The Dow Chemical Company (NYSE: DOW) reported sales of $14.7 billion in the first quarter of 2012, in line with the same period last year. Adjusted sales(2) increased 4 percent versus the prior year, representing the tenth consecutive quarter of year-over-year sales growth. Sales in Agricultural Sciences increased 12 percent, surpassing $1.8 billion and representing a new record. Emerging geographies posted a tenth consecutive quarter of year-over-year volume growth on an adjusted basis, led by gains in the Middle East, Africa, India, and Eastern Europe. On an adjusted, geographic basis, volume gains were led by Europe, Middle East and Africa (EMEA) (7 percent), while North America also posted an increase in volume (2 percent). The Company reported EBITDA(3) of $1.7 billion, or $2.1 billion excluding certain items. Agricultural Sciences achieved a new quarterly EBITDA record, led by strength in North America and Latin America. In addition, EBITDA records were achieved in Functional Materials; Polyglycols, Surfactants and Fluids; Dow Elastomers; and Dow Automotive Systems. Research and Development (R&D) expenses were up 1 percent versus the same period last year. The Company continued to invest in its technology-driven segments, including Coatings and Infrastructure Solutions, Electronic and Functional Materials, and Agricultural Sciences. Selling, General and Administrative (SG&A) expenses rose 1 percent versus the prior year, in part due to increased spending to support growth initiatives and new product launches in Agricultural Sciences. “Dow again demonstrated the strength of its transformed portfolio, even as demand remained slow early in the quarter," said Andrew N. Liveris, Dow's chairman and chief executive officer. “We have now delivered top-line growth for ten consecutive quarters, and our Agricultural Sciences portfolio achieved record sales and EBITDA. The benefit of our balanced portfolio was again evident: We captured demand gains in developed regions – particularly in the U.S. and Germany – and posted a tenth consecutive quarter of volume increases in rapidly growing emerging economies." “We exited the quarter with momentum, and looking forward we remain resolutely focused on our strategic priorities – capturing the benefits of new products and technologies, such as POWERHOUSETM and EVOQUETM, which will generate value in local markets for both our customers and our shareholders. In addition, we are capitalizing on our world-class feedstock advantage and balanced, integrated portfolio, as well as exhibiting diligent operating and capital efficiency. All of this places us in a unique position to drive earnings growth and continue our 100-year legacy of shareholder remuneration." Agricultural Sciences posted its sixth consecutive quarter of year-over-year sales record with sales of $1.8 billion, up 14 percent versus the year-ago period. Volume increased 12 percent and price rose 2 percent. First quarter sales of Crop Protection products rose 14 percent versus the prior year, driven by double-digit sales growth in North America, Latin America, and Asia Pacific Sales in Feedstocks and Energy were $2.9 billion, up 13 percent from the same period last year. Volume increased 7 percent and price increased 6 percent. Stephane Paquier, president, Dow Africa, said: “These postive results continue to validate our investments on the African continent. With continuing double-digit growth in key sectors such as Agricultural Sciences, we will focus on developing business in our strategic markets on the continent and bringing our solutions to an ever-increasing number of customers to help enhance their productivity and competitiveness." Dow Africa highlights for the first quarter of 2012 include: Investment and expansion The Dow Water and Process Solutions (DW&PS) Sub-Saharan Africa (SSA) team visited Zanzibar, to attend the inauguration of a renewable energy-powered Reverse Osmosis (RO) seawater desalination plant and to host a technical seminar on “Seawater Desalination and Wastewater Reuse". In collaboration with Mörk Water Solutions and other partners, DW&PS provided financial assistance, required technology and specialized expertise and training to create an RO seawater desalination plant which is powered by solar panels or wind turbine, and produces quality potable water to feed 400 to 500 children with safe drinking water on a daily basis. The self-sufficient plant offers a cost-effective sustainable solution to Zanzibar's drinking water challenges. Social Investment Dow reinforced its commitment to promoting South Africa's science and technology sector by donating R600,000 to the University of the Witwaterand's (Wits University) School of Chemistry. The donation will be used to fund chemistry students' tuition fees to enroll new students and provide access to students who would otherwise be unable to afford university fees Dow East Africa in collaboration with the University of Nairobi in Kenya supported the ‘Second Conference of the International Year of Chemistry (IYC) Celebrations which centered around the theme: ‘Popularising Chemistry with Respect to Vision 2030.' This follows a successful Dow-funded launch event at the university last year, in celebration of the 2011 IYC. The collaboration aims to advance the understanding and appreciation of chemistry's central role in society, with this year's initiative further reinforcing Dow's relationship with the university. Dow participated as gold sponsor in the “Supply Chain Opportunities: a partnership for Egypt and the U.S." conference in Cairo, Egypt. Over 200 Egyptian companies participated and 650 people attended including representatives from the General Authority of Investments, the Federation of Egyptian Industries, the Industrial Modernization Center and several government officials. The event focused on commercial opportunities for partnership – particularly engaging high standard Egyptian companies with top tier American investors.
