Yahoo Finance DOW & Fiori Team Up to Advance Sustainable Vehicle Recycling
Dow Inc. DOW and Fiori Group have signed a memorandum of understanding (MoU) to work on the development of a new ecosystem for recycling end-of-life (EOL) vehicle parts and materials.
Based in Italy, Fiori Group collects and recycles ferrous and non-ferrous materials, lead batteries, steel packaging and industrial scrap.
The MoU covers both firms' intention to conduct a study of the dismantling process and its impact on EOL waste fraction quality and suitability for recycling operations, as well as to develop a new ecosystem business model using a 'test and learn' approach. The Fiori Group and Dow MobilityScience teams will collaborate openly to produce a valuable prototype for recycling EOL vehicle parts and materials.
The agreement with Dow enables Fiori to seek new solutions to meet Europe’s end-of-life vehicle recycling targets. With this partnership, DOW strengthens its commitment to a sustainable future for the automobile industry by using the leading materials in this critical growth category and Fiori’s expertise in extending the recycled fraction from end-of-life cars.
Dow's sustainability strategy is increasingly focused on new solutions, such as technology for mechanical and chemical recycling from various waste sources. Dow and Fiori Group will collaborate on an automobile and mobility recycling initiative that will feature Dow Renuva's recycled material range.
Shares of DOW have lost 1.3% over the past year against a 10.3% decline of its industry.
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On the first-quarter call, Dow said that demand in key end-use markets such as packaging, mobility and energy applications is trending higher sequentially, which is in sync with its expectations at the beginning of the year.
The company expects its high-value organic growth investments and advantaged portfolio to allow it to deliver earnings growth and increased shareholder value as the economic recovery gains strength. This provides DOW with the financial flexibility to advance its Decarbonize and Grow and Transform the Waste strategies, which are expected to deliver more than $3 billion in underlying earnings improvement annually by 2030.
Zacks Rank & Key Picks
Dow currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, ATI Inc. ATI and Ecolab Inc. ECL.
CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have soared 97% in the past year. Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
ATI beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 8.3%. The company's shares have soared 37.8% in the past year. ATI currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. ECL, a Zacks Rank #2 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company's shares have rallied roughly 33.7% in the past year.
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Ecolab Inc. (ECL) : Free Stock Analysis Report
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