Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Dow Chemical To Close Plants, Cut 900 Jobs On Europe Weakness

RELATED NEWS
Trade DOW now with 

Dow Chemical Co. (DOW: Quote) said Monday that it will close certain manufacturing plants in Europe, North America as well as Latin America and cut about 900 jobs worldwide, citing continued weakness in the European economy. The maker of chemical products will also cancel certain capital projects.

Accordingly, Dow will take charges totaling about $350 million in the first quarter for asset impairments and write-offs, severance and other costs related to these measures.

Midland, Michigan-based Dow said it will shut down three plants that produce Styrofoam Brand Insulation products. The plants are located in Estarreja, Portugal; Balatonfuzfo, Hungary; and Charleston, Illinois. The company will also idle a plant in Terneuzen, The Netherlands.

In addition, Dow will close its toluene diisocyanate or TDI plant in Camaçari, Brazil, and consolidate certain other assets in its Polyurethanes and Epoxy businesses. These actions are expected to take place over the next two years.

The company noted that the restructuring will be part of its previously announced cost-reduction efforts and its "Efficiency for Growth" program initiated in 2011.

Dow expects annual savings of about $250 million from the restructuring actions. The savings are in addition to the $500 million in cash flow delivered by the company in 2011 from the inception of its "Efficiency for Growth" program. The savings are also part of the company's goal to deliver an additional $250 million of cash flow from cost interventions in 2012.

Andrew Liveris, Dow's chairman and chief executive officer said, "Today's announcement further demonstrates our resolve and ability to take swift, strategic cash flow interventions that will keep Dow solidly on a trajectory to deliver $10 billion in EBITDA in the near term."

In early February, Dow Chemical reported a loss for the fourth quarter of $20 million or $0.02 per share, compared to net income of $426 million or $0.37 per share in the year-ago period. Revenue for the quarter increased to $14.10 billion from $13.77 billion in the prior-year quarter, or $13.136 billion excluding divestitures.

In Monday's regular session, DOW is trading at $34.41, down $0.23 or 0.66 percent on a volume of 74,208 shares.

Register
To receive FREE breaking news email alerts for Dow Chemical Co and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.