The BusinessWeek 50 Ranking
45
Dow Chemical
Back in 2003, as raw-material costs shot up unexpectedly, Dow Chemical broke long-term sales contracts so that it no longer would be locked into selling at unprofitable prices. The move infuriated Dow's customers but has paid off big for the chemical giant. Even though natural gas and oil — Dow's raw materials — cost $3.4 billion more last year than in 2003, the Midland (Mich.) company was able to raise prices for chemicals and plastics even more. That boosted net margins to 7% from 5.3% a year earlier. Dow vows more price hikes in 2005 to expand margins even further.
Company Info
| 2004 Rank | 119 |
| STOCK INFO | DOW |
| Market Value | $52.6 BILLION |
| Total Return | (1-yr.) 30.8%
(3-yr.) 97.8% |
| 2004 sales | $40.2 BILLION |
| Sales Growth | (1-yr.) 23%
(3-yr.) 13.5% |
| Net income | $2.8 BILLION |
| Net Income Growth | (1-yr.) 61%
(3-yr.) NC |
| Net Margin* | 7.0% |
| Return on Equity* | 22.8% |
| Industry | MATERIALS |
| CORPORATE WEB SITE | |
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*Trailing 12 months
Company data as of 2/28/05 provided by Standard & Poor's Compustat
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Company Snapshot
The Dow Chemical Company engages in the manufacture and sale of chemicals, plastic materials, agricultural, and other specialized products and services. Its performance chemicals products principally include glycol ethers and amines, and acrylics, which are used in various market applications, including coatings, household and personal care products, gas treating, and agricultural products. The company supplies synthetic latex for coating paper and paperboard that are used in magazines, catalogues, and food packaging. It also supplies water-based emulsions used as primary components in decorative and industrial paints, adhesives, textile products, and construction products, such as caulks and sealants. Its specialty chemicals products are used as functional ingredients or processing aids in various applications, including agricultural and pharmaceutical products and processing, building and construction, chemical processing and intermediates, food processing and ingredients, household products, coatings, pulp and paper manufacturing, and transportation. The specialty polymers products enable the physical and sensory properties of end-use products in a range of applications, including food, pharmaceuticals, oilfields, paints and coatings, personal care, and building and construction. Dow Chemical Company also develops, manufactures, and markets products for crop production; weed, insect, and plant disease management; and industrial and commercial pest management. The company sells its products primarily to food, transportation, health and medicine, personal and home care, and building and construction industries through its sales force and distributors principally in the United States and Europe. Dow Chemical Company also engages in the property and casualty insurance and reinsurance business primarily through its Liana Limited subsidiaries. The company is based in Midland, Michigan.
No. of Employees
43,203
Data provided by 
