United states securities and exchange commission
Current and Future Investments
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- Electronics Imaging Outlook for 2018
Current and Future Investments On September 21, 2017, Dow announced the startup of its new integrated, world-scale ethylene production facility and its new ELITE™ enhanced polyethylene production facility, both located in Freeport, Texas. These two key milestones enable the Company to capture benefits from increasing supplies of U.S. shale gas to deliver differentiated downstream solutions in its core market verticals. Dow is also building three new production facilities on the U.S. Gulf Coast which includes a Low Density Polyethylene (LDPE) production facility and a NORDEL™ Metallocene EPDM production which are expected to start up in early 2018, and a High Melt Index (HMI) AFFINITY™ Polymer production facility which is expected to startup in the second half of 2018. ELECTRONICS & IMAGING Electronics & Imaging is a leading global supplier of differentiated materials and systems for a broad range of consumer electronics including mobile devices, television monitors, personal computers and electronics used in a variety of industries. The segment is a leading provider of materials and solutions for the fabrication of semiconductors and integrated circuits and also provides innovative metallization processes for metal finishing, decorative, and industrial applications. Electronics & Imaging is a leading global supplier of key materials for the manufacturing of photovoltaics ("PV") and solar cells, including innovative metallization pastes and back sheet materials for the production of solar cells and solar modules and in the advanced printing and packaging graphics industry providing flexographic printing inks, photopolymer plates, and platemaking systems used in digital printing applications for textile, commercial and home-office use. In addition, the segment provides cutting-edge materials for the manufacturing of rigid and flexible displays for liquid crystal displays ("LCD"), advanced-matrix organic light emitting diode ("AMOLED"), and quantum dot ("QD") applications.
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2017 Versus 2016 Electronics & Imaging net sales were $3,356 million in 2017, up from $2,307 million in 2016. Pro forma net sales were $4,775 million in 2017, up from $4,266 million in 2016. Pro forma net sales growth of 12 percent was led by volume gains of 11 percent and a net 2 percent favorable impact from portfolio actions, slightly offset by a 1 percent decline in local price. Volume growth, primarily in Asia Pacific, was due to increased demand in semiconductor, consumer electronics, photovoltaic, display and industrial markets. Increased semiconductor content in end-use applications drove strong demand in both memory and logic market segments. Continued demand for mobile phones and other consumer electronics, as well as industrial applications drove sales gains. Demand for TEDLAR® film in photovoltaics was partially offset by continued declines in SOLAMET® paste. The net favorable impact of portfolio actions related primarily to the addition of Dow Corning's silicones business in June 2016, partially offset by the divestitures of SKC Haas Display Films and the Authentications business in the first half of 2017. Local price declines were driven primarily by local price declines in semiconductor markets and competitive pressure in advanced printing applications. Pro forma Operating EBITDA was $1,486 million in 2017, up 27 percent from $1,173 million in 2016. Pro forma Operating EBITDA increased as volume growth, favorable portfolio impacts from the addition of Dow Corning’s silicones business, cost savings and lower pension/OPEB costs were partially offset by higher raw material costs and lower local price. 2016 Versus 2015 Electronics & Imaging net sales were $2,307 million in 2016, up from $1,987 million in 2015. Net sales increased 16 percent from 2015 with portfolio and other up 16 percent, reflecting the favorable impact of the addition of Dow Corning's silicones business. Volume was up 3 percent, driven by chemical mechanical planarization pads used in semiconductor manufacturing along with new demand for organic light-emitting diodes used in mobile phone displays. Local price and product mix declined 3 percent, most notably in Asia Pacific, due to competitive pricing pressures. Operating EBITDA for 2016 was $759 million, up from $583 million in 2015. Operating EBITDA increased in 2016 as the favorable impact from the addition of Dow Corning's silicones business, higher sales volume, lower raw material costs and lower operating expenses more than offset local selling price declines. Electronics & Imaging Outlook for 2018 Electronics & Imaging's 2018 Operating EBITDA is expected to increase moderately as compared with 2017 pro forma Operating EBITDA, driven by increased volumes, lower pension/OPEB costs and the favorable impacts of cost synergies, partially offset by the negative impacts from portfolio actions and lower local prices driven by continued pressure in advanced printing and photovoltaic applications. Demand in semiconductors, consumer electronics and industrial markets is expected to continue to remain strong, as electronic content in end devices continues to grow. The portfolio impact relates to the 2017 divestitures of the SKC Haas Display Films and Authentications business. NUTRITION & BIOSCIENCES Nutrition & Biosciences is an innovation-driven and customer-focused segment that provides solutions for the global food and beverage, pharma, personal care, energy and animal nutrition markets. It consists of two operating segments: Nutrition & Health and Industrial Biosciences. The Nutrition & Health business is one of the world’s largest producers of specialty food ingredients, developing and manufacturing solutions for the global food and beverage market. The Nutrition & Health business is also one of the world's largest producers of cellulosic- and alginates-based pharma excipients. The Industrial Biosciences business is an industry pioneer and innovator that works with customers to improve the performance, productivity and sustainability of their 54 Table of Contents products and processes through biotechnology and engineering solutions including enzymes, biomaterials, biocides and antimicrobial solutions and process technology.
2017 Versus 2016 Nutrition & Biosciences net sales were $2,812 million in 2017, up from $975 million in 2016. Pro forma net sales were $5,980 million in 2017, up from $5,763 million in 2016. Pro forma net sales increased 4 percent , driven by volume growth of 3 percent and a favorable impact of 1 percent from portfolio actions. Volume growth was led by Industrial Biosciences, driven by strong demand for microbial control solutions in energy markets, continued growth in biomaterials in apparel and carpet markets and growth in bioactives, primarily in the grain processing market. Volume in Nutrition & Health was flat as growth in probiotics and pharmaceuticals was offset by declines in protein solutions and systems and texturants due to weakness in packaged food markets and specific actions taken to exit low-margin market segments. The favorable impact from portfolio actions was driven by the acquisition of the FMC H&N Business. Pro forma Operating EBITDA was $1,302 million in 2017, up 6 percent from $1,227 million in 2016. The increase in pro forma Operating EBITDA was driven by cost savings, volume growth, lower pension/OPEB costs and favorable impacts of portfolio actions. Increases in pro forma Operating EBITDA were partially offset by the absence of a $27 million gain from a prior-year asset sale. Yüklə 5,84 Mb. Dostları ilə paylaş:
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