03 December 2012 20:40 [Source: ICIS news]
NEW YORK (ICIS)--US-based Dow Chemical will divest businesses with revenues of around $1bn (€770m) in the next 12 months, its chief executive said on Monday.
“In the last six months, we have concluded that the world is in a slow growth mode. In response, we are implementing a strict ROC [return on capital] metric to drive outcomes,” said Dow CEO Andrew Liveris.
He spoke at a media event at Dow’s annual investor day.
The sales would be part of Dow’s plan to deliver $1bn in cost and cash interventions in 2013, of which $500m will impact earnings before interest, tax, depreciation and amortisation (EBITDA).
Dow already announced plans to shut down around 20 plants and cut 2,400 jobs, or 5% of its workforce by the end of 2014.
Liveris did not specify at the media event which businesses would be put up for sale.
($1 = €0.77)
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