://uk.reuters.com/article/allBreakingNews/idUKL452822720090204
Obbligazioni societarie Monitor bond Chimica Europa
- Creatore Discussione lorenzo63
- Data di Inizio
lorenzo63
Age quod Agis
Ancora su Rohm e Dow
Mix two chemicals, chuck in a match and the results can be unpredictable.
That is why the 45% spread between Rohm & Haas's share price and the $78 that Dow Chemical agreed to pay for the company should be treated with caution.
It isn't that Dow's riposte to Rohm's court complaint is compelling. Persuading a Delaware judge that Dow is in the midst of a "perfect storm" and he shouldn't force the deal through, while also avoiding a worrying precedent, will require a perfect pitch from Dow's lawyers. An apparent mix-up in Tuesday's filing -- Lehman Brothers collapsed after July, not Bear Stearns -- hardly helps.
Dow hasn't helped its case by dragging its heels on cutting its dividend. That is worth $1.6 billion, or 18% of the $9 billion hole left in Dow's financing math by the collapse of a joint venture with Kuwait. Meanwhile, Rohm could argue that a deeply discounted equity issue could raise most of the rest, even if it heavily dilutes Dow shareholders.
Still, the judge is likely to prefer a negotiated settlement, where parameters, including price, could alter. Failing that, the outcome would rest squarely in his hands. Arbitragers are in the business of second-guessing judges.
But when the potential rewards look this high, the corollary is that the outcome is no slam dunk
Mix two chemicals, chuck in a match and the results can be unpredictable.
That is why the 45% spread between Rohm & Haas's share price and the $78 that Dow Chemical agreed to pay for the company should be treated with caution.
It isn't that Dow's riposte to Rohm's court complaint is compelling. Persuading a Delaware judge that Dow is in the midst of a "perfect storm" and he shouldn't force the deal through, while also avoiding a worrying precedent, will require a perfect pitch from Dow's lawyers. An apparent mix-up in Tuesday's filing -- Lehman Brothers collapsed after July, not Bear Stearns -- hardly helps.
Dow hasn't helped its case by dragging its heels on cutting its dividend. That is worth $1.6 billion, or 18% of the $9 billion hole left in Dow's financing math by the collapse of a joint venture with Kuwait. Meanwhile, Rohm could argue that a deeply discounted equity issue could raise most of the rest, even if it heavily dilutes Dow shareholders.
Still, the judge is likely to prefer a negotiated settlement, where parameters, including price, could alter. Failing that, the outcome would rest squarely in his hands. Arbitragers are in the business of second-guessing judges.
But when the potential rewards look this high, the corollary is that the outcome is no slam dunk
Ultima modifica:
lorenzo63
Age quod Agis
Lorenzo, ma tu vedi chimica dappertutto...Unilever è considerata food dagli analisti obbligazionari...
Purtroppo io ho (avuto) a che fare con una parte che si occupa di cosmesi ergo...Imark
Forumer storico
Giusto, e poi il lavoro fatto può sempre essere recuperato...
Imark
Forumer storico
Un player della chimica che si è mosso controtendenza di recente è la svizzera Syngenta. Opera in prevalenza nel comparto della chimica per l'agricoltura, che ha avuto un andamento meno problematico di altri sottocomparti del settore.
Diamo intanto i bond in euro con cui la società è presente sull'euromercato. ce ne sono anche in CHF, valuta di riferimento per la società, acquartierata a Basilea.
4,125% Syngenta finance 2011
http://anleihen.onvista.de/snapshot.html?ID_INSTRUMENT=15215271
4,125% Syngenta finance 2015
http://anleihen.onvista.de/snapshot.html?ID_INSTRUMENT=12145086
Nel 2008 il fatturato da vendite è cresciuto del 26%, e l'utile netto più o meno nella stessa misura. La società ha riacquistato azioni proprie per circa il 9% del totale, ed ha però dichiarato che intende crescere nel 2009 mediante acquisizioni, preferendo indirizzare il cash flow realizzato in quella direzione piuttosto che varare nuovi piani di buyback azionario.
Per il 2009, la Syngenta non ha tuttavia reiterato il proprio target di crescita sostenuta ("in the high teens") dell'EPS dato tempo addietro, limitandosi a dichiarare la propria intenzione di conseguire per il 2009 un EPS in aumento rispetto al 2008.
UPDATE: Syngenta 2008 Net Profit Up 25%, More Cautious On 2009
February 06, 2009: 04:13 AM ET
(Adds detail, executive and analyst comments
By Martin Gelnar and Julia Mengewein
Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Agrochemical company Syngenta AG (SYT) Friday reported a 25% rise in 2008 net profit and raised the dividend but gave a guarded outlook for 2009.
The Basel-based producer of crop protection chemicals and seeds said net profit in the 12 months to end-December rose to $1.39 billion from $1.11 billion a year ago, below market expectations of $1.44 billion.
Sales were $11.62 billion, up 26% on $9.24 billion a year ago.
The company said it aims to grow earnings per share this year. It didn't repeat a previous guidance of growth "in the high teens" in its EPS excluding non-recurring income, restructuring and impairments.
The company plans to hike the dividend by 25% to 6.0 ($5.13) Swiss francs a share.
Analysts described the results were solid but some said the change in outlook was a bit disappointing.
On the Swiss bourse at 0830 GMT, the shares fell 1.5%, or 3.40 Swiss francs ($ 2.90), to CHF221.50. They've fallen about 20% in the past 12 months, but are up around 12% year-to-date, partly due to last month's strong results from U.S rival Monsanto Co. (MON).
"In 2009, adverse currency effects and the need for tight risk management may limit growth in the emerging markets. Early signs for the northern hemisphere season are encouraging and we are well placed again to outperform the overall market, enabling us to continue targeting growth in earnings per share in 2009 despite economic uncertainty," Chief Executive Officer Mike Mack said.
The company is in a good position to grow through acquisitions, Mack told Dow Jones in a telephone interview.
"We have a clear acquisition strategy and we'll see what will come along," he said.
Asked about the possibility of another share buyback, he said: "We will rather use the cash to grow our business."
In 2008, Syngenta bought back 9% of its outstanding shares for $1.95 billion.
In the past few months, it has acquired three smaller companies in Argentina and the U.S.
Mack said he expects continued strong growth in emerging markets, adding that he also sees continued momentum in mature markets. "In the U.S., farmers are coming out of 2008 with high profits. They know how to use credit and technology," he said.
Still, analysts said the outlook is clouded with uncertainty.
Bank of America/Merrill Lynch said the intensity of crop protection use may be lower in 2009, especially outside the U.S. market. Also, inventory overhang at the farm level may prove to be far higher than generally understood at present, analyst Andrew Stott said. He reaffirmed a neutral rating and a price target of CHF230
Diamo intanto i bond in euro con cui la società è presente sull'euromercato. ce ne sono anche in CHF, valuta di riferimento per la società, acquartierata a Basilea.
4,125% Syngenta finance 2011
http://anleihen.onvista.de/snapshot.html?ID_INSTRUMENT=15215271
4,125% Syngenta finance 2015
http://anleihen.onvista.de/snapshot.html?ID_INSTRUMENT=12145086
Nel 2008 il fatturato da vendite è cresciuto del 26%, e l'utile netto più o meno nella stessa misura. La società ha riacquistato azioni proprie per circa il 9% del totale, ed ha però dichiarato che intende crescere nel 2009 mediante acquisizioni, preferendo indirizzare il cash flow realizzato in quella direzione piuttosto che varare nuovi piani di buyback azionario.
Per il 2009, la Syngenta non ha tuttavia reiterato il proprio target di crescita sostenuta ("in the high teens") dell'EPS dato tempo addietro, limitandosi a dichiarare la propria intenzione di conseguire per il 2009 un EPS in aumento rispetto al 2008.
UPDATE: Syngenta 2008 Net Profit Up 25%, More Cautious On 2009
February 06, 2009: 04:13 AM ET
(Adds detail, executive and analyst comments
By Martin Gelnar and Julia Mengewein
Of DOW JONES NEWSWIRES
ZURICH -(Dow Jones)- Agrochemical company Syngenta AG (SYT) Friday reported a 25% rise in 2008 net profit and raised the dividend but gave a guarded outlook for 2009.
The Basel-based producer of crop protection chemicals and seeds said net profit in the 12 months to end-December rose to $1.39 billion from $1.11 billion a year ago, below market expectations of $1.44 billion.
Sales were $11.62 billion, up 26% on $9.24 billion a year ago.
The company said it aims to grow earnings per share this year. It didn't repeat a previous guidance of growth "in the high teens" in its EPS excluding non-recurring income, restructuring and impairments.
The company plans to hike the dividend by 25% to 6.0 ($5.13) Swiss francs a share.
Analysts described the results were solid but some said the change in outlook was a bit disappointing.
On the Swiss bourse at 0830 GMT, the shares fell 1.5%, or 3.40 Swiss francs ($ 2.90), to CHF221.50. They've fallen about 20% in the past 12 months, but are up around 12% year-to-date, partly due to last month's strong results from U.S rival Monsanto Co. (MON).
"In 2009, adverse currency effects and the need for tight risk management may limit growth in the emerging markets. Early signs for the northern hemisphere season are encouraging and we are well placed again to outperform the overall market, enabling us to continue targeting growth in earnings per share in 2009 despite economic uncertainty," Chief Executive Officer Mike Mack said.
The company is in a good position to grow through acquisitions, Mack told Dow Jones in a telephone interview.
"We have a clear acquisition strategy and we'll see what will come along," he said.
Asked about the possibility of another share buyback, he said: "We will rather use the cash to grow our business."
In 2008, Syngenta bought back 9% of its outstanding shares for $1.95 billion.
In the past few months, it has acquired three smaller companies in Argentina and the U.S.
Mack said he expects continued strong growth in emerging markets, adding that he also sees continued momentum in mature markets. "In the U.S., farmers are coming out of 2008 with high profits. They know how to use credit and technology," he said.
Still, analysts said the outlook is clouded with uncertainty.
Bank of America/Merrill Lynch said the intensity of crop protection use may be lower in 2009, especially outside the U.S. market. Also, inventory overhang at the farm level may prove to be far higher than generally understood at present, analyst Andrew Stott said. He reaffirmed a neutral rating and a price target of CHF230
ZYGMUNT
Forumer attivo
Mark, non ho possibiltà di acquistare bond di Syngenta.
Ci sarebbe una Dow Chemical scadenza 2010, con un rendimento netto del 4% ?
Che dici, se pò fà?
Grazie
lorenzo63
Age quod Agis
Dow
http://www.investireoggi.it/forum/monitor-bond-chimica-europa-vt37426.html?p=733815&highlight=chemical[/url]#56#
http://www.investireoggi.it/forum/m...ropa-vt37426.html?p=733827&highlight=chemical #64#
http://www.investireoggi.it/forum/m...ropa-vt37426.html?p=733830&highlight=chemical #66#
http://www.investireoggi.it/forum/m...ropa-vt37426.html?p=742081&highlight=chemical #104#
http://www.investireoggi.it/forum/m...ropa-vt37426.html?p=754618&highlight=chemical #132#
Dow Generates Substantial Cash Flow In Fourth Quarter Despite Lower Earnings; Dow AgroSciences Sets Full-Year Sales and EBIT Records
MIDLAND, Mich., Feb. 3 /PRNewswire-FirstCall/ --
Fourth Quarter 2008 Highlights
-- The Company reported a loss of $1.68 per share; excluding certain items, the loss was $0.62 per share. Earnings in the fourth quarter of 2007 were $0.49 per share; excluding certain items, earnings in the fourth quarter of 2007 were $0.84 per share. (See Supplemental Information at the end of the release for a description of these items.) In addition, earnings for the quarter were reduced by a much higher effective tax rate, which was unfavorably impacted by several items totaling $295 million, equivalent to $0.32 per share.
-- The Company delivered on its fourth quarter commitments related to generating cash and controlling costs as outlined in October 2008. Management interventions contributed to cash provided by operating activities of $2.2 billion and free cash flow(1) of $1.2 billion in the quarter.
-- Sales for the fourth quarter were down 23 percent from the same period last year to $10.9 billion. Volume declined 17 percent, and was down in all operating segments and in all geographic areas, reflecting the global economic downturn as well as the de-stocking that occurred through most value chains.
-- The Company reduced production to match market conditions. This resulted in historically low operating rates, particularly in December which was 44 percent. For the quarter, the operating rate was 64 percent, a rate not seen in more than 25 years.
-- Price was down 6 percent in the quarter, as a 4 percent increase in the Performance segments was more than offset by a 15 percent decline in the Basics segments. The decline in Basics was principally due to a 23 percent drop in feedstock and energy costs versus the same quarter last year.
2008 Full-Year Highlights
-- Cash provided by operating activities was $4.7 billion in 2008, an improvement of more than $200 million versus 2007, against deteriorating economic conditions.
-- Despite the sales decline in the fourth quarter, 2008 sales increased 7 percent compared with 2007, setting another record for the Company of $57.5 billion. Price increased 12 percent, while volume was down 5 percent.
-- Dow AgroSciences reported full-year sales and EBIT(2) records. Sales grew 20 percent to $4.5 billion, reflecting an 8 percent increase in volume and a 12 percent increase in price, and delivering EBIT of $761 million.
-- Equity earnings declined to $787 million from $1.1 billion in 2007, reflecting the global demand destruction that took place in the fourth quarter of 2008.
-- Dow reported full-year earnings of $0.62 per share; excluding certain items, earnings for the year were $1.82 per share. Earnings for 2007 were $2.99 per share; excluding certain items, earnings for 2007 were $3.76 per share. (See Supplemental Information at the end of the release for a description of these items.)
Comment
Andrew N. Liveris, Dow's chairman and chief executive officer, stated:
"With a global economic crisis unfolding during the quarter, we responded with speed and urgency to get ahead of the demand destruction that continued to accelerate as we approached the end of the year. We immediately put in place a full array of aggressive cash generation and cost and capital control measures that delivered results. We remain intensely focused on those actions that we can control and will continue to do so throughout 2009."
3 Months Ended 12 Months Ended
(In millions, except for per Dec. 31 Dec. 31
share amounts) 2008 2007 2008 2007
Net Sales $10,899 $14,227 $57,514 $53,513
Net Income (Loss) $(1,552) $472 $579 $2,887
Earnings (Loss) per Common Share $(1.68) $0.49 $0.62 $2.99
Earnings (Loss) per Common Share
Excluding Certain Items $(0.62) $0.84 $1.82 $3.76
Review of Fourth Quarter Results
The Dow Chemical Company (NYSE: DOW) reported sales of $10.9 billion for the fourth quarter of 2008, representing a 23 percent decline compared with the same period last year.
The Company reported a net loss of $1,552 million, reflecting the impact of net after-tax charges of $978 million related to restructuring activities, goodwill impairment losses, the impact of Hurricanes Gustav and Ike, K-Dow related expenses, purchased in-process research and development charges ("IPR&D"), and expenses related to the Company's announced acquisition of Rohm and Haas Company. This compares with net income of $472 million in the fourth quarter of 2007, which reflected the impact of after-tax charges of $447 million related to restructuring activities and an adjustment to IPR&D, which were partially offset by a reduction in the provision for income taxes of $113 million related to a change in the legal ownership structure of EQUATE. (See Supplemental Information at the end of the release for a description of these items.)
Dow reported a loss per share of $1.68, which included charges totaling $1.06 for the items referenced above. This compares with earnings per share of $0.49 in the year ago period, which included net charges of $0.35 per share for the items referenced above.
Price was down 6 percent versus the same quarter last year, as a 15 percent decline in the combined Basics segments was partially offset by an increase of 4 percent in the combined Performance segments. Performance Chemicals reported price gains of 9 percent, while Agricultural Sciences was up 6 percent.
Volume declined 17 percent, and was down in all operating segments and in all geographic areas, reflecting the global economic downturn as well as the de-stocking that occurred through most value chains.
Purchased feedstock and energy costs were down 23 percent versus the same quarter last year, contributing to the decline in prices reported in the Basics segments.
Despite prices declining at a slower pace than feedstock and energy costs, the widespread demand destruction in the quarter resulted in margin compression. The Company reduced production to match poor market conditions, which resulted in historically low operating rates, particularly in December which was 44 percent. For the full quarter, the operating rate was 64 percent - a rate not seen in more than 25 years - which led to higher unabsorbed fixed costs.
Equity earnings/losses were a net loss of $4 million, as nonconsolidated affiliates reported margin compression due to volume and price declines brought on by global recessionary pressures.
Selling, Administrative and Research and Development ("SARD") expenses decreased 9 percent year over year, reflecting the Company's strict spending discipline even as strategic bolt-on acquisitions by Dow AgroSciences continued.
The Company delivered on its fourth quarter commitments related to generating cash and controlling costs as outlined in October 2008. Management interventions contributed to cash provided by operating activities of $2.2 billion and free cash flow of $1.2 billion in the quarter.
Dow's effective tax rate for the quarter was unfavorably impacted by several items totaling $295 million (equivalent to $0.32 per share), including higher foreign income taxes, principally in Canada; U.S. tax on increased dividends from foreign subsidiaries; and valuation allowances recorded against deferred tax assets.
"With a global economic crisis unfolding during the quarter, we responded with speed and urgency to get ahead of the demand destruction that continued to accelerate as we approached the end of the year," said Andrew N. Liveris, chairman and chief executive officer. "We immediately put in place a full array of aggressive cash generation and cost and capital control measures that delivered results. We remain intensely focused on those actions that we can control and will continue to do so throughout 2009."
Performance Plastics
Sales in the Performance Plastics segment were $3.16 billion, down 20 percent from the same period last year. Price increased 1 percent, while volume declined 21 percent. Polyurethanes reported a loss of volume reflecting global weakness in furniture, automotive, appliance and bedding applications. Dow Epoxy reported stable demand in metal coating applications used in food packaging, marine coatings and in coatings for pipelines and other infrastructure applications, as ongoing projects progressed on schedule. These gains, however, were more than offset by declines in industrial coatings used in building and construction applications. Dow Automotive reported significant volume declines, due to the broadening global downturn in vehicle production. The Specialty Plastics and Elastomers business also posted a decrease in volume, due to sluggish demand in automotive, footwear and building applications. Demand for telecommunication fiber optic cables in the Wire and Cable business increased, as did demand for power cable used in commercial construction segments. The Performance Plastics segment reported a loss in fourth quarter EBIT of $479 million, which included charges of $111 million for restructuring, a goodwill impairment loss of $209 million, and $13 million related to the impact of Hurricanes Gustav and Ike. This compares with fourth quarter EBIT of $158 million in the same quarter last year, which included restructuring charges of $184 million.
Performance Chemicals
Performance Chemicals reported a 7 percent decrease in sales to $1.97 billion versus sales of $2.13 billion in the fourth quarter of 2007. Globally, price was up 9 percent while volume decreased 16 percent. Pricing showed resilience in the quarter, and was up in all geographic areas and in all businesses. However, results were negatively impacted by double-digit declines in volume in all geographic areas. Price was up in Designed Polymers, due in part to strength in food and pharmaceutical end-use markets served by Dow Wolff Cellulosics, and in Dow Water Solutions, which reported favorable demand for reverse osmosis membranes used in sulfate removal applications. Continued volume declines for cellulosics used in the automotive and construction industries negatively impacted overall results at Dow Wolff Cellulosics. Dow Emulsion Polymers reported ongoing weakness in paper and carpet applications, the latter reflecting the global slowdown in the housing sector. Equity earnings increased year over year, driven by results at Dow Corning. EBIT for Performance Chemicals was $174 million for the quarter, reflecting charges of $25 million for restructuring and the impact of the two hurricanes. This compares with EBIT of $124 million in the same quarter last year, which included a net $83 million of restructuring charges and an adjustment to IPR&D.
Agricultural Sciences
The Agricultural Sciences segment posted record fourth quarter sales of $885 million, 2 percent higher than the same quarter last year. This marked the tenth consecutive quarter that Dow AgroSciences has recorded a sales record versus the comparative period of the prior year. Volume declined 4 percent, and price increased 6 percent. Price was up in all geographic areas except Asia Pacific, while both price and volume increased in North America. Seed sales increased versus the same quarter last year, led by U.S. corn sales and sunflower sales in Latin America. Sales of agricultural chemicals declined due to product shortages and lack of available credit for farmers in some regions. Continuing its strategic growth agenda, Dow AgroSciences acquired Brodbeck Seeds, Sudwestsaat GbR and the corn assets of Coodetec in Brazil, bringing the number of acquisitions since May 2007 to nine. New products aminopyralid, penoxsulam, pyroxsulam and spinetoram continued to ramp-up successfully. Fourth quarter EBIT for Agricultural Sciences was $34 million, which included a charge of $17 million for IPR&D related to a recent acquisition and $3 million in restructuring charges. This compares with a loss of $38 million in the same period last year, which included restructuring charges of $77 million.
Basic Plastics
Basic Plastics sales declined 38 percent to $2.17 billion compared with sales of $3.49 billion in the same period last year. Price decreased 15 percent, due in large part to rapidly declining hydrocarbon and energy prices. Volume was down 23 percent, reflecting the collapse in demand that took place in the quarter. Double-digit volume declines were reported in all geographic areas and across all polymer families. Volume was also negatively impacted by the shutdown of polypropylene capacity in St. Charles, Louisiana, in 2007; the sale of polyethylene assets in Cubatao, Brazil in 2007; the joint venture formation of Americas Styrenics in May 2008; and the impact of Hurricanes Gustav and Ike. Polyethylene reported stable demand in food and specialty packaging applications as the global economic downturn resulted in more in- home dining, while underlying demand for polypropylene was down due to global slowdowns in the housing and automotive sectors. Equity earnings/losses were a net loss of $54 million due to lower earnings at EQUATE, Equipolymers, and Siam Polyethylene. EBIT for the Basic Plastics segment was a loss of $315 million, which included restructuring charges of $148 million, a goodwill impairment loss of $30 million, and charges of $3 million related to the impact of the hurricanes. This compares with EBIT of $394 million in the year- ago period, which included restructuring charges of $88 million.
Basic Chemicals
Basic Chemicals sales for the quarter decreased 39 percent year over year to $992 million from $1.63 billion in 2007. Volume was down 33 percent, while price declined 6 percent. Double-digit volume declines were reported in all geographic areas. Compared with the same period last year, volume was lower due to the sale of the caustic soda business in Western Canada in December 2007. Caustic soda prices continued to benefit from ongoing favorable industry supply/demand fundamentals, while demand for vinyl chloride monomer used in polyvinylchloride ("PVC") production declined further, as end-use applications for PVC, namely residential building and construction applications, remained extremely weak. Volumes were down substantially in the Ethylene Oxide/Ethylene Glycol ("EO/EG") business due to unfavorable industry fundamentals, new capacity from Middle Eastern suppliers, and worsening demand for polyester fiber in Asia Pacific. Equity earnings/losses were a net loss of $20 million in the quarter, reflecting depressed operating results at MEGlobal, EQUATE and OPTIMAL. Fourth quarter EBIT was a loss of $237 million, which included restructuring charges of $103 million and charges of $15 million related to the impact of the two hurricanes. This compares with EBIT of $309 million in the same period last year, which included a restructuring charge of $7 million.
Review of Results for 2008
Dow reported record annual sales of $57.5 billion, 7 percent higher than last year's record of $53.5 billion. Price increased 12 percent, with increases in every operating segment and in all geographic areas, principally due to higher feedstock and energy costs, which were up $5.9 billion compared with 2007.
Volume was down 5 percent, with declines in all geographic areas except India, Middle East and Africa, and in all segments except Agricultural Sciences, which reported a volume gain of 8 percent, and Hydrocarbons and Energy, which was up 5 percent.
Equity earnings declined to $787 million from $1.1 billion in 2007, reflecting the global demand destruction that took place in the fourth quarter of 2008, as well as the decline in global energy markets.
Net income for the year was $579 million, which included certain items with a net unfavorable impact of $1.1 billion. This compares with net income in 2007 of $2.9 billion, which included certain items with a net unfavorable impact of $735 million. (See Supplemental Information at the end of the release for a description of these items.)
Cash provided by operating activities was $4.7 billion in 2008, an improvement of more than $200 million versus 2007, despite deteriorating economic conditions.
At year-end, the funded status of the Company's defined benefit pension plans declined due to the reduction in global equity markets, resulting in an after-tax charge to equity of $3.3 billion.
Earnings per share were $0.62 in 2008 and $2.99 in 2007. Excluding certain items in both periods, earnings per share were $1.82 in 2008, down from $3.76 in 2007. (See Supplemental Information at the end of the release for a description of certain items.)
Commenting on the Company's outlook, Liveris said: "As we enter 2009 we are assuming that the late 2008 demand levels will continue for several quarters and possibly beyond. Most of our value chains are running at very low inventory levels, and when a recovery begins, possibly through government stimuli in the back half of the year, the recovery could be rapid. Having said that, we are planning for a global recession throughout 2009 and will continue to take actions on managing our cash and controlling our costs with the same intensity that we demonstrated in the fourth quarter."
-- Dow will host a live Webcast of its fourth quarter earnings conference call with investors to discuss its results, business outlook and other matters today at 10:00 a.m. ET on www.dow.com.
(R)(TM) Trademark of The Dow Chemical Company or an affiliated company of Dow.
(1) Free cash flow is defined as "Cash provided by operating activities"
of $2,249 million less "Capital expenditures" of $692 million less
"Dividends paid to stockholders" of $389 million.
(2) Earnings before interest, income taxes and minority interests
("EBIT"). A reconciliation of EBIT to "Net Income (Loss) Available
for Common Stockholders" is provided following the Operating Segments
table.
About Dow
With annual sales of $58 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element" to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. 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
Use of non-GAAP measures: Dow's management believes that measures of income excluding certain items ("non-GAAP" measures) provide relevant and meaningful information to investors about the ongoing operating results of the Company. Such measurements are not recognized in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP measures are provided in the Supplemental Information tables.
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.
Supplemental Information
Description of Certain Items Affecting Results:
Fourth Quarters of 2008 and 2007
Results for the fourth quarter of 2008 were negatively impacted by the following items:
-- Pretax costs totaling $54 million related to Hurricanes Gustav and Ike, which hit the U.S. Gulf Coast in the third quarter. These costs, which primarily included the repair of property damage and unabsorbed fixed costs, are included in "Cost of sales" in the consolidated statements of income and reflected in the operating segments as follows: $13 million in Performance Plastics, $1 million in Performance Chemicals, $3 million in Basic Plastics, $15 million in Basic Chemicals, $16 million in Hydrocarbons and Energy, and $6 million in Unallocated and Other.
-- Pretax legal expenses and other costs of $69 million related to the K- Dow transaction that were expensed upon Petrochemical Industries Company's refusal to close the K-Dow transaction on January 2, 2009. These costs are shown as "Cost of sales" in the consolidated statements of income and reflected in Unallocated and Other.
-- Goodwill impairment losses of $239 million related to the Dow Automotive ($209 million against Performance Plastics) and Polypropylene ($30 million against Basic Plastics) reporting units. The losses are shown as "Goodwill impairment losses" in the consolidated statements of income.
-- Net pretax restructuring charges of $839 million. In December 2008, the Company's Board of Directors approved a restructuring plan as part of a series of actions to advance the Company's strategy and respond to the recent, severe economic downturn. The restructuring plan includes the shut down of a number of facilities and a global workforce reduction. As a result, the Company recorded restructuring charges totaling $785 million, including asset write- downs and write-offs of $336 million, severance costs of $321 million and costs associated with exit or disposal activities (such as pension curtailment costs and environmental remediation) of $128 million. In addition, the Company recorded a $60 million unfavorable adjustment to restructuring charges recorded in the fourth quarter of 2007 and a $6 million favorable adjustment to restructuring charges recorded in the third quarter of 2006. The net impact of the fourth quarter charges and adjustments, which is shown as "Restructuring charges" in the consolidated statements of income, impacted all operating segments.
-- Pretax charge of $17 million for purchased in-process research and development ("IPR&D") related to the recent acquisition of assets of Suwestsaat GbR. The charge is shown as "Purchased in-process research and development charges (credit)" in the consolidated statements of income and reflected in Agricultural Sciences.
-- Pretax charges totaling $31 million for legal expenses and other transaction costs related to the pending acquisition of Rohm and Haas Company. These charges are shown as "Acquisition-related expenses" in the consolidated statements of income and reflected in Unallocated and Other.
Results for the fourth quarter of 2007 were impacted by the following items:
-- Net pretax restructuring charges of $582 million. In December 2007, the Company's Board of Directors approved a restructuring plan that included the shut down of a number of assets and organizational changes within targeted support functions to enhance the efficiency and cost effectiveness of the Company's global operations. As a result, the Company recorded restructuring charges totaling $590 million in the fourth quarter of 2007. The charges included asset write-downs and write-offs of $422 million, costs associated with exit or disposal activities of $82 million and severance costs of $86 million. In addition, in the fourth quarter of 2007 the Company recorded an $8 million favorable adjustment to restructuring charges originally recorded in the third quarter of 2006. The net impact of the charges is shown as "Restructuring charges" in the consolidated statements of income.
-- A favorable adjustment of $2 million to IPR&D, reducing the amount originally recorded in the third quarter of 2007 related to the acquisition of Wolff Walsrode.
-- A reduction of $113 million in the provision for income taxes related to a change in the legal ownership structure of the Company's 42.5 percent interest in EQUATE Petrochemical Company K.S.C.
Years ended December 31, 2008 and 2007
In addition to the items described above for the fourth quarter of 2008, earnings for 2008 were unfavorably impacted by the following third quarter items:
-- Pretax costs totaling $127 million related to Hurricanes Gustav and Ike. These costs, which included the repair of property damage, clean-up costs, unabsorbed fixed costs and inventory write-offs, are included in "Cost of sales" and reflected in the operating segments as follows: $35 million in Performance Plastics, $14 million in Performance Chemicals, $2 million in Agricultural Sciences, $11 million in Basic Plastics, $26 million in Basic Chemicals, $36 million in Hydrocarbons and Energy, and $3 million in Unallocated and Other.
-- Pretax charges totaling $27 million for IPR&D related to the recent acquisitions of assets of Texas Triumph Seed Co., Inc.; Dairyland Seed Co., Inc.; and Bio-Plant Research Ltd; these charges are reflected in Agricultural Sciences.
-- Pretax charges totaling $18 million for legal expenses and other transaction costs related to the pending acquisition of Rohm and Haas Company; these charges are reflected in Unallocated and Other.
In addition to the items described above for the fourth quarter of 2007, earnings for 2007 were unfavorably impacted by the following items:
-- Pretax charges totaling $59 million in the third quarter for IPR&D related to the 2007 acquisitions of assets of Agromen, Exelixis, Duo Maize and Maize Technologies International and the 2007 acquisition of Wolff Walsrode.
-- A $362 million charge against the provision for income taxes related to a change in German tax law enacted in August 2007, which reduced the German income tax rate, resulting in a reduction in the value of the Company's net deferred tax assets in Germany.
A table showing the impact of these items by operating segment is included with the Operating Segments tables.
The following tables summarize the impact of certain items recorded in the three-month and twelve-month periods ended December 31, 2008 and 2007, and previously described in this section
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Dow Generates Substantial Cash Flow In Fourth Quarter Despite Lower Earnings; Dow AgroSciences Sets Full-Year Sales and EBIT Records
MIDLAND, Mich., Feb. 3 /PRNewswire-FirstCall/ --
Fourth Quarter 2008 Highlights
-- The Company reported a loss of $1.68 per share; excluding certain items, the loss was $0.62 per share. Earnings in the fourth quarter of 2007 were $0.49 per share; excluding certain items, earnings in the fourth quarter of 2007 were $0.84 per share. (See Supplemental Information at the end of the release for a description of these items.) In addition, earnings for the quarter were reduced by a much higher effective tax rate, which was unfavorably impacted by several items totaling $295 million, equivalent to $0.32 per share.
-- The Company delivered on its fourth quarter commitments related to generating cash and controlling costs as outlined in October 2008. Management interventions contributed to cash provided by operating activities of $2.2 billion and free cash flow(1) of $1.2 billion in the quarter.
-- Sales for the fourth quarter were down 23 percent from the same period last year to $10.9 billion. Volume declined 17 percent, and was down in all operating segments and in all geographic areas, reflecting the global economic downturn as well as the de-stocking that occurred through most value chains.
-- The Company reduced production to match market conditions. This resulted in historically low operating rates, particularly in December which was 44 percent. For the quarter, the operating rate was 64 percent, a rate not seen in more than 25 years.
-- Price was down 6 percent in the quarter, as a 4 percent increase in the Performance segments was more than offset by a 15 percent decline in the Basics segments. The decline in Basics was principally due to a 23 percent drop in feedstock and energy costs versus the same quarter last year.
2008 Full-Year Highlights
-- Cash provided by operating activities was $4.7 billion in 2008, an improvement of more than $200 million versus 2007, against deteriorating economic conditions.
-- Despite the sales decline in the fourth quarter, 2008 sales increased 7 percent compared with 2007, setting another record for the Company of $57.5 billion. Price increased 12 percent, while volume was down 5 percent.
-- Dow AgroSciences reported full-year sales and EBIT(2) records. Sales grew 20 percent to $4.5 billion, reflecting an 8 percent increase in volume and a 12 percent increase in price, and delivering EBIT of $761 million.
-- Equity earnings declined to $787 million from $1.1 billion in 2007, reflecting the global demand destruction that took place in the fourth quarter of 2008.
-- Dow reported full-year earnings of $0.62 per share; excluding certain items, earnings for the year were $1.82 per share. Earnings for 2007 were $2.99 per share; excluding certain items, earnings for 2007 were $3.76 per share. (See Supplemental Information at the end of the release for a description of these items.)
Comment
Andrew N. Liveris, Dow's chairman and chief executive officer, stated:
"With a global economic crisis unfolding during the quarter, we responded with speed and urgency to get ahead of the demand destruction that continued to accelerate as we approached the end of the year. We immediately put in place a full array of aggressive cash generation and cost and capital control measures that delivered results. We remain intensely focused on those actions that we can control and will continue to do so throughout 2009."
3 Months Ended 12 Months Ended
(In millions, except for per Dec. 31 Dec. 31
share amounts) 2008 2007 2008 2007
Net Sales $10,899 $14,227 $57,514 $53,513
Net Income (Loss) $(1,552) $472 $579 $2,887
Earnings (Loss) per Common Share $(1.68) $0.49 $0.62 $2.99
Earnings (Loss) per Common Share
Excluding Certain Items $(0.62) $0.84 $1.82 $3.76
Review of Fourth Quarter Results
The Dow Chemical Company (NYSE: DOW) reported sales of $10.9 billion for the fourth quarter of 2008, representing a 23 percent decline compared with the same period last year.
The Company reported a net loss of $1,552 million, reflecting the impact of net after-tax charges of $978 million related to restructuring activities, goodwill impairment losses, the impact of Hurricanes Gustav and Ike, K-Dow related expenses, purchased in-process research and development charges ("IPR&D"), and expenses related to the Company's announced acquisition of Rohm and Haas Company. This compares with net income of $472 million in the fourth quarter of 2007, which reflected the impact of after-tax charges of $447 million related to restructuring activities and an adjustment to IPR&D, which were partially offset by a reduction in the provision for income taxes of $113 million related to a change in the legal ownership structure of EQUATE. (See Supplemental Information at the end of the release for a description of these items.)
Dow reported a loss per share of $1.68, which included charges totaling $1.06 for the items referenced above. This compares with earnings per share of $0.49 in the year ago period, which included net charges of $0.35 per share for the items referenced above.
Price was down 6 percent versus the same quarter last year, as a 15 percent decline in the combined Basics segments was partially offset by an increase of 4 percent in the combined Performance segments. Performance Chemicals reported price gains of 9 percent, while Agricultural Sciences was up 6 percent.
Volume declined 17 percent, and was down in all operating segments and in all geographic areas, reflecting the global economic downturn as well as the de-stocking that occurred through most value chains.
Purchased feedstock and energy costs were down 23 percent versus the same quarter last year, contributing to the decline in prices reported in the Basics segments.
Despite prices declining at a slower pace than feedstock and energy costs, the widespread demand destruction in the quarter resulted in margin compression. The Company reduced production to match poor market conditions, which resulted in historically low operating rates, particularly in December which was 44 percent. For the full quarter, the operating rate was 64 percent - a rate not seen in more than 25 years - which led to higher unabsorbed fixed costs.
Equity earnings/losses were a net loss of $4 million, as nonconsolidated affiliates reported margin compression due to volume and price declines brought on by global recessionary pressures.
Selling, Administrative and Research and Development ("SARD") expenses decreased 9 percent year over year, reflecting the Company's strict spending discipline even as strategic bolt-on acquisitions by Dow AgroSciences continued.
The Company delivered on its fourth quarter commitments related to generating cash and controlling costs as outlined in October 2008. Management interventions contributed to cash provided by operating activities of $2.2 billion and free cash flow of $1.2 billion in the quarter.
Dow's effective tax rate for the quarter was unfavorably impacted by several items totaling $295 million (equivalent to $0.32 per share), including higher foreign income taxes, principally in Canada; U.S. tax on increased dividends from foreign subsidiaries; and valuation allowances recorded against deferred tax assets.
"With a global economic crisis unfolding during the quarter, we responded with speed and urgency to get ahead of the demand destruction that continued to accelerate as we approached the end of the year," said Andrew N. Liveris, chairman and chief executive officer. "We immediately put in place a full array of aggressive cash generation and cost and capital control measures that delivered results. We remain intensely focused on those actions that we can control and will continue to do so throughout 2009."
Performance Plastics
Sales in the Performance Plastics segment were $3.16 billion, down 20 percent from the same period last year. Price increased 1 percent, while volume declined 21 percent. Polyurethanes reported a loss of volume reflecting global weakness in furniture, automotive, appliance and bedding applications. Dow Epoxy reported stable demand in metal coating applications used in food packaging, marine coatings and in coatings for pipelines and other infrastructure applications, as ongoing projects progressed on schedule. These gains, however, were more than offset by declines in industrial coatings used in building and construction applications. Dow Automotive reported significant volume declines, due to the broadening global downturn in vehicle production. The Specialty Plastics and Elastomers business also posted a decrease in volume, due to sluggish demand in automotive, footwear and building applications. Demand for telecommunication fiber optic cables in the Wire and Cable business increased, as did demand for power cable used in commercial construction segments. The Performance Plastics segment reported a loss in fourth quarter EBIT of $479 million, which included charges of $111 million for restructuring, a goodwill impairment loss of $209 million, and $13 million related to the impact of Hurricanes Gustav and Ike. This compares with fourth quarter EBIT of $158 million in the same quarter last year, which included restructuring charges of $184 million.
Performance Chemicals
Performance Chemicals reported a 7 percent decrease in sales to $1.97 billion versus sales of $2.13 billion in the fourth quarter of 2007. Globally, price was up 9 percent while volume decreased 16 percent. Pricing showed resilience in the quarter, and was up in all geographic areas and in all businesses. However, results were negatively impacted by double-digit declines in volume in all geographic areas. Price was up in Designed Polymers, due in part to strength in food and pharmaceutical end-use markets served by Dow Wolff Cellulosics, and in Dow Water Solutions, which reported favorable demand for reverse osmosis membranes used in sulfate removal applications. Continued volume declines for cellulosics used in the automotive and construction industries negatively impacted overall results at Dow Wolff Cellulosics. Dow Emulsion Polymers reported ongoing weakness in paper and carpet applications, the latter reflecting the global slowdown in the housing sector. Equity earnings increased year over year, driven by results at Dow Corning. EBIT for Performance Chemicals was $174 million for the quarter, reflecting charges of $25 million for restructuring and the impact of the two hurricanes. This compares with EBIT of $124 million in the same quarter last year, which included a net $83 million of restructuring charges and an adjustment to IPR&D.
Agricultural Sciences
The Agricultural Sciences segment posted record fourth quarter sales of $885 million, 2 percent higher than the same quarter last year. This marked the tenth consecutive quarter that Dow AgroSciences has recorded a sales record versus the comparative period of the prior year. Volume declined 4 percent, and price increased 6 percent. Price was up in all geographic areas except Asia Pacific, while both price and volume increased in North America. Seed sales increased versus the same quarter last year, led by U.S. corn sales and sunflower sales in Latin America. Sales of agricultural chemicals declined due to product shortages and lack of available credit for farmers in some regions. Continuing its strategic growth agenda, Dow AgroSciences acquired Brodbeck Seeds, Sudwestsaat GbR and the corn assets of Coodetec in Brazil, bringing the number of acquisitions since May 2007 to nine. New products aminopyralid, penoxsulam, pyroxsulam and spinetoram continued to ramp-up successfully. Fourth quarter EBIT for Agricultural Sciences was $34 million, which included a charge of $17 million for IPR&D related to a recent acquisition and $3 million in restructuring charges. This compares with a loss of $38 million in the same period last year, which included restructuring charges of $77 million.
Basic Plastics
Basic Plastics sales declined 38 percent to $2.17 billion compared with sales of $3.49 billion in the same period last year. Price decreased 15 percent, due in large part to rapidly declining hydrocarbon and energy prices. Volume was down 23 percent, reflecting the collapse in demand that took place in the quarter. Double-digit volume declines were reported in all geographic areas and across all polymer families. Volume was also negatively impacted by the shutdown of polypropylene capacity in St. Charles, Louisiana, in 2007; the sale of polyethylene assets in Cubatao, Brazil in 2007; the joint venture formation of Americas Styrenics in May 2008; and the impact of Hurricanes Gustav and Ike. Polyethylene reported stable demand in food and specialty packaging applications as the global economic downturn resulted in more in- home dining, while underlying demand for polypropylene was down due to global slowdowns in the housing and automotive sectors. Equity earnings/losses were a net loss of $54 million due to lower earnings at EQUATE, Equipolymers, and Siam Polyethylene. EBIT for the Basic Plastics segment was a loss of $315 million, which included restructuring charges of $148 million, a goodwill impairment loss of $30 million, and charges of $3 million related to the impact of the hurricanes. This compares with EBIT of $394 million in the year- ago period, which included restructuring charges of $88 million.
Basic Chemicals
Basic Chemicals sales for the quarter decreased 39 percent year over year to $992 million from $1.63 billion in 2007. Volume was down 33 percent, while price declined 6 percent. Double-digit volume declines were reported in all geographic areas. Compared with the same period last year, volume was lower due to the sale of the caustic soda business in Western Canada in December 2007. Caustic soda prices continued to benefit from ongoing favorable industry supply/demand fundamentals, while demand for vinyl chloride monomer used in polyvinylchloride ("PVC") production declined further, as end-use applications for PVC, namely residential building and construction applications, remained extremely weak. Volumes were down substantially in the Ethylene Oxide/Ethylene Glycol ("EO/EG") business due to unfavorable industry fundamentals, new capacity from Middle Eastern suppliers, and worsening demand for polyester fiber in Asia Pacific. Equity earnings/losses were a net loss of $20 million in the quarter, reflecting depressed operating results at MEGlobal, EQUATE and OPTIMAL. Fourth quarter EBIT was a loss of $237 million, which included restructuring charges of $103 million and charges of $15 million related to the impact of the two hurricanes. This compares with EBIT of $309 million in the same period last year, which included a restructuring charge of $7 million.
Review of Results for 2008
Dow reported record annual sales of $57.5 billion, 7 percent higher than last year's record of $53.5 billion. Price increased 12 percent, with increases in every operating segment and in all geographic areas, principally due to higher feedstock and energy costs, which were up $5.9 billion compared with 2007.
Volume was down 5 percent, with declines in all geographic areas except India, Middle East and Africa, and in all segments except Agricultural Sciences, which reported a volume gain of 8 percent, and Hydrocarbons and Energy, which was up 5 percent.
Equity earnings declined to $787 million from $1.1 billion in 2007, reflecting the global demand destruction that took place in the fourth quarter of 2008, as well as the decline in global energy markets.
Net income for the year was $579 million, which included certain items with a net unfavorable impact of $1.1 billion. This compares with net income in 2007 of $2.9 billion, which included certain items with a net unfavorable impact of $735 million. (See Supplemental Information at the end of the release for a description of these items.)
Cash provided by operating activities was $4.7 billion in 2008, an improvement of more than $200 million versus 2007, despite deteriorating economic conditions.
At year-end, the funded status of the Company's defined benefit pension plans declined due to the reduction in global equity markets, resulting in an after-tax charge to equity of $3.3 billion.
Earnings per share were $0.62 in 2008 and $2.99 in 2007. Excluding certain items in both periods, earnings per share were $1.82 in 2008, down from $3.76 in 2007. (See Supplemental Information at the end of the release for a description of certain items.)
Commenting on the Company's outlook, Liveris said: "As we enter 2009 we are assuming that the late 2008 demand levels will continue for several quarters and possibly beyond. Most of our value chains are running at very low inventory levels, and when a recovery begins, possibly through government stimuli in the back half of the year, the recovery could be rapid. Having said that, we are planning for a global recession throughout 2009 and will continue to take actions on managing our cash and controlling our costs with the same intensity that we demonstrated in the fourth quarter."
-- Dow will host a live Webcast of its fourth quarter earnings conference call with investors to discuss its results, business outlook and other matters today at 10:00 a.m. ET on www.dow.com.
(R)(TM) Trademark of The Dow Chemical Company or an affiliated company of Dow.
(1) Free cash flow is defined as "Cash provided by operating activities"
of $2,249 million less "Capital expenditures" of $692 million less
"Dividends paid to stockholders" of $389 million.
(2) Earnings before interest, income taxes and minority interests
("EBIT"). A reconciliation of EBIT to "Net Income (Loss) Available
for Common Stockholders" is provided following the Operating Segments
table.
About Dow
With annual sales of $58 billion and 46,000 employees worldwide, Dow is a diversified chemical company that combines the power of science and technology with the "Human Element" to constantly improve what is essential to human progress. The Company delivers a broad range of products and services to customers in around 160 countries, connecting chemistry and innovation with the principles of sustainability to help provide everything from fresh water, food and pharmaceuticals to paints, packaging and personal care products. 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
Use of non-GAAP measures: Dow's management believes that measures of income excluding certain items ("non-GAAP" measures) provide relevant and meaningful information to investors about the ongoing operating results of the Company. Such measurements are not recognized in accordance with accounting principles generally accepted in the United States of America ("GAAP") and should not be viewed as an alternative to GAAP measures of performance. Reconciliations of non-GAAP measures to GAAP measures are provided in the Supplemental Information tables.
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.
Supplemental Information
Description of Certain Items Affecting Results:
Fourth Quarters of 2008 and 2007
Results for the fourth quarter of 2008 were negatively impacted by the following items:
-- Pretax costs totaling $54 million related to Hurricanes Gustav and Ike, which hit the U.S. Gulf Coast in the third quarter. These costs, which primarily included the repair of property damage and unabsorbed fixed costs, are included in "Cost of sales" in the consolidated statements of income and reflected in the operating segments as follows: $13 million in Performance Plastics, $1 million in Performance Chemicals, $3 million in Basic Plastics, $15 million in Basic Chemicals, $16 million in Hydrocarbons and Energy, and $6 million in Unallocated and Other.
-- Pretax legal expenses and other costs of $69 million related to the K- Dow transaction that were expensed upon Petrochemical Industries Company's refusal to close the K-Dow transaction on January 2, 2009. These costs are shown as "Cost of sales" in the consolidated statements of income and reflected in Unallocated and Other.
-- Goodwill impairment losses of $239 million related to the Dow Automotive ($209 million against Performance Plastics) and Polypropylene ($30 million against Basic Plastics) reporting units. The losses are shown as "Goodwill impairment losses" in the consolidated statements of income.
-- Net pretax restructuring charges of $839 million. In December 2008, the Company's Board of Directors approved a restructuring plan as part of a series of actions to advance the Company's strategy and respond to the recent, severe economic downturn. The restructuring plan includes the shut down of a number of facilities and a global workforce reduction. As a result, the Company recorded restructuring charges totaling $785 million, including asset write- downs and write-offs of $336 million, severance costs of $321 million and costs associated with exit or disposal activities (such as pension curtailment costs and environmental remediation) of $128 million. In addition, the Company recorded a $60 million unfavorable adjustment to restructuring charges recorded in the fourth quarter of 2007 and a $6 million favorable adjustment to restructuring charges recorded in the third quarter of 2006. The net impact of the fourth quarter charges and adjustments, which is shown as "Restructuring charges" in the consolidated statements of income, impacted all operating segments.
-- Pretax charge of $17 million for purchased in-process research and development ("IPR&D") related to the recent acquisition of assets of Suwestsaat GbR. The charge is shown as "Purchased in-process research and development charges (credit)" in the consolidated statements of income and reflected in Agricultural Sciences.
-- Pretax charges totaling $31 million for legal expenses and other transaction costs related to the pending acquisition of Rohm and Haas Company. These charges are shown as "Acquisition-related expenses" in the consolidated statements of income and reflected in Unallocated and Other.
Results for the fourth quarter of 2007 were impacted by the following items:
-- Net pretax restructuring charges of $582 million. In December 2007, the Company's Board of Directors approved a restructuring plan that included the shut down of a number of assets and organizational changes within targeted support functions to enhance the efficiency and cost effectiveness of the Company's global operations. As a result, the Company recorded restructuring charges totaling $590 million in the fourth quarter of 2007. The charges included asset write-downs and write-offs of $422 million, costs associated with exit or disposal activities of $82 million and severance costs of $86 million. In addition, in the fourth quarter of 2007 the Company recorded an $8 million favorable adjustment to restructuring charges originally recorded in the third quarter of 2006. The net impact of the charges is shown as "Restructuring charges" in the consolidated statements of income.
-- A favorable adjustment of $2 million to IPR&D, reducing the amount originally recorded in the third quarter of 2007 related to the acquisition of Wolff Walsrode.
-- A reduction of $113 million in the provision for income taxes related to a change in the legal ownership structure of the Company's 42.5 percent interest in EQUATE Petrochemical Company K.S.C.
Years ended December 31, 2008 and 2007
In addition to the items described above for the fourth quarter of 2008, earnings for 2008 were unfavorably impacted by the following third quarter items:
-- Pretax costs totaling $127 million related to Hurricanes Gustav and Ike. These costs, which included the repair of property damage, clean-up costs, unabsorbed fixed costs and inventory write-offs, are included in "Cost of sales" and reflected in the operating segments as follows: $35 million in Performance Plastics, $14 million in Performance Chemicals, $2 million in Agricultural Sciences, $11 million in Basic Plastics, $26 million in Basic Chemicals, $36 million in Hydrocarbons and Energy, and $3 million in Unallocated and Other.
-- Pretax charges totaling $27 million for IPR&D related to the recent acquisitions of assets of Texas Triumph Seed Co., Inc.; Dairyland Seed Co., Inc.; and Bio-Plant Research Ltd; these charges are reflected in Agricultural Sciences.
-- Pretax charges totaling $18 million for legal expenses and other transaction costs related to the pending acquisition of Rohm and Haas Company; these charges are reflected in Unallocated and Other.
In addition to the items described above for the fourth quarter of 2007, earnings for 2007 were unfavorably impacted by the following items:
-- Pretax charges totaling $59 million in the third quarter for IPR&D related to the 2007 acquisitions of assets of Agromen, Exelixis, Duo Maize and Maize Technologies International and the 2007 acquisition of Wolff Walsrode.
-- A $362 million charge against the provision for income taxes related to a change in German tax law enacted in August 2007, which reduced the German income tax rate, resulting in a reduction in the value of the Company's net deferred tax assets in Germany.
A table showing the impact of these items by operating segment is included with the Operating Segments tables.
The following tables summarize the impact of certain items recorded in the three-month and twelve-month periods ended December 31, 2008 and 2007, and previously described in this section
Ultima modifica:
lorenzo63
Age quod Agis
Rohm & Haas
Rohm & Haas Co.'s fourth-quarter profit fell 82%, hurt by the global downturn that has sapped demand for chemicals and jeopardized the company's acquisition by Dow ChemicalCo.
Dow has put off the $15.3 billion deal for the specialty-chemical maker after the Kuwaiti government withdrew from a chemicals joint venture with Dow that was integral to the proposed acquisition. In turn, Rohm has sued the Midland, Mich., company to force it to proceed.
On Sunday, Rohm said the merger still makes business sense and that Dow has the "resources and flexibility" to complete it. Instead, "Dow has embarked on an aggressive campaign in an attempt to frighten our employees, communities and customers with its statements," Rohm said.
Rohm said it sent a letter to Dow on Friday saying further direct talks aren't in order unless Dow provides "meaningful details" about its plans for the deal, including securing financing. It said representatives from the two sides have met three times, as recently as Jan. 24.
Rohm, which makes paint additives and also markets Morton salt, reported Monday net income of $32 million, or 17 cents a share, down from $180 million, or 91 cents a share, in 2007's fourth quarter. The latest quarter included per-share charges of 41 cents and eight cents for restructuring and the proposed Dow merger, respectively. Excluding charges, the Philadelphia-based company said earnings fell to 69 cents a share from 90 cents.
Last month, Rohm announced a plan to cut 5.7% of its work force, or 900 positions, on top of 925 job cuts announced in June, in a move to cut costs. It also imposed a freeze on salaries and discretionary spending. The combined moves are expected to produce pretax savings of $200 million in 2010, with $90 million in savings coming from the latest cuts, it said Monday.
Net sales fell 13% to $2.03 billion, as market declines hurt all its businesses except salt.
Gross margin fell to 25.8% from 27.3%, amid falling demand and the stronger dollar.
The dollar's impact on overseas sales was reflected in sales falling across all regions, led by Asia-Pacific and Europe with 20% and 19% declines, respectively. North American sales fell 8%.
Sales for paint and coatings materials fell 12%. Primary materials sales dropped 14%. Salt sales rose 10%.
Rohm & Haas Co.'s fourth-quarter profit fell 82%, hurt by the global downturn that has sapped demand for chemicals and jeopardized the company's acquisition by Dow ChemicalCo.
Dow has put off the $15.3 billion deal for the specialty-chemical maker after the Kuwaiti government withdrew from a chemicals joint venture with Dow that was integral to the proposed acquisition. In turn, Rohm has sued the Midland, Mich., company to force it to proceed.
On Sunday, Rohm said the merger still makes business sense and that Dow has the "resources and flexibility" to complete it. Instead, "Dow has embarked on an aggressive campaign in an attempt to frighten our employees, communities and customers with its statements," Rohm said.
Rohm said it sent a letter to Dow on Friday saying further direct talks aren't in order unless Dow provides "meaningful details" about its plans for the deal, including securing financing. It said representatives from the two sides have met three times, as recently as Jan. 24.
Rohm, which makes paint additives and also markets Morton salt, reported Monday net income of $32 million, or 17 cents a share, down from $180 million, or 91 cents a share, in 2007's fourth quarter. The latest quarter included per-share charges of 41 cents and eight cents for restructuring and the proposed Dow merger, respectively. Excluding charges, the Philadelphia-based company said earnings fell to 69 cents a share from 90 cents.
Last month, Rohm announced a plan to cut 5.7% of its work force, or 900 positions, on top of 925 job cuts announced in June, in a move to cut costs. It also imposed a freeze on salaries and discretionary spending. The combined moves are expected to produce pretax savings of $200 million in 2010, with $90 million in savings coming from the latest cuts, it said Monday.
Net sales fell 13% to $2.03 billion, as market declines hurt all its businesses except salt.
Gross margin fell to 25.8% from 27.3%, amid falling demand and the stronger dollar.
The dollar's impact on overseas sales was reflected in sales falling across all regions, led by Asia-Pacific and Europe with 20% and 19% declines, respectively. North American sales fell 8%.
Sales for paint and coatings materials fell 12%. Primary materials sales dropped 14%. Salt sales rose 10%.
lorenzo63
Age quod Agis
Arkema
Arkema vende alla Indutrie Generali Spa le sue attività sui compound vinilici
E' comunque abbastanza strana come vendita in quanto Arkema, proprietaria ad esempio di Alphacan, (profili vinilici per finestre) nn avrebbe interesse nel vendere qualcosa che potrebbe riutilizzare per l' appunto nella fabbricazione di profili windows che si vendono bene .. cioè voglio dire in altre parole che si utilizzano scarti per produrre materiali pregiati...boh... indagherò...
PARIS (Dow Jones)-- French chemical company Arkema (AKE.FR) Monday said it sold its Vanzaghello industrial site activity, just outside Milan, to the Italian company Industrie Generali spa, as part of the recentering of its vinyl compound production activities.
"This divestment falls in line with Arkema's drive to refocus its vinyl compound range on high-tech applications, in particular in the medical equipment market, an area in which our other Italian site, in Samarate, enjoys world-renowned expertise", Rene Maillot, Managing Director of Arkema's PVC Compounds Business Unit, said in a statement.
The Vanzaghello activity generates annual sales of the order of EUR22 million, and employs 19 people, who will be joining IGS on Mar.1, the effective date of the sale.
Arkema vende alla Indutrie Generali Spa le sue attività sui compound vinilici
E' comunque abbastanza strana come vendita in quanto Arkema, proprietaria ad esempio di Alphacan, (profili vinilici per finestre) nn avrebbe interesse nel vendere qualcosa che potrebbe riutilizzare per l' appunto nella fabbricazione di profili windows che si vendono bene .. cioè voglio dire in altre parole che si utilizzano scarti per produrre materiali pregiati...boh... indagherò...
PARIS (Dow Jones)-- French chemical company Arkema (AKE.FR) Monday said it sold its Vanzaghello industrial site activity, just outside Milan, to the Italian company Industrie Generali spa, as part of the recentering of its vinyl compound production activities.
"This divestment falls in line with Arkema's drive to refocus its vinyl compound range on high-tech applications, in particular in the medical equipment market, an area in which our other Italian site, in Samarate, enjoys world-renowned expertise", Rene Maillot, Managing Director of Arkema's PVC Compounds Business Unit, said in a statement.
The Vanzaghello activity generates annual sales of the order of EUR22 million, and employs 19 people, who will be joining IGS on Mar.1, the effective date of the sale.
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