DOW CHEMICAL 2015 Full-Year Highlights_by chemwinfo

2 February 2016

ABOUT DOW CHEMICAL

Andrew N. Liveris

Dow’s chairman and chief executive officer

DETAILS

2015 Full-Year Highlights 

• Profit were $7,345 billion.
  
  
• Dow reported full-year earnings per share of $6.15,
  or operating earnings per share of $3.47.
  This compares with earnings per share of $2.87
  in the prior year, or $3.11 on an operating basis
  – an increase of 12 percent.
  
  
• Sales were $48.8 billion,
  down 16 percent versus the prior year,
  or 15 percent excluding
  the impact of divestitures and acquisitions,
  as price was impacted by a 45 percent decline
  in average crude oil prices as well as
  currency headwinds.
  
  
• EBITDA rose to $9.6 billion on an operating basis,
  representing an all-time record,
  or $13.3 billion on a reported basis.
  
  Operating EBITDA rose 3 percent
  compared to the prior year
  with increases in Performance Plastics (up $380 million)
  and Consumer Solutions (up $59 million).
  
  
• The Company expanded operating EBITDA margin
  more than 360 basis points to 19.7 percent,
  the highest level in more than a decade,
  with increases reported in all operating segments.
  
  Margin expansion was led by
  * Performance Plastics,
  * Performance Materials & Chemicals and
  * Consumer Solutions
  on increased demand, disciplined price and
  volume management, innovation and
  productivity improvements.
  
  
• Dow delivered $7.5 billion of cash flow
  from operations in the year.
  
  Excluding the K-Dow arbitration award in 2013,
  this represents
  a third consecutive year of record cash flow.
  
  Dow’s cash flow generation enabled the Company
  to issue another dividend increase,
  reaching a historic high.
  In total, Dow returned $4.6 billion to shareholders
  through paid dividends and
  share repurchases(6) in 2015.
  
  
• Dow reported operating return on capital(7) 
  of 12.1 percent – an increase of 130 basis points
  versus the prior year,
  or return on capital of 19.6 percent
  on a reported basis, marking
  three consecutive years of expansion
  on an operating basis
  – further demonstrating Dow’s disciplined approach
  to capital stewardship.
  
  
• Ongoing portfolio management in the year included:
  
  * the split-off of Dow Chlorine Products;
  
  * the divestiture of ANGUS Chemical Company;
  
  * the divestiture of AgroFresh, Dow’s post-harvest
     specialty chemical business;
  
  * the sale of the Company’s direct ownership interest
     in MEGlobal to EQUATE;
  
  * and the signing of a definitive agreement
     to restructure ownership of
     the Dow Corning Corporation’s Silicones business.
  
  
• Since 2013, when Dow completed its strategic review,
  the Company’s operational and financial performance
  has:
  generated nearly $22 billion in cash flow
  from operations;
  
  improved operating ROC by 450 basis points;
  
  enabled nearly $12 billion in returns to shareholders
  
  through share repurchases and paid dividends;
  
  facilitated investments in strategic growth projects
  on the U.S. Gulf Coast and Saudi Arabia;
  
  and reduced net debt from $16.7 billion to $8.6 billion.
  
  Furthermore, divestitures completed
  in that same period, have delivered
  more than $13.5(8) billion in pre-tax value.

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