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Dow Chemical Co. (DOW)

  • Fri, Mar. 27, 7:24 AM
    • Dow Chemical (NYSE:DOW) says it will split off a major part of its chlorine business and merge it with Olin Corp. (NYSE:OLN) in a deal valued at $5B.
    • The new entity, which will include Dow’s U.S. Gulf Coast chlor-alkali and vinyl, global chlorinated organics and epoxy businesses, is expected to have revenue of nearly $7B.
    • The move comes as Dow faces criticism of its structure from the Third Point hedge fund, which has pressured Dow to break apart its petrochemicals business from its specialty chemicals segment.
    • DOW +6.1%, OLN +4.8% premarket.
  • Mon, Mar. 23, 12:50 PM
    • Olin (OLN -3.8%) is downgraded to Sell from Neutral with a $25 price target at UBS, which says the sum of the parts argument for OLN following the Vista Outdoor spin is less compelling the higher the stock moves, and the firm believes channel inventory declines have not bottomed yet.
    • While OLN made positive comments about the potential for a chlorine/caustic recovery on its Q4 earnings call, the sentiment was not echoed by competitors Axiall (AXLL -1.2%) and Westlake (WLK +0.5%), and Dow Chemical (DOW +0.1%) is selling its operations partly because of depressed results.
    • UBS views chlor-alkali as a shale gas advantaged business, where supply has increased in recent years, plus the natural gas advantage has declined with the fall in oil prices.
  • Wed, Mar. 11, 8:12 AM
    • EU politicians today will sign a new law on the cultivation of GMO crops in the European Union, clearing the way for a wave of approvals after years of deadlock.
    • One of the first crops to gain endorsement likely will be the insect resistant corn 1507 that developers DuPont (NYSE:DD) and Dow Chemical (NYSE:DOW) have been waiting 14 years for authorization to cultivate in the EU.
    • The compromise law gives member states the right to ban GMO crops even after European Commission approvals; Britain favors GMO crops, while France is among the nations that oppose them.
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  • Tue, Feb. 17, 10:56 AM
    • Saudi Arabian Oil Co. and partner Dow Chemical (DOW -0.6%) say they plan to move ahead to start production this year at their $20B Sadara Chemical joint venture project, even as other projects being planned in the region confront falling crude prices.
    • Ethylene and polyethylene will be Sadara's first products, with full output set for late 2017.
    • Qatar Petroleum and Royal Dutch Shell last month curtailed plans to build a $6.5B petrochemical plant, saying it was commercially unfeasible in the current energy market.
    | 1 Comment
  • Thu, Feb. 12, 9:04 AM
    • Dow Chemical (NYSE:DOW) declares $0.42/share quarterly dividend, in line with previous.
    • Forward yield 3.49%
    • Payable April 30; for shareholders of record March 31; ex-div March 27.
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  • Thu, Jan. 29, 8:17 AM
    • Dow Chemical (NYSE:DOW) +4.5% premarket after Q4 earnings easily beat Wall Street expectations and the company offers a strong outlook for 2015.
    • Q4 revenue was flat at $14.38B, as volume gains in emerging areas were offset by 14% price declines in Western Europe, including currency headwinds.
    • DQ4 saw expanded volume in most segments, led by a 9% increase in agriculture sciences, while performance materials rose 7% and performance plastics added 3%.
    • "We believe lower oil prices are a relative positive for Dow and a boost for the global economy," CEO Andrew Liveris says, rebutting critics who have said Dow's competitive edge may be fading amid falling oil prices (on CNBC).
    | 1 Comment
  • Thu, Jan. 29, 7:04 AM
    • Dow Chemical (NYSE:DOW): Q4 EPS of $0.85 beats by $0.16.
    • Revenue of $14.38B (flat Y/Y) misses by $110M.
    • Press Release
  • Wed, Jan. 28, 5:30 PM
  • Dec. 19, 2014, 10:58 AM
    • Surging U.S. operations for LyondellBasell (NYSE:LYB) and Dow Chemical (NYSE:DOW) have made them two of the biggest beneficiaries of the shale boom, but now they could be among the biggest losers of the ongoing oil price crash, Credit Suisse says.
    • Chemical companies have been sharply expanding their U.S. production to take advantage of plentiful supply, but they are suffering along with energy companies as prices for natural gas liquids - which include ethane, propane, butane, isobutane and natural gasoline - have all plummeted this year.
    • Prices for the fuels are closely linked to oil, so the ~45% drop in crude prices has pressured NGLs; also, many U.S. petrochemicals companies were counting on access to cheap supplies of naphtha, an oil product, to gain an advantage over international competitors, but naphtha prices also have fallen.
  • Dec. 17, 2014, 5:55 PM
    • Corning (NYSE:GLW) and Dow Chemical (NYSE:DOW) disclose their 50/50 Dow Corning JV is shutting down its Hemlock Semiconductor facility in Clarksville, TN, which makes polysilicon for solar cells and semiconductors. (8-Ks: Corning, Dow)
    • The decision was made after a "review of sustained adverse market conditions and continued oversupply, the cost of operating the facility and the ongoing impact of tariffs on polycrystalline silicon imported into China." A $1.5B-$1.6B pre-tax charge will be taken.
    • At the same time, Dow Corning has cut its estimate for the company's future liability related to its 1998 breast implant settlement by $1.3B; the liability stood at $1.7B at the end of Q3.
    • Corning and Dow Chemical each expect to see a $500M post-tax hit from the closing of the Hemlock plant, and a $400M post-tax benefit from the liability estimate cut.
    • GLW +0.9% AH.
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  • Dec. 16, 2014, 3:39 PM
    • Dow Chemical (DOW -1.1%) is initiated with a Buy rating and a $57 stock price target at Nomura, which says earnings growth should accelerate above typical levels as it begins to harvest major capital investments in H2 2015.
    • In addition to new projects, Nomura sees 3%-6% growth in Dow's base business of making chemicals for end markets; the firm also cites Dow's improving portfolio as it sheds $8B-plus in commodity and non-core assets, and lower capex after a 2015 peak that should aid ongoing share buybacks.
    | Comment!
  • Dec. 5, 2014, 8:56 AM
    • Dow Chemical (NYSE:DOW) agrees to sell its global sodium borohydride business and its polyolefin films plant for a combined ~$225M, as it continues to shift its portfolio towards targeted growth markets.
    • DOW says the deal are part of its drive to deliver $7B-$8.5B in sales of non-core assets by mid-2016.
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  • Nov. 28, 2014, 11:53 AM
    • Atlantic Equities has downgraded Dow Chemical (NYSE:DOW) to Neutral, and slashed its target by $5 to $55. The firm expects weak crude oil prices to pressure Dow's polyolefin margins.
    • Crude prices have plunged below $70/barrel today after OPEC decided not to cut production. Commodity stocks aren't taking the news well.
  • Nov. 25, 2014, 11:11 AM
    • China’s barriers to imports of some U.S. genetically modified crops are disrupting seed companies' plans for new product launches and keeping at least one variety out of the U.S. market altogether, Reuters reports.
    • Dow AgroSciences (NYSE:DOW) and Syngenta (NYSE:SYT) are tightly controlling U.S. launches of new GMO seeds, telling farmers where they can plant new corn and soybean varieties and how can the use them, while Bayer CropScience (OTCPK:BAYZF, OTCPK:BAYRY) is keeping a new soybean variety on hold until it receives Chinese import approval.
    • China is taking longer than in the past to approve new GMO crops and began rejecting U.S. imports a year ago, saying they were tainted with a GMO corn variety approved in the U.S. but not in China.
    • Controlled launches are at best a temporary fix because they are costly, complicated and risk accidental contamination of other export grains, says the head of the U.S. Soybean Export Council.
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  • Nov. 24, 2014, 4:36 PM
    • Oil at $75/bbl would have little impact on U.S. shale production because investments in wells and production already have been made, Dow Chemical (NYSE:DOW) Andrew Liveris says.
    • Some U.S. shale producers are getting hurt by the drop in oil prices, but Dow sells enough different products that it can withstand lower crude, Liveris says.
    • $75/bbl has been mentioned as a price where some shale regions in Texas are no longer considered profitable.
    | 1 Comment
  • Nov. 24, 2014, 7:15 AM
    • "We are not pulling out of Kuwait," says Dow Chemical (NYSE:DOW) Chief Executive Andrew Liveris on the sidelines of a conference in Dubai. The company is not planning to leave, but is rather shifting strategy.
    • Dow announced earlier this month that it would cut its equity positions in all of its Kuwaiti joint ventures, in order to release capital for other strategic purposes.
    | Comment!
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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.