The Dow Chemical Company’s DOW fully-owned subsidiary, Dow AgroSciences, recently announced the expansion of a research agreement with Radiant Genomics. The agreement had been signed in mid-2015. This alliance brings together the patent metagenomic and engineering-biology technologies from Radiant Genomics and the industry-leading natural products discovery and product development potential of Dow AgroSciences to offer naturally-derived products.
The companies look forward to improving the technology platform of Radiant Genomics with an aim to add natural products for research and discovery in both crop protection and traits. Moreover, this venture will enable Radiant Genomics to improve its patent technologies and widen its applications with a research platform from Dow AgroSciences.
Daniel R. Kittle, PhD, Vice President of Research and Development at Dow AgroSciences, also mentioned that the alliance marks a milestone in drawing the power of Dow’s expertise in natural products. Management at Dow further thinks that its efforts toward bringing new sustainable solutions will meet the growing needs for food production across the planet.
Dow reported solid earnings beat in fourth-quarter 2015 and saw its profits jump on strong margins in its performance plastics business and its cost-reduction measures. The company registered profits of $3,527 million or $2.94 per share in the reported quarter, a nearly five-fold surge from $734 million or 63 cents per share recorded a year ago.
However, Dow’s revenues slid 20% year over year to $11,462 million, with declines witnessed across the board. Lower pricing and currency headwinds hurt revenues in the quarter.
Dow expects to gain from lower energy prices that would help offset negative sentiment in other markets. CEO Andrew N. Liveris said that Dow will remain committed to its portfolio management actions and operational execution in 2016.
Shares of the company rose around 0.4% to close at $47.19 on Feb 24.
Dow currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the basic materials sector include Asahi Kasei Corporation AHKSY, Koninklijke DSM N.V. RDSMY and Daqo New Energy Corp. DQ, all sporting a Zacks Rank #1 (Strong Buy).
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