Dow Chemical Co. (DOW) said Tuesday that it will eliminate the current business division structure, effective immediately, and move to a global business unit model that will have business presidents.
According to Midland, Michigan-based Dow Chemical, the business presidents will be fully accountable for generating increased earnings and the accelerated advancement and execution of the company's strategy. They will report to a newly formed executive committee of the company.
Dow Chemical will announce the business presidents later this week. The company expects the streamlining of its business and leadership structure to result in a more agile, flexible and customer-focused company.
Andrew Liveris, Dow's chairman and CEO of Dow Chemical said, "To accomplish our strategic objectives and deliver increased results in the next stage of Dow's transformation, it will require a different business organization and operating structure than the one that has taken us to where we are today in Dow's transformation. We continue to adapt our business model to take advantage of the changing dynamics in the global marketplace."
The executive committee will set the overall direction and strategy for Dow, monitor and deliver results, and optimize resource deployment across the businesses.
The executive committee includes Liveris, Chief Financial Officer and Executive Vice President Bill Weiderman, and executive vice presidents James Fitterling, Joe Harlan and Howard Ungerleider.
Fitterling will have executive oversight of Feedstocks, Performance Plastics, Asia and Latin America, while Harlan will assume executive oversight of Advanced Materials, which includes Coatings and Infrastructure Solutions, and Electronic and Functional Materials.
Ungerleider will assume executive oversight of Advanced Materials, which includes Coatings and Infrastructure Solutions, and Electronic and Functional Materials. Weiderman will have executive oversight of Finance, Dow AgroSciences, and Corporate Development.
In late July, Dow Chemical reported a slump in profit for the second quarter on a ten percent drop in revenues, reflecting weakness in Europe, Middle East and Africa regions as well as in North America. The company had to bear the brunt of lower volumes and prices on gloomy economic conditions.
During the second quarter, almost all of Dow's segments posted lower sales, and all regions recorded declines. In Europe alone, sales fell 10 percent, driven by adverse currency conditions.
Dow Chemical said in early April that it will close manufacturing plants in Europe, North America and Latin America and cut about 900 jobs worldwide due to continued weakness in the European economy.
In Tuesday's regular session, DOW is trading at $29.35, up $0.04 or 0.14 percent on a volume of 28,754 shares.
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