Chemical company, The Dow Chemical Company (DOW) reported a divesting plan on Thursday which would allow the company to focus on core businesses.
The company reported a plan to exit slow growth businesses as part of its aggressive portfolio management, which was addressed at its Investor Forum in December 2012. DOW said that it currently has $1.5 in divesting plans, which will include its Polypropylene Licensing and Catalysts business unit and its Plastics Additives business unit.
DOW has divested a total of $8 billion in revenue since 2009 and will continue to exit low growth businesses as it focuses on high margin and fast growing end markets.
The company’s chairman and CEO, Andrew N. Liveris commented, “Today’s announcement is yet another proof point of Dow’s rigorous focus on return on capital, and is squarely in line with commitments we made earlier this year, we are reviewing our entire portfolio and seeking even further opportunities to optimize value: selectively pruning assets that are no longer a strategic or financial fit – all in an effort to accelerate value creation and deliver long-term, sustainable growth for the Company.”
Dow Chemical shares were up 17 cents, or 0.51% during Thursday morning trading. The stock has declined -3% in the past year.
The Bottom Line
Shares of The Dow Chemical Company (DOW) have a 3.84% yield, based on Thursday morning’s price of $33.35.
The Dow Chemical Company (DOW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.