Chemical giant
The Dow Chemical Company
(
DOW
) has announced its intention to open its North East USA Technology
Center in
Pfizer Inc.'
s (
PFE
) 750,000 square feet research and development facility at
Collegeville, Pennsylvania. The site is expected to be operational
by the first quarter of 2013 when Dow will relocate its employees
from its Spring House, Pennsylvania, campus. The company
expects more than 800 jobs to remain in the county as both Spring
House and Collegeville are cities within Montgomery County.
The new facility will provide all the latest tools that will help
in making innovative and differentiated products useful for the
customers. The office will not only have laboratory and office
space but also room for further expansion. With its
operations in Montgomery County, Dow will also have a foothold in
the global competitive market. Dow conducted a feasibility study
before deciding that it was a viable option to have research
activities there.
Michigan-based Dow is a leading chemical company whose products
are used across a broad spectrum of industries. The company posted
earnings of 61 cents a share (excluding specific one-time items) in
the first quarter of 2012, surpassing the Zacks Consensus Estimate
of 59 cents. However, it was below the year-ago adjusted earnings
of 82 cents.
Revenues dropped marginally year over year to $14,719 million,
lagging behind the Zacks Consensus Estimate of $15,342 million.
Double-digit growth across agricultural and feedstock/energy
businesses were masked by declines in performance materials and
performance plastics franchises.
Though Dow did not provide any specific financial guidance, it
believes economic recovery will gain momentum in the second quarter
and the remainder of the year. The company expects to meet its
short- and long-term targets irrespective of economic conditions.
Moreover, Dow sees an improving U.S. economy citing tailwind from
the nation's rich access to low-cost natural gas. Further, it
benefits from strong fundamentals in agriculture and food
markets.
However, weaknesses in the electronics and construction
end-markets may sustain into the second quarter. Moreover, the
company will continue facing challenges in Western Europe due to
weak demand and sovereign debt crisis.
Dow faces stiff competition from
EI DuPont de Nemours & Co.
(
DD
). Currently, the stock retains a Zacks #3 Rank, indicating a
short-term "Hold" rating. Moreover, we have a long-term "Neutral"
recommendation on the company.
DU PONT (EI) DE (DD): Free Stock Analysis
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DOW CHEMICAL (DOW): Free Stock Analysis Report
PFIZER INC (PFE): Free Stock Analysis Report
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