Aug. 6, 2014, 7:11 PM
- The USDA on Tuesday said it is leaning toward approval of a new line of herbicide-tolerant crops developed by Monsanto (NYSE:MON), and issued a final environmental impact statement for genetically altered corn and soybean plants developed by Dow Chemical (NYSE:DOW) which also indicates likely approval.
- MON developed its new soybeans and cotton to resist a new herbicide that combines dicamba and glyphosate and which the company is branding as Roundup Xtend; DOW has developed its Enlist corn and soybeans that resist a new herbicide developed by the company that includes glyphosate and 2,4-D.
- Both new cropping systems have seen regulatory decisions delayed by intense opposition from groups who say using more herbicides on weeds will only increase weed resistance over the long term, as well as bring increased risks of health problems and environmental pollution.
Jul. 28, 2014, 8:49 AM
- Dow Chemical (NYSE:DOW) +1% premarket following a weekend profile in Barron's that says shares could keep rising due to an "underappreciated" base of assets and continued pressure from Daniel Loeb.
- Citing several projects in the company's pipeline and and underappreciated assets including a petrochemical division that enjoys low costs for inputs, the article suggests earnings could double by 2018 and the stock could climb past $60 in a year while paying a dividend.
- The stock's recent strength might let Dow retire ~$4B of high-cost convertible preferred stock, the story says.
Jul. 23, 2014, 1:01 PM
- One of The Oracle's crisis-era high-yield investments could soon end as a post-earnings rally for Dow Chemical (DOW +3.4%) brings the stock above $53.72 for the first time in nine years. Should the shares close above that price for 20 trading days in a 30-day window, Berkshire's (BRK.A, BRK.B) $3B preferred stake in Dow could be converted into common stock.
- The preferred stock is expensive for Dow as it carries an 8.5% yield, meaning $255M in dividends annually paid to Berkshire. Of course a conversion would mean dilution, but "people have come to view the dilution from the preferreds as a manageable issue," says UBS's John Roberts, thanks to strong earnings and share repurchases.
- Previously: Dow Chemical beats estimates amid sales gains across businesses
Jul. 23, 2014, 8:59 AM
- Dow Chemical (NYSE:DOW) +1.2% premarket after Q2 results rose a better than expected 3% as the company reported growth in all its operating segments; earnings tumbled 60% Y/Y on higher sales costs and an unfavorable comparison with the year-earlier period, but results beat analyst estimates.
- Q2 sales growth was led by the electronic and functional materials segment, which reported a 5% increase in revenue to $1.2B; sales in performance plastics rose ~2% to $3.75B, while coatings and infrastructure solutions rose ~3% to $1.95B and agricultural sciences also added ~3% to $1.91B.
- Margins improved due to higher prices and a tight control on costs, and rose in four of Dow's six units; the exceptions were the agriculture business and the feedstocks and energy division.
Jul. 23, 2014, 7:00 AM
Jul. 22, 2014, 5:30 PM
Jun. 27, 2014, 8:16 AM
- DuPont (DD) -3.1% premarket after cutting its Q2 and FY 2014 earnings outlook, pointing to slower than expected sales growth in its agriculture and performance chemicals units.
- DD said in a conference call that it expects Q2 operating earnings in its agriculture business to fall in the low teens in percentage terms, with corn pricing in North America expected to be slightly lower than its previous estimate and returns of unused corn seeds in Brazil to be higher than anticipated.
- Dow Chemical (DOW) -0.7% premarket; chemical peers FMC, SYT, MON, LYB, CE and HUN also will be on watch today.
Jun. 3, 2014, 8:21 AM
- China levies anti-dumping duties on a chemical imported from the U.S. and EU used in insect repellent and refrigerants, the country's Commerce Ministry says.
- A tax of 71.8% will be imposed on exports of the chemical by U.S. companies, including Dow Chemical (DOW), while the same duties imposed on European exports will be levied 27.6%.
- The ministry does not explain why it is targeting this chemical now, nor why there is such a difference in the levies.
May. 20, 2014, 2:52 PM
- Dow Chemical (DOW +0.7%) is upgraded to Outperform at Wells Fargo, which cites a more favorable valuation relative to its higher estimates.
- Wells analysts recently held a meeting with senior Dow leaders and came away seeing top management's enthusiasm as "increasingly credible," supported by "greater operational versatility, a market-driven approach to margin enhancement, and numerous catalysts to drive the bottom line."
- The firm believes strong petrochemical fundamentals should benefit Dow, and it raises its price target range for shares to $54-$56 from $48-$52.
May. 20, 2014, 6:49 AM
- Dow (DOW), S&P (SPY), and Nasdaq 100 (QQQ) futures are all lower by about 0.1%. On the earnings front, Home Depot is down more than 1% after missing estimates and Staples plunges 8% after its results.
- Europe's marginally lower and Asia gained a little overnight, though Thailand fell 1.1% after the army imposed martial law.
- The 10-year Treasury yield is down one basis point to 2.53% and gold is unchanged at $1,294 per ounce.
- ETFs: SPY, QQQ, SH, DIA, SSO, SDS, PSQ, VOO, IVV, SPXU, UPRO, TQQQ, SPXL, QID, RSP, SQQQ, DOG, QLD, DXD, RWL, EPS, UDOW, SDOW, DDM, BXUB, QQEW, QQQE, TRND, SFLA, QQXT, SPLX, BXUC, TNDQ
May. 15, 2014, 9:10 AM
May. 8, 2014, 4:57 PM
- Vermont becomes the first U.S. state to mandate labeling of foods made with genetically modified organisms, as Gov. Shumlin today signed a law that is widely expected to be challenged in court by food and agriculture companies.
- The law, set to take effect in July 2016, sets the stage for more than two dozen other states currently considering mandatory labeling of such GMO foods.
- BIO, a trade group whose members include Monsanto (MON) and Dow Chemical (DOW), says food costs for an average household would rise as much as $400/year due to mandatory labeling.
May. 1, 2014, 6:17 PM
- Dow Chemical's (DOW) strategy of integrating petrochemicals with higher-value products is reducing earnings by at least $2.5B/year, Dan Loeb's Third Point hedge fund says in a letter to investors.
- Loeb, who has called for Dow to break itself into separate petrochemical and specialty products companies, says the company also needs to increase transparency in how it transfers costs between its petrochemical businesses and specialty units.
- Loeb contrasts Dow Chemical with rival Lyondell Basell (LYB), and wonders why, despite Dow's far higher production capacity, the two companies generate essentially the same EBITDA in their respective basic chemicals businesses.
Apr. 30, 2014, 5:44 PM
- Dow Chemical (DOW) receives preliminary U.S. regulatory approval to sell a new version of its 2,4-D herbicide aimed at stopping the spread of weeds no longer killed by Monsanto's (MON) Roundup.
- The EPA is proposing to allow Dow to market its Enlist Duo herbicide, which includes a new formulation of the 2,4-D chemical, a tougher product than some existing sprays that raised environmental and health concerns.
- The EPA's proposal is the agency's first major ruling on the product since Dow submitted it for review in 2011; the agency will take comments on the proposal over the next 30 days and evaluate them before issuing a final decision.
Apr. 23, 2014, 5:54 PM
- Dow Chemical's (DOW) Andrew Liveris has met activist investor Daniel Loeb several times to discuss the shareholder's call for a breakup of the company, the CEO says in today's earnings call.
- Liveris said Dow had learned lessons from Loeb’s criticism, such as the need to be more transparent about its business, but still rejected his call for a breakup, saying he lacked the management’s “sheer weight of knowledge” about how the company earns its profits.
- The CEO also confirmed Dow is committed to a more active sale program than it proposed last year, and now plans to sell businesses worth $4.5B-$6B by the end of next year, including ~$800M of sales already announced.
Apr. 23, 2014, 9:14 AM
- Dow Chemical (DOW) +2.3% premarket after Q1 earnings rose 65% Y/Y, beating estimates, on a slight revenue rise and a boost from lower costs.
- DOW says adjusted EBITDA margin expanded more than 60 bps Y/Y to 16.6%, with increases in all operating segments except feedstocks and energy; margins grew despite a $300M-plus increase in purchased feedstocks and energy, due to continued emphasis on productivity and cost-control actions.
- Sales in DOW's performance plastics segment gained 3%, largely due to price increases; excluding the impact of divestitures, the growth was 6%.
- R&D expenses fell 10%.
DOW vs. ETF Alternatives
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.
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