Dow Chemical To Divest More Assets In 2010

DEBORAH JIAN LEE

NEW YORK (AP) — Dow Chemical Co. said Thursday it plans to sell more assets in 2010 as it continues to work toward paying off debt from its $16.5 billion acquisition of Rohm and Haas in April.

The company also predicted earnings in 2012 of $4 per share to $4.50 per share, well above 2008 levels of $1.82 per share, excluding special items.

The news of further asset sales followed an announcement that the company will sell its powder coatings business for an undisclosed amount. Including this deal, Dow said its divestiture activities are on target to yield more than $3.5 billion in gross proceeds.

In a meeting with investors, CEO Andrew Liveris mapped out a three-path process that identifies options for further debt reduction of about $12 billion.

The first path involves an additional $3.5 billion in divestitures, which includes the sale of the company's Styron business. Dow expects this deal to close in the first quarter of 2010. The company also plans to divest 10 to 15 other businesses which range in size between $100 million and $300 million in annual revenue.