Dow Coating Materials, a business unit of
The Dow Chemical Company
), plans to increase production of its Dispersants products in
order to capitalize on the increasing demand from customers
across the globe. The company will start producing more TAMOL and
OROTAN High-Performance Hydrophobically Modified Copolymer
Dispersants from the first quarter of 2013. These dispersants are
primarily used in the coatings industry as well as other Dow
businesses in North America and worldwide.
The TAMOL dispersants provide numerous benefits such as
excellent efficiency, gloss enhancement, pigment wetting,
stability and color acceptance. They are mainly utilized for a
varied selection of polyacid, hydrophilic copolymer, and
hydrophobic copolymer dispersants to meet a variety of
formulation demands. They will be produced for architectural and
industrial coatings manufacturers, and hygiene and medical as
well as personal and home care applications.
Last month, Dow released its third quarter 2012 results. The
company earned 42 cents a share in the quarter compared with 62
cents (all excluding special items) in the year-ago quarter.
However, earnings in the quarter topped the Zacks Consensus
Estimate of 37 cents.
Dow's profits tumbled 39% year over year to $497 million as lower
pricing dragged down its sales in the quarter. The company also
witnessed weak demand for its products in the quarter, largely
stemming from the recessionary conditions in Europe.
Revenues slipped 9.7% (or 7% on an adjusted basis) year over year
to $13,637 million in the quarter, missing the Zacks Consensus
Estimate of $14,130 million. Sales fell across all segments
except Agricultural Sciences, which was the only bright spot in
the quarter. Revenues in Europe slid 10% largely due to
unfavorable currency translation.
Dow competes with
EI DuPont de Nemours & Co.
) and currently retains a Zacks #3 Rank that translates to a
short-term (1 to 3 months) Hold rating. We currently have a
long-term (more than 6 months) Neutral recommendation on the
DU PONT (EI) DE (DD): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
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