Dow Coating Materials reported sales gains as a result of improving demand conditions and share gains in both Industrial and Architectural Coatings, which drove volume improvements. This offset price declines during the quarter. Lower pricing in epoxy-based products continued to hamper sales and profitability. Dow Building and Construction experienced a reduction in sales, as volumes decreased versus same quarter last year – primarily as a result of the 2012 implementation of previously announced STYROFOAM™ asset closures in Europe. Dow Water and Process Solutions reported a slight sales decline as a result of lower volumes, which were driven by the timing of large capital projects and softness in the industry.
The segment reported equity losses of $46 million, or equity earnings of $35 million on an adjusted basis. This compares with $102 million in the same period last year. The decline was driven by Dow Corning, as a result of costs associated with the joint venture’s recently announced restructuring actions and ongoing polysilicon value chain weakness. EBITDA for the segment was $36 million or $129 million on an adjusted basis. This compares with EBITDA of $177 million or $237 million on an adjusted basis in the year-ago period.
Agricultural Sciences reported record fourth quarter sales of $1.6 billion, up 17 percent versus the year-ago period. Volume increased 13 percent and price rose 4 percent. The segment also reported record sales for the year of $6.4 billion, driven by increased customer adoption of new products and healthy industry fundamentals.Fourth quarter sales of Crop Protection rose 10 percent versus the year-ago period, driven by broad-based gains across all geographic areas. Sales of new crop protection products grew 11 percent for the quarter and 19 percent for the full year, placing the business on track to exceed its target of $800 million in annual sales from these products by 2013. Seeds, Traits and Oils reported a 44 percent sales gain in the quarter versus the year-ago period, driven by continued strong growth in both North America and Latin America. For the year, Seeds, Traits and Oils sales increased 27 percent, with significant increases in key crops, including corn, soybeans and healthy oils. Strong farmer demand fueled gains for SmartStax ® corn hybrids. EBITDA for the segment was a new fourth quarter record of $156 million, up from $145MM last year.