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DOW Expands Sustainable PG Solution Offerings in Asia Pacific

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DOW Incorporation (DOW - Free Report) announced that its Propylene Glycol (“PG”) manufacturing facility in Map Ta Phut, Rayong, Thailand has earned the International Sustainability and Carbon Certification (“ISCC”) PLUS. This achievement will enable DOW to expand its offering of circular or bio-circular solutions to customers in Asia Pacific.

The two new sustainable PG products that will be available are Propylene Glycol CIR featuring Renuva and Propylene Glycol REN featuring Ecolibrium. These have been designed to suit a broad range of applications across industries, including personal care, pharmaceutical, food ingredients, flavorings and fragrances. The products will also help customers achieve their circular and sustainability goals.

The certification has ensured DOW’s global leadership in sustainable production and a circular future. The ISCC certification, along with capacity expansion, has positioned the Map Ta Phut PG facility to serve customers in the best way possible, both locally and regionally. 

The DOW stock has lost 36.4% in the past year compared with 14.6% decline of the industry.

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Moving ahead, management stated that the company expects to gain from the completion of its near-term incremental growth projects and increased focus on operational discipline in 2025. It is optimistic about a further increase in demand in attractive end markets, such as packaging, energy and electronics. DOW expects the strong balance sheet and differentiated portfolio to allow it to deliver on capital allocation priorities. 

The company is taking actions to cut costs by $1 billion to drive margins. It expects to achieve the majority of the cost savings through a $500-$700 million reduction in direct costs and decreased labor costs, including through a workforce reduction of around 1,500 roles globally. DOW is also reducing 2025 capital spending plans by $300-$500 million. This move is in response to ongoing macroeconomic challenges and to support its long-term growth targets.

DOW’s Zacks Rank and Key Picks

DOW currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Axalta Coating Systems (AXTA - Free Report) and Carpenter Technology Corporation (CRS - Free Report) . While NGVT and AXTA sport a Zacks Rank #1 (Strong Buy) each at present, CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $4.45 per share. NGVT's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 202.9%.

The Zacks Consensus Estimate for Axalta’s current-year earnings is pegged at $2.51 per share. AXTA's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 16.28%.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.95 per share. CRS' earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 15.7%. Its shares have soared 185.1% in the past year.




 

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