The Dow Chemical Company’s (NYSE:DOW) wholly owned subsidiary Dow AgroSciences’ Omega-9 Oils helped in removing over 1 billion pounds of saturated and trans fats from the North American diet.
Omega-9 Oils was launched by the company in 2006 when there was a rising need to remove trans fats from the diet. Its introduction exercised quite a beneficial and nutritional effect on the food industry.
Omega-9 Oils are the next generation of healthier oils for both foodservice and food processing. Regular use of Omega-9 oil successfully reduces the consumption of oil in the restaurant industry by nearly 100 million pounds each year.
Omega-9 Oils last nearly 75% longer than all the other oils in the restaurants’ use. More importantly, consumption of this oil effectively brings down risks of cardiovascular diseases. One billion pounds of bad fats translate to over 700 million pounds of trans fats and nearly 300 million pounds of saturated fat.
Dow AgroSciences, based in Indianapolis, Indiana, USA, is a top-tier agricultural company providing innovative agrochemical and biotechnology solutions globally.
Dow supplies high-performance materials, agricultural products, plastics (polyethylene and polypropylene) and industrial chemicals to industries and consumers globally. The company’s products have a vast array of applications and are used by various industries including farming, construction, transportation, electronics and consumer goods.
Recently, Dow reported its first quarter of 2011 results. The company earned $0.82 per share in the first quarter of 2011, ahead of the Zacks Consensus Estimate of $0.67 per share as well as last year’s $0.43 per share. However, including one-time charges, the company earned $0.54 per share compared with $0.41 per share in the year-ago quarter.
Quarterly revenues jumped 20% year over year to $14.7 billion and were above the Zacks Consensus Estimate of $13.8 billion. Volume and pricing gains across all business segments and geographical regions, particularly North America and Europe, yielded healthy revenue growth.
Dow anticipates that demand would improve further, especially in Asia with the global economic recovery. The US and European markets have also started showing signs of improvement. Dow is also optimistic on major consumer-markets, including electronics, coatings, automotive and packaging. However, construction markets are expected to remain weak.
DOW faces stiff competition from EI DuPont de Nemours & Co. (NYSE:DD).
Currently, Dow has a short-term (1 to 3 months) Zacks #1 Rank (Strong Buy) but a long- term Neutral recommendation.