Dow Releases Further Financial Information Following Merger with Union Carbide

Apr 16, 2001, 01:00 ET from The Dow Chemical Company

    MIDLAND, Mich., April 16 /PRNewswire/ -- The Dow Chemical Company
 (NYSE:   DOW) today is releasing additional unaudited combined historical
 financial information following its recent merger with Union Carbide.  This
 information includes selected unaudited historical information from 1995 to
 2000.
     The company released audited supplemental consolidated financial
 statements last week in documents filed with the U.S. Securities and Exchange
 Commission.
     Dow is planning an investor meeting and Webcast to disclose additional
 information about the merger, which was completed February 6, 2001.  The
 meeting will begin at 8:00 a.m. on May 1, 2001, and will be Webcast live on
 www.dow.com .
     Dow is a leading science and technology company that provides innovative
 chemical, plastic and agricultural products and services to many essential
 consumer markets.  With annual sales of approximately $30 billion, Dow serves
 customers in more than 170 countries and a wide range of markets that are
 vital to human progress, including food, transportation, health and medicine,
 personal and home care, and building and construction, among others.
 Committed to the principles of sustainable development, Dow and its 50,000
 employees seek to balance economic, environmental and social responsibilities.
 For further information, visit www.dow.com .
 
 
     Unaudited Combined Historical Income Statement Information
                                    For the year ended December 31,
     In millions, except
      for per share
      amounts                2000     1999     1998     1997     1996     1995
     Net Sales            $29,534  $25,859  $25,101  $27,476  $27,067  $26,965
      Cost of sales        24,131   20,300   19,395   20,750   19,866   18,592
      Research and
       development
       expenses             1,119    1,075    1,026      990      962      997
      Selling, general
       and administrative
       expenses             1,825    1,776    1,964    2,168    2,426    2,543
      Amortization of
       intangibles            139      160      106       80       58       52
      Purchased in-
       process research
       and development
       charges                  6        6      349        -        -        -
      Special charges           -       94      458        -        -        -
      Insurance and
       finance company
       operations, pretax
       income                  85      150      124      127       85       65
      Equity in earnings
       of nonconsolidated
       affiliates             354       95       31      211      194      269
      Sundry income - net     352      329    1,135      446      329      (69)
     Earnings before
      Interest, Income
      Taxes and Minority
      Interests             3,105    3,022    3,093    4,272    4,363    5,046
      Interest income         146      132      149      195      324      312
      Interest expense
       and amortization
       of debt discount       665      564      607      550      570      523
     Income before Income
      Taxes and Minority
      Interests             2,586    2,590    2,635    3,917    4,117    4,835
      Provision for
       income taxes           839      874      902    1,320    1,423    1,822
      Minority interests'
       share in income         72       74       20      113      194      197
      Preferred stock
       dividends                -        5        6       13       17       17
     Income from
      Continuing
      Operations           $1,675   $1,637   $1,707   $2,471   $2,483   $2,799
      Discontinued
       operations net of
       income taxes             -        -        -        -        -      187
      Cumulative effect
       of change in
       accounting
       principle                -      (20)       -      (17)       -        -
     Net Income Available
      for Common
      Stockholders         $1,675   $1,617   $1,707   $2,454   $2,483   $2,986
     Share Data
      Earnings per common
       share from
       continuing
       operations - basic   $1.88    $1.87    $1.92    $2.72    $2.61    $2.73
      Earnings before
       cumulative effect
       of change in
       accounting
       principle
           per common
            share - basic   $1.88    $1.87    $1.92    $2.72    $2.61    $2.91
      Earnings per common
       share - basic        $1.88    $1.85    $1.92    $2.71    $2.61    $2.91
      Earnings per common
       share from
       continuing
       operations -
       diluted              $1.85    $1.84    $1.89    $2.63    $2.51    $2.62
      Earnings before
       cumulative effect
       of change in
       accounting
       principle
       per common
       share -
       diluted              $1.85    $1.84    $1.89    $2.63    $2.51    $2.80
      Earnings per common
       share - diluted      $1.85    $1.82    $1.89    $2.61    $2.51    $2.80
      Weighted-average
       common shares
       outstanding -
       basic                893.2    874.9    888.1    898.4    950.1  1,025.8
      Weighted-average
       common shares
       outstanding -
       diluted              904.5    893.5    904.8    936.2    997.2  1,073.4
 
     Selected Data Adjusted to Exclude Unusual Items
     Earnings before
      Interest, Income
      Taxes and Minority
      Interests            $3,125   $3,072   $3,090   $4,177   $4,363   $5,266
     Income from
      Continuing
      Operations            1,697    1,666    1,700    2,428    2,483    3,076
     Earnings per common
      share from
      continuing
      operations -
      diluted                1.87     1.87     1.88     2.58     2.51     2.88
 
 
     Unaudited Combined Historical Income Statement Information
                                            Three months ended       Year ended
                                        Mar.    June    Sept.   Dec.     Dec.
                                         31,     30,     30,     31,     31,
     In millions, except for per share
      amounts                            2000    2000    2000    2000     2000
     Net Sales                         $7,269  $7,586  $7,448  $7,231  $29,534
       Cost of sales                    5,842   5,968   6,184   6,137   24,131
       Research and development
        expenses                          270     277     273     299    1,119
       Selling, general and
        administrative expenses           474     431     449     471    1,825
       Amortization of intangibles         41      32      33      33      139
       Purchased in-process research
        and development charges             -       -       -       6        6
       Insurance and finance company
        operations, pretax income          29      14      26      16       85
       Equity in earnings of
        nonconsolidated affiliates        130     130     105     (11)     354
       Sundry income - net                101     107      54      90      352
     Earnings before Interest, Income
      Taxes and Minority Interests        902   1,129     694     380    3,105
       Interest income                     45      29      26      46      146
       Interest expense and
        amortization of debt discount     155     169     170     171      665
     Income before Income Taxes and
      Minority Interests                  792     989     550     255    2,586
       Provision for income taxes         262     311     177      89      839
       Minority interests' share in
        income                             18      21      16      17       72
     Net Income Available for Common
      Stockholders                       $512    $657    $357    $149   $1,675
     Share Data
       Earnings per common share -
        basic                           $0.58   $0.73   $0.40   $0.17    $1.88
       Earnings per common share -
        diluted                         $0.57   $0.72   $0.40   $0.16    $1.85
       Weighted-average common shares
        outstanding - basic             889.6   894.5   896.1   895.7    893.2
       Weighted-average common shares
        outstanding - diluted           903.8   906.1   902.3   904.3    904.5
 
     Selected Data Adjusted to Exclude Unusual Items
     Earnings before Interest, Income
      Taxes and Minority Interests       $902  $1,129    $694    $400   $3,125
     Net Income Available for Common
      Stockholders                        512     657     357     171    1,697
     Earnings per common share -
      diluted                            0.57    0.72    0.40    0.18     1.87
 
     Selected Unaudited Combined Historical Segment Information
                                    For the year ended December 31,
     In millions             2000     1999     1998     1997     1996     1995
     Operating segment
      sales
          Performance
           Plastics        $7,667   $7,031   $6,900   $7,201   $7,163   $6,668
          Performance
           Chemicals        5,343    5,044    4,944    4,887    4,783    4,596
          Agricultural
           Products         2,346    2,334    2,408    2,175    1,974    1,963
          Plastics          7,118    5,764    4,928    5,610    5,302    4,965
          Chemicals         4,109    3,603    3,646    4,394    4,290    4,563
          Hydrocarbons &
           Energy           2,626    1,731    1,499    2,184    2,464    2,371
          Unallocated and
           Other              325      352      776    1,025    1,091    1,839
          Total           $29,534  $25,859  $25,101  $27,476  $27,067  $26,965
     Operating segment
      EBIT
          Performance
           Plastics        $1,029   $1,578   $1,819   $1,679   $1,864   $1,576
          Performance
           Chemicals          536      805      744      763      811      790
          Agricultural
           Products           212      125     (209)     213      304      318
          Plastics            945      564      525      968      884    1,672
          Chemicals           422      292       76      641      574    1,360
          Hydrocarbons &
           Energy             136        8      (11)     220      163      (44)
          Unallocated and
           Other             (175)    (350)     149     (212)    (237)    (626)
          Total            $3,105   $3,022   $3,093   $4,272   $4,363   $5,046
     Operating segment
      EBIT excluding
      unusual items
          Performance
           Plastics        $1,066   $1,528   $1,689   $1,679   $1,864   $1,576
          Performance
           Chemicals          536      811      756      763      811      790
          Agricultural
           Products           212      219      154      233      304      318
          Plastics            945      564      560      980      884    1,672
          Chemicals           422      292      244      641      574    1,360
          Hydrocarbons &
           Energy              38        8        -       41      163      (44)
          Unallocated and
           Other              (94)    (350)    (313)    (160)    (237)    (406)
          Total            $3,125   $3,072   $3,090   $4,177   $4,363   $5,266
 
 
     Selected Unaudited Combined Historical Segment Information
                                             Three months ended      Year ended
 
     In millions                        Mar.     June    Sept.   Dec.     Dec.
                                         31,      30,     30,    31,      31,
     Operating segment sales           2000      2000    2000   2000     2000
          Performance Plastics         $1,827  $1,941  $1,957  $1,942   $7,667
          Performance Chemicals         1,338   1,373   1,337   1,295    5,343
          Agricultural Products           633     694     449     570    2,346
          Plastics                      1,779   1,761   1,863   1,715    7,118
          Chemicals                     1,038   1,079   1,021     971    4,109
          Hydrocarbons & Energy           571     638     721     696    2,626
          Unallocated and Other            83     100     100      42      325
          Total                        $7,269  $7,586  $7,448  $7,231  $29,534
     Operating segment EBIT
          Performance Plastics           $316    $274    $235    $204   $1,029
          Performance Chemicals           152     182     125      77      536
          Agricultural Products            90     158     (23)    (13)     212
          Plastics                        260     321     247     117      945
          Chemicals                       143     180      86      13      422
          Hydrocarbons & Energy            18       2       4     112      136
          Unallocated and Other           (77)     12      20    (130)    (175)
          Total                          $902  $1,129    $694    $380   $3,105
     Operating segment EBIT excluding
      unusual items
          Performance Plastics           $316    $274    $235    $241   $1,066
          Performance Chemicals           152     182     125      77      536
          Agricultural Products            90     158     (23)    (13)     212
          Plastics                        260     321     247     117      945
          Chemicals                       143     180      86      13      422
          Hydrocarbons & Energy            18       2       4      14       38
          Unallocated and Other           (77)     12      20     (49)     (94)
          Total                          $902  $1,129    $694    $400   $3,125
 
 

SOURCE The Dow Chemical Company
    MIDLAND, Mich., April 16 /PRNewswire/ -- The Dow Chemical Company
 (NYSE:   DOW) today is releasing additional unaudited combined historical
 financial information following its recent merger with Union Carbide.  This
 information includes selected unaudited historical information from 1995 to
 2000.
     The company released audited supplemental consolidated financial
 statements last week in documents filed with the U.S. Securities and Exchange
 Commission.
     Dow is planning an investor meeting and Webcast to disclose additional
 information about the merger, which was completed February 6, 2001.  The
 meeting will begin at 8:00 a.m. on May 1, 2001, and will be Webcast live on
 www.dow.com .
     Dow is a leading science and technology company that provides innovative
 chemical, plastic and agricultural products and services to many essential
 consumer markets.  With annual sales of approximately $30 billion, Dow serves
 customers in more than 170 countries and a wide range of markets that are
 vital to human progress, including food, transportation, health and medicine,
 personal and home care, and building and construction, among others.
 Committed to the principles of sustainable development, Dow and its 50,000
 employees seek to balance economic, environmental and social responsibilities.
 For further information, visit www.dow.com .
 
 
     Unaudited Combined Historical Income Statement Information
                                    For the year ended December 31,
     In millions, except
      for per share
      amounts                2000     1999     1998     1997     1996     1995
     Net Sales            $29,534  $25,859  $25,101  $27,476  $27,067  $26,965
      Cost of sales        24,131   20,300   19,395   20,750   19,866   18,592
      Research and
       development
       expenses             1,119    1,075    1,026      990      962      997
      Selling, general
       and administrative
       expenses             1,825    1,776    1,964    2,168    2,426    2,543
      Amortization of
       intangibles            139      160      106       80       58       52
      Purchased in-
       process research
       and development
       charges                  6        6      349        -        -        -
      Special charges           -       94      458        -        -        -
      Insurance and
       finance company
       operations, pretax
       income                  85      150      124      127       85       65
      Equity in earnings
       of nonconsolidated
       affiliates             354       95       31      211      194      269
      Sundry income - net     352      329    1,135      446      329      (69)
     Earnings before
      Interest, Income
      Taxes and Minority
      Interests             3,105    3,022    3,093    4,272    4,363    5,046
      Interest income         146      132      149      195      324      312
      Interest expense
       and amortization
       of debt discount       665      564      607      550      570      523
     Income before Income
      Taxes and Minority
      Interests             2,586    2,590    2,635    3,917    4,117    4,835
      Provision for
       income taxes           839      874      902    1,320    1,423    1,822
      Minority interests'
       share in income         72       74       20      113      194      197
      Preferred stock
       dividends                -        5        6       13       17       17
     Income from
      Continuing
      Operations           $1,675   $1,637   $1,707   $2,471   $2,483   $2,799
      Discontinued
       operations net of
       income taxes             -        -        -        -        -      187
      Cumulative effect
       of change in
       accounting
       principle                -      (20)       -      (17)       -        -
     Net Income Available
      for Common
      Stockholders         $1,675   $1,617   $1,707   $2,454   $2,483   $2,986
     Share Data
      Earnings per common
       share from
       continuing
       operations - basic   $1.88    $1.87    $1.92    $2.72    $2.61    $2.73
      Earnings before
       cumulative effect
       of change in
       accounting
       principle
           per common
            share - basic   $1.88    $1.87    $1.92    $2.72    $2.61    $2.91
      Earnings per common
       share - basic        $1.88    $1.85    $1.92    $2.71    $2.61    $2.91
      Earnings per common
       share from
       continuing
       operations -
       diluted              $1.85    $1.84    $1.89    $2.63    $2.51    $2.62
      Earnings before
       cumulative effect
       of change in
       accounting
       principle
       per common
       share -
       diluted              $1.85    $1.84    $1.89    $2.63    $2.51    $2.80
      Earnings per common
       share - diluted      $1.85    $1.82    $1.89    $2.61    $2.51    $2.80
      Weighted-average
       common shares
       outstanding -
       basic                893.2    874.9    888.1    898.4    950.1  1,025.8
      Weighted-average
       common shares
       outstanding -
       diluted              904.5    893.5    904.8    936.2    997.2  1,073.4
 
     Selected Data Adjusted to Exclude Unusual Items
     Earnings before
      Interest, Income
      Taxes and Minority
      Interests            $3,125   $3,072   $3,090   $4,177   $4,363   $5,266
     Income from
      Continuing
      Operations            1,697    1,666    1,700    2,428    2,483    3,076
     Earnings per common
      share from
      continuing
      operations -
      diluted                1.87     1.87     1.88     2.58     2.51     2.88
 
 
     Unaudited Combined Historical Income Statement Information
                                            Three months ended       Year ended
                                        Mar.    June    Sept.   Dec.     Dec.
                                         31,     30,     30,     31,     31,
     In millions, except for per share
      amounts                            2000    2000    2000    2000     2000
     Net Sales                         $7,269  $7,586  $7,448  $7,231  $29,534
       Cost of sales                    5,842   5,968   6,184   6,137   24,131
       Research and development
        expenses                          270     277     273     299    1,119
       Selling, general and
        administrative expenses           474     431     449     471    1,825
       Amortization of intangibles         41      32      33      33      139
       Purchased in-process research
        and development charges             -       -       -       6        6
       Insurance and finance company
        operations, pretax income          29      14      26      16       85
       Equity in earnings of
        nonconsolidated affiliates        130     130     105     (11)     354
       Sundry income - net                101     107      54      90      352
     Earnings before Interest, Income
      Taxes and Minority Interests        902   1,129     694     380    3,105
       Interest income                     45      29      26      46      146
       Interest expense and
        amortization of debt discount     155     169     170     171      665
     Income before Income Taxes and
      Minority Interests                  792     989     550     255    2,586
       Provision for income taxes         262     311     177      89      839
       Minority interests' share in
        income                             18      21      16      17       72
     Net Income Available for Common
      Stockholders                       $512    $657    $357    $149   $1,675
     Share Data
       Earnings per common share -
        basic                           $0.58   $0.73   $0.40   $0.17    $1.88
       Earnings per common share -
        diluted                         $0.57   $0.72   $0.40   $0.16    $1.85
       Weighted-average common shares
        outstanding - basic             889.6   894.5   896.1   895.7    893.2
       Weighted-average common shares
        outstanding - diluted           903.8   906.1   902.3   904.3    904.5
 
     Selected Data Adjusted to Exclude Unusual Items
     Earnings before Interest, Income
      Taxes and Minority Interests       $902  $1,129    $694    $400   $3,125
     Net Income Available for Common
      Stockholders                        512     657     357     171    1,697
     Earnings per common share -
      diluted                            0.57    0.72    0.40    0.18     1.87
 
     Selected Unaudited Combined Historical Segment Information
                                    For the year ended December 31,
     In millions             2000     1999     1998     1997     1996     1995
     Operating segment
      sales
          Performance
           Plastics        $7,667   $7,031   $6,900   $7,201   $7,163   $6,668
          Performance
           Chemicals        5,343    5,044    4,944    4,887    4,783    4,596
          Agricultural
           Products         2,346    2,334    2,408    2,175    1,974    1,963
          Plastics          7,118    5,764    4,928    5,610    5,302    4,965
          Chemicals         4,109    3,603    3,646    4,394    4,290    4,563
          Hydrocarbons &
           Energy           2,626    1,731    1,499    2,184    2,464    2,371
          Unallocated and
           Other              325      352      776    1,025    1,091    1,839
          Total           $29,534  $25,859  $25,101  $27,476  $27,067  $26,965
     Operating segment
      EBIT
          Performance
           Plastics        $1,029   $1,578   $1,819   $1,679   $1,864   $1,576
          Performance
           Chemicals          536      805      744      763      811      790
          Agricultural
           Products           212      125     (209)     213      304      318
          Plastics            945      564      525      968      884    1,672
          Chemicals           422      292       76      641      574    1,360
          Hydrocarbons &
           Energy             136        8      (11)     220      163      (44)
          Unallocated and
           Other             (175)    (350)     149     (212)    (237)    (626)
          Total            $3,105   $3,022   $3,093   $4,272   $4,363   $5,046
     Operating segment
      EBIT excluding
      unusual items
          Performance
           Plastics        $1,066   $1,528   $1,689   $1,679   $1,864   $1,576
          Performance
           Chemicals          536      811      756      763      811      790
          Agricultural
           Products           212      219      154      233      304      318
          Plastics            945      564      560      980      884    1,672
          Chemicals           422      292      244      641      574    1,360
          Hydrocarbons &
           Energy              38        8        -       41      163      (44)
          Unallocated and
           Other              (94)    (350)    (313)    (160)    (237)    (406)
          Total            $3,125   $3,072   $3,090   $4,177   $4,363   $5,266
 
 
     Selected Unaudited Combined Historical Segment Information
                                             Three months ended      Year ended
 
     In millions                        Mar.     June    Sept.   Dec.     Dec.
                                         31,      30,     30,    31,      31,
     Operating segment sales           2000      2000    2000   2000     2000
          Performance Plastics         $1,827  $1,941  $1,957  $1,942   $7,667
          Performance Chemicals         1,338   1,373   1,337   1,295    5,343
          Agricultural Products           633     694     449     570    2,346
          Plastics                      1,779   1,761   1,863   1,715    7,118
          Chemicals                     1,038   1,079   1,021     971    4,109
          Hydrocarbons & Energy           571     638     721     696    2,626
          Unallocated and Other            83     100     100      42      325
          Total                        $7,269  $7,586  $7,448  $7,231  $29,534
     Operating segment EBIT
          Performance Plastics           $316    $274    $235    $204   $1,029
          Performance Chemicals           152     182     125      77      536
          Agricultural Products            90     158     (23)    (13)     212
          Plastics                        260     321     247     117      945
          Chemicals                       143     180      86      13      422
          Hydrocarbons & Energy            18       2       4     112      136
          Unallocated and Other           (77)     12      20    (130)    (175)
          Total                          $902  $1,129    $694    $380   $3,105
     Operating segment EBIT excluding
      unusual items
          Performance Plastics           $316    $274    $235    $241   $1,066
          Performance Chemicals           152     182     125      77      536
          Agricultural Products            90     158     (23)    (13)     212
          Plastics                        260     321     247     117      945
          Chemicals                       143     180      86      13      422
          Hydrocarbons & Energy            18       2       4      14       38
          Unallocated and Other           (77)     12      20     (49)     (94)
          Total                          $902  $1,129    $694    $400   $3,125
 
 SOURCE  The Dow Chemical Company

RELATED LINKS

http://www.dow.com