Organizing Committee of the XXII Olympic Winter Games of 2014 has declared chemical giant The Dow Chemical Company (DOW - Free Report) as the Official Carbon Partners for the event scheduled between Feb 7, 2014 and Feb 23, 2014 in Sochi, Russia.
The Organizing Committee intends to deliver the Games with least impact on the climate. In order to fulfill this vision and creating awareness about climate change in Russia, Dow will work together with local companies and marketing partners of Sochi 2014.
Dow will help to eliminate the estimated carbon footprint associated with the delivery of the Games by deploying energy-efficient technologies and improve greenhouse gas (GHG) emissions performance.
In order to develop the measurement tools to account for the carbon benefits, Dow will also work with Offsetters Climate Solutions, the Official Supplier of Carbon Offsets of the Vancouver Organizing Committee. ERM, a premier provider of environmental, health, safety, risk, and social consulting services, will be giving critical review of this collaboration.
Dow released its fourth-quarter 2012 results on Jan 31, 2013. The company reported a wider loss of 61 cents a share in the quarter compared with a loss of 2 cents in the fourth quarter of 2011, due to hefty restructuring and goodwill impairment charges. Dow’s adjusted earnings of 33 cents a share missed the Zacks Consensus Estimate by a penny.
Weak end-market conditions and lower pricing affected sales in the quarter. However, Dow’s agricultural business was a bright spot, with sales increasing at a double-digit rate. 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 Dow’s pipeline adds to its strength. However, weaknesses in the electronics and construction end markets may continue in the first quarter of 2013. Moreover, Dow faces challenges in Western Europe and is exposed to significant pension headwinds.
Dow Chemical retains a short-term (1 to 3 months) Zacks Rank #3 (Hold). Other companies in the chemical industry that are worth considering include Air Products and Chemicals Inc. (APD - Free Report) , Akzo Nobel NV (AKZOY - Free Report) and LyondellBasell Industries NV (LYB - Free Report) . All of them carry a Zacks Rank #2 (Buy).