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DOW Strengthens Footwear Portfolio With Low-Carbon Material

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Dow Inc. (DOW - Free Report) recently unveiled a portfolio of low-carbon material solutions to assist the footwear sector in developing more sustainable products while maintaining high performance. The expanded offering includes bio-circular materials using a mass balancing approach, reversible cross-linking resins, post-consumer recycled resins and polyolefin elastomers for artificial leather in various footwear materials and applications.

The collaboration with Porto Indonesia Sejahtera, an Indonesian consumer brand specializing in recovery footwear is one such example. As the first in Asia to use Dow’s post-consumer recycled polyethylene resins in footwear, Porto Indonesia Sejahtera has incorporated REVOLOOP resins in its premium sandal range and flip flops as part of its vision to drive circular footwear solutions. Dow's REVOLOOP post-consumer recycled resins for footwear soles capture the value of plastic waste while reducing carbon footprint by using fewer virgin plastics.

Dow now offers bio-circular solutions for ethylene-vinyl acetate (EVA) and olefin block copolymers (OBC) in the form of ELVAX EVA REN and INFUSE OBC REN, building on the partnership between Dow and Crocs with bio-circular ENGAGE REN polyolefin elastomers (POE). These are made utilizing alternative feedstocks derived from waste residues or byproducts of operations that do not compete with food or feed production, reducing dependency on fossil feedstocks.

Dow's reversible cross-linking resins provide a unique approach to creating recyclable footwear materials. They enable the processing of worn footwear foam slabs into new resins, which can then be utilized in foamed products that perform similarly to those created with traditional EVA/POE/OBC. Dow's POEs can be used to create an artificial leather that is more durable, stain resistant and 25% lighter in weight than f-PVC (flexible Polyvinyl Chloride) and polyurethane leather for shoe uppers. 

This artificial leather is intended for post-consumer recyclability and is manufactured without plasticizers, solvents, or heavy metals. It has minimal volatile organic compounds (VOC) and odor. It provides a safe and ecological footwear material option while allowing designers to experiment with different colors, particularly light ones.

DOW’s shares are down 14.5% in a year compared with the industry’s 1.1% rise.

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Dow, on its third-quarter call, said that it will continue to operate with discipline as it capitalizes on areas of demand strength while leveraging its scale and advantaged cost positions on a global basis. Its strong financials will continue to support its growth investments focused on higher-value businesses and regions where it has a competitive cost advantage and is seeing resilient demand. DOW expects these investments to deliver more than $3 billion in underlying earnings by 2030.

Dow Inc. Price and Consensus

Dow Inc. Price and Consensus

Dow Inc. price-consensus-chart | Dow Inc. Quote

DOW’s Rank & Key Picks

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

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and CF Industries Inc. (CF - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 157.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for IAG’s current-year earnings is pegged at 56 cents, indicating a year-over-year rise of 522.2%. The Zacks Consensus Estimate for IAG's current-year earnings has been going up in the past 30 days. IAG, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 203.4%. The company's shares have rallied roughly 112% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 13.1% in the past year.

 

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