U.S. Chemical kingpin
) is remodeling its business structure and setting up an executive
committee. The Michigan-based company said that the move will help
it to deliver better results in a challenging environment and
provide it with an optimal structure that will allow it to better
serve its customers and build markets globally.
The company noted that it will immediately do away with the current
business division structure and move to a "Global Business Unit"
model that will have business presidents. The business presidents,
who will report to a new executive committee, will be responsible
for delivering incremental earnings as well as the advancement and
execution of the company's strategy.
The five-member executive committee will frame the overall
direction and strategy for the company, optimize resources and
monitor and deliver results. The committee will be headed by Andrew
N. Liveris, Dow's chairman and CEO. It also includes executive vice
presidents James R. Fitterling, Joe Harlan and Howard Ungerleider.
The company will announce the business presidents shortly.
Dow posted lackluster second-quarter 2012 results on July 26, with
both revenues and earnings largely missing the Zacks Consensus
Estimates. The results were hit by the beleaguered economic
conditions in Europe and weak demand.
The company witnessed slowing economic activity in the second
quarter, leading to frail demand for its products. It contends with
soft electronics and construction end-markets and is facing
challenges in Western Europe due to the prevailing recessionary
Dow sees lower-than-expected recovery in global economy in
second-half 2012. The company continues its cost-reduction
initiatives under its "Efficiency for Growth" program to cope with
the difficult macroeconomic environment.
Dow, which competes with
EI DuPont de Nemours & Co.
), currently holds a short-term Zacks #3 Rank (Hold). We currently
have a long-term Underperform recommendation on the stock.
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis Report
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