Dow Building Solutions, a unit of The Dow Chemical Company (DOW - Analyst Report) , has entered into a distribution agreement with The Energy Conscious, a fast-growing e-marketplace for energy efficient and sustainable products, to offer its wide range of weatherization products to the latter’s DIY, trade professional and reseller clients.
The formation of the partnership was based on the respective strengths of both the companies. The Energy Conscious has thorough knowledge and specific emphasis on energy efficient products while Dow Building Solutions discerns significant energy-saving opportunities through efficiency improvements in homes and buildings.
Pursuant to the deal, a complete range of Dow products including Froth Pak, Great Stuff, Weathermate, Enerfoam, Thermax and Styrofoam will now be available to the clients through its first authorized online distributer – The Energy Conscious.
Specifically for the deal, a Dow portal has been designed to incorporate precise knowledge on energy saving ideas, action and safety plans to weatherize homes, product comparison between categories of products and against competition.
The portal will also offer live training sessions on weatherization and the use of Dow Building Solutions products to the DIY and trade professional for free.
Few days ago, Dow posted its first-quarter 2013 results The company posted a profit of $550 million or 46 cents a share, a roughly 33% rise from $412 million or 35 cents a share earned a year ago. Profits soared on strength in the agriculture science business, which witnessed record sales of seeds and crop protection products. Dow also benefited from nearly $300 million decline in raw material costs in the reported quarter.
Barring one-time items (including charges associated with tax adjustments and loss on early extinguishment of debt), the company earned 69 cents a share in the quarter, up from 61 cents a year ago. That comfortably beat the Zacks Consensus Estimate of 60 cents.
Dow noted that it will focus on organically growing its attractive businesses and driving earnings leveraging its feedstock strength. The company will continue to pursue its cost reduction and efficiency programs while reducing debt and maximizing shareholder returns. However, Dow does not see a material improvement in the macroeconomic environment this year.
Dow currently holds a Zacks Rank #3 (Hold)
Other companies in the chemical industry having favorable Zacks Rank are Shin-Etsu Chemical Co., Ltd. (SHECY - Snapshot Report) , Celanese Corporation (CE - Analyst Report) and Methanex Corporation (MEOH - Analyst Report) . While Shin-Etsu Chemical retains a Zacks Rank #1 (Strong Buy), Celanese and Methanex hold a Zacks Rank #2 (Buy).