By Dow Jones Business News, March 14, 2013, 09:47:00 AM EDT
By Melodie Warner
Dow Chemical Co. ( DOW ) is accelerating its divestiture of noncore businesses and is targeting nearly $1.5 billion of
proceeds over the next 18 months.
The world's second-largest chemical producer by revenue had already unveiled plans to shut 20 facilities and eliminate
2,400 jobs in Europe, the U.S. and Japan. It is also trimming capital expenditure as part of efforts to boost cost
savings to $2.5 billion from a target that had already been doubled to $1.5 billion over the past year.
Dow said Thursday it has divested noncore businesses representing about $8 billion in revenue since 2009.
The company said in January it divested the stabilizers component of its plastics additives business and agreed to
sell its 50% ownership in Nippon Unicar Co., a Japanese joint venture in the Dow Electrical & Telecommunications
"Today's announcement is yet another proof point of Dow's rigorous focus on return on capital, and is squarely in line
with commitments we made earlier this year," said Chairman and Chief Executive Andrew N. Liveris.
Chemical makers are wrestling with the impact of destocking as well as weak construction and electronics markets. Mr.
Liveris had been bearish on China in the second half of last year, but saw signs of improvement and switched attention
back to the weak economic outlook for Europe, where Dow's volume fell last year.
The company reported in January it swung to a fourth-quarter loss on restructuring charges while weak electronics and
solar markets dragged sales down 1.3%.
Shares closed Wednesday at $33.21 and were inactive premarket. The stock has fallen 3.6% over the past year.
-Doug Cameron contributed to this report.
Write to Melodie Warner at firstname.lastname@example.org
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