Dow Chemical (DOW - Free Report) has raised the price for all grades of CELLOSIZE Hydroxyethylcellulose (HEC) globally by 6%. The price hike will be effective Oct 1, 2013, or as per the contracts.
The price hike was declared as a necessary step for Dow to sustain its commitment to provide high quality products and reliable supply to its customers.
Dow is the second largest chemical maker in the world by sales, offering a range of chemical, plastic and agricultural products and services. The company has a global footprint across 160 countries and has 197 manufacturing sites in 36 nations.
Dow posted mixed second quarter 2013 results on Jul 25. The company’s profit soared to $2.34 billion or $1.87 a share in the quarter from $649 million or 55 cents a share logged a year ago on strength in its agriculture business and a sizable gain from an arbitration case.
Barring loss on early extinguishment of debt and gain from the arbitration case, Dow earned 64 cents a share in the quarter, up from 55 cents a year ago. That beat the Zacks Consensus Estimate of 63 cents.
Revenues of $14,577 million for the reported quarter were essentially flat year over year as gains across agricultural sciences and performance materials were offset by declines in feedstocks and energy and performance plastics. It missed the Zacks Consensus Estimate of $14,640 million. Gains across agricultural sciences and performance materials were offset by declines in feedstocks and energy and performance plastics.
Dow is benefiting from strong fundamentals in agriculture and food markets, and is leveraging its North American feedstock advantage. A string of innovative products in its pipeline adds to its strength. However, weakness in the electronics and construction end-markets may continue. Moreover, Dow still faces challenges in Western Europe and is exposed to significant pension headwinds.
Dow currently holds a Zacks Rank #3 (Hold).
Other chemical companies worth considering are Ferro Corporation
(FOE - Free Report
) , Akzo Nobe
l (AKZOY - Free Report
) and Eastman Chemical Co.
(EMN - Free Report
) . While Ferro holds a Zacks Rank #1 (Strong Buy), both Akzo Nobel and Eastman Chemical retain a Zacks Rank #2 (Buy).