Fri, Jul. 29, 3:32 PM
- Dow Chemical (DOW -0.1%) is upgraded to Overweight from Neutral with a $60 price target, raised from $40, at J.P. Morgan, which had downgraded the stock just last month on European economic risks.
- Q2 reports from chemical companies concerning order patterns and business conditions in July suggest that "European recessionary conditions are not a base case, and that global demand is holding up generally well," JPM analyst Jeffrey Zekauskas writes.
- The firm also believes the Dow-DuPont combination could be "a large free cash generator over a longer period of time as Dow's capital expenditures move substantially lower," and the company should benefit from significant capacity expansions and efforts to achieve cost reduction via consolidation.
Thu, Jul. 28, 8:36 AM
- Dow Chemical (NYSE:DOW) +0.8% premarket after Q2 earnings easily beat analyst estimates and revenue fell less than expected, as cost cuts helped boost margins.
- CEO Andrew Liveris says Dow delivered its 15th straight quarter of earnings and margin growth despite "a variety of challenging geopolitical and market conditions."
- Dow, which is merging with DuPont (NYSE:DD), plans to cut costs by $300M this year, and achieved $90M in cuts during Q2; operating margin rose by 160 bps to 21% on an EBITDA basis.
- Sales volume grew 2%, or 4% excluding the impact of divestitures and acquisitions, "reflecting broad-based, consumer-driven demand with gains across all geographic areas" - Asia Pacific (+7%); Europe, Middle East, Africa and India (+4%); Latin America (+4%); and North America (+3%).
- Sales in plastics, Dow's largest segment, fell 2.3% Y/Y to $4.69B, as the volume gains were more than offset by pricing headwinds, mostly in hydrocarbons.
Thu, Jul. 28, 6:53 AM
Wed, Jul. 27, 5:30 PM
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Wed, Jul. 20, 11:28 AM
- DuPont (DD +0.6%) and Dow Chemical (DOW +0.9%) shareholders approve the merger of the two largest U.S. chemical companies at their respective special meetings, a key step in closing the deal before year-end.
- The next hurdle is winning antitrust clearance: The U.S. Department of Justice in February issued a second request for information on the merger, the companies notified China’s competition agency of the deal in May, and they filed with the European Commission last month.
- Within two years, the companies plan to split into three separate publicly traded companies focused on agriculture, material science and specialty products.
Tue, Jun. 28, 3:39 PM
- Dow Chemical (DOW -2.1%) and DuPont (DD -2.6%) are downgraded to Neutral from Overweight at J.P. Morgan, citing a lack of near term upside potential amid rising risks of contraction in the world's major economic regions, particularly Europe.
- "When recessions arise, oil demand contracts and oil prices decreases; plastics product prices and profit margins then move lower," writes JPM's Jeffrey Zekauskas, adding that under weakening economic conditions, the market likely will ask for a higher risk premium or margin of safety in investing in Dow.
- JPM sees a greater likelihood that Dow and DuPont can be purchased over the next year at comparable or lower share prices.
- The firm cuts its price target for Dow to $50 from $57 and lowers its price outlook for DD to $64 from $73.
Tue, Jun. 28, 7:45 AM
- Dow Chemical (NYSE:DOW) announces plans to eliminate ~2,500 jobs, or ~4% of its global workforce, as it moves to assume full control of Dow Corning.
- As part of the revamp, Dow will shut down its silicones manufacturing facilities in Greensboro, N.C., and Yamakita, Japan, as well as certain administrative, corporate and manufacturing facilities.
- Dow says it expects to take a Q2 charge of $410M-$460M for asset impairments, employee severance and other costs related to the moves.
- Dow raises its annual cost savings estimate for the deal to $400M from its earlier estimate of $300M and says it is targeting $100M in growth synergies.
Thu, Jun. 23, 8:06 AM
Thu, Jun. 16, 5:55 PM
- Dow Chemical (NYSE:DOW) says it is the first foreign company to receive a trading license from Saudi Arabia, giving it full ownership in the country's trading sector.
- The move is part of Saudi's plans to diversify its economy and free its dependence on oil exports amid weak global oil prices.
- The kingdom's deputy crown prince bin Salman held a full day of meetings with U.S. lawmakers yesterday, part of a visit aimed at restoring frayed ties with the U.S.
Tue, Jun. 14, 3:59 PM
- The U.S. Department of Justice's antitrust division should carefully analyze Dow Chemical's (DOW -1%) proposed $130B merger with DuPont (DD -1.3%) to ensure it will not hurt competition in the farming sector, U.S. Sen. Grassley says.
- The veteran senator says in a letter to the DoJ that he was concerned the planned merger would "decrease competition in an agriculture sector that has already been subject to a number of waves of consolidation in recent years."
- Grassley, who chairs the Senate's judiciary committee and serves on the agriculture committee, in March asked for an assessment of the impact on domestic food security from ChemChina's planned takeover of Syngenta.
Wed, Jun. 1, 10:32 AM
- Dow Chemical (DOW -0.2%) says it has completed the restructuring of Dow Corning and now owns all of the business; Dow Corning previously had been equally owned by Dow Chemical and silicone company Corning (GLW -0.5%).
- GLW swapped its 50% stake in Dow Corning for $4.8B and a 40% stake in Hemlock Semiconductor, which makes semiconductors for the solar-panel industry; Dow now fully owns Dow Corning and will keep a stake in Hemlock.
- Dow Corning had revenue of more than $4.5B in 2015.
Mon, May 23, 6:40 PM
- Dow Chemical (NYSE:DOW) and DuPont (NYSE:DD) announce its senior leadership team for the planned merger of the companies, including leadership for the three businesses that eventually would be split off.
- Howard Ungerleider will become DowDuPont's CFO, Dow COO Jim Fitterling will become COO of the merged company's materials business, James Collins is named COO of the combined company's agriculture business, and Marc Doyle will take the job of COO of DowDuPont’s specialty products business; the companies already had said that Andrew Liveris would become executive chairman and Edward Breen the CEO.
- Nicolas Fanandakis, who has been DuPont’s CFO since 2009, will lose the position after the deal closes; his new role has yet to be disclosed.
- Now read Dow Corning CEO Hansen to retire; Ungerleider, Gregorio named new leaders
Mon, May 23, 10:19 AM
- The U.S. Supreme Court rejects Dow Chemical's (DOW +1.2%) attempt to salvage $30.5M in patent infringement damages in a lengthy legal fight with Nova Chemicals over two patents relating to plastic film.
- The court's refusal to hear the case leaves in place a December 2015 ruling by a U.S. Court of Appeals throwing out the damages award, but does not affect $61M in damages that a jury in 2010 awarded to Dow for Nova's infringement of the patents prior to 2010.
- Now read Dow Chemical is even more attractive after earnings
Fri, May 20, 8:56 AM
- Thousands of homeowners reach a $375M settlement over claims that plutonium releases from the Rocky Flats nuclear weapons plant in Colorado damaged their health and devalued their property.
- The lawsuit, filed in 1990, named Dow Chemical (NYSE:DOW) and Rockwell International (NYSE:ROK), which operated the plant for the Energy Department; Dow was in charge from the 1950s until 1975, when ROK took over and ran it until it closed in 1989 because of safety and environmental concerns.
- The companies said ROK's share of the settlement was $244M and Dow's was $131M, but they expect the Energy Department to repay them in full; the Energy Department says it is liable for some claims, but it is not yet clear if it would be the full amount.
Tue, May 17, 12:27 PM
- George Soros, who once called gold “the ultimate bubble,” has resumed buying the yellow metal after a three-year absence, disclosing during Q1 he bought 1.05M shares in the SPDR Gold Trust ETF (GLD +0.3%) valued at $123.5M, while also doubling his wager against the S&P 500.
- Soros Fund also made a big bet on miner Barrick Gold (ABX +3.1%), adding a $263.7M stake and raising its ownership to 19.4M shares, making it Soros’ largest U.S.-listed holdings and giving him a 1.7% stake.
- Otherwise, Soros continued to unwind his commodity exposure, selling off positions in Kinder Morgan (KMI +4.3%) and Baker Hughes (BHI +2.8%) - stakes which were just opened in Q4 - as well as Dow Chemical (DOW +0.9%) and Penn Virginia (NYSE:PVA).
- But other prominent investors have started to take profits; John Paulson’s hedge fund cut its stake in the SPDR Gold Trust to 4.8M shares from 5.8M and its stake in AngloGold Ashanti (AU -1%) to 15.2M shares from 22.9M.
Tue, May 17, 10:43 AM
- The Gulf Coast petrochemical boom and Chinese expansion are leading to an oversupply of the world’s two most common plastics, polyethylene and polypropylene, which will result in falling prices and profits as well as delays and cancellations of plans to build or expand petrochemical plants, according to a new report from the IHS research firm.
- Companies including Exxon Mobil (NYSE:XOM), Chevron Phillips (CVX, PSX), Dow Chemical (NYSE:DOW), BASF (OTCQX:BASFY) and LyondellBasell (NYSE:LYB) have multi-billion-dollar Gulf coast expansion projects underway, with many planned for completion in a year or so.
- Some companies already are placing planned projects on hold indefinitely; Ascend Performance materials said yesterday that it was delaying construction of a $1.2B propane dehydrogenation plant.
The Dow Chemical Co. manufactures and supplies products used primarily as raw materials in the manufacture of customer products and services. The company serves the industries, including appliance; automotive; agricultural; building and construction; chemical processing; electronics; furniture;... More
Sector: Basic Materials
Industry: Chemicals - Major Diversified
Country: United States
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