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Dow Chemical Company Annual Report - 1943
Dow Chemical Company Annual Report - 1943
Dow Chemical Company Annual Report - 1943
MIDLAND,MICHIGAN
ANNUAL REPORT
FOR YEAR ENDED
MAY 31,1943
The next annual meeting of stockholders will be held on Wednesday, August
1 1, 1943. A formal notice of the meeting together with a proxy statement and form
of proxy will be mailed to each holder of common stock separately from but concur-
rently herewith, at which time proxies will be solicited by the management.
THE DOW CHEMICAL COMPANY
MIDLAND, MICHIGAN
Directors
E. 0. BARSTOW M. E. PUTNAM
E. W. BENNETT C. J. STROSACKER
J. S. CRIDER W. R. VEAZEY
L. I. DOAN
A. B. DOW
W. H. DOW
Officers
Chairman of the Board, President and
General Manager - - - - W. H. DOW
Vice President and Treasurer - - E. W. BENNETT
Vice President and Secretary - - L. I. DOAN
Vice President - - - E. 0. BARSTOW
Vice President - - - - - C. J. STROSACKER
Vice President - - - - - M. E. PUTNAM
Assistant Treasurer - - - - J. S. CRIDER
Registrars
The New York Trust Company
100 Broadway
New York City
Transfer Agents
FINANCIAL STATEMENTS-
EARN I NGS-
The consolidated net income of the Company and its Subsidiaries amounted
to $8,225,301.36. After deducting dividends on the preferred capital stock of
$300,000.00, the consolidated net income was equivalent to $6.35 per share on
the number of shares of common capital stock outstanding at the end of the year.
This compares with $7.14 per share for the year ended May 3 1, 1942.
DIVIDENDS-
NET SALES-
Net sales for the year ended May 31, 1943 amounted to $105,427,854.78, as
compared to $78,359,997.24 for the year ended May 31, 1942.
TAXES-
Total major taxes for the year amounted to $20,453,773.46, which represents
an equivalent cost per share on common stock of $16.38. This compares with $9.76
per common share for 1942.
GENERAL-
Dow Magnesium Corporation was organized to build and operate certain Mag-
nesium plants for the United States Government. Dow Magnesium Corporation is a
wholly owned subsidiary and is now engaged in operating these plants.
In the same way, Dow Chemical Company of Canada, Limited, was organized
to be the operating company in Canada for the Canadian Government plant designed
by The Dow Chemical Company for the Canadian Government. This also is a
wholly owned subsidiary which undoubtedly will have more important activities as
time goes on.
Dow Corning Corporation was organized for the purpose of producing some
important strategic materials for Government account. This Company is jointly
owned by The Dow Chemical Company and Corning Glass Works.
One other item of general interest to the stockholders of The Dow Chemi-
cal Company is the record made by this Company in all of our Government contracts.
In the case of the various contracts with the Government to build defense plants, we
have made several records of completing construction ahead of schedule. Also, we
have been able to develop greater capacity than the plants were originally designed
for and our all-round record has been, without doubt, most creditable. The stock-
holders are entitled to feel great pride in the accomplishments of your Company for
all wartime activity. In recognition of these outstanding accomplishments, six
Army-Navy “E” Awards have been made to the major producing plants.
WILLARD H. DOW,
President
Midland, Michigan
July 22, 1943
THE DOW CHEk
( I ncorpora tee
AND SUBSIDIA
CONSOLIDATED BALANCE SHEET,
ASSETS
May 31
/
1943 1942
CURRENT ASSETS:
CURRENT LIABILITIES:
Notes payable--Banks --------------------------------- $ 1,900,000.00 $ 1 ,ooo,ooo.oo
Accounts payable-Trade and sundry ------------,--------- 5,588,505.10 5,365,30 1.30
Federal income and excess profits taxes ___________ - _______ 20,078,138.67 10,336,621.85
Serial debentures maturing within one year ----------------- 7 50,000.00 750,000.00
Accrued liabilities:
Payrol Is ------------------------------------------ 1,123,227.3 1 76 1,562.98
Taxes--social security, property, Federal capital stock, state
income and franchise, and sundry -------------------- 1,3 16,505.23 1,042,074.29
Interest ------------------------------------------ 7 1,229.25 95,47 1.26
Rents -------------------------------------------- 1 16,657.55 167,032.86
Sundry --------------------__________3_________--- 153,785.8 1 124,936.09
FUNDED DEBT:
Ten year 21/d % debentures, due September 1, 1950 __________ $ 7,500,000.00 $ 7,500,000.00
Serial debentures maturing in the amount of $750,000.00 on
September 1, 1944 and annually thereafter until September 1,
1950 (debentures maturing within one year included in cur-
rent liabilities) ------------------------------------- 5,250,OOO.OO 6,000,000.00
SURPLUS:
Capital surplus --------------------------------------- $ 36,539.Ol $ 36,539.Ol
Earned surplus - ____----- --- -_____-__ -- _____ - _________ 28,99 1,490.17 24,8 12,306.8 1
Total surplus ------__---_______ $ 29,028,029.18 $ 24,848,845.82
LESS :
Cost of sales ______ -- ____ -_-- _______---- $ 77,19 1,286.26 $56,338,933.18
Selling and administrative expenses ---------- 4,472,485.30 3,929,984.30
OTHER INCOME:
Dividends received from associated company -_- $ 800,OOO.OO $ 1,350,000.00
Interest from associated company ------_---- 155,610.OO 155,610.97
Fees received for construction and operation of
government owned plants _----_- ___--_-- 1,877,804.59 268,375.06
Miscellaneous _--_---------_------------ 504,275.64 252,126.83
INCOME CHARGES:
Interest and amortization of discount and
expense on debentures ------------------ $ 283,790.88 $ 289,964.16
Miscellaneous ----__-- ____ -_-___--__-_--- 190,625.49 284,980.47
NOTE : Provisions for depreciation and amortization over a period of sixty months of emer-
gency defense facilties were as follows:
Year Ended May 31
1943 1942
CREDITS:
Net income for the year -_--_--_------_-_- 8,225,301.36 9,22 1,485.76
Adjustments to net income of prior years (less
provision for additional Federal income and
excess profits taxes thereon, $238,787.81 1 -- 617,955.45
CHARGE-Cash dividends:
Common capital stock ----_------_---_--_- $ 3,746,1 18.00 $ 3,660,978.75
Preferred capital stock --___-__--___--___- 300,000.00 300,000.00
Total _____ -__------__------_ $ 4,046,1 18.00 $ 3,960,978.75
BALANCE AT END OF THE YEAR -_-_---_---_ $28,99 1,490.17 $24,8 12,306.8 1
________~
HASKINS 8c SELLS
THE NATIONAL BANK BUILDING
CERTIFIED PUBllC ACCOUNTANTS
RESIDENT ?ARTNERS
DETROIT
HAROLD W. SCOTT, C.C.A.
ACCOUNTANTS’ CERTIFICATE
HASKINS C SELLS