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Dow Realigns External Reporting Segments

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The Dow Chemical Company (NYSE:DOW) announced today that it is realigning its external reporting segments to better reflect Dow’s strategy to be low-cost and fully integrated across key value chains, while adding value through shared technology and end-market orientation. The Company also announced it is changing the allocation with certain expenses previously reported in its Corporate segment, to drive further visibility into operating performance at the segment level.

“Our new reporting segments are designed to align businesses within their key, integrated chemical envelopes, more effectively allocate resources by targeted end-markets, and provide increased visibility regarding their value drivers,” said Howard Ungerleider, Dow’s executive vice president and chief financial officer. “As a result, we expect this new structure will improve modeling and peer comparison capabilities.”

The new operating segment structure maximizes Dow’s integration benefits – either through molecular and value chain alignment, such as the Company’s acrylic, chlorine, ethylene and propylene envelopes, or through the benefits derived from an enhanced, innovation-driven market focus.

The operating segments will include the following:

  • Agricultural Sciences – Will continue to operate under the same structure comprised of Crop Protection and Seeds;
  • Consumer Solutions – Previously part of Electronic and Functional materials, and includes Consumer Care, Dow Automotive Systems, and Dow Electronic Materials;
  • Infrastructure Solutions – Formerly named Coatings and Infrastructure Solutions, and is comprised of Dow Building & Construction, Dow Coating Materials, Energy & Water Solutions and Performance Monomers;
  • Performance Materials & Chemicals – Includes Chlor-Alkali and Vinyl, Chlorinated Organics, Epoxy, and Industrial Solutions and Polyurethanes;
  • Performance Plastics – Comprised of the Company’s previous Performance Plastics business groups, however now also includes key raw material inputs via the energy and hydrocarbons business groups that were formerly included in the Feedstocks and Energy segment.

In addition to segment and business changes, Dow is also changing the allocation of certain expenses previously reported within its Corporate segment, which will better reflect operating performance and profitability at the segment level. All leveraged functional costs, such as information systems, finance, human resources, legal and supply chain, will now be fully allocated to the segments. In addition, long term performance based compensation expense will now be allocated to the segments based primarily on employee alignment.

“These changes to Dow’s Corporate segment will improve clarity and accountability at the business level, and reinforces our overall focus on increasing transparency of our operations,” Ungerleider added.

More details regarding the businesses located within each of Dow’s operating segments can be found in the Company’s 8K filing, or on its website

About Dow

Dow (NYSE:DOW) combines the power of science and technology to passionately innovate what is essential to human progress. The Company is driving innovations that extract value from the intersection of chemical, physical and biological sciences to help address many of the world’s most challenging problems such as the need for clean water, clean energy generation and conservation, and increasing agricultural productivity. Dow’s integrated, market-driven, industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 180 countries and in high growth sectors such as packaging, electronics, water, coatings and agriculture. In 2013, Dow had annual sales of more than $57 billion and employed approximately 53,000 people worldwide. The Company’s more than 6,000 products are manufactured at 201 sites in 36 countries across the globe. References to “Dow” or the “Company” mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at

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