Dow backs earnings goal, details collaborations

NEW YORK (AP) -- Dow Chemical Co. reaffirmed a broad earnings measurement at its annual investor day Tuesday. It also announced collaborations with Occidental Chemical Corp. and Argonne National Laboratory, among other moves. The Midland, Mich., manufacturer reaffirmed financial targets it laid out in November 2009, including plans to deliver $10 billion in earnings before interest, income taxes, depreciation, and amortization in the near-term. The company did not offer in its statement a more specific time frame for when it expects to reach that target. Dow Chemical said that, since 2009, it has successfully rebalanced its business portfolio toward markets that produce more consistent profitability, such as electronics, agriculture, energy, infrastructure and health. The company said it sees "bright spots" in recession-resistant sectors including agriculture, food packaging and energy. Dow Chemical is a bellwether of the broader economy's health because of its diverse array of customers, including manufacturers of toys, automobiles, farming equipment and LCD televisions. Shares of the company climbed 6 percent, or $1.29, to $22.80 in Tuesday trading, while the Dow Jones industrial average rose 1.4 percent. The company also said Tuesday that it will form a joint venture with Occidental Chemical Corp. to make a new chlorocarbon solution used in climate-friendly refrigerants, initially for automobile air conditioning systems. Dow Chemical also signed a memorandum of understanding with the U.S. Department of Energy's Argonne National Laboratory for a collaboration to develop the next generation of materials for advanced battery technologies. The company also said Tuesday it formed an LED technologies business segment to help answer demand for light-emitting diodes in the market for solid state lighting. Published: Thu, Oct 6, 2011