Document 82dKGYxV72Kb2MynBL2204DQy

STOI 64595 Volume 2, No. 7 Tuesday, February 2,1988 Canadian results equally impressive Dow Chemical sets quarterly, year-end sales and earnings records It was a very good year. That's about as low-key as one can be about the financial performance of both Dow Canada and The Dow Chemical Company as a whole for 1987. Dow Canada sales for the year were $1,247 billion Canadian and profit before tax was 470 percent greater than in 1986. Meanwhile, The Dow Chemical Company has announced all-time sales and earnings records for the fourth quarter ana for the year. For the quarter, sales were $3.6 billion U.S. (all global figures are in US. funds) and net income was $354 million prior to an extraordinary charge of $2 million for early extin guishment of debt. Earnings per share also was a quarterly record, at $1.86 prior to the extraordinary item. Sales for the quarter were up 29 percent, and net income jumped 110 percent over the same period last year. Sales for the quarter set yet another record by surpassing the previous high of $3.4 billion set in the second quarter of the year. Net earnings per share of $1.85 after the extraordinary item is an eight percent increase from the previ ous record of $1.72 set in the third quarter of 1987. In Canada results for the fourth quarter 1987 are just as impressive. Dow Canada had sales of 5339.6 million Can. and profit before tax was 945 percent greater than the fourth quarter 1986. "Fourth quarter topped off an out standing year, with all-time quarterly earnings per share records set in eacn of the past three consecutive quarters," said Dow president and chief execu tive officer Frank Popoff. "These results are possible only with exceptional performance throughout the company. An essential element has been employee dedication to achieving high standards in quality, productivity and Safety." --Frank Popoff For the year, sales were a recordsetting $13.4 billion, versus the previ ous best of $11.1 billion set in 1981. Net income for 1987 was $12 billion, up 54 percent against the $805 million previous record set in 1980. Earnings prior to the extraordinary item were $6.50 per share. The net income of $6.47 per share in 1987 is an all-time high. Operating income for 1987 topped $23 billion, a 74 percent increase rrom the previous record of $1.3 billion set in 1979. In addition, the U.S. Area sur passed $1 billion in operating income for the first time. Operating income to sales was 173 percent for 1987, the highest level in the past decade. The index of selling prices, however, remains below tne 1981 level. The U3. dollar exchange rate dropped significantly in the fourth quarter, impacting the mix of foreign and U.S. income subject to taxation in 1987. The result was an increase in the 1987 estimated tax rate from 40 to an actual 41.5 percent; fourth quarter reflected this difference with a rate of 44.8 percent. "Clearly, the strategic decisions made during the past several years have positioned Dow to take full advantage of today's business conditions, "Popoff said. "The result is an outstanding record in 1987 and continued momen tum for growth in 1988. "These results are possible only with exceptional performance throughout (see EARNINGS page 2) FACETS, a publication lor employees of Dow Chemical Canada Inc., is published Wednesdays or more often as required. Editor: J. David Booth, ABC. Associate Editors: Janet Jarvela. Dan Taylor. Production: Bonnie Butler. Items for publication should be sent to: FACETS, 1040 Modeland Centre or phone 339-3310. welcome uiai ELMWOOD, Wls. (Reuter) -- A flve-aquare-kilometre con crete welcome mat tor Uniden tified Flying Objects Is being planned for Uus village In western Wisconsin, the man In charge of the project said Tues day. "We believe these spaceships are manned by an Intelligence which has been watching us for a long time," said Tom Weber, founder of the : UFO Site Corp. of nearby Chippewa Falls. The lighter side LOS ANGELES (AP) -- Ac tress Gale Storm, who played My Little Margie in the 1960s television show, plans to marry former ABC executive Paul Maaterson on April 23. Masteraon, president of the Permanent Charities Commit tee of tbe Entertainment In dustries, and Storm announced their plans Tuesday through spokesman Phil Krlegler. It will be the second marriage for di. Death rate low for former workers at Dow Chemical By MIKE FISHER of Tbe Observer * The death rate of males who worked at tbe Dow Canada Inc. site la well below that expected for the general Canadian and Ontario popula tion, according to a study. The study by Dow and Statistics examined the causes of death wtthln a group of 3,479 males employed at tbe Sarnia division for at least U months from 1945 In 1964. - significant decreases In the death rate In areas Including lung cancer, heart diseases, blood vessels, liver and general accidents can be attributed In part to tbe effectlvenesa of Dow's oc cupational health and safety pro grams, said spokesman Alex Pollock. But increases were noted (or cancer of tbe lung lining. Inhalation of asbestos fibres Is suspected as being the cause. 1 Asbestos was used as pipe Insulation until the early 1970s and has been used In the production of chlorine since 1952. Three '>*' occurred that the com pany suspects resulted from the In halation of asbestos fibres, compared with an expected death rate of 0.1 In the 3,479 males observed In the study, said Mr. Pollock. There were 367 deaths expected In tbe study group, baaed oo general population statistics. But 240 actually died. Tbe study Included process and of fice workers. Extensive safe handling programs were Introduced In 1970 to minimize ex posure to asbestos. oommunity addeu tneir names w ux growing list of critics demanding action oo the federal deficit and the na tional debt - la Montreal do Tuesday, Thomas d'Aqutoo, president of the Business Council on National Issues, Polysar beats back Nova bid TORONTO (CP) -- The board of Polysar Energy and Chemical approv ed a tSOO-mlluoa restructuring plan Tuesday despite bitter criticism from Its second-largest shareholder, Nova Coro., rebuffedIn a bid for control. ' Meanwhile, Nova Com. has ended talks la a bid to purchase Polysar said, Because overall debt, now estimated at 3294 billion, cootlnues to grow by 380 mlllloo every 24 hours. - Interest on the national debt alone now stand at 328 btllioo a year. That's more than Canada spends on old age pensions, family allowances and unemployment insurance combined. "Our federal deficit remains In the 329-bUllon range despite five unbroken years of economic expansion and very significant tax Increases," d'Aquino complained In a speech to the Montreal Rotary Club. Meanwhile, Judith Maxwell, chair men of the Economic Council of Canada, Joined In the chorus, saytng on Tuesday that much is left to be done la several areas, particularly debt "Our fiscal position ta stlO fragile -- we still run excessive federal and pro vincial deficits," Maxwell told a Halifax conference. WINSAPPROVAL Since the Tories took office In 1964. Wilson has been winning general approval from the financial communi- hooeymoon last week wbe Howe Institute warned deficit's size In relation tc try's output la "uaprect Canadian history after flv economic expansion." Tbe slate of the nations, with a steady inflation rate unemployment figures, ha major piece of good news have had to wave at tbe vote But public debt, the tt deficits over tbe years, is e be 3294 billion In 1967, or 55 the national output, versus or 44.7 per cent of the gros product when the Tories too Maureen Farrow, pretie right-wing Howe Instlt Canada now has one of the I. deficits among the major countries when provincial 1 added to the federal figure. 1 Noting that In the United.' state governments are In sl row said: "This comnar shivers down my spinel Energy and Chemical because oi ma jor differences over the price for the Toronto-based company. Discussions with Polysar have ter minated due to a "wide and Irrecon cilable difference of opinion as to price," Bill Wtlsoo, Nova's executive vice-president, said In statement Tuesday* Pniysar's biggest shareholder -- Norudar Inc. -- supports the restruc turing, Noranda president David Kerr said Tuesday. Polysar embarked on the restructur ing alter Nova had offered 314 a share for 13 million shares -- enough to give It 24 per cent of Polysar's voting equi tyHowever, officials from'Polysar -- formerly the Canada Development Corp. -- denied the. two events were dlrortly related. Under the restructuring, shareholders will receive cash and notes which Polysar values at 3U-2Q a Double parked share. In addition, they will retain their common stock, which Polysar expects to trade at between 38 and 310 a snare. Polysar common closed at 314.65. up 12 cents, on the Toronto Stock Exchange oo Tuesday. ' An Investigator walks across the wing of a single-engine Beecbcn za that crashed In the parking lot of a San Jose, Calif., shopping maJ morning. The crash damaged the plane and five cars but injured 0 pUot, shaken but unhurt, crashed while on approach to Rdd-HUlvie across the street from the mall. APL Our high wage imiage scarii By NEIL BOWEN of The Observer The Idea Sarnia Is a high-wage town Is acting as a manufacturing Industry repellent. A report prepared by Economic Development Com mission (EDC) acting commissioner Gerry Baird states the widely-beld view the area baa high labor creates a problem in attracting secondary manufacturing businesses. The report was given to the EDC but discussion of It was delayed Tuesday due to the absence of Mr. Baird from the EDC meeting. Mr. Baird was called away from Sarnia due to a death In the family. EDC chairman Pat Boyd said "everyone has ques tions" and It would be Impossible to discuss the report In Mr. Baird's absence. The discussion was delayed until tbe next meeting to be held several weeks from now. A chart In the report shows SarnJa to be at the high end oi the general manufacturing wage scale with a range of between 36 and 318 per hour. Tbe areas surveyed by Mr. Baird Include SamiaLambton, Montreal, Toronto and southwestern Michigan. Petrolla Is at tbe low end of the scale with a range of between 34.55 and 311. At tbe high end Is central northern Ontario with a range that starts at 37 and runs to 311. Mr. Baird has held discussslons with more than 100 companies and there were some representatives who 1 1 *165*191 01S