Analysis of International Sales and Profitability (Geographic)
The United States is the dominant market in which Dow Chemical participates. Sales in the United States in 1993 totaled $9.285 billion, slightly more than double sales for Europe and the rest of the world combined. Sales in Europe were $4.836 billion for 1993, while sales throughout the rest of the world totaled $3.939 billion. Sales for 1993 were down for both the United States and Europe from 1992, although sales increased slightly for the company's operations in the rest of the world over 1992 (an increase of approximately three percent). The result is that overall sales fell from 1992 to 1993 after climbing from 1991 to 1992.
The United States has been the strongest of the three major markets for the past three years. Although sales fell from 1992 to 1993 (by 2.6 percent), sales increased from 1991 to 1992 (by five percent). At the same time, operations within the United States have produced the greatest amount of operating income: $1.036 billion in 1993, $1.159 billion in 1992 and $1.136 billion in 1991.
The rest of the world also has proved fruitful for Dow in recent years, although not on the same level as the United States. Net sales fell negligibly from 1991 to 1992 (by well under one percent), but operating income over the same period increased by 28 percent. This indicates that although the company's sales throughout the world were stagnant, the company was operating at better efficiencies and was able to realize an increase in its profit. The same was true for the 1992 to 1993 period. Sales for the rest of the world increased by only 2.6 percent, but the company's operating profit for this area increased by 83 percent. This stellar performance in the company's newest markets may indicate that such markets offer the greatest long-term potential.
By way of comparison, profits in the United States increased only two percent from 1991 to 1992...