Seeking Alpha

Dow Chemical Co. (DOW)

  • Yesterday, 11:59 AM
    • Citing high toxicity levels for non-target plants, the EPA has revoked the registration of Dow Chemical's (DOW -2.6%) Enlist Duo herbicide.
    • Enlist Duo, which targets severe weed resistance (hinders crop production), was approved last month with a series of restrictions. Dow says it's working with the EPA to provide additional assurances for the product.
    | Yesterday, 11:59 AM | Comment!
  • Thu, Nov. 19, 8:29 AM
    • Chemours (NYSE:CC) has signed a definitive agreement to sell its aniline facility in Beaumont, Texas to Dow Chemical (NYSE:DOW) for approximately $140M in cash.
    • The agreement is another step in the company's five-point transformation plan.
    | Thu, Nov. 19, 8:29 AM | 4 Comments
  • Thu, Nov. 5, 4:13 PM
    • DuPont (DD +0.8%) is in discussions with Syngenta (SYT +6.3%) and Dow Chemical (DOW +0.4%) about potential major agriculture deals, Dow Jones reports.
    • DD is said to be discussing potential combinations involving its ag division with SYT and DOW, as deal talk has gathered steam since Monsanto (MON -1%) abandoned its effort to acquire SYT in August; MON instead could face the threat of much-enlarged competitors if its rivals end up combining and it strikes no combination of its own.
    • U.S. farm income is on pace to hit its lowest level in nearly a decade, pressuring profits in the global market for GMO seeds and chemicals to kill weeds and insects.
    | Thu, Nov. 5, 4:13 PM | 9 Comments
  • Tue, Oct. 27, 10:19 AM
    • Westlake Chemical (WLK -3.6%) is downgraded to Sell from Neutral with a $58 price target, down from $68, at UBS, which thinks upside September quarter results at Celanese (CE -0.5%), Dow Chemical (DOW +0.1%) and LyondellBasell (LYB -0.8%) may have temporarily driven recent strength in the sector.
    • As the market becomes more balanced, UBS believes the potential for lower polyethylene prices is not yet fully priced in, and it sees downside risks to WLK's earnings and stock price.
    | Tue, Oct. 27, 10:19 AM | Comment!
  • Thu, Oct. 22, 5:33 PM
    • Dow Chemical (NYSE:DOW) said today it would consider selling its farm business, and analysts tout DuPont (NYSE:DD) and Monsanto (NYSE:MON) as potential buyers, Reuters reports.
    • "A different owner might be able to boost profitability immediately," says SunTrust's James Sheehan, who estimates selling the business could net Dow proceeds of ~$15B.
    • Buying Dow's farm business would give DuPont the scale to compete with bigger players, especially in the crop protection market, and DuPont's global market share would jump to ~16% after a deal, says Mawer Investment portfolio manager Grayson Witcher.
    • MON is looking for acquisitions after its failed bid for Syngenta, but Dow Agrosciences is only half the size of Syngenta and its seed business lags far behind.
    | Thu, Oct. 22, 5:33 PM | 1 Comment
  • Thu, Oct. 22, 2:09 PM
    • During its Q3 earnings call, Dow Chemical (DOW +3.6%) stated it might buy Corning's (NYSE:GLW) stake in the companies' Dow Corning silicon product JV, as part of a broader effort to restructure its JV interests.
    • Dow added talks have already been held with Corning. The company disclosed last year Corning wanted out of the JV, following its 2013 deal to buy Samsung's stake in an LCD glass JV.
    • Dow Corning's sales fell 5% Y/Y in Q2 to $1.42B, thanks to a strong dollar and weak polysilicon sales to solar manufacturers. Adjusted net income nonetheless rose 27% to $127M, aided by strong demand within the JV's high-margin silicones business.
    • Earlier: Dow jumps on Q3 EPS beat, accelrated buyback, restructuring efforts
    | Thu, Oct. 22, 2:09 PM | 9 Comments
  • Thu, Oct. 22, 7:57 AM
    • Dow Chemical (NYSE:DOW) +7.3% premarket after beating Q3 earnings estimates, raising its dividend and announcing plans to accelerate its stock buyback program.
    • Dow says Q3 revenues fell 16% Y/Y to $12B, citing lower pricing and unfavorable currency moves; Dow generates two-thirds of its revenue outside the U.S., so the stronger U.S. dollar has hurt results in recent quarters.
    • Q3 volume rose 2%, with gains in most operating segments, excluding Agricultural Sciences, led by Performance Plastics (up 5%) and Infrastructure Solutions and Consumer Solutions (both up 2%).
    • Dow says it is increasing its quarterly dividend 10% to $0.46/share and will accelerate its three-year, $5B buyback program by repurchasing $1B worth of its stock in Q4 and the rest in 2016.
    • Dow says it will review strategic options for its Dow AgroSciences business to "focus on creating new synergies in a consolidating agricultural market."
    • Dow also will reduce stakes in two Kuwaiti joint ventures, cutting its stake in the MEGlobal JV by year-end and receiving pre-tax proceeds of $1.5B, and reduce its interest in the Greater EQUATE JV by mid-2016.
    • Appoints James Fitterling as COO and becomes a vice chairman along with CFO Howard Ungerleider.
    | Thu, Oct. 22, 7:57 AM | Comment!
  • Thu, Oct. 22, 6:51 AM
    • Dow Chemical (NYSE:DOW): Q3 EPS of $0.82 beats by $0.13.
    • Revenue of $12.04B (-16.4% Y/Y) misses by $340M.
    • Press Release
    | Thu, Oct. 22, 6:51 AM | Comment!
  • Wed, Oct. 21, 5:30 PM
  • Mon, Oct. 12, 8:52 AM
    • Dow Chemical (NYSE:DOW) plans to triple its revenue from sub-Saharan Africa in the next five years, and is investing in local staff and manufacturing plants to meet the target, Dow's head of the region tells Reuters.
    • Dow sees opportunities in agriculture, where it supplies crop protection chemicals, infrastructure, where it offers water treatment chemicals, as well as in mining and manufacturing, says Ross McLean, without specifying the revenues the company already achieves there.
    • Dow has opened hub offices in Kenya, to serve east Africa, and in Ghana, serving west Africa, and is opening offices in Ethiopia, Nigeria and Angola, as well as in other markets.
    | Mon, Oct. 12, 8:52 AM | Comment!
  • Mon, Oct. 5, 2:14 PM
    • Dow Chemical (DOW +3.8%) shares are strong as the company closes the split-off transaction of its chlor-alkali and downstream derivatives business, and the merger of these businesses with Olin (NYSE:OLN) to create an industry leader with revenues approaching $7B.
    • Dow says the deal is highly accretive, with a tax-efficient consideration of greater than $4.6B on an after-tax basis and taxable equivalent value in excess of $7B.
    • Dow says it has exceeded its prior stated goal to divest $7B-$8.5B of non-strategic businesses and assets by mid-2016, with the total now approaching more than $12B in pre-tax proceeds.
    • Dow also expects the exchange to return ~$1.5B in value to shareholders through the split-off, effectively completing $6.5B of its $9.5B share repurchase program.
    | Mon, Oct. 5, 2:14 PM | 3 Comments
  • Mon, Sep. 28, 12:58 PM
    • Huntsman (HUN -23.8%) plunges by nearly 25% following an earnings warning from the company after Friday's market close that lower titanium dioxide pricing, currency headwinds, soft demand in Asia, lower oil prices and a delay in benefits from lower raw material prices will negatively impact Q3 earnings.
    • HUN says it also sees lower margins for methyl tertiary butyl ether due to lower oil prices and forecast continued lower MDI urethane component product margins in the Asia Pacific region.
    • CEO Peter Huntsman says he is "optimistic about the future" despite the short-term headwinds, and that the company anticipates Q4 adjusted EBITDA similar to Q3 at ~$300M, similar to last year's level; HUN also remains committed to a separation of the pigments and additives business by year-end 2016 or sooner.
    • Other chemical companies also are lower: DOW -2.7%, DD -1.7%, EMN -4%, ASH -4.3%, CC -7.6%, KRO -1%, SHLM -3.1%, LYB -4.1%, SSL -4%, OTCQX:BASFY -1.3%.
    | Mon, Sep. 28, 12:58 PM | 7 Comments
  • Tue, Sep. 22, 10:17 AM
    • DuPont (DD -0.5%) is upgraded to Buy from Neutral with a $63 price target at Citigroup, which cites "tremendous value creation levers available" including additional cost cutting, returning more cash to shareholders and potentially splitting the company.
    • The firm argues that splitting DuPont's ag/bio business from the materials businesses makes strategic sense since they are inherently different businesses, and such a move would be consistent with the portfolio simplification trend seen across many companies in chemicals.
    • Citi also sees potential for DuPont to combine its ag business with Dow Chemical’s (DOW -1.6%), noting that Dow has a track record of developing new traits while DuPont’s high market share in seeds creates a natural distribution channel.
    | Tue, Sep. 22, 10:17 AM | 14 Comments
  • Mon, Sep. 21, 12:42 PM
    • Petrochemical stocks shoot higher after a senior IRS official says the companies may be eligible for tax-exempt status, as the agency is reconsidering an earlier proposal that would have prevented the companies from converting into MLPs.
    • A favorable IRS ruling for Westlake Chemical (WLK +5.2%) in 2012 fueled speculation that the MLP structure long popular among pipeline operators could be utilized by chemical makers, but the IRS in May proposed new rules that said petrochemical production would not qualify for MLP status unless it was part of a larger refining operation.
    • WLK and Westlake Chemical Partners (WLKP +8.4%) are surging today; also rising are peers including Eastman Chemical (EMN +2.2%), Dow Chemical (DOW +1.5%), LyondellBasel(LYB +1.2%) and PolyOne (POL +1.8%), which each have chemical businesses that could be candidates for an MLP.
    | Mon, Sep. 21, 12:42 PM | 4 Comments
  • Mon, Sep. 14, 12:32 PM
    • Dow Chemical (DOW -1.3%) is added to the Priority Stock List at Wells Fargo, which sees company specific projects as the key driver along with an action plan to reduce spending, a dividend yield 75% higher than the S&P 500, aggressive share repurchase around the corner, and its long-held belief in the sustainability of Dow's above-average ethylene chain profits.
    • Citing favorable quarter-to-date demand trends with increases in every segment and geography, the firm says China concerns appear overblown, and North America remains “a shining star" with favorable trends in packaging, auto and building and construction.
    • "Between all the actions Dow is taking to optimize its portfolio, and given a number of potential growth catalysts in the near-term, Dow’s shares remain attractive despite the decline in oil," the firm says, also citing a recently boosted dividend that puts the yield above the group average.
    | Mon, Sep. 14, 12:32 PM | 3 Comments
  • Thu, Sep. 10, 3:57 PM
    • The U.S. Court of Appeals for the Ninth Circuit rules that U.S. regulators were wrong in allowing an insecticide developed by Dow Chemical (DOW -0.1%) onto the market, canceling its approval and giving environmentalists a major victory.
    • The ruling is significant for commercial beekeepers and others who say a dramatic decline in bee colonies needed to pollinate key food crops is tied to widespread use of the neonicotinoids class of insecticides.
    • Dow says it disagrees with the ruling but will work with the EPA to implement the order and "promptly complete additional regulatory work to support the registration of the products."
    | Thu, Sep. 10, 3:57 PM | 2 Comments
Company Description
Dow Chemical Co is as an integrated science and technology company. The Company operates in five segments: Agricultural Sciences, Consumer Solutions, Infrastructure Solutions, Performance Materials & Chemicals and Performance Plastics.