Brazil a net importer of ethanol in October

Dow Chemical (NYSE:DOW) has been taking major steps to strengthen its business portfolio. The company is actively seeking to move toward high-margin, high-growth businesses. These moves are not only enhancing the company's portfolio, but are also strengthening its cash position and balance sheet. In the recent couple of quarters, Dow has divested several of its low-performing businesses, including ANGUS Chemical Company and its sodium borohydride businesses, as well as separating from the chlor-alkali and other downstream derivatives.

These divestments have contributed great strength to both its cash position and its balance sheet. In the latest quarter, the company experienced 41% growth in its operating cash flows compared to the same quarter of last year. These operating cash flows are creating a huge opportunity for potential dividend increases along with investing in growth opportunities. Simultaneously, Dow is actively working to reduce its outstanding shares. It will accelerate its three-year, $5B buyback program this year; it repurchased $1B-worth of stock in Q4 and plans to purchase the rest during 2016.

Combined with its strong cash position and asset divestments, the company's strategy of investing only in high-growth, high-margin businesses is working. Dow is looking to expand its Performance Plastics, Consumer Solutions, Performance Materials & Chemicals, and Electronics sectors, along with its Infrastructure Solutions businesses.
In Q3 of 2015, it saw strong margin expansion from these businesses with Consumer Solutions increasing 216 basis points, Performance Plastics up more than 700 basis points, Infrastructure Solutions expanding by 128 basis points and Performance Materials & Chemicals up 187 basis points. Overall, its operating earnings per share increased by 14% over the same quarter of last year.

From Seekinggalpha.com