Yahoo Finance DowDuPont's (DWDP) Unit to Boost Methyl Cellulose Capacity
DowDuPont Inc.’s DWDP subsidiary, The Dow Chemical Company, has declared that it is making a series of investments for methyl cellulose capacity expansion. The move will help customers of construction dry mix to secure a reliable supply of key additives. These capacity expansions also demonstrate the company’s commitment to the dry mix industry.
Dow Chemical will increase methyl cellulose production capacity at its manufacturing facilities in Bomlitz and Bitterfeld, Germany, which will help the company to address customer demand for high-quality cellulose ether products. Notably, expansion projects represent a capacity enhancement of 19,000 metric tons for Dow Chemical’s Methocel and Walocel cellulose ethers. These ethers are used in various applications for grouts, fillers, adhesives, levellers, and joint compounds, cement-based renders and gypsum plasters. The new capacities are expected to be onstream in 2019 and 2020.
The company is committed to innovation and aims to expand product portfolio with differentiated solutions. These help its customers drive performance improvements in a competitive market.
DowDuPont’s shares have lost 19.4% in the past three months compared with the industry’s decline of 16.9%.
During third-quarter 2018 earnings call, DowDuPont stated that it is seeing strong global demand for products on business investment, manufacturing output, job growth and wage increases. The company will continue to focus on driving the top line from above-GDP demand growth for products and new launches as well as delivering productivity and cost synergy savings.
DowDuPont achieved cost synergy savings of more than $450 million in the third quarter. The company raised cost synergy commitment to $3.6 billion from $3.3 billion mentioned previously. Moreover, it raised year-over-year savings view for 2018 to $1.5 billion from $1.4 billion.
Dow Chemical Company (The) Price and Consensus
Dow Chemical Company (The) Price and Consensus | Dow Chemical Company (The) Quote
Zacks Rank & Stocks to Consider
DowDuPont currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the basic materials space are The Mosaic Company MOS, Gerdau S.A. GGB, and Air Products and Chemicals, Inc. APD.
Mosaic’s shares have rallied 50.7% in the past year. The company has an expected long-term earnings growth rate of 7% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Gerdau has an expected long-term earnings growth rate of 24.3% and a Zacks Rank #2 (Buy). The company’s shares have climbed 19.8% in the past year.
Air Products has an expected long-term earnings growth rate of 11.8% and a Zacks Rank #2. The company’s shares have increased 2.2% in the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Air Products and Chemicals, Inc. (APD) : Free Stock Analysis Report
The Mosaic Company (MOS) : Free Stock Analysis Report
Gerdau S.A. (GGB) : Free Stock Analysis Report
Dow Chemical Company (The) (DWDP) : Free Stock Analysis Report
To read this article on Zacks.com click here.
