Dow’s Q1-2010 Highlights:
-- Reported sales rose 48% versus the same period last year. On a pro forma basis excluding divestitures, sales were up 33% and up in all geographic areas, with a 27% improvement in North America, and a 35% improvement in EMEA (Europe, Middle East and Africa). Sales were also up in all operating segments excluding Health and Agricultural Sciences. Sequentially sales were up 8%, with volume and price each up 4 percent.
-- EBITDA excluding certain items was US$1.8 bln, up US$877 mln vs the same quarter last year on a pro forma basis, and up US$356 mln vs last quarter. EBITDA in the combined Performance segments was up more than 60% vs the year-ago period. EBITDA margin at the Company level expanded year-over-year and sequentially.
-- Synergies related to the acquisition of Rohm and Haas and structural cost reductions were US$275 mln in the quarter. This was achieved while increasing R&D spending 10% year-over-year on a pro forma basis. And the Company exceeded its growth synergy targets, delivering US$530 mln in sales on a run-rate basis.
-- The Company continued to make significant progress toward its goal of divesting US$2 bln of non-strategic assets in 2010 with the signing of a definitive agreement to sell the Styron business unit for US$1.63 bln. Proceeds from the sale will be used to reduce debt.
Andrew N. Liveris, Dow's chairman and chief executive officer, stated: "The earnings power of Dow's new portfolio was evident this quarter with our robust sales growth driven by significant volume and price increases in all geographic areas, with notable improvements in North America and Europe. When combined with broad-based EBITDA margin expansion and record equity earnings, this enabled us to achieve greatly improved operating results. "Our focus on delivering against our commitments, especially on structural cost reductions while continuing to invest for growth in our new portfolio, was on full display again in the quarter. I am particularly pleased with the accelerated growth in our Performance businesses, as well as the continued growth in emerging geographies. This is right on strategy for the new Dow."