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DOW CHEMICAL CO /DE/

What Do They Do?

Sells plastics, chemical building blocks and formulated materials to manufacturers and brand owners in packaging, construction and mobility markets.

How Do They Make Money?

Manufacturers and distributors pay for products, usually after shipment; licensees pay under the billing schedules set in their contracts.

Year to Dec 2018 revenue by product or service revenue
SegmentShareRevenue
Coatings and Performance Monomers
6.6%
Consumer Solutions
9.4%
Crop Protection
7.7%
Electronics & Imaging
4.4%
Hydrocarbons & Energy
12%
Industrial Biosciences
0.8%
Industrial Solutions
7.9%
Nutrition & Health
1.0%
Packaging and Specialty Plastics
25%
Polyurethanes & CAV
17%
Safety & Construction
3.3%
Seed
1.7%
Transportation & Advanced Polymers
2.0%
Other
<0.1%

Who Are Their Customers?

Dow sells primarily through its sales force, with some sales through distributors. Its customers include manufacturers and brand owners serving packaging, construction, mobility and consumer markets.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in Year to Dec 2018 and turned 2 cents into free cash flow.

Operating income, Year to Dec 2018
14% of revenue
▲ +12% vs Year to Dec 2017 ($7.3B, 13%)
Net income, Year to Dec 2018
7% of revenue
▲ +865% vs Year to Dec 2017 ($466M, 1%)
Free cash flow, Year to Dec 2018
2% of revenue
▲ Now profitable vs Year to Dec 2017 (−$8.1B, −15%)

How Are They Changing?

Revenue over time
Coatings and Performance Monomers Consumer Solutions Crop Protection Electronics & Imaging Hydrocarbons & Energy Industrial Biosciences Industrial Solutions Nutrition & Health Packaging and Specialty Plastics Polyurethanes & CAV Safety & Construction Seed Transportation & Advanced Polymers Other
$100B$50B$0

Who Do They Compete With?

Competes with Chevron Phillips Chemical, ExxonMobil, INEOS, LyondellBasell, SABIC, Shell, Sinopec, Borealis, CNPC, Lanxess, and Nova

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