The Dow Chemical Company (NYSE: DOW) is a multinational corporation headquartered in Midland, Michigan, United States. As of 2007, it is the second largest chemical manufacturer in the world by revenue (after BASF)[2] and as of February 2009, the third-largest chemical company in the world by market capitalization (after BASF and DuPont).
Dow Chemical is a provider of plastics, chemicals, and agricultural products with a presence in more than 175 countries and employing 46,000 people worldwide. Its stated mission, under the current CEO, Andrew N. Liveris, is "To passionately innovate what is essential to human progress by providing sustainable solutions to our customers" with the vision: "To be the most profitable and respected science-driven chemical company in the world".[3] Annual R&D spending exceeds $1 billion.
The company was founded in 1897 by Canadian-born chemist Herbert Henry Dow, who had invented a new method of extracting the bromine that was trapped underground in brine at Midland, Michigan.[4] While at first the company sold only bleach and potassium bromide, Dow today has seven major operating segments, with a wide variety of products offered by each.[5] The company's 2005 sales totaled $46.3 billion, with a net income of $4.5 billion. Dow has been called the "Chemical companies' Chemical company"[6] in that most sales are to other manufacturers rather than to end users. Dow has sold directly to customers, primarily in the Human and Animal Health and Consumer Products markets.
Dow Chemical is a member of the American Chemistry Council.
The Dow Chemical Company (Dow), incorporated in 1947, is a diversified manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services worldwide. It operates in eight segments. Dow provides services to a range of industries, including appliance, automotive, agricultural, building and construction, chemical processing, electronics, furniture, house wares, oil and gas, packaging, paints, coatings and adhesives, personal care pharmaceutical processed foods pulp and paper textile, and carpet utilities and water treatment. Its portfolio includes specialty chemical, advanced materials, agrosciences and plastics businesses deliver a range of technology-based products and solutions to customers in approximately 160 countries. In May 2010, OMNOVA Solutions Inc. acquired its hollow sphere plastic pigment (HPP) product line and terminated the RohmNova paper coatings joint venture. On June 17, 2010, the Company sold of its interest in Styron plastics division to Bain Capital Partners.
Electronic and Specialty Materials
The Electronic and Specialty Materials segment consists of two businesses: Dow Electronic Materials and Specialty Materials. Dow Electronic Materials is a supplier of materials for chemical mechanical planarization, and materials used in the production of electronic displays, including brightness films, diffusers, metal organic light emitting diode (LED) precursors and organic light emitting diode (OLED) materials. It is also a supplier of products and technologies for the semiconductor design; materials used in the fabrication of printed circuit boards, and integrated metallization processes for interconnection, corrosion resistance, metal finishing and decorative applications. Products include ACuPLANE CMP slurries, AR antireflective coatings, AUROLECTROLESS immersion gold process, COPPER GLEAM acid copper plating products, CYCLOTENE advanced electronics resins, DURAPOSIT electroless nickel process, ENLIGHT products for photovoltaic manufacturers, EPIC immersion photoresists, INTERVIA photodielectrics for advanced packaging, LITHOJET digital imaging processes, OPTOGRADE metalorganic precursors and VISIONPAD CMP pads.
Specialty Materials is a portfolio of businesses consists of five businesses: Dow Water and Process Solutions, Dow Home and Personal Care, Dow Microbial Control, Dow Wolff Cellulosics and Performance Materials. Its products include acrolein derivatives, ACUDYNE hair fixative resins; ACULYN rheology modifiers; ACUMER scale inhibitors and dispersants; ACUSOL detergent polymers, dispersants, opacifiers and rheology modifiers, and AMBERCHROM chromatography resins. Products also include AMBERJET, AMBERLITE, AMBERLYST and DOWEX ion exchange resins; ANGUS nitroalkanes and derivatives; AQUCAR water treatment microbiocides; ASC METATIN dimethyltin catalyst; AUTOMATE liquid dyes; BIOBAN biocide for material preservation; CELLOSIZE hydroxyethyl cellulose; CLEAR+STABLE carboxymethyl cellulose, and Divinylbenzene. Specialty Materials portfolio also includes DOW electrodeionization; DOW ultrafiltration; DUOLITE pharmaceutical grade resins; DURAGREEN and DURAPLUS floor care polymers; ECOSMOOTH silk conditioning polymers; ECOSURF biodegradable surfactants; ETHOCEL ethylcellulose polymers, and FILMTEC reverse osmosis membrane elements.
Coatings and Infrastructure
The Coatings and Infrastructure segment consists of Dow Adhesives and Functional Polymers, Dow Building and Construction, and Dow Coating Materials businesses. Dow Adhesives and Functional Polymers is a portfolio of businesses that primarily manufactures sticking and bonding solutions for a range of applications, including adhesive tapes and paper labels, flexible packaging and leather, textile and imaging. Its products include ADCOTE and AQUA-LAM laminating adhesives; MOR-FREE solventless adhesives; ROBOND acrylic adhesives; SERFENE barrier coatings; solvent-based polyurethanes and polyesters, and TYMOR tie resins. Dow Building and Construction consists of three global businesses: Dow Building Solutions, Dow Construction Chemicals and Dow Solar Solutions, which offer insulation, housewrap, sealant and adhesive products and systems, as well as construction chemical solutions and building-integrated photovoltaics. Its products include AQUASET acrylic thermosetting resins; CELLOSIZE hydroxyethyl cellulose; DOW latex powders; FROTH-PAK polyurethane spray foam; GREAT STUFF polyurethane foam sealant; INSTA-STIK roof insulation adhesive; METHOCEL cellulose ethers; POWERHOUSE solar shingle; RHOPLEX aqueous acrylic polymer emulsions, and STYROFOAM brand insulation products, including extruded polystyrene and polyisocyanurate rigid foam sheathing products.
Dow Coating Materials is a coating and supplier of raw materials for architectural paints and industrial coatings. The business also offers technologies used in industrial packaging, pipelines, wood, automotive, marine, maintenance and protective industries. It is also engaged in the conversion of solvent to water-based technologies. Products include ACRYSOL rheology modifiers; AVANSE, ELASTENE, PRIMAL and RHOPLEX acrylics; CELLOSIZE hydroxyethyl cellulose; CELLOSOLVE and the CARBITOL and DOWANOL series of oxygenated solvents; D.E.H. curing agent and intermediates; D.E.R. and D.E.N. liquid and epoxy resins; FORTEGRA Epoxy Tougheners, and OROTAN and TAMOL dispersants.
Health and Agricultural Sciences
Health and Agricultural Sciences consists of Dow AgroSciences. Dow AgroSciences provides agricultural and plant biotechnology products, pest management solutions and healthy oils. The business develops, manufactures and markets products for use in agriculture, industrial and commercial pest management and food service. Products include AGROMEN seeds; BRODBECK seed; CLINCHER herbicide; DAIRYLAND seed; DELEGATE insecticide; DITHANE fungicide; Dow AgroSciences SmartStax; FORTRESS fungicide; GARLON herbicide; GLYPHOMAX herbicide; GRANITE herbicide, and HERCULEX I, HERCULEX RW and HERCULEX XTRA insect protection. Its products also include KEYSTONE herbicides; LAREDO fungicide; LONTREL herbicide; LORSBAN insecticides; MILESTONE herbicide, and MUSTANG herbicide.
Performance Systems
Performance Systems consists of Dow Automotive Systems, Dow Elastomers, Dow Formulated Systems, and Dow Wire and Cable. Dow Automotive Systems provides plastics, adhesives, glass bonding systems, emissions control technology, films, fluids, structural enhancement and acoustical management solutions to original equipment manufacturers, tier, aftermarket and commercial transportation customers. Products include AERIFY diesel particulate filters; BETAFOAM NVH acoustical foams; BETAMATE structural adhesives; BETASEAL glass bonding systems; DOW polyethylene resins; IMPAXX energy management foam; INSPIRE performance polymers; INTEGRAL adhesive films; ISONATE pure and modified methylene diphenyl diisocyanate (MDI) products, and PELLETHANE thermoplastic polyurethane elastomer. Dow Elastomers offers elastomers and plastomers, specialty copolymers, synthetic rubber, specialty resins, and films and plastic additives. Products include ADVASTAB thermal stabilizer; AFFINITY polyolefin plastomers (POPs); AMPLIFY functional polymers; DOW Adhesive Film; DOW Backing Layer Film; DOW Medical Device Film, and DOW Medical Packaging Film.
Dow Formulated Systems manufactures and markets formulated, rigid and semi-rigid, flexible, integral skin and microcellular polyurethane foams and systems and tailor-made epoxy solutions and systems. Products include AIRSTONE epoxy systems; Encapsulants and chemical compositions; ENFORCER Technology and ENHANCER Technology for polyurethane carpet and turf backing; HYPERKOTE, TRAFFIDECK and VERDISEAL waterproofing systems; HYPOL hydrophilic polyurethane prepolymers; RENUVA Renewable Resource Technology; SPECFIL urethane components; SPECFLEX copolymer polyols; SPECTRIM reaction moldable products; VORACOR and VORALAST polyurethane systems and VORALAST R renewable content system; VORAMER industrial adhesives and binders; VORASTAR polymers, and XITRACK polyurethane rail ballast stabilization systems.
Dow Wire and Cable is a provider of polymers, additives and specialty oil technology-based solutions for electrical and telecommunication applications. Products include ENGAGE polyolefin elastomers; NORDEL hydrocarbon rubber; SI-LINK and REDI-LINK moisture crosslinkable polyethylene-based wire and cable insulation compounds; TYRIN chlorinated polyethylene, and UNIGARD flame retardant compound for specialty wire and cable applications.
Performance Products
Performance Products consists of Amines, Emulsion Polymers, Epoxy, Oxygenated Solvents, Performance Monomers, Polyglycols, Surfactants and Fluids, and Polyurethanes. Amines products include alkyl alkanolamines; ethanolamines; ethyleneamines; isopropanolamines; piperazine, and VERSENE chelating agents. Epoxy products include D.E.H. epoxy curing agents or hardeners; D.E.N. epoxy novolac resins; D.E.R. epoxy resins (liquids, solids and solutions); epoxy intermediates (acetone, allyl chloride, epichlorohydrin and phenol); epoxy resin waterborne emulsions and dispersions; FORTEGRA epoxy tougheners, and glycidyl methacrylate (GMA). Oxygenated Solvents products consists of acetic esters; acetone derivatives; alcohols; aldehydes; butyl CARBITOL and butyl CELLOSOLVE solvents; carboxylic acids; DOWANOL glycol ethers; ECOSOFT IK solvent; PROGLYDE DMM solvent, and UCAR propionates.
Performance Monomers business produces specialty monomer products. Products include acrylic acid/acrylic esters; ACUMER, ACUSOL, DURAMAX, OPTIDOSE, ROMAX and TAMOL dispersants, and methyl methacrylate. Polyglycols, Surfactants and Fluids business’s products include AMBITROL and NORKOOL coolants; CARBOWAX and CARBOWAX SENTRY polyethylene glycols and methoxypolyethylene glycols; DOW polypropylene glycols; DOW SYMBIO base fluid; DOWFAX, TERGITOL and TRITON surfactants; DOWFROST and DOWTHERM heat transfer fluids; ECOSURF biodegradable surfactants; SYNALOX lubricants; UCAR deicing fluids, and UCON fluids. Polyurethanes products include ECHELON polyurethane prepolymer; ISONATE methylene diphenyl diisocyanate (MDI); MONOTHANE single component polyurethane elastomers; PAPI polymeric MDI; propylene glycol; propylene oxide; RENUVA renewable resource rechnology; VORANATE isocyanate, and VORANOL VORACTIV polyether and copolymer polyols.
Plastics
The Company’s Plastics segment consists of the Polyethylene business, the Polypropylene business and the Styrenics business. The Polyethylene business is the supplier of polyethylene-based solutions. Products include ASPUN fiber grade resins; ATTANE ultra low density polyethylene (ULDPE) resins; CONTINUUM bimodal polyethylene resins; DOW high density polyethylene (HDPE) resins; DOW low density polyethylene (LDPE) resins; DOWLEX polyethylene resins; ELITE enhanced polyethylene (EPE) resins; TUFLIN linear low density polyethylene (LLDPE) resins, and UNIVAL HDPE resins. Polypropylene’s products include DOW homopolymer polypropylene resins; DOW impact copolymer polypropylene resins; DOW random copolymer polypropylene resins; INSPIRE performance polymers; UNIPOL PP process technology; SHAC and SHAC ADT catalyst systems. The Plastics segment also includes the results of the Plastics Licensing and Catalyst business and the Polycarbonate and Compounds and Blends business.
Chemicals and Energy
Chemicals and Energy segment consists of the Chlor-Alkali/Chlor-Vinyl business, the Energy business and the Ethylene Oxide/Ethylene Glycol business. Chlor-Alkali/Chlor-Vinyl’s products include caustic soda; chlorine; ethylene dichloride (EDC); hydrochloric acid; vinyl chloride monomer (VCM). The Energy business supplies power, steam and other utilities, principally for use in Dow’s global operations. Ethylene Oxide/Ethylene Glycol’s products include ethylene oxide (EO); ethylene glycol (EG), and METEOR EO/EG process technology and catalysts.
Hydrocarbons
The Company’s Hydrocarbons sells its by-products, and buys and sells products. The business also sells products to Dow’s joint ventures. Products include Benzene; Butadiene; Butylene; Cumene; Ethylene, and Propylene. The Hydrocarbons segment also includes the results of Compania Mega S.A. and a portion of the results of The Kuwait Olefins Company K.S.C. and the SCG-Dow Group, which are the joint ventures of the Company.
OVERALL
Beta: 2.26
Market Cap (Mil.): $47,528.20
Shares Outstanding (Mil.): 1,173.25
Annual Dividend: 1.00
Yield (%): 2.47
FINANCIALS
DOW Industry Sector
P/E (TTM): 21.89 9.83 24.46
EPS (TTM): 236.02 -- --
ROI: 4.67 1.03 17.95
ROE: 12.02 3.06 17.96
Despite these beliefs, Dow was forced to build new plants for commodity chemicals when a Canadian supplier decided to become a competitor. Dow began building ethylene plants in Alberta, Canada, and Freeport, Texas. Even after 40 years in Asia, sales there still accounted for less than 10 percent, while European sales accounted for 31 percent of total sales. But with Europe mired in recession and European sales slowing, Dow began pushing into Asia again, building a petrochemicals plant in China, where it enjoyed an expanding polyurethane business. Though its growth had been slowed by the downturn in chemicals, Dow had nevertheless reduced its dependence on commodity chemicals from 80 percent of sales in 1980 to 45 percent in 1992, making it one of the world's most diversified chemical firms.
With success came growing controversy. Starting in the early 1980s, Dow Corning faced questions and lawsuits regarding the safety of its silicone breast implants. Many women claimed to have developed autoimmune diseases as a result of silicone leakage from the implants. Faced with many individual lawsuits, as well as class action suits, Dow Corning filed for Chapter 11 bankruptcy protection in 1995, and settled with breast implant recipients for $3.2 billion. Dow, however, as a 50 percent shareholder in Dow Corning, was named in many individual lawsuits. Both Dow and Corning (the other 50 percent shareholder) were still attempting to reach a settlement of these suits in 2002. Interestingly, as of 2001, with over 20 independent studies done, no causal relationship between silicone breast implants and autoimmune diseases (or cancer) has been established.
Another controversy erupted on August 4, 1999, when Dow announced plans to merge with Union Carbide, one of the world's leading manufacturers of polyethylene plastics, and a pioneer in the petrochemical industry. The announcement drew fire from various groups, including Dow shareholders. At issue was Union Carbide's reputation, and possible continuing liability, following the Bhopal gas leak disaster in India ("The world's worst industrial accident"). Plans for the $11.6 billion merger nevertheless moved on. To receive clearance from the Federal Trade Commission (FTC) and international regulators, Dow agreed to divest itself of a number of polyethylene plants worldwide. The FTC granted approval for the merger on February 5, 2001. Union Carbide became a wholly owned subsidiary of Dow.
Throughout the 1990s and into the new millennium, Dow continued to reinvent itself through sales and acquisitions of various assets. In 1995 Dow sold its stake in Marion Merrel Dow to Hoechst for $7.1 billion. In 1998 its consumer products subsidiary, known as DowBrands, was sold to S.C. Johnson & Son. DowBrands included the Home Food Management unit, responsible for familiar names such as Ziploc and Saran Wrap. The second DowBrands unit, Home Care Products, made products such as Spray 'N Wash and Fantastik. Dow purchased ANGUS Chemical from TransCanada Pipelines in 1999. In 2000 it acquired General Latex Chemical Corporation and Flexible Products Company, both manufacturers of foam products. Another foam business, Celotex Corporation (makers of foam insulation) was purchased in 2001. The same year Dow expanded its agricultural product line by acquiring the agricultural chemicals arm of Rohm and Haas.
The recession that began in late 2001 did not spare the chemical giant, and Dow announced a workforce reduction of 8 percent. Dow seemed to bounce back with stronger earnings at the start of 2002. In June 2002, Dow was awarded the National Medal of Technology "for the vision to create great science and innovative technology in the chemical industry and the positive impact that commercialization of this technology has had on society," according to the official citation.
Principal Subsidiaries:Compañía Mega SA (28%); Dow AgroScience; Dow Automotive; Dow Corning Corporation (50%); du Pont Dow Elastomers LLC (50%); EQUATE Petrochemical Company K.S.C. (45%); Mycogen Corporation; Nippon Unicar Company Limited (50%); Petromont and Company, Limited Partnership (50%); Total Raffinaderij Nederland NV (45%); UCAR Emulsion Systems; Union Carbide; UOP LLC (50%).
Principal Competitors:BASF AG; Bayer AG; du Pont; BP Chemicals; BP; Eastman Chemical; Novartis.
OVERALL
Beta: 2.26
Market Cap (Mil.): $47,528.20
Shares Outstanding (Mil.): 1,173.25
Annual Dividend: 1.00
Yield (%): 2.47
FINANCIALS
DOW Industry Sector
P/E (TTM): 21.89 9.83 24.46
EPS (TTM): 236.02 -- --
ROI: 4.67 1.03 17.95
ROE: 12.02 3.06 17.96
Statistics:
Public Company
Incorporated: 1947
Employees: 50,000
Sales: $27.8 billion (2001)
Stock Exchanges: Amsterdam Bavarian Berlin Brussels Chicago Düsseldorf Germany Hamburg Hanover London New York Pacific Paris Stuttgart Switzerland Tokyo
Ticker Symbol: DOW (New York)
NAIC: 325131 Inorganic Dye and Pigment Manufacturing; 325188 All Other Basic Inorganic Chemical Manufacturing; 325211 Plastics Material and Resin Manufacturing; 325611 Soap and Other Detergent Manufacturing; 325612 Polish and Other Sanitation Goods Manufacturing; 326122 Plastics Pipe and Pipe Fitting Manufacturing; 326130 Laminated Plastics Plate, Sheet, and Shape Manufacturing; 326150 Urethane and Other Foam Product (Except Polystyrene) Manufacturing
Key Dates:
1897: Herbert Dow founds The Dow Chemical Company.
1900: Dow and Midland Chemical Company merge.
1906: The company produces their first agricultural product.
1933: Dow begins extracting bromine from seawater.
1935: Dow enters the plastics business.
1937: Dow is listed on the NYSE on June 26.
1942: Dow's first international expansion begins with Dow Chemical Canada, Ltd.
1943: Dow and Corning Glass merge to form the Dow Corning Company, specializing in silicone products.
1952: Dow establishes Ashai-Dow in Japan, its first subsidiary outside North America.
1953: Saran Wrap becomes a household product.
1964: Dow exceeds $1 billion in annual sales.
1968: Ziploc bags are test-marketed.
1970: The company introduces an automotive product line.
1972: Dow introduces the insecticide Lorsban.
1973: Dow becomes the first foreign industrial company listed on the Tokyo Stock Exchange.
1989: Dow and Eli Lilly form DowElanco, a joint venture to produce agricultural products.
1996: Du Pont Dow Elastomers, a Dow-du Pont joint venture, begins operations.
1997: Dow buys Eli Lilly's share in DowElanco.
1998: DowElanco is renamed Dow AgroSciences, and the DowBrands unit is sold to S.C. Johnson & Son.
1999: Dow announces plans to merge with Union Carbide.
2001: The Dow-Union Carbide merger is finalized.
Name Age Since Current Position
Liveris, Andrew 56 2006 Chairman of the Board, President, Chief Executive Officer
Weideman, William 56 2010 Chief Financial Officer, Executive Vice President
Kepler, David 58 2008 CIO, Chief Sustainability Officer, Executive Vice President - Buisness Services
Banholzer, William 54 2009 Chief Technology Officer, Executive Vice President - Ventures, New Business Development & Licensing
Kalil, Charles 59 2008 Executive Vice President - Law and Government Affairs, General Counsel, Corporate Secretary
Freiwald, Gregory 57 2009 Executive Vice President - Human Resources, Corporate Affairs and Aviation
Merszei, Geoffery 59 2009 Executive Vice President, Chairman, Dow Europe and President, Dow Europe, Middle East and Africa
Gambrell, Michael 57 2009 Executive Vice President - Manufacturing and Engineering Operations
Haller, Heinz 55 2010 Chief Commercial Officer, Executive Vice President
Luciano, Juan 49 2010 Executive Vice President, President - Performance Division
Fitterling, James 49 2010 Executive Vice President, President - Plastics and Hydrocarbons
Peribere, Jerome 56 2009 Executive Vice President, President and Chief Executive Officer - Dow Advanced Materials
Dudley-Williams, Carol 52 2010 Group Senior Vice President, President - Chemicals and Energy Division
McIlvenny, James 52 2010 Group Senior Vice President - Mega Projects
Ruiz, Fernando 55 2001 Corporate Vice President, Treasurer
Edmonds, Ronald 53 2009 Vice President, Controller
May, Doug 2011 Vice President - Investor Relations
Allemang, Arnold 68 2004 Director
Stern, Paul 72 2006 Presiding Director
Barton, Jacqueline 58 1993 Independent Director
Franklin, Barbara 71 1993 Independent Director
Ringler, James 65 2001 Independent Director
Fettig, Jeff 54 2003 Independent Director
Shaw, Ruth 63 2005 Independent Director
Bell, James 62 2005 Independent Director
Hess, John 56 2006 Independent Director
Reilley, Dennis 58 2007 Independent Director
Polman, Paul 55 2010 Independent Director
Granholm, Jennifer 52 2011 Independent Director
Address:
2030 Willard H. Dow Center
Midland, Michigan 48674
U.S.A.
Dow Chemical is a provider of plastics, chemicals, and agricultural products with a presence in more than 175 countries and employing 46,000 people worldwide. Its stated mission, under the current CEO, Andrew N. Liveris, is "To passionately innovate what is essential to human progress by providing sustainable solutions to our customers" with the vision: "To be the most profitable and respected science-driven chemical company in the world".[3] Annual R&D spending exceeds $1 billion.
The company was founded in 1897 by Canadian-born chemist Herbert Henry Dow, who had invented a new method of extracting the bromine that was trapped underground in brine at Midland, Michigan.[4] While at first the company sold only bleach and potassium bromide, Dow today has seven major operating segments, with a wide variety of products offered by each.[5] The company's 2005 sales totaled $46.3 billion, with a net income of $4.5 billion. Dow has been called the "Chemical companies' Chemical company"[6] in that most sales are to other manufacturers rather than to end users. Dow has sold directly to customers, primarily in the Human and Animal Health and Consumer Products markets.
Dow Chemical is a member of the American Chemistry Council.
The Dow Chemical Company (Dow), incorporated in 1947, is a diversified manufacturer and supplier of products used primarily as raw materials in the manufacture of customer products and services worldwide. It operates in eight segments. Dow provides services to a range of industries, including appliance, automotive, agricultural, building and construction, chemical processing, electronics, furniture, house wares, oil and gas, packaging, paints, coatings and adhesives, personal care pharmaceutical processed foods pulp and paper textile, and carpet utilities and water treatment. Its portfolio includes specialty chemical, advanced materials, agrosciences and plastics businesses deliver a range of technology-based products and solutions to customers in approximately 160 countries. In May 2010, OMNOVA Solutions Inc. acquired its hollow sphere plastic pigment (HPP) product line and terminated the RohmNova paper coatings joint venture. On June 17, 2010, the Company sold of its interest in Styron plastics division to Bain Capital Partners.
Electronic and Specialty Materials
The Electronic and Specialty Materials segment consists of two businesses: Dow Electronic Materials and Specialty Materials. Dow Electronic Materials is a supplier of materials for chemical mechanical planarization, and materials used in the production of electronic displays, including brightness films, diffusers, metal organic light emitting diode (LED) precursors and organic light emitting diode (OLED) materials. It is also a supplier of products and technologies for the semiconductor design; materials used in the fabrication of printed circuit boards, and integrated metallization processes for interconnection, corrosion resistance, metal finishing and decorative applications. Products include ACuPLANE CMP slurries, AR antireflective coatings, AUROLECTROLESS immersion gold process, COPPER GLEAM acid copper plating products, CYCLOTENE advanced electronics resins, DURAPOSIT electroless nickel process, ENLIGHT products for photovoltaic manufacturers, EPIC immersion photoresists, INTERVIA photodielectrics for advanced packaging, LITHOJET digital imaging processes, OPTOGRADE metalorganic precursors and VISIONPAD CMP pads.
Specialty Materials is a portfolio of businesses consists of five businesses: Dow Water and Process Solutions, Dow Home and Personal Care, Dow Microbial Control, Dow Wolff Cellulosics and Performance Materials. Its products include acrolein derivatives, ACUDYNE hair fixative resins; ACULYN rheology modifiers; ACUMER scale inhibitors and dispersants; ACUSOL detergent polymers, dispersants, opacifiers and rheology modifiers, and AMBERCHROM chromatography resins. Products also include AMBERJET, AMBERLITE, AMBERLYST and DOWEX ion exchange resins; ANGUS nitroalkanes and derivatives; AQUCAR water treatment microbiocides; ASC METATIN dimethyltin catalyst; AUTOMATE liquid dyes; BIOBAN biocide for material preservation; CELLOSIZE hydroxyethyl cellulose; CLEAR+STABLE carboxymethyl cellulose, and Divinylbenzene. Specialty Materials portfolio also includes DOW electrodeionization; DOW ultrafiltration; DUOLITE pharmaceutical grade resins; DURAGREEN and DURAPLUS floor care polymers; ECOSMOOTH silk conditioning polymers; ECOSURF biodegradable surfactants; ETHOCEL ethylcellulose polymers, and FILMTEC reverse osmosis membrane elements.
Coatings and Infrastructure
The Coatings and Infrastructure segment consists of Dow Adhesives and Functional Polymers, Dow Building and Construction, and Dow Coating Materials businesses. Dow Adhesives and Functional Polymers is a portfolio of businesses that primarily manufactures sticking and bonding solutions for a range of applications, including adhesive tapes and paper labels, flexible packaging and leather, textile and imaging. Its products include ADCOTE and AQUA-LAM laminating adhesives; MOR-FREE solventless adhesives; ROBOND acrylic adhesives; SERFENE barrier coatings; solvent-based polyurethanes and polyesters, and TYMOR tie resins. Dow Building and Construction consists of three global businesses: Dow Building Solutions, Dow Construction Chemicals and Dow Solar Solutions, which offer insulation, housewrap, sealant and adhesive products and systems, as well as construction chemical solutions and building-integrated photovoltaics. Its products include AQUASET acrylic thermosetting resins; CELLOSIZE hydroxyethyl cellulose; DOW latex powders; FROTH-PAK polyurethane spray foam; GREAT STUFF polyurethane foam sealant; INSTA-STIK roof insulation adhesive; METHOCEL cellulose ethers; POWERHOUSE solar shingle; RHOPLEX aqueous acrylic polymer emulsions, and STYROFOAM brand insulation products, including extruded polystyrene and polyisocyanurate rigid foam sheathing products.
Dow Coating Materials is a coating and supplier of raw materials for architectural paints and industrial coatings. The business also offers technologies used in industrial packaging, pipelines, wood, automotive, marine, maintenance and protective industries. It is also engaged in the conversion of solvent to water-based technologies. Products include ACRYSOL rheology modifiers; AVANSE, ELASTENE, PRIMAL and RHOPLEX acrylics; CELLOSIZE hydroxyethyl cellulose; CELLOSOLVE and the CARBITOL and DOWANOL series of oxygenated solvents; D.E.H. curing agent and intermediates; D.E.R. and D.E.N. liquid and epoxy resins; FORTEGRA Epoxy Tougheners, and OROTAN and TAMOL dispersants.
Health and Agricultural Sciences
Health and Agricultural Sciences consists of Dow AgroSciences. Dow AgroSciences provides agricultural and plant biotechnology products, pest management solutions and healthy oils. The business develops, manufactures and markets products for use in agriculture, industrial and commercial pest management and food service. Products include AGROMEN seeds; BRODBECK seed; CLINCHER herbicide; DAIRYLAND seed; DELEGATE insecticide; DITHANE fungicide; Dow AgroSciences SmartStax; FORTRESS fungicide; GARLON herbicide; GLYPHOMAX herbicide; GRANITE herbicide, and HERCULEX I, HERCULEX RW and HERCULEX XTRA insect protection. Its products also include KEYSTONE herbicides; LAREDO fungicide; LONTREL herbicide; LORSBAN insecticides; MILESTONE herbicide, and MUSTANG herbicide.
Performance Systems
Performance Systems consists of Dow Automotive Systems, Dow Elastomers, Dow Formulated Systems, and Dow Wire and Cable. Dow Automotive Systems provides plastics, adhesives, glass bonding systems, emissions control technology, films, fluids, structural enhancement and acoustical management solutions to original equipment manufacturers, tier, aftermarket and commercial transportation customers. Products include AERIFY diesel particulate filters; BETAFOAM NVH acoustical foams; BETAMATE structural adhesives; BETASEAL glass bonding systems; DOW polyethylene resins; IMPAXX energy management foam; INSPIRE performance polymers; INTEGRAL adhesive films; ISONATE pure and modified methylene diphenyl diisocyanate (MDI) products, and PELLETHANE thermoplastic polyurethane elastomer. Dow Elastomers offers elastomers and plastomers, specialty copolymers, synthetic rubber, specialty resins, and films and plastic additives. Products include ADVASTAB thermal stabilizer; AFFINITY polyolefin plastomers (POPs); AMPLIFY functional polymers; DOW Adhesive Film; DOW Backing Layer Film; DOW Medical Device Film, and DOW Medical Packaging Film.
Dow Formulated Systems manufactures and markets formulated, rigid and semi-rigid, flexible, integral skin and microcellular polyurethane foams and systems and tailor-made epoxy solutions and systems. Products include AIRSTONE epoxy systems; Encapsulants and chemical compositions; ENFORCER Technology and ENHANCER Technology for polyurethane carpet and turf backing; HYPERKOTE, TRAFFIDECK and VERDISEAL waterproofing systems; HYPOL hydrophilic polyurethane prepolymers; RENUVA Renewable Resource Technology; SPECFIL urethane components; SPECFLEX copolymer polyols; SPECTRIM reaction moldable products; VORACOR and VORALAST polyurethane systems and VORALAST R renewable content system; VORAMER industrial adhesives and binders; VORASTAR polymers, and XITRACK polyurethane rail ballast stabilization systems.
Dow Wire and Cable is a provider of polymers, additives and specialty oil technology-based solutions for electrical and telecommunication applications. Products include ENGAGE polyolefin elastomers; NORDEL hydrocarbon rubber; SI-LINK and REDI-LINK moisture crosslinkable polyethylene-based wire and cable insulation compounds; TYRIN chlorinated polyethylene, and UNIGARD flame retardant compound for specialty wire and cable applications.
Performance Products
Performance Products consists of Amines, Emulsion Polymers, Epoxy, Oxygenated Solvents, Performance Monomers, Polyglycols, Surfactants and Fluids, and Polyurethanes. Amines products include alkyl alkanolamines; ethanolamines; ethyleneamines; isopropanolamines; piperazine, and VERSENE chelating agents. Epoxy products include D.E.H. epoxy curing agents or hardeners; D.E.N. epoxy novolac resins; D.E.R. epoxy resins (liquids, solids and solutions); epoxy intermediates (acetone, allyl chloride, epichlorohydrin and phenol); epoxy resin waterborne emulsions and dispersions; FORTEGRA epoxy tougheners, and glycidyl methacrylate (GMA). Oxygenated Solvents products consists of acetic esters; acetone derivatives; alcohols; aldehydes; butyl CARBITOL and butyl CELLOSOLVE solvents; carboxylic acids; DOWANOL glycol ethers; ECOSOFT IK solvent; PROGLYDE DMM solvent, and UCAR propionates.
Performance Monomers business produces specialty monomer products. Products include acrylic acid/acrylic esters; ACUMER, ACUSOL, DURAMAX, OPTIDOSE, ROMAX and TAMOL dispersants, and methyl methacrylate. Polyglycols, Surfactants and Fluids business’s products include AMBITROL and NORKOOL coolants; CARBOWAX and CARBOWAX SENTRY polyethylene glycols and methoxypolyethylene glycols; DOW polypropylene glycols; DOW SYMBIO base fluid; DOWFAX, TERGITOL and TRITON surfactants; DOWFROST and DOWTHERM heat transfer fluids; ECOSURF biodegradable surfactants; SYNALOX lubricants; UCAR deicing fluids, and UCON fluids. Polyurethanes products include ECHELON polyurethane prepolymer; ISONATE methylene diphenyl diisocyanate (MDI); MONOTHANE single component polyurethane elastomers; PAPI polymeric MDI; propylene glycol; propylene oxide; RENUVA renewable resource rechnology; VORANATE isocyanate, and VORANOL VORACTIV polyether and copolymer polyols.
Plastics
The Company’s Plastics segment consists of the Polyethylene business, the Polypropylene business and the Styrenics business. The Polyethylene business is the supplier of polyethylene-based solutions. Products include ASPUN fiber grade resins; ATTANE ultra low density polyethylene (ULDPE) resins; CONTINUUM bimodal polyethylene resins; DOW high density polyethylene (HDPE) resins; DOW low density polyethylene (LDPE) resins; DOWLEX polyethylene resins; ELITE enhanced polyethylene (EPE) resins; TUFLIN linear low density polyethylene (LLDPE) resins, and UNIVAL HDPE resins. Polypropylene’s products include DOW homopolymer polypropylene resins; DOW impact copolymer polypropylene resins; DOW random copolymer polypropylene resins; INSPIRE performance polymers; UNIPOL PP process technology; SHAC and SHAC ADT catalyst systems. The Plastics segment also includes the results of the Plastics Licensing and Catalyst business and the Polycarbonate and Compounds and Blends business.
Chemicals and Energy
Chemicals and Energy segment consists of the Chlor-Alkali/Chlor-Vinyl business, the Energy business and the Ethylene Oxide/Ethylene Glycol business. Chlor-Alkali/Chlor-Vinyl’s products include caustic soda; chlorine; ethylene dichloride (EDC); hydrochloric acid; vinyl chloride monomer (VCM). The Energy business supplies power, steam and other utilities, principally for use in Dow’s global operations. Ethylene Oxide/Ethylene Glycol’s products include ethylene oxide (EO); ethylene glycol (EG), and METEOR EO/EG process technology and catalysts.
Hydrocarbons
The Company’s Hydrocarbons sells its by-products, and buys and sells products. The business also sells products to Dow’s joint ventures. Products include Benzene; Butadiene; Butylene; Cumene; Ethylene, and Propylene. The Hydrocarbons segment also includes the results of Compania Mega S.A. and a portion of the results of The Kuwait Olefins Company K.S.C. and the SCG-Dow Group, which are the joint ventures of the Company.
OVERALL
Beta: 2.26
Market Cap (Mil.): $47,528.20
Shares Outstanding (Mil.): 1,173.25
Annual Dividend: 1.00
Yield (%): 2.47
FINANCIALS
DOW Industry Sector
P/E (TTM): 21.89 9.83 24.46
EPS (TTM): 236.02 -- --
ROI: 4.67 1.03 17.95
ROE: 12.02 3.06 17.96
Despite these beliefs, Dow was forced to build new plants for commodity chemicals when a Canadian supplier decided to become a competitor. Dow began building ethylene plants in Alberta, Canada, and Freeport, Texas. Even after 40 years in Asia, sales there still accounted for less than 10 percent, while European sales accounted for 31 percent of total sales. But with Europe mired in recession and European sales slowing, Dow began pushing into Asia again, building a petrochemicals plant in China, where it enjoyed an expanding polyurethane business. Though its growth had been slowed by the downturn in chemicals, Dow had nevertheless reduced its dependence on commodity chemicals from 80 percent of sales in 1980 to 45 percent in 1992, making it one of the world's most diversified chemical firms.
With success came growing controversy. Starting in the early 1980s, Dow Corning faced questions and lawsuits regarding the safety of its silicone breast implants. Many women claimed to have developed autoimmune diseases as a result of silicone leakage from the implants. Faced with many individual lawsuits, as well as class action suits, Dow Corning filed for Chapter 11 bankruptcy protection in 1995, and settled with breast implant recipients for $3.2 billion. Dow, however, as a 50 percent shareholder in Dow Corning, was named in many individual lawsuits. Both Dow and Corning (the other 50 percent shareholder) were still attempting to reach a settlement of these suits in 2002. Interestingly, as of 2001, with over 20 independent studies done, no causal relationship between silicone breast implants and autoimmune diseases (or cancer) has been established.
Another controversy erupted on August 4, 1999, when Dow announced plans to merge with Union Carbide, one of the world's leading manufacturers of polyethylene plastics, and a pioneer in the petrochemical industry. The announcement drew fire from various groups, including Dow shareholders. At issue was Union Carbide's reputation, and possible continuing liability, following the Bhopal gas leak disaster in India ("The world's worst industrial accident"). Plans for the $11.6 billion merger nevertheless moved on. To receive clearance from the Federal Trade Commission (FTC) and international regulators, Dow agreed to divest itself of a number of polyethylene plants worldwide. The FTC granted approval for the merger on February 5, 2001. Union Carbide became a wholly owned subsidiary of Dow.
Throughout the 1990s and into the new millennium, Dow continued to reinvent itself through sales and acquisitions of various assets. In 1995 Dow sold its stake in Marion Merrel Dow to Hoechst for $7.1 billion. In 1998 its consumer products subsidiary, known as DowBrands, was sold to S.C. Johnson & Son. DowBrands included the Home Food Management unit, responsible for familiar names such as Ziploc and Saran Wrap. The second DowBrands unit, Home Care Products, made products such as Spray 'N Wash and Fantastik. Dow purchased ANGUS Chemical from TransCanada Pipelines in 1999. In 2000 it acquired General Latex Chemical Corporation and Flexible Products Company, both manufacturers of foam products. Another foam business, Celotex Corporation (makers of foam insulation) was purchased in 2001. The same year Dow expanded its agricultural product line by acquiring the agricultural chemicals arm of Rohm and Haas.
The recession that began in late 2001 did not spare the chemical giant, and Dow announced a workforce reduction of 8 percent. Dow seemed to bounce back with stronger earnings at the start of 2002. In June 2002, Dow was awarded the National Medal of Technology "for the vision to create great science and innovative technology in the chemical industry and the positive impact that commercialization of this technology has had on society," according to the official citation.
Principal Subsidiaries:Compañía Mega SA (28%); Dow AgroScience; Dow Automotive; Dow Corning Corporation (50%); du Pont Dow Elastomers LLC (50%); EQUATE Petrochemical Company K.S.C. (45%); Mycogen Corporation; Nippon Unicar Company Limited (50%); Petromont and Company, Limited Partnership (50%); Total Raffinaderij Nederland NV (45%); UCAR Emulsion Systems; Union Carbide; UOP LLC (50%).
Principal Competitors:BASF AG; Bayer AG; du Pont; BP Chemicals; BP; Eastman Chemical; Novartis.
OVERALL
Beta: 2.26
Market Cap (Mil.): $47,528.20
Shares Outstanding (Mil.): 1,173.25
Annual Dividend: 1.00
Yield (%): 2.47
FINANCIALS
DOW Industry Sector
P/E (TTM): 21.89 9.83 24.46
EPS (TTM): 236.02 -- --
ROI: 4.67 1.03 17.95
ROE: 12.02 3.06 17.96
Statistics:
Public Company
Incorporated: 1947
Employees: 50,000
Sales: $27.8 billion (2001)
Stock Exchanges: Amsterdam Bavarian Berlin Brussels Chicago Düsseldorf Germany Hamburg Hanover London New York Pacific Paris Stuttgart Switzerland Tokyo
Ticker Symbol: DOW (New York)
NAIC: 325131 Inorganic Dye and Pigment Manufacturing; 325188 All Other Basic Inorganic Chemical Manufacturing; 325211 Plastics Material and Resin Manufacturing; 325611 Soap and Other Detergent Manufacturing; 325612 Polish and Other Sanitation Goods Manufacturing; 326122 Plastics Pipe and Pipe Fitting Manufacturing; 326130 Laminated Plastics Plate, Sheet, and Shape Manufacturing; 326150 Urethane and Other Foam Product (Except Polystyrene) Manufacturing
Key Dates:
1897: Herbert Dow founds The Dow Chemical Company.
1900: Dow and Midland Chemical Company merge.
1906: The company produces their first agricultural product.
1933: Dow begins extracting bromine from seawater.
1935: Dow enters the plastics business.
1937: Dow is listed on the NYSE on June 26.
1942: Dow's first international expansion begins with Dow Chemical Canada, Ltd.
1943: Dow and Corning Glass merge to form the Dow Corning Company, specializing in silicone products.
1952: Dow establishes Ashai-Dow in Japan, its first subsidiary outside North America.
1953: Saran Wrap becomes a household product.
1964: Dow exceeds $1 billion in annual sales.
1968: Ziploc bags are test-marketed.
1970: The company introduces an automotive product line.
1972: Dow introduces the insecticide Lorsban.
1973: Dow becomes the first foreign industrial company listed on the Tokyo Stock Exchange.
1989: Dow and Eli Lilly form DowElanco, a joint venture to produce agricultural products.
1996: Du Pont Dow Elastomers, a Dow-du Pont joint venture, begins operations.
1997: Dow buys Eli Lilly's share in DowElanco.
1998: DowElanco is renamed Dow AgroSciences, and the DowBrands unit is sold to S.C. Johnson & Son.
1999: Dow announces plans to merge with Union Carbide.
2001: The Dow-Union Carbide merger is finalized.
Name Age Since Current Position
Liveris, Andrew 56 2006 Chairman of the Board, President, Chief Executive Officer
Weideman, William 56 2010 Chief Financial Officer, Executive Vice President
Kepler, David 58 2008 CIO, Chief Sustainability Officer, Executive Vice President - Buisness Services
Banholzer, William 54 2009 Chief Technology Officer, Executive Vice President - Ventures, New Business Development & Licensing
Kalil, Charles 59 2008 Executive Vice President - Law and Government Affairs, General Counsel, Corporate Secretary
Freiwald, Gregory 57 2009 Executive Vice President - Human Resources, Corporate Affairs and Aviation
Merszei, Geoffery 59 2009 Executive Vice President, Chairman, Dow Europe and President, Dow Europe, Middle East and Africa
Gambrell, Michael 57 2009 Executive Vice President - Manufacturing and Engineering Operations
Haller, Heinz 55 2010 Chief Commercial Officer, Executive Vice President
Luciano, Juan 49 2010 Executive Vice President, President - Performance Division
Fitterling, James 49 2010 Executive Vice President, President - Plastics and Hydrocarbons
Peribere, Jerome 56 2009 Executive Vice President, President and Chief Executive Officer - Dow Advanced Materials
Dudley-Williams, Carol 52 2010 Group Senior Vice President, President - Chemicals and Energy Division
McIlvenny, James 52 2010 Group Senior Vice President - Mega Projects
Ruiz, Fernando 55 2001 Corporate Vice President, Treasurer
Edmonds, Ronald 53 2009 Vice President, Controller
May, Doug 2011 Vice President - Investor Relations
Allemang, Arnold 68 2004 Director
Stern, Paul 72 2006 Presiding Director
Barton, Jacqueline 58 1993 Independent Director
Franklin, Barbara 71 1993 Independent Director
Ringler, James 65 2001 Independent Director
Fettig, Jeff 54 2003 Independent Director
Shaw, Ruth 63 2005 Independent Director
Bell, James 62 2005 Independent Director
Hess, John 56 2006 Independent Director
Reilley, Dennis 58 2007 Independent Director
Polman, Paul 55 2010 Independent Director
Granholm, Jennifer 52 2011 Independent Director
Address:
2030 Willard H. Dow Center
Midland, Michigan 48674
U.S.A.