Dow Cuts 800 Jobs, Shuts Major European Facilities To Boost Profit
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
Dow Inc. Restructuring Plan: Dow Inc. is implementing strategic asset closures in Europe, including operations at facilities in Germany and the U.K., as part of a restructuring plan aimed at enhancing long-term profitability and reducing costs, with expected annual EBITDA improvements of $200 million by 2029.
Impact on Workforce and Costs: Approximately 800 jobs will be affected by these closures, adding to a previous workforce reduction of 1,500 roles announced earlier this year, while the company anticipates incurring charges between $630 million to $790 million for severance and asset write-downs.
Analyst Views on DOW
Wall Street analysts forecast DOW stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DOW is 25.71 USD with a low forecast of 20.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
1 Buy
13 Hold
1 Sell
Hold
Current: 28.410
Low
20.00
Averages
25.71
High
32.00
Current: 28.410
Low
20.00
Averages
25.71
High
32.00
About DOW
Dow Inc. serves as a holding company for The Dow Chemical Company and its subsidiaries. The Company conducts its operations through six global businesses, which are organized into segments, such as Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure and Performance Materials & Coatings. Packaging & Specialty Plastics segment consists of two integrated global businesses: Hydrocarbons & Energy and Packaging and Specialty Plastics. This segment employs a polyolefin product portfolio. Industrial Intermediates & Infrastructure segment consists of two customer-centric global businesses: Industrial Solutions and Polyurethanes & Construction Chemicals that develop intermediate chemicals that are essential to manufacturing processes, as well as downstream, customized materials and formulations that use advanced development technologies. Performance Materials & Coatings segment consists of two global businesses: Coatings & Performance Monomers and Consumer Solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
