DOW Launches Lower Carbon, Bio-Based PG Solutions in Europe
Dow Inc. DOW has introduced a new line of propylene glycol (PG) solutions in Europe that use reduced carbon, bio-based and circular feedstocks. Customers can supply end-products with third-party validated sustainability benefits to a wide range of industries, including pharmaceutical, agricultural and food, as a result of a mass balance method. This mass balancing approach, which has achieved ISCC PLUS accreditation, monitors the flow of sustainable raw materials required to manufacture PG through a complex value chain and attributes it based on verifiable bookkeeping.
DOW has witnessed higher demand for the use of renewable materials to decrease carbon and enable circularity. It is making this a reality for PG by utilizing its low-carbon, bio-based, and advanced recycling technology. Customers will benefit from the same high-quality performance but with a more environmentally friendly material.
Three new sustainable propylene glycol product lines will be accessible in Europe and certified by ISCC PLUS as a result of innovative technologies. These are propylene glycol RDC with Decarbia reduced carbon solutions derived from renewable energy sources, propylene glycol REN with Ecolibrium bio-based technology derived from 2nd generation bio-based raw material and propylene glycol CIR with Renuva recycled content derived from post-consumer waste streams.
PG RDC, PG REN and PG CIR have a wide range of uses in industries such as agriculture, pharmaceuticals, cosmetics, textiles and food. Dow plans to launch comparable products in other parts of the world in the coming months.
Shares of DOW have gained 15.8% over the past year compared with a 10.6% rise of its industry.
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Dow, on its second-quarter call, said that it remains focused on cost-savings actions and will continue to advance its longer-term strategic priorities as it faces a challenging macroeconomic environment in the second half of 2023. It is making progress with its actions to deliver $1 billion in cost savings in 2023. Its disciplined and balanced capital allocation priorities are supporting its “Decarbonize and Grow” strategy to deliver long-term value creation for its shareholders.
The company expects net sales in the band of $10.25-$10.75 billion for the third quarter.
Zacks Rank & Key Picks
DOW currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, The Andersons Inc. ANDE and Hawkins Inc. HWKN.
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 109.6% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Andersons currently carries a Zacks Rank #1. The stock has gained roughly 69.3% in the past year. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average.
Hawkins currently carries a Zacks Rank #1. The stock has rallied roughly 58% in the past year. HWKN beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 25.6%, on average.
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