PHILADELPHIA -- Dow Advanced Materials, a division of The Dow Chemical Co. (Dow), held an investor event in Philadelphia and unveiled its roadmap for earnings growth, sharing projections for revenue growth and profitability.

 

Dow Advanced Materials projected a 10 percent annual revenue growth rate, with the division’s sales forecasted to grow to $12 billion by 2012 and to $16 billion by 2015. Profitability is also expected to expand for Dow Advanced Materials, supported by a robust $7 billion innovation pipeline. EBITDA for the division is expected to nearly double to roughly $3 billion by 2012 and rise further to approximately $4 billion by 2015. The projected improvement in EBITDA for the division was attributed to a mix of improving end-market conditions, a lower fixed cost base and the introduction of several differentiated innovations, some of which were discussed in detail during the event. EBITDA margins for Dow Advanced Materials are expected to rise to roughly 25 percent over the next few years before the contribution of equity earnings from Dow Corning Corp., a joint venture of the company with its own pipeline of significant growth opportunities.

 

Additionally, the division made several announcements at the event, including plans to construct a new Dow Electronic Materials research and development facility in Korea, invest in a new Dow Coating Materials emulsions plant in eastern China, and expand Dow Water & Process Solutions’ facility in Fobmio, Italy. The Fobmio facility will manufacture copolymers used in the company’s ion exchange resins.