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DOW to Invest in Methyl Acrylate Production in Louisiana
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Dow Inc. (DOW - Free Report) recently announced that it will be investing in methyl acrylate production in the U.S. Gulf Coast. The decision comes on the back of its efforts to improve the access to raw materials through a larger and centralized capacity.
The 50 kiloton nameplate capacity will be produced at St. Charles Operations in Louisiana, and will come into function in the first half of 2022. Once the capacity increase comes online, it will primarily focus on the production of methyl acrylate and 2-ethyl-hexyl acrylate, with the main aim of meeting the demand in North America.
Methyl acrylate is a vital component in a wide range of applications like water treatment and thermoplastic products, inks, resins and packaging materials. These applications are witnessing a surge in market demand. Consequently, the investment in methyl acrylate capacity will better support Dow’s customers in America as well as on a global scale. Dow is enthusiastic about the investments being made in Louisiana.
Shares of Dow have risen 38.6% in a year, outperforming the industry’s growth of 30.3%. The company’s estimated earnings growth rate for the current year is pegged at 403%.
Image Source: Zacks Investment Research
In the second quarter, the company recorded adjusted earnings of $2.72 per share, topping the Zacks Consensus Estimate of $2.48. Its net sales of $13,885 million, which increased 66% from the year-ago quarter, also surpassed the Zacks Consensus Estimate of $12,659.8 million.
Moving ahead, the company said that it expects earnings momentum from additional improvements in consumer spending, industrial production and international travel. With the ongoing global economic recovery, it is well placed to continue capturing value with its differentiated materials science portfolio and participation in fast-growing markets, Dow noted.
Image: Bigstock
DOW to Invest in Methyl Acrylate Production in Louisiana
Dow Inc. (DOW - Free Report) recently announced that it will be investing in methyl acrylate production in the U.S. Gulf Coast. The decision comes on the back of its efforts to improve the access to raw materials through a larger and centralized capacity.
The 50 kiloton nameplate capacity will be produced at St. Charles Operations in Louisiana, and will come into function in the first half of 2022. Once the capacity increase comes online, it will primarily focus on the production of methyl acrylate and 2-ethyl-hexyl acrylate, with the main aim of meeting the demand in North America.
Methyl acrylate is a vital component in a wide range of applications like water treatment and thermoplastic products, inks, resins and packaging materials. These applications are witnessing a surge in market demand. Consequently, the investment in methyl acrylate capacity will better support Dow’s customers in America as well as on a global scale. Dow is enthusiastic about the investments being made in Louisiana.
Shares of Dow have risen 38.6% in a year, outperforming the industry’s growth of 30.3%. The company’s estimated earnings growth rate for the current year is pegged at 403%.
Image Source: Zacks Investment Research
In the second quarter, the company recorded adjusted earnings of $2.72 per share, topping the Zacks Consensus Estimate of $2.48. Its net sales of $13,885 million, which increased 66% from the year-ago quarter, also surpassed the Zacks Consensus Estimate of $12,659.8 million.
Moving ahead, the company said that it expects earnings momentum from additional improvements in consumer spending, industrial production and international travel. With the ongoing global economic recovery, it is well placed to continue capturing value with its differentiated materials science portfolio and participation in fast-growing markets, Dow noted.
Dow Inc. Price and Consensus
Dow Inc. price-consensus-chart | Dow Inc. Quote
Zacks Rank & Other Stocks to Consider
Currently, Dow carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space include BASF SE (BASFY - Free Report) , Aperam (APEMY - Free Report) and Avient Corporation (AVNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BASF has a projected earnings growth rate of 96.7% for the current year. The company’s shares have rallied 33.3% over a year.
Aperam has a projected earnings growth rate of 429.8% for the current year. The company’s shares have surged 114.6% over a year.
Avient has a projected earnings growth rate of 75.2% for the current year. The company’s shares have climbed 90.4% over a year.