Dow to Close Plants, Lay Off 1,000 Employees

Dow Chemical (DOW) announced Tuesday it will close less-profitable plants and more expensive R&D facilities around the world and cut about 1,000 jobs. The move will include fully exiting the automotive sealer business and some performance chemical facilities. The company will take a charge of about $500-$600 million in the fourth quarter to reflect asset write-down costs and severance packages connected to the restructuring. Once complete, the plan will save Dow about $180 million per year. "Today's announcement reflects our commitment to prune businesses that are not delivering appropriate value and tackle tasks more efficiently across the entire organization," said CEO Andrew N. Liveris. Investors were not impressed by the move; shares closed down 1.2% to $41.05.

Sources: MarketWatch, Bloomberg
Earnings call transcript: Dow Chemical Q3 2007

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