US Dow to divest businesses with sales of $1bn in next 12 months

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)

By: Joseph Chang
+1 713 525 2653

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index