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%.
Apr. 23, 2014, 7:04 AM
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Mar. 27, 2014, 3:44 PM
- As U.S. lawmakers consider allowing more liquefied natural gas exports to help reduce Europe's dependency on Russia as an energy provider, Dow Chemical (DOW) says too bad; if Europe wants to reduce its need for Russian natural gas, it can - and should - produce the gas on its own.
- "Europe has the resources and the capability to provide for its own energy needs," says a top DOW exec. "Just because they rejected nuclear energy and horizontal drilling and left themselves at the mercy of others shouldn’t create an obligation for us to bail them out."
- Chemical companies and many manufacturers oppose the rush for more LNG exports, having benefited from cheap natural gas prices since the fuel is a key ingredient for petrochemicals used in making plastics and other components of manufacturing.
Mar. 25, 2014, 4:40 AM
- House and Senate energy committees are due to hold hearings today over whether the U.S. should ease the restrictions on the export of liquefied natural gas.
- The issue has received heightened attention due to the Ukraine crisis, as increased exports would help Europe cut its reliance on Russian gas.
- One proposal would allow any country in the WTO to buy gas without U.S. government approval, a measure that would do away with almost all reviews.
- However, opponents, which include Dow Chemical (DOW), argue that increasing exports would raise domestic prices.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, GASX, NAGS, DCNG
Mar. 19, 2014, 2:47 PM
- Dow Chemical (DOW +0.5%) says it will seek to raise up to $6B from asset sales, $1.5B-$2B more than its earlier target, as it plans to streamline operations by shedding old business lines it can no longer grow, CEO Andrew Liveris says.
- The CEO does not say what else the company has decided to put on the block, but says additional sales will be profitable but slow-growth business units that are minor parts of DOW's portfolio, primarily in the functional materials and performance materials groups.
- Activist investor Daniel Loeb of Third Point has been pushing DOW to go even further and split off its petrochemicals business and focus on specialty materials, but the company opposes such a move; a UBS analyst says DOW appears committed to deliver more value than the split-up proposal.
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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