Dow Chemical at Bernstein Conference Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

” there has been an enormous amount of change in our sector probably as many as any sector out there in a context of the names that were there in 1990 and the names that are there in 2010 and even since 2010 has been further changed and I think to notice, there has been about a 40% survival rate, eight companies will come out on the other end which Dow is one.”

“chemistry and the material that comes from chemistry are foundational to everything we do”

“We’ve gotten out of me too businesses that subsidized companies can go win at…I can do a lot of things, I can’t get subsidies like…state owned companies”

“We have worked very hard to go downstream into markets and work at the intersection of sciences…material science, chemistry, biology, that’s where discoveries occurring in today’s world”

“BSF is the other one that’s most like us and DuPont little less like us these days that are integrated diversified across key markets’

“In our sector to be a player in all the sciences and the key markets with an integrated proposition on technologies, products and processes, is a domain of a few”

“I would remember meetings in the hotel rooms like this where the Chinese issue was over here trying to figure out whether the U.S. is going to be good on all the money that China had over here in terms of its banking system, financial system, that’s over with and the Chinese are quite happy to put money in the United States.”

“I think Europe was a big wakeup call for the Chinese and about a year or so ago there were transition in the leadership, they pretty much decided that they can no longer rely on an export led economy.”

“[China] fundamentally took a very profound decision with the new leadership…very focused in on trading demand drivers in China that solved China’s needs as an urbanized, modernized economy that looks after its people removes pollution, addresses food safety, addresses health concerns and really if you like distributes well in a much better way than what they’ve seen”

“I’m a China head, I’ve been going there since the 70s, I do six trips a year, I’ve lived through the remake of China. I think the profound remake of China is to move their economy to 70% or 80% domestic demand drivers…That means not the property speculative world they’ve seen that means not the bridge to nowhere type infrastructure builds that means sustain consumption and to do that they’re focusing it on the service sector.”

“they are creating insurance sectors, health sectors, pension based sectors if you like mutual funds or alternative uses of capital, trying to liberate liquidity inside their economy so smarter choices can be made on how capital is allocated”

“If we’re going to live in a deflationary world and volatile and China’s remake is on the worse end more than a year or two then the capacity is not required in the world.”

“These are short cycle based on consumers. I think our industry needs to get short cycle at the consumer end.”

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