Item 2.05 Costs associated with eviction or disposal activities.
upon January 25, 2023Board of Directors (“Board of Directors”) Dow Co., Ltd. (“Dow” or the “Company”) is committed to achieving its structural cost improvement initiatives in response to the continued economic impact from the global recessionary environment, resulting in increased agility and long-term growth throughout the economic cycle. Approved restructuring measures to strengthen competitiveness. The program includes actions to streamline the Company’s manufacturing assets, including global labor cost reductions, turnaround cost reductions, asset write-downs and amortization charges, and related termination fees.
The Company will record expenses related to these activities in the first quarter of 2023. In total, we expect these costs to be in the following range: $550 million To $725 million Consists of severance and related benefit costs. $330 million To $425 million In connection with global job cuts of about 2,000 roles.Costs associated with exit and disposal activities ranging from $20 million To $50 million; and asset write-downs and write-downs are $200 million To $250 million.
Future cash payments related to severance payments, termination fees, and environmental remediation costs are approximately $450 million
To $550 million Mainly paid over the next two years.
In addition, we bear the costs of implementing these and other efficiency activities. $400 million To $450 million for the life of the program.
We engage local stakeholders and adhere to relevant information and consultation processes as defined by each country.
As permitted by Item 2.05 of Form 8-K, the Company will amend this report if charges and future cash payments are materially different from current estimates.
Item 8.01 Other Events.
The company issued a press release. January 26, 2023, regarding the previous items. The press release is included below in its entirety.
[[Image Removed: dow-20230125_g2.jpg]]
2211 H.H. Dow Way
Midland, MI 48674
dow.com
Outline the targeted actions Dow offers billion dollars Cost savings in 2023
Respond to near-term macroeconomic uncertainty by taking proactive actions to optimize Dow’s cost structure while maintaining a focus on long-term value creation Company will focus on decarbonization and growth strategy and disciplined and balanced approach to capital allocation
Midland, Michigan – January 26, 2023 – Dow Co., Ltd. (NYSE: DOW) today outlined a series of targeted actions in line with its previously stated delivery plan. billion dollars
In 2023 cost savings. Aggressive action will further optimize our cost structure in response to near-term macroeconomic uncertainties and maintain long-term competitiveness across economic cycles.
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Specifically, the Dow hopes to deliver. billion dollars Cost savings in 2023:
•Structural improvements of $500 million, maintaining a low cost-to-serve
operating model:
•Optimizing labor and services costs, including a global workforce reduction of
approximately 2,000 roles;
•Shutting down select assets, while further evaluating Dow's global asset base,
particularly in Europe, to ensure long-term competitiveness and enhance cost
efficiency; and
•Increasing productivity via end-to-end process improvements.
• Lower operating costs $500 million, focused on short-term cash flow. • Reduction in purchased raw materials, logistics and utility costs. • Align spending levels with the macroeconomic environment.
“We are taking these actions to further optimize our cost structure and prioritize our business operations towards the most competitive, cost-advantageous and growth-oriented markets. Uncertainty and difficult energy markets, especially Europe,” Said Jim fitter ring, Dow Chairman and CEO. “We remain committed to capitalizing on long-term growth opportunities in a disciplined and balanced manner, and these actions will enable us to advance our decarbonization and growth strategies and strengthen our competitiveness. can.”
The company accounts for the following costs: $550 million To $725 million Expenses related to these activities will primarily include severance and related benefit costs in the first quarter of 2023. Costs associated with eviction and disposal activities. Write-downs and amortization of assets.
Over the long term, Dow expects underlying EBITDA to
$3 billion Reduce carbon emissions by 30% by 2030 compared to our 2005 baseline, and be on the road to carbon neutrality by 2050.
As Dow implements the actions announced today, the company will engage with local stakeholders in each region and comply with local regulations and consultation processes.
almost dow dow (NYSE: DOW) combines global reach. Asset consolidation and scale. Focused innovation and materials science expertise. Key business positions; environmental, social and governance leadership to achieve profitable growth and help enable a sustainable future. Our goal is to be the world’s most innovative, customer-centric, comprehensive and sustainable materials science company. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses offers a broad range of differentiated, science-based products and solutions to serve customers in high-growth market segments such as packaging, infrastructure, mobility and consumer applications. offers. Dow operates manufacturing sites in 31 countries and employs approximately 37,800 people.The Dow is about $57 billion Any reference to Dow or the Company is Dow Co., Ltd. and its subsidiaries. For more information, visit www.dow.com or follow @DowNewsroom on Twitter.
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®TM trademark Dow Chemical Company (“Dow”) or a Dow affiliate
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For more information, please contact:
INVESTORS: MEDIA:
Pankaj Gupta Kyle Bandlow
+1 989-638-5265 +1 989-638-2417
pgupta@dow.com kbandlow@dow.com
Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release are “forward-looking statements” within the meaning of federal securities laws. This includes Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act. 1934, amended. Such statements often refer to anticipated future business and financial performance, financial condition and other matters and are often described as “anticipating,” “believing,” “estimating,” It contains words and phrases such as “expect,” “intend,” and “could.” “opportunity”, “prospect”, “plan”, “plan”, “seek”, “should”, “strategy”, “goal”, “will”, “will”, “continue”, “results possible” ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ WILL ‘, AND SIMILAR EXPRESSIONS, AND VARIATIONS OR NEGATIVES OF THESE TERMS.
Forward-looking statements are based on current assumptions and expectations of future events that are subject to risks, uncertainties and other factors beyond Dow’s control, and actual results may not be forward-looking statements. They may differ materially from those projected, anticipated or implied in the statements. Publish a statement and speak only as of the date the statement is made. These factors include, but are not limited to: Sale of Dow products. Dow Expenses, Future Earnings and Profitability. the continued global and regional economic impact of the 2019 coronavirus disease (“COVID-19”) pandemic and other public health-related risks and events to Dow’s businesses;Increased economic uncertainty related to sanctions, export restrictions, supply chain disruptions, or ongoing conflicts Russia When Ukrainecapital requirements, need and availability of funding; Unforeseen barriers to technology development, including those related to Dow’s planned capital and operating projects; Dow’s ability to deliver on its commitment to carbon neutrality in the planned timeframe. the market size of Dow’s products and services and its competitiveness in such markets; Failure to develop and market new products and optimally manage the product lifecycle. The rate and degree of market acceptance of Dow’s products. significant litigation, environmental issues, related contingencies and unexpected costs; the success of competing technologies that are or may become available;Ability to Protect Dow’s Intellectual Property usa and internationally; planned restructuring activities and developments related to proposed sales or acquisitions, such as workforce reductions, closures of manufacturing facilities and/or assets, related exit and disposal activities, and gains and losses associated with each of the foregoing; costs; fluctuations in energy and raw material prices; Manage process safety and product stewardship responsibilities. changes in Dow’s relationships with significant customers and suppliers; Changes in consumer tastes and demands. Changes in laws and regulations, political climate and industry developments. global economic and capital market conditions such as inflation, market uncertainties, interest and exchange rates, stock and commodity prices; Business or supply disruption.security threats such as war, including sabotage, terrorism, or ongoing conflict; Russia When
Ukraineweather events and natural disasters; disruption of Dow’s information technology networks and systems; risks associated with the separation of Dow from DowDuPont Inc., such as Dow’s obligation to indemnify DuPont de Nemours, Inc. and/or Corteva, Inc. for certain liabilities;
Where forward-looking statements express expectations or beliefs regarding future results or events, such expectations or beliefs are based on management’s current plans and expectations and are expressed in good faith and reasonably However, there is no guarantee that any expectations or beliefs will result in or will be achieved. A detailed description of the key risks and uncertainties that could cause actual results or events to differ materially from the forward-looking statements is included in our annual report on Form 10-K for the year ended. included in the section titled “Risk Factors” December 31, 2021 Company’s subsequent quarterly report on Form 10-Q. These are not the only risks and uncertainties facing the Dow. There may be other risks and uncertainties that Dow cannot currently identify or that Dow does not currently expect to have a material effect on its business. If any of these risks or uncertainties develops into an actual event, it could have a material adverse effect on Dow’s business. Dow Co., Ltd. TDCC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
®TM trademark Dow Chemical Company (“Dow”) or a Dow affiliate
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