These actions are expected to significantly contribute to the Company's future earnings growth. Heading into 2001, the macroeconomic trends are quite different from those of a year ago. This past year produced very high growth around the world. A slowdown in the United States and the potential impact of slower U.S. growth on the rest of the world economies are concerns for 2001. These concerns, coupled with the current environment of unprecedented increases in feedstock and energy costs in North America and highly volatile feedstock prices globally, give rise to a cautious outlook, at least for the first part of the year.
Some recovery is anticipated starting mid-year.
While some businesses or regions may continue to see strong demand, only modest overall growth is expected with the uncertain economic environment. The merger with Union Carbide and the realization of integration synergies will be at the forefront of Dow's focus for 2001, along with continued emphasis on cost control and management of working capital. Volume increased 11 percent over 1999, while prices declined slightly. Sales in 1999 reflected a 9 percent volume gain with a 6 percent price decline versus 1998. During 2000, EBIT decreased as higher feedstock costs and the negative impact of currency on sales in Europe more than offset volume growth, gains in local currency prices and the favorable results of Six Sigma efforts.