Dow's Omega-9 Shows Results - Analyst Blog
May 23 2011 - 1:08PM
Zacks
The Dow Chemical Company’s (DOW) wholly owned
subsidiary Dow AgroSciences’ Omega-9 Oils helped in removing over 1
billion pounds of saturated and trans fats from the North American
diet.
Omega-9 Oils was launched by the company in 2006 when there was
a rising need to remove trans fats from the diet. Its introduction
exercised quite a beneficial and nutritional effect on the food
industry.
Omega-9 Oils are the next generation of healthier oils for both
foodservice and food processing. Regular use of Omega-9 oil
successfully reduces the consumption of oil in the restaurant
industry by nearly 100 million pounds each year.
Omega-9 Oils last nearly 75% longer than all the other oils in
the restaurants’ use. More importantly, consumption of this oil
effectively brings down risks of cardiovascular diseases. One
billion pounds of bad fats translate to over 700 million pounds of
trans fats and nearly 300 million pounds of saturated fat.
Dow AgroSciences, based in Indianapolis, Indiana, USA, is a
top-tier agricultural company providing innovative agrochemical and
biotechnology solutions globally.
Dow supplies high-performance materials, agricultural products,
plastics (polyethylene and polypropylene) and industrial chemicals
to industries and consumers globally. The company’s products have a
vast array of applications and are used by various industries
including farming, construction, transportation, electronics and
consumer goods.
Recently, Dow reported its first quarter of 2011 results. The
company earned $0.82 per share in the first quarter of 2011, ahead
of the Zacks Consensus Estimate of $0.67 per share as well as last
year’s $0.43 per share. However, including one-time charges, the
company earned $0.54 per share compared with $0.41 per share in the
year-ago quarter.
Quarterly revenues jumped 20% year over year to $14.7 billion
and were above the Zacks Consensus Estimate of $13.8 billion.
Volume and pricing gains across all business segments and
geographical regions, particularly North America and Europe,
yielded healthy revenue growth.
Dow anticipates that demand would improve further, especially in
Asia with the global economic recovery. The US and European markets
have also started showing signs of improvement. Dow is also
optimistic on major consumer-markets, including electronics,
coatings, automotive and packaging. However, construction markets
are expected to remain weak.
DOW faces stiff competition from EI DuPont de Nemours
& Co. (DD).
Currently, Dow has a short-term (1 to 3 months) Zacks #1 Rank
(Strong Buy) but a long- term Neutral recommendation.
DU PONT (EI) DE (DD): Free Stock Analysis Report
DOW CHEMICAL (DOW): Free Stock Analysis Report
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