Document dkkpmyK2348v48xjG7BkBYz6

1 PRODUCTION BY THE U.S. CHEMICAL INDUSTRY Production growth sputtered in most sectors ollowing the impressive gains of for the CFC replacement hydrofluoro- F1994, production of chemicals in carbon-134a, rose 5% after last year's 1995 grew at a tempered pace. 9% drop. Most sectors fulfilled the predictions oOf utput of synthetic materials rose 3%, Architectural uses rose 5%, original equipment manufacture use held steady, and "special purpose" use dipped 4%. According to the Fertilizer Institute, a "soft landing" from the double-digit according to the board. The Sodety of combined U.S. consumption of nitro growth of 1994, but others slid. the Plastics Industry (SPI) tally shows a gen, phosphates, and potash fertilizers Production by the U.S. chemical in different story, with many declines. Pro fell 5%, while production increased for dustry rose 1% in 1995, on the heels of duction of urea, melamine, and phenolic most products. Only production of the 5% gain in 1994, according to the resins declined 5%, 3%, and 1%, respec ammonium nitrate, monoammonium Federal Reserve Board's index of pro tively. Meanwhile, polyvinyl chloride phosphate, and concentrated super duction for chemicals and allied prod production grew 5% and nylon, 8%, ac phosphate fell. ucts. The index for chemicals and syn cording to SPI. For 1994, the latest year for which data thetic materials--basic industrial chem Fiber production stalled in 1995; nei are available, pesticide production rose icals plus polymers--rose 2% in 1995 ther noncellulosic nor cellulosic fibers 5% overall, reaching 1.3 billion lb. But after an 8% rise in 1994. C&EN's tally showed growth. Acrylic and nylon although herbicides--bolstered by no-till of the 50 largest volume chemicals production fell 2% and 1%, respective fanning--increased 16%, insecticides-- shows less softening, from 7.6% growth ly. Polyester and olefin registered less which had unusually high production in in 1994 to 5.0% growth in 1995. than 1% growth. 1993--fell 18%. Nearly every chemical category post Production of most minerals in Market analysts are expecting overall ed gains on the board's production in creased in 1995, with sodium carbonate production growth to continue through dex in 1995. Growth ranged from 1% up 8%, lime up 7%, and potash up 6%. 1996. This year will bring "pretty much for soaps and toiletries and paints to Output of phosphate rock, the largest more of the same," says Allen j. Lenz, 6% for drugs and medicines and 5% for volume up mineral, was up 6%. director of economics at the Chemical organic chemicals. Declines hit rubber The architectural uses sector main Manufacturers Association. "I don't see and plastic products, down 2%, and in tained growth for paints and coatings, any reason to expect greater increases organic pigments, down 2% as well. output of which was up 2% over 1994. than in 1995." Although the board's production in dex for inorganic chemicals--"basic chemicals"--shows a 3% decline in pro duction in 1995, inorganics in C&EN's tally of 50 largest volume chemicals in U.S. chemical production grew slightly in 1995 Production index, 1987 100 creased 4.5% overall. Sulfuric add pro duction gained 6% to reach nearly 48 million tons, and ammonia and chlo rine output each rose 3%. Production of organic chemicals showed mixed results in 1995, with some organics, such as acetic add and maleic anhydride, logging double-digit gains of 18% and 16%, respectively. Meanwhile, ethylene glycol output fell 14% on the heels of 1994's 17% gain, and methanol production dropped 7% after a 16% gain in 1994. For chlorofluorocarbons, 1995 was the last year of legal U.S. production for U.S. use under the Clean Air Act and the Montreal Protocol on Substanc es That Deplete the Ozone Layer. CFC- 22 production fell 14% and CFC-12 production dropped 57%. Output of perchloroethylene, which is a feedstock 40 JUNE 24, 1996 C&EN CMA 054555 TOP 50 CHEMICALS: Organics outpaced inorganics as production ofchemicals rose overall Runtt 1995 1994* i1 22 33 44 55 66 77 a8 9 10 10 * 9 ii 11 12 18 13 14 14 12 15 13 16 16 17 15 18 17 19 22 20 21 21 19 22 20 23 23 24 24 25 25 Sulfuric acid Nitrogen Oxygen Ethylene Lime" Ammonia Phosphoric acid Sodium hydroxide Propylene Chlorine Sodium carbonatec Methyl fart-butyl ether Ethylene dichloride Nitric acid Ammonium nitrate" Benzene Urea* Vinyl chloride Ethylbenzene Styrene Methanol Carbon dioxide* Xylene Formaldehyde* Terephthallc acid" Billion* of lb 1995 1994 95.36 68.04 53.48 46.97 41.23 89.63 63.91 50.08 44.60 38.37 35.60 26.19 26.19 25.69 25.09 34.51 25.58 25.11 23.94 24.37 22.28 17.62 17.26 17.24 15.99 20.56 13.61 16.76 17.22 17.03 15.97 15.59 14.98 13.66 11.39 15.27 15.90 13.85 10.76 11.29 11.29 10.89 9.37 8.11 7,95 12.18 11.80 9.06 8.17 7.58 Bonn 1995 1994* 26 27 27 26 28 28 29 29 30 31 Ethylena oxida Hydrochloric acid Toluene1 p-Xylene Cumene 31 32 Ammonium sulfate 32 30 Ethylene glycol 33 33 Acetic acid 34 34 Phenol1 35 35 Propylene oxide 36 36 Butadiene11 37 37 Carbon black 38 39 Isobutylene 39 36 Potash1 40 41 Acrylonitrile 41 40 Vinyl acetate 42 42 Titanium dioxide 43 43 Acetone 44 45 Butyraldehyde 45 44 Aluminum sulfate 46 46 Sodium silicate 47 47 Cyclohexane 48 48 Adipic acid 49 -- Nitrobenzene 50 49 Blsphenol A TOTAL ORGANICS TOTAL INORGANICS GRAND TOTAL Blllloni of lb 1995 1994 7.62 7.33 6.73 6.34 5.63 7.24 7.47 6.75 6.26 5.22 5.24 5.23 4.68 4.16 4.Q0 5.18 6.09 3.98 3.92 3.70 3.68 3.32 3.23 3.22 3.21 3.38 3.25 3.08 3.08 3.03 2.89 2.77 2.76 2.68 2.41 3.04 2.76 2.66 2.19 2.21 2.25 2.13 1.80 1.65 1.62 2.01 1.96 1.80 1.44 1.70 285.89 464.10 749.99 270.40 444.15 714.55 > Revised from 1994 rankings, b Except refractory odomite, c Natural and jynthettc. d Original solution. * 100% bans, t Liquid and solid only, g 37% by weight. H Indudes both acid and aster without double counting. I All grades.J Synthetic only. It Rubber grade. IKjO basis. PRODUCTION: Most chemicals followed total manufacturing trend with slow growth in 1995 Industrial production Indexes, 1997.100 Total index Manufacturing, total Nondurable manufacturing Chemicals A products Chemicals & synthetic materials % annual change 1985 1989 1M7 1969 1989 I960 1991 IMS 1993 1994 1995 1994-95 1965-95 94.4 91.6 91.5 91.4 92.2 95.3 94.3 94.9 94.6 93.9 100.0 100.0 100.0 100.0 100.0 104.4 104.7 102.3 106.0 107.5 106.0 106.4 103.7 109.2 112.2 106.0 106.1 104.4 111.8 114.5 104.2 103.8 103.4 110.5 110.0 107.7 108.2 106.7 114.4 113.5 111.5 112.3 108.6 115.4 111.0 118.1 119.7 113.0 121.3 119.9 120.5 121.6 112.3 123.0 122.3 2% 2 -1 1 2 2% 3 2 3 3 Basic chemicals Alkalies & chlorine Inorganic pigmenls Inorganic chemicals, nec* 96.1 93.6 95.1 97.2 95.1 92.1 96.2 94.7 100.0 100.0 100.0 100.0 104.7 104.8 111.4 103.5 108.4 107.3 114.0 107.7 118.9 107.2 109.0 123.8 114.8 104.2 101.3 119.2 117.6 105.4 114.2 122.4 114.2 108.1 113.4 115.0 117.7 114.1 119.6 116.0 113.7 117.4 117.6 109.0 -3 3 -2 -6 2 2 2 1 Industrial organic chemlcaia 94.1 95.0 100.0 111.6 117.8 119.4 113.7 113.8 108.9 120.2 126.2 5 3 Synthetic materials'' Plastic materials Synthetic fibers 86.9 84.1. 86.6 91.6 88.2 93.7 100.0 100.0 100.0 104.3 104.0 103.5 107.7 106.0 110.5 105.8 106.7 102.8 102.4 101.2 102.7 110.4 112.0 105.9 111.7 110.2 110.7 121.6 120.0 120.4 124.9 122.9 122.3 3 2 2 4 4 4 Chemical products Drugs & medicines Soaps & toiletries Paints 90.2 88.5 91.3 95.7 95.9 96.7 96.7 97.5 100.0 100.0 100.0 100.0 104.7 104.9 106.4 103.1 106.3 108.6 107.3 98.9 108.8 112.6 109.4 97.1 110.4 118.9 108.1 93.7 114.8 127.4 109.4 96.0 118.2 128.2 116.3 100.4 121.7 134.4 115.3 105.1 126.3 142.1 116.1 106.4 4 6 1 1 3 5 2 1 Agricultural chemicals 96.1 88.5 100.0 106.5 115.3 119.3 116.1 118.8 119.3 128.0 132.2 3 3 Petroleum products 92.6 98.9 100.0 101.9 102.3 103.3 101.7 102.6 105.7 106.7 109.6 3 2 Rubber & plastic products 85.8 90.8 100.0 102.6 a Not elsewhere classified, b indudes synthetic rubber. Source: Federal Reserve Board 106.0 107.2 105.5 116.2 123.9 135.9 133.7 -2 5 CMA 054556 ,UNE 24-1996 C&EN 41 1 PRODUCTION BY THE U.S. CHEMICAL INDUSTRY k. ORGANIC CHEMICALS: Mixed results, but production of most grew in 1995 oNwmiM notad Acetic acid, synthetic Acetone Acrylonitrile Aniline Benzene, mgaB 1985 2,897 1',788 2,346 716 1,283 1986 2,728 1,910 2,349 824 1,362 1987 3,246 1,846 2,182 829 1,575 1988 3,159 2,303 2,452 1,029 1,608 Production 1989 1990 1991 3.294 2,524 2,609 1,016 1,631 3,751 2,329 2,676 989 1,699 3,615 2.347 2,647 961 1,569 1992 3,594 2,435 2,829 1,009 1,636 1993 3,327 2,430 2,489 991 1,677 1994 3,984 2,664 3,026 1,263 2,074 % Annuel change 1999 1994-95 1985-95 4,683 2,761 3,207 1,391 2,168 18% 4 6 10 5 5% 4 3 7 5 Bisphenol A 1,3-Butadienec 1-Butanol Caprolactam Chloroform 949 2,340 716 1,089 275 956 2,546 881 1,109 422 1,000 2,931 1,155 1,156 462 1,340 3,169 1,194 1,261 524 1,241 3,121 1,751 1,307 588 1,149 3,088 1,269 1,379 484 1,219 3,054 1,320 1,284 505 1,197 3,232 1,279 1,377 na 1,286 3,117 1,337 1,433 476 1,702 3,376 1,477 1,510 565 1,623 3,682 1,493 1,575 na -5 9 1 4 -- 6 5 8 4 -- Cumene Cyclohexane Dloctyl phthalate Ethanol, synthetic Ethanolaminesd 3,345 1,657 275 649 537 3,745 2,070 296 529 543 4,105 2,276 343 574 627 4,455 2,297 344 562 606 4,426 2,273 306 549 667 4,311 2,460 310 546 727 4,168 2,307 270 526 658 4,666 2,242 270 698 694 4,393 2,000 254 678 706 5,217 1,962 259 648 754 5,625 2,134 na 626 814 8 9 -- -3 8 5 3 -- 0 4 Ethylbenzene Ethylene Ethylene dichlorlde Ethylene glycol Ethylene oxide 7,386 29,847 12,101 4,178 5,430 9,020 32,859 12,940 4,771 5,430 9,346 34,951 12,197 5,183 4,785 9,929 37,204 13,028 5,517 5,953 9,235 34,988 13,383 5,461 5,031 8,369 36,467 13,849 5,070 5,355 8,871 39,955 13,713 4,809 5,248 11,108 40,924 15,150 5,128 5,829 9,336 40,019 17,947 5,200 5,330 10,758 44,602 16,762 6,090 7,238 13,656 46,966 17,263 5,230 7,621 27 5 3 -14 5 6 5 4 2 3 2-Ethylhexanol Formaldehyde, 37%* Isobutylene Isopropyl alcohol Maleic anhydride 536 5,606 na 1,235 394 571 5,549 1,124 1,301 359 662 5,733 1,035 1,371 382 743 6,280 1,244 1,389 448 612 5,893 1,193 1,474 475 650 6,720 1,212 1,456 424 657 6,612 972 1,342 381 692 8,278 952 1,463 436 695 8,189 1,073 1,272 358 732 8,165 3,078 1,451 478 743 8,110 3,235 1,424 554 1 -1 5 -2 16 3 4 12 1 3 Methanol, synthetic Methyl fart-butyl ether Methyl chloride Methyl ethyl ketone Methyl methacrylate 5,003 1,891 410 537 858 7,205 3,375 605 600 943 7,537 3,514 373 672 1,029 8,142 5,680 597 482 1,100 8,167 8,227 461 450 1,161 8,344 8,884 772 465 1,182 8,704 9,570 916 513 1,102 8,082 10,877 966 479 1,208 10,506 12,900 1,053 539 1,148 12,176 13,610 999 600 1,318 11,292 17,620 1,065 583 1,372 -7 29 7 -3 4 8 25 10 1 5 Methylchloroform Methylene chloride Perchloroethylene Phenol, synthetic1 Phthalic anhydride -869 467 678 2,841 820 652 566 414 3,115 863 694 516 473 3,351 1,035 724 504 498 3,562 999 783 482 481 3,806 917 803 461 372 3,538 940 644 389 239 3,597 587 692 362 245 3,707 898 452 354 271 3,191 853 335 403 247 3,920 959 na na 260 4,163 994 -- -- 5 6 4 -- -- -9 4 2 Propylene0 Propylene glycol Styrene Terephthalic acid, dimethyl ester* Toluene, mg*1 14,887 500 7,622 6,490 16,522 573 7,888 6,257 19,019 747 8,014 7.601 21,224 840 8,984 10,234 20,571 805 8,337 8,426 21,846 754 8,017 7,773 21,549 666 8,114 7,640 23,421 509 9,000 5,637 21,470 846 9,594 7,105 23,943 933 11,294 7,575 25,691 1,019 11,386 7,950 698 611 967 892 806 861 873 833 880 931 927 7 9 1 5 0 6 7 4 2 3 Urea Vinyl acetate Vinyl chloride o>Xylene p-Xylene 13,356 2,112 9,463 675 4,779 12,528 1,710 8,439 788 5,035 14,866 1,813 8,402 940 5,155 15,828 2,561 9,058 971 5,601 16,008 2,552 10,135 983 5,344 16.432 2,659 10,623 943 5,200 16,266 2,732 11,142 767 5,350 17,532 2,657 11,307 918 5,656 16,572 2,773 14,220 831 5,791 15,904 3.036 13,850 915 6,255 15,592 2,893 14,976 1,025 6,342 -2 -5 8 12 1 2 3 5 4 3 Note: As of Oct i, 1996. the International Trade Commission will no longer collect or publish annual synthetic organic chemicals data, a Tar distillers and coke-oven operators not included, b Specification grades, c Rubber grade, d Mono-, dk and tnethanoiamineS- e By weight, f Does not include data for coke ovens and gas-retort ovens, g All grades, h Includes both aod and dimethyl ester (DMT) without double counting. I All grades, includes material used in blending motor fuel, mg - millions of gallons, na - not available. Sources; International Trade Commission. CAEN estimates 42 JUNE 24,1996 C&EN CMA 054557 INORGANIC CHEMICALS: Output of several products up is another mostly upbeat year m^HmioIft*h**e**f*WlsTMal*no.ted. Aluminum sulfate* Ammonium nitrfll, 100%" Ammonium sulfate, 100%' Chlorine Production IMS IMS 1M7 IMS IMS ISM 1M1 1SS2 1993 ISM 1995 1,268 17,319 6,776 2,093 10,402 1,222 14,487 6,091 2,080 10,436 1,227 16.098 6,547 2,189 11,078 1,237 16,821 7,504 2,333 11,257 1,243 16,468 7,871 2,384 11,413 1,227 17,003 7,713 2,519 11,809 1,185 17,169 7,819 2,243 11,421 . 1,047 17,924 7,981 2,391 11,757 1,050 16.858 8,255 2,424 11,957 1,107 17,256 8,517 2,588 12.187 1,204 17,801 7,993 2,619 12,544 % annual changa 1994-95 1989-95 9% 3 -6 1 3 -i% 0 2 2 2 Hydrochloric acid, 100%h Hydrogen, bef, 100%M Hydrogen peroxide, 100%k Nitric acid, 100%k Nitrogen gas, bef, 100%" 2,807 121 144 2,413 136 152 2,996 173 153 3,228 177 166 3,268 146 204 3,140 148 238 3,301 153 254 3,610 162 280 3,492 213 301 3,734 254 318 3,663 238 na 7,631 6,734 7,225 7,991 8,349 7,932 7,927 8,136 8.254 8,611 8,621 665 677 685 722 744 749 770 818 796 882 939 -2 -- 0 6 3 7 -- 1 4 Oxygen, bef, 100%" Phosphoric acid, 100% P205 Phosphorus1" Sodium chlorate, 100% Sodium hydroxide, 100% 393 383 405 452 460 462 470 525 547 605 646 10,607 9,578 10,599 11,659 11,737 12,035 12,109 12,826 11,515 12,792 13,096 359 364 344 343 353 346 306 271 258 255 na 259 267 289 267 290 327 449 555 539 559 612 10,811 10,691 11,553 10,533 11,470 12,030 11,713 12,244 12,466 12,555 13,094 7 2 -- 9 4 5 2 -- 9 2 Sodium silicate" Sodium sulfate, 100% Sulfuric acid, 100%p Titanium dioxide, 100%q 692 1,203 39,890 860 791 837 35,993 931 952 799 39,256 968 812 819 42,580 1,022 833 755 43,301 1,101 816 786 44,337 1,077 870 794 43,466 1,095 924 609 44,524 1,253 1,006 592 39,348 1,279 1,007 527 44,813 1,380 1,125 467 47,681 1,383 12 -11 6 0 5 -9 2 5 a Preliminary- b Commetual. 17% AljOj; induces municipalities. c Synthetic anhydraua. d Exctudaa by-product ammonia liquor and ammonium sullate. e Ongmai sduton. f Synthetic and noncone by-product. B Indudes quantities Iquebad tor use. storage, or slmmant h mdudes anhydreus hydrochloric add production I High- and ktw-punty gas. | Uqud and gas: excludes amounts vented and used as fuel, and amounts produced in petroleum rebnanaa tor eapttva use. It Indudes unspedlled amounts produced but not vdhdawn Iran the system. I Excludes amounts ptoduced and consumed in making synthetic ammonia or ammonia denvatives. m Elemental, white (yekow). and red (technical), n Soluble ideate glaas (water glen), solid end liquid (anhydrous); excludes amounts ptoduced end consumed m making meta-. onho-. and seaquisilicsMs. o Anhydrous, high and km punty, and Glauber's salt. p Gross (new and tombed), q Composite and pure bet - billions of cubic feet, ne - not available Sources: Department of Commerce. Bureau of the Census MINERALS: Gains continued in 1995, phosphate rock contributed to the rise Thousands of tons 1965 1986 1967 19M Production 1989 ISM 19S1 1992 1993 19S4 IMS1 % annual change 1994-95 1966-95 Bromine, sold or used6 Calcium chloride, production6 160 584 155 419 168 462 180 508 193 471 195 518 187 466 188 400 195 484 215 638 233 na 8% -- 4% _ Lime, production6 15,690 14,474 15.733 17,052 17,152 17,452 17,270 17,857 18,664 19,184 20,617 7 3 Lithium, consumption*'1 2.5 2.6 2.6 3.0 3.0 3.0 2.9 2.5 2.5 2.8 2,9 4 1 Phosphate rock Production Exports 56,035 10,071 44,445 45,144 50.032 54,913 51,084 53,016 51,770 39,125 8,651 9,319 8,920 8.644 6,876 5,602 4,104 3,525 45,305 47,948 3,086 3,042 6 -1 -2 -11 Potash (KzO equivalent) Production Imports Apparent consumption" 1,429 5,063 5,893 Sodium carbonate, production1 8,511 1,325 4,643 5,338 1,391 4,490 5,609 1,677 4,648 5,803 1,758 3,758 4,960 1,888 4,590 6,011 1,928 4,990 6,186 1,879 4,683 5,898 1,664 4,809 5,988 1,542 5,321 6,432 1,641 5,406 6,345 8,511 8,438 8,891 9,632 9,915 10,093 9,926 10,338 10,278 11,138 6 2 -1 e 1 1 1 3 Sulfur, production1 Recovered elemental & Frasch Other production Apparent consumption" 12,797 11,381 12,221 11,617 11,845 12,778 12,743 11,928 11,753 12,080 10,868 10,321 10,602 11,462 11,312 10,488 10,326 10,548 12,677 13,228 11,156 11,574 1,416 13,192 1,354 1,296 1,243 1,316 1,431 1,440 1,427 1,532 11,669 12,481 14,012 13,983 14,942 14,865 14,717 13,803 1,521 1,653 13,669 14,550 4 4 9 6 0 0 2 1 a Preliminary date, except those tor phosphate rock, b Elemental bromine sold as such or used m preparation ot bromine compounda by primary producers, c 100% CaCtj equivalent d Sold or usad by producers tor commercial or captive uae. Produced bom limestone and dotomrte. does not include amount regenerated by paper industry; excludes Puerto Rican production e Estimated I Lithium content basis, g includes munale and subtle of potash, potassium mapwuum subate. and parent sabs; axdudes other chemical compounds containing potassium h Calculated bom shipments plus imports minus sxponi. I Natural and synthetic untH 1986, nature! only bom 1987. J Sutlur content bate, na not available. Sources: Bureau of Mines. Bureau of the Census. U.S. Geotopcal Survey CMA 054558 JUNE 24,19% CicEN 43 PLASTICS: Thermosets stalled, but some thermoplastics made gains last year Million* of lb* 1985 1986 1987 1968 Production 1989 1990 1991 1992 1993 1994 1995 % annuel change 1994-95 1985-95 THERMOSETTING RESINS Epoxy6 Melamine Phenolic'-1* Polyester* Urea 385 192 2,621 1.223 1,210 TOTAL 5,631 398 173 2,735 1,271 1,271 5,848 433 212 2.869 1,367 1,382 6,263 486 207 3,066 1,404 1,425 6,568 509 222 2,879 1,319 1,477 6,408 499 202 2,946 1,221 1,496 6,364 497 196 2,658 1,075 1,483 5,909 457 232 2,923 1,175 1,548 6,335 512 270 3,078 1,264 1,744 6,868 601 300 3,229 1,468 1,914 7,512 632 290 3,204 1,577 1,816 7,519 5% -3 -1 7 -5 0% 5% 4 2 3 4 3% THERMOPLASTIC RESINS Polyethylene Low density' High density9 Polypropylene" Styrene polymers Polystyrene Styrene-acrylonitrile' Acrylonitriie-butadienestyrene and other styrene polymers1,1 Polyamide, nylon type Polyvinyl chloride & copolymers' Thermoplastic polyester1 8,889 6,671 5,139 4,054 87 2,036 399 6,772 965 8,903 7,182 5,812 4,470 92 2,196 465 7,256 1,175 9,599 10,397 7,995 8,400 6,647 7,274 4,780 126 2,254 5,187 148 2,418 507 566 7,971 8,350 1,394 1,652 9,695 11,148 11,582 11,917 12,067 12,600 12,886 8,102 8,337 9,213 9,808 9,941 11,117 11,211 7,238 8,310 6,330 8,421 8,629 9,539 10,890 5,104 113 2,394 5,021 135 2,351 4,954 109 2,287 5,096 113 2,610 5,383 105 2,924 5,848 138 3,230 5,656 130 2,908 569 558 576 668 768 943 1,020 8,478 9,096 9,164 9,989 10,257 11,712 12,295 1,630 1,879 2,115 2,413 2,549 3,196 3,785 2% 1 nc -3 --6 -10 8 5 18 4% 5 nc 3 4 4 10 6 15 TOTAL" GRAND TOTAL" 35,012 37,551 41,273 44,392 43,323 46,835 48,330 51,035 52,623 56,323 60,781 40,643 43,399 47,536 50,980 49,731 53,199 54,239 57,370 59,491 65,635 68,300 2% 4% 2% 4% Not*: Totals are tor those products listed and exclude some small-volume piasKs. a Ory-wetght basis unless otherwise specified, b Unmodified c Includes other tar-acid resins, d Gross-weight basis, e Unsaturated f Density 0.940 and below, g Density above 0.940. h Date lor 1995 include Canada I Data include Canada from 1994. j Includes styrene-butadiene copolymers and other styrene-based polymers k Production totals include polypropylene, but annual change figures do not. nc * not comparable. Source: Society of the Plastics Industry SYNTHETIC RUBBER: Shipments rose 3%, only polychloroprene fell in 1995 Thousand* of metric tons 1995 1986 1967 1988 Shipment* 1989 1990 1991 1992 IMS 1994 1905 % annua) change 1994-95 1985-95 Styrene-butadiene rubber Polybutadiene Ethylene-propylene Nitrile-solid Polychloroprene Other* 753 736 647 829 827 791 727 796 817 851 881 4% 2% 392 384 414 430 427 431 416 465 473 505 529 5 3 174 188 205 224 225 208 192 207 227 262 267 2 4 58 64 72 75 72 69 71 74 78 84 84 0 4 82 82 81 82 79 79 70 72 70 76 70 -8 -2 297 422 457 399 393 380 362 381 400 408 427 5 4 TOTAL 1,756 1,876 2,076 2,039 2,023 1,958 1,638 1,995 2,065 2,186 2,258 3% 3% Note: Data tndude Canada, a Includes butyl styrene-butadiene rubber latex, nitrile latex, polyisoprene, and miscellaneous others Source: international Institute of Synthetic Rubber Producers SYNTHETIC FIBERS: Production stagnated after 1994 gains, acrylic and nylon fell Millions of IK 1965 1966 1987 1988 1989 Production 1990 1991 1992 1993 1994 1995 % annual change 1994-95 1985-95 NONCELLULOSIC FIBERS Acrylic" 631 Nylon 2,343 Olefin6 1.249 Polyester 3,341 616 2,514 1,393 3.305 592 2,689 1,494 3,541 588 2,669 1,588 3,680 543 2,740 1,639 3,594 506 2,662 1,822 3,195 454 2,535 1,866 3,411 439 2,556 2,002 3,576 433 2,659 2,142 3,557 442 2,740 2,419 3,858 432 2,703 2,428 3,887 -2% -1 0 1 -4% 1 7 2 TOTAL 7,564 CELLULOSIC FIBERS Acetate* & rayon 558 7,828 619 8,316 605 8,525 614 6,516 580 8,185 505 8,266 486 8,573 495 8,791 505 9,459 498 9,450 498 0% 2% 0% -1% GRAND TOTAL 8,122 6,447 8,921 9,139 9,096 8,690 8,752 9,068 9,296 9,957 9,948 0% 2% a includes modacryiic b includes olefin yam and monofilaments and olefin and vmyon staple, low. and fiberfiil. c includes diacetate and triacetate, excludes production for cigarette filters Source: Fiber Economics Bureau 44 TUNE 24. 1996 C&EN CMA 054559 PRODUCTION by the u.s. chemical industry S-5 5% 4 IVonceliulosic fibers Chlorofluorocarbons 2 Production, billions of lb Production, millions of lb 3 10 500 4 9 400 / CFC-22 3% 300 8 200 4% CFC-12'" 1 5 100 c n 0 ............................... 1985 86 87 88 89 90 91 92 93 94 95 1985 86 87 88 89 90 91 92 93 94 95 3 1 } | PALXTS AIVP COATINGS: Shipments grew more slowly in 1995, speciaLpurpose coatings slumped I Mtlliomorgif _____ Shipments _____ ___________ ___________ % annual change 196$ 1966 1967 1966 1989 1980 1991 1992 1893 1994 1994* 1994-95 1965-95 Architectural Product Special purpose 478 498 527 536 538 558 538 576 608 645 678 5% 4% 352 368 340 366 360 339 320 312 357 382 382 0 1 145 135 146 154 179 196 180 173 179 194 186 -4 3 TOTAL 975 1,001 1,013 1,056 1,077 1,093 1,038 1,061 1,144 1,221 1,246 2% 2% a Calculated from quarterly data b For original equipment manufacturers Source: Department of Commerce AEROSOLS: Output of containers declined 2%, despite gains in food and personal products Mllligni ot units Production 1965 1986 1967 1988 1989 1990 1991 Personal products Household products Automotive & industrial products Paints & finishes Insect sprays Food products Animal products Miscellaneous 879 952 964 1,100 1,015 1,050 905 630 635 640 650 680 680 690 342 375 379 440 475 415 450 290 297 307 331 350 350 350 190 193 190 190 197 190 200 140 136 140 157 175 175 192 15 22 22 8 8 8 8 23 18 80 31 12 15 19 TOTAL 2,509 2,628 2,722 2,907 2,912 2,883 2,814 Note: Data include Puerto Rican production. Source: Chemical Specialties Manufacturers Association 1992 990 695 455 380 200 190 8 71 2,989 1993 930 738 420 390 207 205 6 44 2,940 1994 973 751 438 410 200 215 7 79 3,073 1995 1,007 725 420 374 184 252 7 34 3,003 % annual change 1994-95 1985-95 3% -3 -A i% i 2 -9 -8 17 0 -57 -2% 3 0 6 -7 4 2% CHLOROFLUOROCARBONS: Production plummeted in last year before U.S. ban Millions of lb 1965 IMS 1M7 1988 Production 1989 1990 ii 1998 1993 % annual change 1994 IMS* 1994-95 1985-95 ChlorodHtuoromethane (CFC-22) 235 271 275 333 343 306 314 331 291 306 262 -14% i% Dlchlorodifiuoromethane (CFC-12) 302 322 335 414 392 209 157 163 185 127 55 -57 -16 Trichlorofluoromethane (CFC-11) 176 202 198 249 192 135 99 100* 72 19* na -- -- a Preliminary, na - not available. Source; international Trade Commission CMA 054560 JUNE 24, 19% C&EN 45 1 PRODUCTION BY THE U.S. CHEMICAL INDUSTRY PESTICIDE PRODUCTION: Total rose in 1994 on herbicide and nematidde gains Millions of lb 1964 IMS IMS 19(7 IMS Production I960 1990 1991 1992 1993 1994 % annual change 1999-94 1994-94 Herbicides Insecticides Nematicldes Fungicides Plant growth regulators 688 -211 53* 78 8 647 213 50* 75 8 625 204 66 70 5 623 185 76 62 2* 676 203 85 193" 4 676 208 112 207*' 5* 643 264 67* 85 6* 657 181 72 na 17 696 194 71* 85 11* 749 308 82 77 11* 868 253 86 72 8" 16% -18 5 -6 -27 2% 2 5 -1 0 TOTAL' 1,074 1,014 982 964 1,183 1,222 1,093 1,054 1,087 1,252 1,319 5% 2% a Does not include production intended for sale outside the U S.. which is included in annual total, b These seemingly anomalous values have been verified by the source c Includes miscellaneous other pesticides and. in some cases, production, usually Intended tor sale outside the U S., not reported by subcategory, na not available. Source: American Crop Protection Association Fertilizer Consumption, millions ot tons 301------------------------------------------------- PtMWptWtM (PjOg) 10 f&m, | t fJ -vi` ,r -ti 1985 86 87 88 89 90 91 92 93 94 95 Note: Years ending June 30. FERTILIZER CONSUMPTION: Reversing 1994 gains, nitrogen led declines in 1995 use Thousands of tons 1965 1986 1967 1966 Consumption I960 1990 1991 1992 1993 1994 1995 % annual change 1994-95 1965-95 Nitrogen (N) Phosphates (P;,05) Potash (KeO) TOTAL 11,493 4,658 5,553 10,424 4,178 5,053 10,210 4,008 4,837 10,512 4,129 4,973 10,593 4,117 4,838 11,076 4,345 5,203 11,287 4,201 5,001 11,446 4,218 5,042 11,393 4,436 5,141 12,643 4,521 5.268 11,720 4,417 5,123 21,704 19,655 19,055 19,614 19,548 20,624 20,469 20,706 20,970 22,432 21,260 -7% -2 -3 -5% 0% -i -i 0% Note: Years ending June 30. Source: Fertilizer Institute FERTILIZER PRODUCTION: Most products continued gains in 1995 Thousands of tons NITROGEN PRODUCTS Ammonia Ammonium nitrate Ammonium sulfate Urea . 1965 1966 1967 1986 1969 Production 1990 1991 1992 1993 1996 1996 % annual change 1994-96 1985-95 . .. 16,594 12,56513,357 14,136 14,052 14,446 13,790 13,309 12,588 14,475 15,670 3,178 2,250 2,472 2,765 2,703 2,579 2,551 2,487 2,584 2,744 2,643 2,343 2,058 2,153 2,260 2,327 2,460 2,195 2,342 2,382 2,554 2,579 3,975 3,564 4,253 4,501 4,430 4,287 4,241 4,164 3,863 4,614 5,177 8% --4 1 12 -1% -2 1 3 PHOSPHATE PRODUCTS Diammonium phosphate Monoammonium phosphate Concentrated superphosphate Phosphate rock Phosphoric acid (P2Os) 10,800 7,492 9,537 11,575 13,160 13,226 13,573 14,119 12,964 14,641 15,722 1,641 1,416 1,679 1,818 1,862 2,252 2,227 2,342 2,693 2,869 2,617 2,570 2,127 2,049 2,032 1,777 1,988 1,914 2,074 1,555 1,757 1,631 49,348 36,22739,330 42,220 47,676 44,269 44,877 45,941 34,800 39,172 42,657 9,837 8,085 8,903 10,234 10,742 11,036 10,934 11,354 10,503 11,979 12,272 7% --9 -7 9 2 4% 5 -4 -1 2 POTASH PRODUCTS Potassium chlorids 1,713 1,715 1,810 2,243 2,316 2,351 2,387 2.337 1,927 1,845 1,840 0% 1% Note: Figures are based on Fertilizer institute surveys and may not represent the entire industry. Source: Fertilizer institute 46 JUNE 24,1996 C&EN CMA 054561 2 FINANCES OF THE U.S. CHEMICAL INDUSTRY Chemicals set sales and earnings records inances in the chemical industry ments of chemicals and allied products Fcontinued to improve in 1995 last year rose 7% from 1994, and de with a first half that was strong mand for industrial chemicals, the larg enough to carry a weaker second essixt a' nd most cyclical segment, grew months of the year. 11 %. At the same time, prices for chem Demand was up, prices improved icals and allied products increased 8% somewhat, exports increased, and and tabs for industrial chemicals rose plant efficiencies rose. As a result, the 13%. Last year was the second consec industry set sales records for the year, utive year of double-digit increase in posted its best earnings performance the producer price index for industrial ever, and had the highest profitability chemicals. since 1988. During the year, exports grew 20% According to government data, ship over 1994, and, despite a 19% rise in Sales, earnings, and profitability soared in 1995 Sales, $ billions Earnings, $ billions 1985 86 87 88 89 90 91 92 93 94 95 1985 86 87 888980 91 92939495 Return on stockholders' equity, %* Profit margin, %b .";X' f.V? v r-.r^z. - tint H lL'iix.*,--, 1995 86 87 88 80 90 92 93 94 95 1985 80 07 88 88 Note: Based on data tor 30 major ehtmtcal companies, a Attar-tax tamings as a pwcsntags of yaar-and stockholders' equity b Aftar-tax samtngs s a parcamage of salts. imports, the chemical trade surplus rose 20% to a record $21.3 billion. And chemical companies continued to improve plant efficiencies, demon strated as a 2.4% rise in productivity. Although unit labor costs increased, chemical firms continued to hold the line on employment costs, with a con tinuing reduction in total employ ment--almost entirely at the expense of white-collar workers. This resulted in a surge in average sales per em ployee for chemical producers. At 33 major chemical firms, for instance, av erage sales per employee in 1995 rose almost 18% from the previous year to $301,000. The greatly improved demand and pricing shoved sales considerably up ward. For the 30 major chemical com panies regularly tracked by C&EN (C&EN, Feb. 19, page 16), combined sales rose 6.1% to $90.5 billion. And this follows an 11.5% increase in sales the year before. This substantial sales increase, coupled with cost contain ment, raised earnings at a much more rapid rate. Earnings from continuing operations, excluding extraordinary and nonrecurring items--in other words, the earnings that products generated-- increased 47% to $8.7 billion for these 30 firms. In 1994, earnings from the same companies had improved about 40%. With the earnings growth outpacing sales improvement by such a wide spread, profit margins also shot up. For the 30 companies, the average profit margin last year was 9,6%, up from 6.9% in 1994. And average return on stockholders' equity shot up to 23.9% last year from 17.3% the year before. The improved demand for chemical products has given chemical producers the confidence to expand production capacity. According to a C&EN survey of 24 companies, spending on new plants and equipment surged 23% in 1995. This was die first increase in ag gregate capital spending for these com panies since 1990. CMA 054562 JUNE 24,1996 C&EN 47 TOP 100 CHEMICAL PRODUCERS: Sales growth caused many changes in ranking Rank 1995 1994 CtwnticS Clung* Mm IMS tram (SmMlov) 1994 ChamteW MtMM %o< total industry ctssstffcation Chamtcal opwaHng Ctwng* prafllir Horn (* matem) Ctwrocal opsvsting profits a* % of total profits Charoical ktonttttabl* asssts Op*rsSng OpmUng ctwtical M % Of return on prom. atsst* total ctmrucai mvtir (SmUHons) assra asstta* i 2 Dow Chemical 2 1 DuPont 3 3 Exxon 4 4 Hoechst Ceianeee 5 5 Monsanto $19,234.0 18,433.0 11.737.0 7,395.0 7,251.0 21.8% 95.2% Basic chemicals 9.4 43.7 Diversified 23.0 9.5 Petroleum 7.6 100.0 Basic chemicals 7.4 80.9 Basic chemicals $4,254.0 3,457.0 2,734.0 584.0 917.0 105.8% 109.3% 27.9 62.2 116.6 26.8 nm 100.0 -2.1 93.1 22.1% $16,853.0 18.8 14,177.0 23.3 9,595.0 7.9 na 12.6 7,470.0 71,5% 25.2% 38.0 24.4 10.5 28.5 na na 70.4 123 6 6 General Electric* 7 12 Mobil 8 7 Union Carbide 9 9 Amoco 10 8 Occidental Petroleum 6,628.0 6,155.0 5,888.0 5,655.0 5,410.0 17.6 46.7 21.0 27.2 15.6 9.5 8.2 100.0 18.2 50.6 Diversified Petroleum Basic chemicals Petroleum Petroleum 1,465.0 51.5 1,551.0 1,791.5 1,348.0 144.6 1,256.0 108.3 1.107.0 200.8 13.4 31.9 100.0 43.6 121.2 22.1 25.2 22.9 22.2 20.5 9,095.0 3,212.0 5,622.0 5,183.0 5,181.0 4.0 7.6 89.9 17.4 29.1 16.1 48.3 24.0 24.2 21.4 11 10 Eastman Chemical 12 11 BASF Corp. 13 13 Shell Oil 14 17 Huntsman Chemical 15 16 Arco Chemical 5,040.0 4,847.0 4,841.0 4,300.0 4,282.0 16.4 9.9 18.8 26.5 25.1 100.0 75.9 19.8 100.0 100.0 Basic chemicals Basic chemicals Petroleum Basic chemicals Basic chemicals 964.0 51.6 100,0 19.1 4,854.0 100.0 19.9 na na na na na na na 957.0 215.8 42.3 19.8 4,836.0 17.9 19.8 na na na na na na na 823.0 73.3 100.0 19.2 4,135.0 100.0 19.9 16 15 Rohm and Haas 17 14 ICI Americas 18 21 Chevron 19 18 AlliedSIgnal* 20 19 W.R. Grace 3,884.0 3,824.0 3.758.0 3,713.0 3,665.5 9.9 16.1 22.6 13.5 13.9 100.0 100.0 10,1 25.9 100.0 Basic chemicals Basic chemicals Petroleum Diversified Specialty chemicals 540.0 na 785.0 563.0 387.4 10.9 na 143.8 37.7 15.1 100.0 na 28.5 44.7 100.0 13.9 na 20.9 15.2 10.6 3,578.0 na 2,524.0 3,302.0 3,787.0 91.4 na 7.4 26.5 83.4 15.1 na 31.1 17.1 10.2 21 23 Ashland Oil* 22 20 Air Products* 23 27 Hanson 24 26 Praxair 25 25 Clba U.S. 3,551.0 3,536.0 3,207.0 3,146.0 3,012.0 23.1 12.3 17,5 16.0 9.5 292 91.5 42,1 100.0 56.9 Petroleum Basic chemicals Diversified Basic chemicals Specialty chemicals 159.0 638.0 914.0 548.0 na 27.2 20.8 161.9 22.6 na 80.3 106.0 65.3 100.0 na 4.5 18.0 28.5 17.4 na na 4,709.0 na 4,134.0 na na 81.0 na 100.0 na na 13.5 na 13.3 na 26 24 Phillips Petroleum* 27 29 Dow Coming 28 34 Lyondell Petrochemical 29 28 Rhdne-Poulenc Inc. 30 30 National Starch 2,964.0 2,492.9 2,466.0 2,400.0 2,399.9 6.8 13.1 38.3 4.3 13.4 22.1 100.0 50.0 100.0 100.0 Petroleum Specialty chemicals Petroleum Specialty chemicals Specialty chemicals 482.0 378.2 641.0 na 330.0 49.2 18.6 55.2 na 11.6 33.2 100.0 90.8 na 100.0 16.2 15.2 26.0 na 13.8 2.222.0 4,958.4 1,365.0 na 2,159.3 18.6 100.0 52.4 na 100.0 21.7 7.6 47.0 na 15.3 31 31 Great Lakes Chemical 32 22 Akzo Nobel Inc* 33 32 Hercules 34 33 FMC 35 38 IMC Global' 2,361.1 14.3 2,213.1 -11.6 2,200.0 8.6 2,153.3 11,7 1,924.0 33.5 100.0 82.0 90.6 47.7 100.0 Specialty chemicals Basic chemicals Basic chemicals Machinery Agrochemicals 497.3 na 396.0 323.5 381.8 13.4 na 15.4 18.4 128.2 100.0 na 109.6 61.2 100.0 21.1 na 18.1 15.0 19.8 2,468.9 na 1,495.0 1,953.4 2,693.2 100.0 na 60.0 45.4 100.0 20.1 na 26.6 16.6 14.2 36 35 Elf Atochem 36 37 Solvay America 38 36 Lubrizoi 39 -- Zeneca Inc. 40 43 PPG Industries 1,800.0 1,800.0 1,663.6 1,626.4 1,595.0 12.5 24.1 4.0 5.9 23.1 100.0 100.0 100.0 100.0 22.6 Basic chemicals Basic chemicals Specialty chemicals Drugs Glass products na na 214.2 na 383.0 na na -4.0 na 68.7 na na 100.0 na 28.8 na na 12.9 na 24.0 na na 1,492.0 na 1,129.0 na na 100.0 na 18.2 na na 14.4 na 33.9 41 39 Morton International' 42 41 Wttco" 43 46 Olin 44 44 Cabot* 45 42 International Flavors 1,564.7 14.2 47.0 Diversified 223.5 15.4 47.5 14.3 1,459.3 52.9 15.3 1,543.6 15.5 77.8 Specialty chemicals 68.6 -43.7 41.7 4.5 2,078.4 75.0 3.3 1,501.0 25.6 47.7 Diversified 145.0 150.0 59.2 9.7 1,223.0 53.8 11.9 1,487.8 19.9 81.3 Basic chemicals 286.8 72.9 95.8 19.3 1.167.9 70.6 24.6 1,439.5 9.5 100.0 Specialty chemicals 390.7 10.2 100.0 27.1 1,249.8 81.5 31.3 l OUL 46 47 47 45 Geon 48 51 Arcadian Partners 49 52 Cytec 50 49 BF Goodrich 1,383.1 1,267.8 1,266.9 1,260.1 1,259.0 16.9 4.9 15.1 14.4 9.6 100.0 100.0 100.0 100.0 52.3 Agrochemicals Basic chemicals Agrochemicals Basic chemicals Basic chemicals 295.6 1272 292.3 122.7 149.7 89.3 24.6 149.2 79.1 35.1 100.0 100.0 100.0 100.0 62.4 21.4 10.0 23.1 9.7 11.9 1,476.7 100.0 752.0 100.0 1,270.7 100.0 1,293.8 100.0 922.4 37.1 20.0 16.9 23.0 9.5 16.2 CMA 054563 48 JUNE 24,19% C&EN OTtiftg aummtcoanf >**tac 25.2% .`4.4 28.5 na 2.3 6.1 8.3 '4.0 '4.2 1.4 9.9 na 9.8 na 9.9 5.1 na i.i 7.1 12 na 3.5 na 3.3 na .7 .6 \0 -3 1 ia .6 6 2 a ia 4 a 9 3 3 9 6 3 0 3 1 5 2 IMS(m1*994 gl 54 Albemarle 52 53 H. B. Fuller' 33 40 Nalco Chemical 54 48 Farmland Industries1 35 _ Borden Inc. Ch*m*e*l Chang* Ml** 199$ from (S mMfon*) 1994 Chamical <InndguuM*triyy Chamicat "EixSunSi? cSTraSmf* (SmUfion*) 1994 rvhiniamnIcaI iaa % of total Chomicai asa*l Operating Oparahng chamicai as%ot ratumon pram aaaata mttghfi ($ million*) $1,2442 1,243.8 1,214.5 1.171.4 1.139.5 15.1% 13.3 -2.6 0.7 14.5 100-.0% Specialty chemicals 100.0 Specialty chemicals 100.0 Specialty chemicals 16.1 Agricultural supplies 19.2 Food products $116.9 69.8 205.5 198.7 140.2 24.4% 5.9 0.6 57.7 11.4 100.0% 100.0 100.0 67.7 -57.5 9.4% $1,204.5 5.6 828.9 16.9 1.370.1 17.0 410.9 12.3 565.0 100.0% 9.7% 100.0 8.4 100.0 15.0 18.8 48.4 14.9 24.8 56 56 Engelhard 57 60 Wellman 58 57 Georgia Gulf 59 58 Uniroyal Chemical* 60 62 Finalnc. 1,128.8 1,109.4 1,081.6 1,079.3 1,059.7 15.4 18.5 13.2 14.0 19.2 39.7 100.0 100.0 100.0 29.4 Diversified Basic chemicals Basic chemicals Specialty chemicals Petroleum 197.1 132.9 327.9 146.1 295.9 16.7 92 42.4 29.0 72.8 80.3 100.0 100.0 100.0 137.6 17.5 1,003.2 61.0 19.6 12.0 1,210.7 100.0 11.0 30.3 507.3 100.0 64.6 13.7 1,171.7 100.0 12.6 27.9 531.7 21.4 55.7 61 68 Starting Chemicals* 62 59 Aristech 63 65 Condea Vista1 64 55 Ethyl 65 64 Freeport-McMoRan 66 63 NL Industries 67 ___ Courtaulds* 68 89 Terra Industries 69 67 Loctite 70 69 Sigma-Aldrich 1,030.2 1.023.0 996.4 960.5 960.0 47.0 82 37.4 -5.7 31.4 100.0 100.0 100.0 100.0 96.4 Basic chemicals Basic chemicals Basic chemicals Basic chemicals Agrochemicals 242.8 na na 142.4 205.9 407.9 na na -8.1 66.3 100.0 na na 100.0 112.6 894.1 16.1 873.0 -11.8 829.7 126.2 785.1 11.6 775.9 13.1 87.3 100.0 36.2 100.0 80.8 Basic chemicals Specialty chemicals Agrochemicals Specialty chemicals Specialty chemicals 161.2 61.0 340.9 120.0 177.3 1002 -21.8 274.6 5.4 18.7 80.7 100.0 90.3 100.0 86.8 23.6 na na 14.8 21.4 609.9 na na 983.8 na 100.0 na na 100.0 na 39.8 na na 14.5 na 18.0 7.0 41.1 15.3 22.9 1,063.4 na 1,209.4 715.6 789.1 83.6 na 64.7 100.0 80.1 15.2 na 28.2 16.8 22.5 71 66 Betz Laboratories 72 75 Degussa Corp. 73 70 Borden Chemicals 74 71 Kerr-McGee 75 72 Inti. Specialty Products 752.5 751.0 739.6 707.0 689.0 62 34.1 12.4 10.6 14.8 100.0 30.9 100.0 39.3 100.0 Specialty chemicals Specialty chemicals Basic chemicals Petroleum Specialty chemicals 109.9 na 200.9 122.0 127.1 -6.5 na 5.5 32.6 28.1 100.0 na 100.0 169.4 100.0 14.6 na 27.2 17.3 18.4 630.5 na 568.5 802.0 1,312.9 100.0 na 100.0 24.8 100.0 17.4 na 35.3 15.2 9.7 76 78 Aluminum Co. of America 77 73 Union Camp 78 74 GenCorp3 79 77 Hexene 80 83 Mallinckrodt* 671.2 666.8 619.0 615.2 576.8 24.0 15.8 8.8 14.4 32.0 5.4 15.8 34.9 100.0 26.1 Nonferrous metals Diversified Rubber products Basic chemicals Diversified na 75.9 59.0 125.1 68.5 na 12.9 15.7 66.6 11.0 na 9.1 52.2 100.0 20.8 na 11.4 9.5 20.3 11.9 na 494.9 236.0 520.6 800.4 na 10.2 16.2 100.0 29.4 na 15.3 25.0 24.0 8.6 81 85 Vulcan Materials 82 -- Laporte 83 80 Ferro 84 81 Stepan 85 76 Huts America 576.3 541.8 540.4 528.2 527,0 40.4 3.8 11.7 19.0 -4.5 39.4 100.0 40.8 100.0 100.0 Nonmetallic minerals Specialty chemicals Specialty materials Specialty chemicals Specialty chemicals 87.8 nm 60.3 -10.7 27.4 100.0 32.9 11.1 na na 32.6 100.0 27.8 100.0, na 15.2 11.1 5.1 6.2 na 395.5 na 345.8 362.5 na 32.5 na 39.5 100.0 na 22.2 na 7.9 9.1 na 86 79 Unoral 87 88 Sun Co. 88 ___ General Chemical 89 92 First Mississippi* 90 82 Lonza Inc. 509.0 484.0 480.9 449.0 404.3 52 27.7 3.5 38.2 -4.7 6.0 4.8 87.3 69.9 100.0 Petroleum Petroleum Basic chemicals Agrochemicals Specialty chemicals 113.0 68.0 105.2 126.3 na 39.5 112.5 6.4 129.2 na 38.0 51.9 98.4 121.6 na 22.2 14.0 21.9 28.1 na 309.0 249.0 377.0 199.4 na 3.1 4.8 87.4 44.1 na 36.6 27.3 27.9 63.3 na 91 93 Mississippi Chemical* 92 87 Crompton & Knowles 93 94 Terra Nitrogen 94 91 Georgia-Pacific 95 97 CambrexCorp. 388.2 385.6 373.3 372.0 357.2 25.5 -2.0 24.3 11.4 47.8 100.0 57.9 100.0 2.6 100.0 Agrochemicals Specialty chemicals Agrochemicals Wood products Specialty chemicals 80.9 42.6 169.7 na 44.5 113.5 -29.9 93.7 na 112.9 100.0 58.9 100.0 na 100.0 20.8 11.0 45.5 na 12.5 302.2 318.0 338.1 na 402.6 100.0 65.7 100.0 na 100.0 26.8 13.4 50.2 na 11.1 96 90 Retrofits11 97 86 OSi Specialties 98 -- Asarco 99 95 Calgon Cartoon 100 -- Kemira 338.9 337.1 308.6 291.9 286.0 -1.7 nm 11.2 6.5 -3.4 92.9 100.0 9.7 100.0 100.0 Specialty chemicals Specialty chemicals Nonferrous metals Basic chemicals Basic chemicals 15.8 na 19.0 33.4 na -39.7 na 35.7 33.6 na 80.2 na 3.9 100.0 na 4.7 na 6.2 11.4 na 216.0 na 266.0 338.0 na 73.8 na 6.1 100.0 na 7.3 na 7.1 9.9 na a Operating profit is sales less administrative expenses and cost of sales, b Chemical operating profit as a percentage of sales, c Chemical operating profit as a percentage oi identifiable chemical assets d Chemical sales include significant amounts of nonchemical products e Fiscal year ended Sept. 30. f Fiscal year ended June 30. g Chemical sales only, h Reflects purchase of OSi Specialties in October 1995 I Fiscal year ended Nov. 30. | Fiscal year ended Aug 31. k Fiscal year ended Oct. 31. nm not meaningful, na-not available. CMA 0545(54 JUNE 24,19% C&EN 49 2 FINANCES OF THE U.S. CHEMICAL INDUSTRY FINANCIAL ANALYSIS: Major chemical companies had big improvements in ratios last year Air Products9 Albemarle Arco Chemical Betz Laboratories 1995 1994 prom margin* 9.5% 8.9 Rttum mant* OobtM % Of <**>! piusaquity 4.2% 4.0 33.2% 29.5 % total ala* abnad* % total *s*ts broad0 Safes pororm ployaa* 25.1% 32.8% $261 24.5 31.7 262 1995 5.1 3.3 24.3 36.0 40.5 415 1994 4.7 2.8 30.4 28.8 40.5 292 1995 12.4 9.8 31.1 44.3 44.6 na 1994 8.4 6.2 35.1 36.0 38.2 na 1995 10.4 8.8 21.8 26.1 37.2 183 1994 10.3 9.2 22.9 22.1 28.9 178 aa%of not ineomo 31.3% 34.9 SPENDING1 A*% of aataa As* of ost plftnt RSD a* of aataa Salaa M*Of UMta plant as % of gross plant 25.5% 24.8% 2.7% 66.5% 47.6% 17.5 20.4 2.8 69.2 45.9 21.2 18.7 9.0 16.4 2.4 103.3 45.9 6.5 10.6 2.6 94.9 46.6 50.2 4.8 8.5 1.9 98.8 60.2 83.3 5.7 8.4 2.3 87.4 63.0 62.1 64.9 8.5 21.8 7.8 19.8 4.3 119.3 46.6 4.2 127.5 48.7 Cabot9 1995 1994 Calgon Carbon 1995 1994 Crompton & Knowles 1995 1994 Cytec Industries 1995 1994 9.4 4.7 7.3 3.1 6.1 8.6 6.2 5.1 8.1 4.0 4.8 2.0 7.8 11.0 4.5 3.3 30.9 35.4 2.5 2.7 21.1 19.4 16.1 0 48.8 40.5 37.5 38.6 12.5 16.6 37.9 23.0 44.8 29.5 32.3 32.2 23.5 20.9 17.7 16.4 446 15.8 311 30.0 266 151.6 216 75.4 242 62.2 234 45.8 252 18.5 220 20.5 7.2 4.4 4.4 2.6 2.7 3.7 77 10.5 18.6 10.6 7.2 4.0 14.0 18.5 16.0 19.8 3.2 110.6 48.8 2.9 103.9 50.3 1.9 86,4 59.4 2.3 79.8 64.1 2.1 137.5 56.7 2.1 136 4 57.7 3.5 97 4 46.0 3.6 91.8 47.0 Dow Chemical 1995 11.0 6.6 39.0 55.3 57.1 511 34.5 7.0 17.5 4.0 85.7 34.9 1994 4.7 2.9 39.2 50.3 44.2 373 77.1 5.9 13.6 6.3 75.4 37.6 Eastman Chemical 1995 11.1 6.8 44.3 23.3 17.1 285 23.8 8.8 14.6 3.5 103.8 44.9 1994 7.8 4.4 48.0 21.6 14.3 247 29.5 6.5 9.7 3.9 98.9 45.5 Ethyl 1995 7.7 6.7 42.5 43.7 26.9 534 80.0 4.7 10.5 5.7 97.6 60.0 1994 8.3 8.8 47.2 38.7 25.8 783 63.6 12,5 33.9 7.0 113.9 63.5 First Mississippi" 1995 9.0 9.3 26.6 1994 3.5 3.3 37.0 na na na 14.9 8.5 25.8 1.1 142.1 50.8 8.6 na na 34.0 6.1 15.4 na 134.6 51.5 H. B. Fuller' Geon Georgia Gulf BF Goodrich 1995 1994 1995 1994 1995 1994 1995 1994 2.5 2.8 5.6 4.8 17.2 12.8 4.9 3.0 3,1 3.5 5.0 4.2 25.8 17.5 4.8 2.8 35.7 32.1 39.7 27.9 85.2 91.0 32.5 31.6 44.4 41.9 na na na na 10.3 10.8 48.4 61.2 na na na na 8.9 8.0 194 171 735 668 946 834 181 164 28.0 26.0 17.8 23.8 6.6 0 52.2 98.3 7.3 25.5 2.1 150.1 58,4 5.9 22.0 2.2 147.8 57.4 5.5 15.7 1.4 168.6 39.3 5.1 12.9 1.2 152.7 43.6 8.0 27.6 6.2 23.1 na 213.2 58.5 na 187.9 57.1 6.1 17.2 5.4 5.9 14.8 3.4 96.7 56.8 89.1 59.6 W.R. Grace 1995 1994 Great Lakes Chemical 1995 1994 Hercules 1995 1994 IMG Global" 1995 1994 5.3 1.6 12.5 13.5 13.7 9.7 6.6 0.5 4.0 1.5 12.3 13.8 9.7 6.4 3.2 0.2 51.3 42.2 19.4 9.9 21.6 19.2 40.3 51.2 53.8 35.0 55.0 54.6 42.6 31.9 10.2 9.6 27.9 26.21 53.1 50.8 30.3 24.3 9,4 8.3 173 57.8 134 158.5 na 9.7 na 9.7 308 28.5 235 32.5 na 6.9 na 0 14.7 8.7 10.4 6.0 4.8 5.8 3.3 2.8 31.0 25.7 32.2 20.3 11.7 13.5 3.4 2.1 3.3 2.6 2.7 2.9 2.4 2.3 na na 58.2 81.7 95.6 97.8 97.3 95.9 71.4 51.9 55.0 53.6 59.9 58.4 39.0 39.2 54.1 56.8 50 JUNE 24,19% C&EN CMA 054565 I CAPITAL. Dividends SPENONQ' plant Return Dabt % total % total Seles a* %of AS % As % RAD Sales M % Of Profit on Invest % of debt safes eseets per em net Of of net aa%of a#%of groes t margin* mertt* phwaquity abroad1 abroad1 ployoe* income solo* plant aataa assets plant 3% International Flavors 1995 17.3% 13.3% 1.0% 68.7% 53.2% $310 55.5% 6.6% 20.2% 6.3% 93.8% 55.8% 3 1994 17.2 13.3 1.4 67.4 50.8 288 53.3 7.7 24.9 6.2 94.0 55.1 3 Loathe 3 1995 1994 10.7 11.7 11.3 12.0 16.3 0.6 62.2 56.7 63.8 58.9 181 38.7 166 34,8 4.3 16.2 8.4 29.1 3.8 109.7 57.7 4.0 105.2 59.3 2 Lubrizol 1995 8.0 6.4 18.6 56.5 42.4 362 44.7 11.4 28.0 6.3 111.5 46.8 3 1994 9.2 7.8 12.1 56.0 40.8 352 39.8 10.1 28.7 10.4 114.2 44.1 5 Monsanto 1995 8.1 6.3 30.9 37.2 29.8 314 42.0 5.6 17.7 7.3 84.5 39.1 L 1994 7.5 5.4 32.3 35.0 33.4 282 46.5 4.9 14.5 7.4 93.0 37.3 i Morton lntemationalh 1995 8.8 9.3 11.6 20.5 22.9 241 22.1 7.6 22.5 2.2 120.7 55.8 3 1994 7.9 8.2 12.4 20.0 20.6 218 24.2 7.7 21.9 2.3 115.7 57.2 l Nalco Chemical 1995 11.2 9.2 27.6 43.2 35.7 200 57.6 10.4 24.4 3.3 88.6 47.2 1994 11.2 10.6 31.1 36.3 35.9 240 50.1 9.3 24.0 3.4 104.9 49.1 Olin 1995 4.4 3.8 32.8 9.8 8.7 242 47.1 6,4 21.0 1.2 138.6 35.9 1994 3.4 2.7 35.8. 7.8 5.3 208 67.0 5.6 17.0 1.3 130.9 35.1 Petrolltek 1995 1.7 1.5 20.1 38.5 31.8 203 203.9 3.5 12.0 3.5 124.7 38.6 1994 1.9 1.6 19.5 35.7 33.1 205 181.4 5.9 18.2 3.4 117.2 40.1 ) PPG Industries 1995 10.9 8.8 22.3 33.4 32.1 226 31.1 6.3 15.7 3.3 113.9 44.0 1994 8.1 6.2 22.6 31.6 31.2 206 46.2 5.1 11.7 3.4 107.4 44.5 Praxair 1995 8.3 4.0 45.4 50.1 54.8 173 17.2 19.1 21.9 1.9 76.1 48.4 1994 7.5 3.5 51.6 54.2 56.0 152 18.2 12.0 13.9 2.1 77.0 46.7 Quaker Chemical 1995 2.9 3.3 9.0 54.8 44.1 261 89.7 4.3 17.4 5.0 122.4 47.5 1994 4.8 5.0 11.5 50.0 44.7 204 60.6 4.8 18.0 5.1 114.4 49.0 Rohm and Haas 1995 7.5 5.2 25.4 44.2 35.3 333 37.3 10.7 20.4 5.0 99.2 49.3 1994 7.5 4.9 28.0 42.4 34.3 289 38.6 9.6 17.3 5.7 91.5 49.4 SigmaAldrich Stepan Sterling Chemicals0 Union Carbide 1995 1994 1995 1994 1995 1994 1995 1994 13.7 13.0 3.0 3.1 14.9 2.7 14.7 8.0 11.1 10.9 2.7 2.5 20.9 2.9 10.1 5.2 1.6 2.0 47.1 44.7 30.2 67.6 38.1 37.3 33.2 29.2 14.4 16.2 14.0 17.5 30.9 27.3 31.3 30.2 13.0 13.9 33.6 34.8 19.1 20.7 171 155 417 351 1,148 579 511 405 14.4 15.2 34.4 38.4 0 0 13.4 32.4 6.3 18.4 8.5 24.0 7.4 20.4 9.7 23.4 5.2 17.5 1.8 4.2 9.2 19.3 8.4 16.1 na 97.4 57.3 na 100.0 59.7 2.3 145.7 42.4 2.8 136.6 44.0 na 168.9 60.5 na 121.9 63.6 2.4 94.1 44.2 2.8 96.8 43.2 Witco AVERAGE 1995 AVERAGE 1994 1995 1994 3.4 4.8 9.7% 6.9% 2.9 4.6 6.8% 4.8% 40.5 26.9 32.4% 32.9% 41.6 30.8 39.3 36.9 247 27$ 39.5% 36.8% $301 36.0% 33.4% $256 94.2 51.4 32.2% 45.1% 5.8 14.3 4.8 14.9 8.3% 18.3% 7.0% 15.0% 2.7 71.6 58.0 1.9 115.9 50.8 3.7% 93.1% 44.9% 4.2% 91.0% 45.2% Not*: Net income is from continuing operations, excluding significant nonrecumng and extraordinary items, a Net income as a percentage of sales, b Net income as a percentage of current assets plus gross plant, c Consolidated sales only, d Foreign identifiable assets as a percentage of total assets, e Thousands of dollars, f Actual spending on new facilities and purchase of land and new equipment in consolidated companies, g Fiscal year ends Sept. 30. h Fiscal year ends June 30.1 Fiscal year ends Nov. 30. J Exdudes Canada k Fiscal year ends Oct. 31 na not available. 0S4S66 JUNE 24,19% C&EN 51 2 FINANCES OF THE U S. CHEMICAL INDUSTRY First significant capital spending boost in five years A fter four years of decelerating capital spending, major US. chemical companies significantly boosted spending levels in 1995. The 24 major chemical makers C&EN surveyed seem to have thrown caution to the wind and collectively increased their spending levels 23% to $8.3 billion. The 1995 spending boost was the second largest in a decade; 1988's 25% rise was the largest, and the 22% hike in 1989 was a dose third. Still, the major chemical makers' spending levels are not so intemperate as they may appear at first blush. Over the past decade, spending levels first crossed the $8 billion mark in 1989 when expanding sales and strong prof Capital spending as percent of sales turned up Capital spending as % of sales 121---------------------------------------------------- 1985 86 87 888990 91 92939495 Note; Worldwide data tor 24 major cfterrocaf producers. Source; Company data its provided the industry with the cap ital and self-confidence to reinvest in its future. The trend continued through 1990 when the major chemical makers bolstered capital spending to the de cade high of $9.7 billion. Between 1991 and 1993, most com panies limited their capital spending because earnings were under pressure and demand for product slowed. Even in 1994, when earnings and sales im proved, major chemical producers tem pered their investment spending. With a strong year behind them, chemical makers saw 1995 as a year to expand, although not so much in the US. as overseas. Federal Reserve Board statistics show that domestic chemical industry capacity utilization during the year held steady in the low 80% range. So, many opportunities must be abroad. And indeed, throughout the year many companies invested overseas, particular ly in the Asia-Pacific region. CHEMICAL CAPITAL SPENDING: Major chemical producers bolstered spending 23% in 199$ $ Millions Air Products Cabot* Crompton & Knowles Dow Chemical DuPont6 1985 $392 184 3 806 1,176 1986 $367 80 4 890 1,229 1987 $323 83 4 995 1,357 1988 $387 170 7 1,267 1,735 1989 $414 192 13 1,764 2,106 1990 $468 174 16 2,119 2,608 1991 $506 198 11 1,908 2,045 1992 $426 78 13 1,608 2.058 1M3 $491 65 14 1,414 1,667 1994 $611 74 22 1,183 1,292 1995 $870 131 18 1,417 1,476 Ethyl H. B. Fuller BF Goodrich W.R. Grace Great Lakes Chemical 90 15 202 348 21 134 13 144 199 18 139 30 143 243 35 151 40 181 418 47 119 41 240 485 40 152 31 243 514 49 166 30 219 447 71 157 34 200 398 69 205 42 146 310 79 141 65 130 445 123 45 91 148 538 247 Hercules Loctite Lubrizol Monsanto Nalco Chemical 234 9 40 645 60 257 11 41 520 64 205 17 42 505 57 251 15 55 590 62 293 24 65 607 86 273 29 77 750 115 214 34 82 591 137 150 40 96 586 131 149 45 128 437 118 164 57 161 409 126 117 33 189 500 127 Olin PPG Industries Petrolite Praxair* Quaker Chemical 154 452 24 -- 6 128 496 25 -- 5 115 499 19 -- 4 147 410 20 -- 5 142 671 19 -- 8 187 567 18 -- 13 177 335 22 -- 8 173 282 18 333 7 132 293 19 240 9 149 356 22 326 9 201 448 13 600 10 Rohm and Haas Stapan Union Carbide Witco 159 19 649 76 179 14 524 60 222 26 502 69 338 20 671 72 365 34 785 70 412 38 744 91 265 34 817 74 283 34 359 73 382 25 395 104 339 43 409 107 417 39 542 116 TOTAL ANNUAL CHANGE $5,764 $5,404 $5,634 $7,059 $8,603 $9,688 $8,391 $7,608 $6,909 $6,763 $8,333 4% -6% 4% 25% 22% 13% -13% 9% -9% -2% 23% Not*: Figures are for worldwide spending on construction, equipment, and land in consolidated businesses. Where possible, acquisition costs and investments in nonconsoltdated businesses are excluded. Prior years are not restated to reflect company revisions, a includes acquisitions and investments, b Excludes Conoco, c Spun off from Union Carbide <n 1992. Source: Company data 52 JUNE 24,1996 C&EN CMA 054567 r&D spending fell again, both in value and as percent of sales $ Billions8 4 RSD spending as % of sales8 6 $ Current^ $ Constant (1985) _I_1*_' ' -^ ~' **' ~- . , 1985 86 , '' ' ",i, >1* 9,7 - ".4v-`,- 1 \ -r-"^v^JV-f'tl- - ' , -w-V ,1;';^,-/: , ,.- i- A- ..1..- ! 87 88 89 90 91 92 93 94 95 1985 86 87 88 a n6D spending by 17 major chemical producers. Source: Company data 90 91 92 93 94 95 R&D SPENDING: Most chemical producers increased spending, but chemical firm total fell 12% $ Millions CHEMICAL COMPANIES Air Products8 Albemarle19 Dow Chemical8 Ethyl 1985 $51 -- 547 47 1986 $61 -- 605 47 1967 $57 -- 670 50 1988 $72 -- 772 59 1969 $71 -- 873 61 1990 $72 -- 1,136 65 1991 $80 -- 1,159 69 1992 $85 -- 1,289 73 1993 $92 30 1,256 45 1994 $97 28 1,261 50 1999 $103 30 808 55 W.R. Grace Hercules International Flavors Lubrizol 92 94 107 119 125 148 150 151 135 132 121 76 71 74 74 79 92 86 70 76 65 59 34 39 45 50 52 57 62 71 75 81 91 44 51 62 65 70 74 80 90 89 91 105 Monsanto Morton International11 Nalco Chemical Olin 470 596 615 648 598 612 627 651 626 609 658 25 29 31 35 38 48 59 61 69 66 73 32 33 35 37 41 45 47 48 50 46 . 40 53 56 62 58 66 66 41 39 41 35 39 Petrolite Praxair* Rohm and Haas Union Carbide Witco TOTAL ANNUAL CHANGE 12 12 12 12 12 12 11 12 14 13 -- -- -- -- -- -- -- 62 58 58 124 133 142 156 175 178 183 199 205 201 275 148 159 159 181 191 190 155 139 136 21 22 23 24 25 26 28 29 40 41 13 61 194 144 53 $1,903 $1,997 $2,144 $2,340 $2,467 $2,822 $2,897 $3,085 $3,040 $3,010 $2,647 13% 5% 7% 9% 5% 14% 3% 6% -1% -1% -12% PHARMACEUTICAL & DIVERSIFIED COMPANIES AlliedSIgnal American Home Products' Bristol-Myers Squibb DuPont $343' 217 412 1,144 $459 227 474 1,156 $400 247 563 1,223 $415 328 688 1,319 $381 345 789 1,387 $426 369 881 1,428 $381 431 993 1,298 $320 552 1,083 1,277 $313 663 1,128 1,132 $318 817 1,108 1,047 $353 1,355 1,199 1,067 Eli Lilly9 FMC Merck & Co. Pfizer 370 427 466 512 605 703 767 925 955 839 1,042 149 146 132 144 150 158 135 145 149 167 188 426 480 566 669 751 854 998 1,112 1,173 1,231 1,331 287 336 401 473 531 640 757 863 974 1,139 1,442 PPG Industries Procter & Gamble11 Schering-Plough 3M 176 204 227 232 233 218 220 203 201 218 236 400 479 549 615 628 693 786 861 956 1,059 1,257 175 212 251 298 327 380 426 522 578 620 657 520 586 650 721 784 865 914 1,007 1,030 1,054 883 TOTAL ANNUAL CHANGE $4,619 $5,186 $5,675 $6,414 $6,911 $7,615 $8,106 $8,870 $9,252 $9,617 $11,010 11% 12% 9% 13% 8% 10% 6% 9% 4% 4% 14% Note: Prior years are not restated to reflect company revisions, a For fiscal year ending Sept. 30 b Spun oH from Ethyl In early 1994 Data for 1993 are pro forma, c Sold Manon Merreil Dow drug operations to Hoechst in 1995. d Fiscal year ends June 30. e Spun off from Union Carbide In 1992. f Acquired American Cyanamid in December 1994. g Spun off and sold off medical devices businesses in 1994 Source: Company data CMA 054568 JUNE 24,19% C&EN 53 2 FINANCES OF THE U.S. CHEMICAL INDUSTRY SHIPMENTS: Industrial chemicals expanded fester than other chemical categories $ Billions 1985 1988 1987 1966 1989 1990 1991 1992 1993 1994 1995 % annum change 1994-95 1995-95 All manufacturing $2,334.5 $2,335.9 $2,475.9 $2,682.5 $2,792.7 $2,873.6 $2,821.9 $2,934.1 $3,102.2 $3,370.0 $3,600.1 Industries Chemicals A allied 204.8 205.7 229.5 259.7 278.1 288.2 289.0 301.5 313.8 341.5 366.9 products Industrial chemicals 114.7 112.2 126.2 145.5 156.2 157.3 152.3 156.4 160.9 179.8 198.8 Drugs, soaps & 61.3 66.4 74.0 81.8 88.0 95.2 101.9 110.4 117.4 122.3 125.7 toiletries Petroleum & coal 176.6 122.6 130.4 131.4 143.7 172.7 160.4 154.6 147.3 144.4 155.3 products Rubber & plastic 75.6 78.4 86.6 94.2 98.4 101.4 103.6 103.3 104.1 113.7 120.1 products Paper & allied 94.7 99.9 109.0 122.6 131.4 131.4 124.4 131.3 129.4 138.0 165.9 products 7% 7 11 3 8 6 20 4% 6 6 7 -1 5 6 Source: Department of Commerce PRICES: Plastic resins rose fester than commodities and other chemicals last year Producer price indexes, 1982 = 100 1985 1966 1987 1968 Annual avenge 1989 1990 1991 1992 1993 1994 1995 % annual change 1994-95 1985-95 All commodities 103.1 100.2 102,8 106.9 112.2 116.3 116.5 117.2 118.9 120.4 124.7 4% 2% Industrial commodities 103.7 99.9 102.6 106.3 111.6 115.8 116.5 117.4 119.0 120.7 125.5 4 2 Finished goods 104.7 103.2 105.4 108.0 113.6 119.2 121.7 123.2 124.7 125.5 127.9 2 2 Chemicals & allied products Industrial chemicals Prepared paint Paint materials Drugs & pharmaceuticals Fats & oils, inedible Agricultural chemicals & chemical products Plastic resins & matenals Other chemicals & allied products 103.7 96.0 105.3 109.5 122.2 110.6 96.2 102.6 91.5 107.0 104.4 129.9 80.5 94.2 106.4 95.5 108.1 107.3 139.1 92.7 96.4 116.3 106.8 112.2 115.7 148.4 110.9 104.5 123.0 114.8 119.5 129.1 160.0 95.5 108.7 123.6 113.2 124.8 136.3 170.8 88.1 107.4 125.6 111.8 129.9 135.8 182.6 86.8 111.7 125.9 109.3 131.6 131.1 192.2 93.0 110.3 128.2 110.4 133.2 131.5 200.9 95.6 109.9 132.1 114.3 135.3 132.1 206.0 110.6 119.9 142.6 128,6 142.0 139.8 210.7 126.8 130.0 107.5 104.4 110.3 132.4 133.4 124.1 120.0 116.4 117.1 122.4 143.9 105.2 105,8 107.0 111.9 117.3 118.9 121.5 123.3 125.5 127.1 130.7 8 13 5 6 2 15 8 18 3 3 3 3 2 6 1 3 3 2 Rubber & plastic products Source: Department of Labor 101.9 101.9 103.0 109.3 112.6 113.6 115.1 115.1 116.0 117.6 124.3 6 2 Chemical company stock prices continued their upward surge Stock price index, 1954 100 1 High h-Close 1 Low Jl- r'r K*-h \ htU- _rr ttyf rr r . . -'-U - l,rr ir IMS -- *:/ 1M6 1M7 IMS \ *?**,*, *_ . - 1889 1990 r-jty' - ,1 ;;~ -- t .. , I`v i; . < : --'>7 -- ? 7 * *" *ai .*ii i 1991 1992 1993 1994 r. ya 1995 ;&tsM 1996 a CAEN stock price index of Air Products, Dow Chemical. W,R. Grace. Hercules, Monsanto, Rohm and Haas, and Union Carbide wambled according to number of shares outstanding tor each company 54 JUNE 24, 1996 C&EN CMA 054569 2 FINANCES OF THE U.S. CHEMICAL INDUSTRY Chemical, drug firms continued strong ales and earnings growth in 1995 minor loss in 1994 to a large net profit in Scontinued to show strength, as it had in 1994, for major US. chemical 1995. Overall earnings growth was driven producers. And their dose relatives--tbhye the triple-digit increases of Cabot, pharmaceutical and biopharmaceutical Dow Chemical, and Union Carbide, as producers whose product development well as by Sterling Chemicals' and IMC and manufacturing processes are chem Global's strong performance in 1995 af istry based--should have no complaints ter poor outcomes in 1994. These gains about last year. balanced out earnings that fell at Cromp For the 40 major chemical producers ton & Knowles, Ethyl, Grace, Lubrizol, surveyed by C&EN for this section, 1995 Nalco, Petrolite, and Witco. sales increased 10% on average com Unlike 1994, earnings results gener pared with 1994. Sales were up for 34 ally were not hit as hard by restructur companies, whereas for the remaining ing charges. Whereas the majority of six--Ethyl, W.R. Grace, Hercules, Nalco companies had double-digit increases, Chemical, Petrolite, and Witco--sales only five--Betz Laboratories, Borden dropped. But the sales decline for Grace, Chemicals & Plastics, Ferro, H. B. Ful Hercules, and Witco--the three with the ler, and Great Lakes Chemical--had largest decreases--resulted from selling single-digit earnings growth. off businesses during the year. In the drug sector, sales increased an Earnings growth in 1995 was even average 19% in 1995 for 10 major U.S. more impressive than sales growth. On drug companies, about double the average, earnings rose 95% for the 39 growth rate in 1994. American Home companies that reported profits in both Products' sales rose 49%; it acquired 1994 and 1995. And Ocadental Chemi American Cyanamid in late 1994. cal, the 40th company, moved from a However, American Home Products was the only drug producer whose earnings dropped--by about 3%--in 1995. Earnings were up an average 10% for the remaining nine firms. But, as a percentage of sales, drug company earnings were flat or down. Six major biopharmaceutical produc ers had a much better year in 1995 than in 1994, despite a $512 million loss re ported by Chiron. Chiron's loss largely came from costs related to its partner ship with Ciba. And Immunex, al though it did not show a profit, did suc ceed in cutting its loss to about $11 mil lion from about $29 million in 1994. But the other four of the six biophar maceutical firms were profitable, with Biogen returning to the fold. Net earn ings for the three companies that report ed profits in both 1994 and 1995-- Amgen, Genentech, and Genzyme-- jumped nearly 40%. Overall revenues were up an average 46% for the sue major biopharmaceutical companies, although Biogen's, which are largely from royalties, dropped 4%. COMPANY RESULTS: Most chemical producers posted sales, earnings gains in 1995 Year Net Hlai CHEMICALS __ Earning* Total aaaota Not plant end Capital Stockholder* equipment onpandtturaa equity % ol ele EARNINGS__________________ N ol dend, atockholdar*' S per $ par equityettere there (Money figures m million* of dollars unless otherwise indicated) Dlvl- dond yield, % ol price Dlvl- Stock price eem- range, Inga t per there ratio Price- Air Products 1995* $3,865 1994* 3.485 1993* 3,328 1992* 3,217 $368.0 309.0 276.9 271.0 $5,735 4,969 4,697 4,420 $3,502.0 2,992.6 2,705.6 2,745.7 Albemarle0 1995 $1,244 1994 1,081 1993 903 $63.7 43.6 22.7 $1,176 1,108 1,051 $665.9 665.1 674.9 Arco Chemical 1995 $4,085 1994 3,423 1993 3,192 1992 3,098 $508.0 276.0 214.0 197.0 $4,135 3,737 3,502 3,599 $2,293.0 2.221.0 2,173.0 2,230.0 Betz Laboratories 1995 $752 1994 708 1993 685 1992 707 $77.9 73.2 63.4a 82.0 $599 549 517 506 $333.8 306.9 300.7 288.4 Borden Chemicals & Plastics 1995 $740 $150.9 $569 1994 658 146.4 543 1993 433 -1.4 444 1992 402 27.1 467 $354.6 283.3 306.0 335.1 $870.0 611.1 490.6 427.5 $112.4 70.4 88.1 $195.0 186.0 181.0 295.0 $64.1 55.0 63.2 74.3 $27.1 22.6 15.0 10.5 $2,317 2,139 2,037 2,026 9.5% 8.9 8.3 8,4 15.9% 14.4 13.6 13.4 $3.29 2.71 2.43 2.40 $1.01 0.95 0.89 0.805 2.0% 2.1 2.1 2.0 $59--13 50%-38Ve 49/8-37/2 491/2-31% 15.5 16.3 17.8 16.9 $594 514 666 5.1% 4.0 2.5 10.7% 8.5 3.4 $1.00 0.68 0.39 $0.21 0.20 " $1,969 1,659 1,576 1,630 12.4% 8.1 6.7 6.4 25.8% 16.6 13.6 12.1 $5.28 2.87 2.23 2.05 $2.65 2.50 2.50 2.50 1.3% 1.3 $20-12'/* 1 7Vb-1 2'/2c 16.1 22.2 " 5.8% 5.3 5.8 6.0 $50/2-41% 51--43'/a 47/4-39/4 47/4-36V2 8.7 16.4 19.4 20.4 $312 318 295 293 10.4% 10.3 9.3 11.6 25.0% 23.0 21.5 28.0 $2.47 2.43 2.05d 2.71 $1.46 1.43 1.39 1.33 3.4% 3.0 2.7 2.3 $46%-38% 53%-42'/4 62Ve-40 66/4-48/4 17.3 19.7 25.1 21.1 $216 246 230 261 20.4% 22.2 -- 6.7 69.9% 59.5 -- 10.4 $4.07 3.98 -0.04 0.73 $4.66* 3.52* 0.78* 1.59* 24.7% 19.4 6.1 9.0 $25/s-12'/4 26%-9%* 17/6-8/4* 22%--12%* 4.6 4.6 -- 24.1 e Fiscal year and* Sept 30. 0 Became an independent company on Pad. 28, 1994; pnor to that wee part of Ethyl. Data lor 1994 end 1993 are pro torma. c From Feb SB only, d Includes $16.2 million charge tor restructuring. * Per partnerthip preference unit. 56 JUNE 24,1996 C&EN CMA 054570 o--in ; 10% . as a pany }ducthan is rergely tner- al1 suc- mil4. jharwith earn* port95-- ne-- rage itical hare Prfceearnratlo __ 15.5 16.3 17.8 16.9 16.1 22.2 8.7 '6.4 '9.4 20.4 17 3 9.7 25.1 21.1 4.6 4.6 Explanation of column headings in tables of company results Year. Data are for calendar year un less otherwise indicated. Data for eariier years are not restated to reflect sub sequent acquisitions or divestitures. Net sales. Gross sales, less dis counts, allowances, and returns; gen erally e-hndes excise taxes and other operating income or revenues. Earnings. Net sales and other in come, less operating costs, nonoperat ing charges, depreciation, depletion, interest expense, deferred charges, mi nority interest in income, and taxes. Nonrecurring or extraordinary credits and charges have been excluded. Ex traordinary charges that cannot be ex cluded are indicated by a footnote. Total assets. Sum at year's end of cur rent assets, investments, prepaid ex penses, net plant and equipment, and other tangible assets. Exdudes insofar as possible intangible assets including goodwill, value of patents, and die like. Net plant and equipment. Value at year's end of fixed assets, less accu mulated depreciation, amortization, and depletion. Capital expenditures. Total spend ing during the year for new fixed as sets, such as plant, equipment, and land, and for replacement and mod ernization of facilities. Stockholders' equity. Equity at year's end of preferred and common stock holders, including value of capital stock, capital and earned surplus, and surplus reserves, as well as contingency and miscellaneous reserves for which no definite purpose is stated. Intangible assets are deducted insofar as possible. Earnings (breakdown). Percent of sales: earnings divided by net sales. Percent of stockholders' equity: earn ings divided by stockholders' equity. Dollars per share: earnings, less pre ferred dividends, divided by the num ber of shares of common stock out standing. All figures are adjusted for stock splits, but no adjustment has been made for earlier years as a result of stock dividends or for dilution that might result from the conversion of preferred stock or debt to common stock or the exercise of stock options outstanding. Dividends per share. Cash divi dends paid (or declared) on each share of common stock; excludes the value of stock dividends, which are indicat ed by a footnote. Dividend yield. Dividends per share divided by the average of the high and low prices of the common stock during the year. Stock price range. High-low mar ket prices of common stock during the year, adjusted for stock splits but not for stock dividends. Price-eamings ratio. Average of the high and low prices of the common stock during the year divided by earnings per share. Year Cabot 1995" 1994* 1993" 1992" Net salee $1,830 1,680 1,614 1,557 Earning* $171.9 78.2 59.8b 62.2 Total sets N*t plant and aqulpmant Capital StocMtoldar*' itpanditura* aqulty % ot aala* EARNINGS %ot atockholdart' aqulty (Money figures in millions of dollars unless otherwise indicated) * per share Dlvl- dand, S pat thart Dlvl* dend yield, % of price Stock prlc* rang*, $ par ahar* Priceearninge ratio $1,640 1,543 1,411 1,467 $706.5 694.5 646.5 703.2 $131.2 73.6 65.0 78.1 $671 488 363 406 9.4% 4,7 3.7 4.0 25.6% 16.0 16.5 15.3 $4.35 $0.60 2.06 0.53 1.50B 0.52 1.59 0.52 1.4% 2.0 2.2 2.6 $57%-25Vs 293/ia-247/ie 28'/a-18% 26Ya*-14Yi6 9.6 13.0 15.6 12.6 Crompton & Knowles 1995 $666 $40.5 1994 590 50.9 1993 558 52.0 1992 518 43.3 $432 389 330 316 $130.0 117.1 99.9 98.8 $18.2 21.7 14.3 12.8 $188 181 207 177 6.1% . 8.6 9.3 8.4 21.5% 28.2 25.1 24.5 $0.84 1.00 1.00 0.87 $0.52 0.46 0.38 0.31 3.3% 1.8 1.7 1.6 $20-12 27%-24'/ 27'/4-175/a 237/a-16 19.0 25.7 22.4 22.9 Cytec Industries0 1995 $1,260 1994 1,101 1993 1.008 $78.0 41.5 -286.3 $1,276 1,181 1,062 $605.7 586.7 581.4 $97.2 116.1 110.6 $325 65 11 6.2% 3.8 -- 24.0% 64.0 -- $5.40 3.15 -22.19 0 0 0 _ $64V,-31% 8.9 -- 41 3/4--1 2% 8.7 -- ---- Dow Chemical 1995 $20,200 $2.221.0 $22,924 1994 20,015 938.0 22.180 1993 18,060 644,0d 21,071 1992 18,971 276.0" 20,978 $8,113.0 8,726.0 8.580.0 8,801.0 $1,417.0 1,183.0 1,397.0 1.595.0 $6,703 3,847 3,600 3,682 11.0% 4.7 3.6 1.5 33.1% 24.4 17.9 7,5 $8.28 $2.90 3.37 2.60 2.33d 2.60 0.99" 2.60 4.2% 3.8 4.7 4.6 $78-61% 79'A-56'/2 62-49 627/e-51 V* 8.4 20.1 23.8 57.6 DuPont 1995 1994 1993 1992 $42,163 $3,399.5 $37,112 $21,341.0 39,333 2,727.0 36,667 21,120.0 37,098 566.0' 36,775 21,423.0 37,799 975.0 38,409 21,882.0 $3,240.0 3,050.0 3,621.0 4,448.0 $8,236 12,822 10,952 11,304 8.1% 6.9 1.5 2.6 41.3% 21.3 5.2 8.6 $5.81 $2.03 4.00 1.82 0.83' 1.76 1.43 1.74 3.2% 3.3 3.6 3.5 $73-52% 62%--48Y. b3Ve-44V2 547/e-43% 10.8 13.8 59.3 34.4 Eastman Chemicaln 1995 $5,040 $559.0 1994 4,329 336.0 1993 3,216 267.0 $4,854 4,375 4,341 $3,049.0 2,906.0 3,059.0 $446.0 281.0 368.0 $1,528 1,295 1,061 11.1% 7.8 8.3 36.6% 25.9 25.2 $6.78 $1.64 4.05 1.60 2.46 -- 2.8% 3.4 -- $69Va-48Vs 56-39% -- 8.7 11.8 -- a Fiscal year ends Sept. 30. b (ndudes $47 million charge for restructuring, c Became an independent company on Dec. 17, 1993; poor to that was part of Amencan Cyananud, d includes $180 million charge for Manon Meneil Dow reorganization, e includes $433 million charge tor reorganization, f Indudes $167 million gain tor restructuring adjustment, g Includes $1.62 billion charge tor restructunng. h Became an independent company on Dec. 31,1993; pnor to that was part of Eastman Kodak. Data tor 1993 are pro forma. CMA 054571 JUNE 24,19% C&EN 57 2 FINANCES OF THE U S. CHEMICAL INDUSTRY Y*r Net sales Earnings Total aaaata N*t plant and Capital Stockholdara' % ol aqmpmant axpanolturaa aqulty aalaa EARNINGS__________________ % ol danda, atoekhdldara' $ par S par aquity_______ ahara aliaia (Money figures in millions of dollars unless otherwise indicated) Divl- dam) yMd, % ot prlea Ethyl 1995 1994* 1993c 1992 $961 1,019 1,938 2,975 $74.0 91.5 90.0 269.4 $969 1,011 2,009 9,070 $428.3 434.4 998.3 829.8 $44.8 147.3 205.0 157.4 $395 371b 640 1,267 7.7% 9.0 4.6 9.1 18.7% 24.7 14.1 21.3 $0.62 0.78 0.76 2.27 $0.50 0.5QB 0.60 0.60 4.4% 3.4 2.5 2.2 Ferro 1995 1994 1993 1992 $1,323 1,194 1,066 1,098 $49.3 47.4 57.5 58.8 $780 751 714 674 $307.3 288.6 257.8 227,6 $49.5 59.7 43.7 44.8 $287 316 305 323 3.7% 4.0 5.4 5.4 17.2% 15.0 18.9 18.2 $1.64 1.52 1.83 1.90 $0.54 0.54 0.51 0.45 2.1% 1.9 1.7 1.6 First Mississippi 1995" $643 1994d 508 1993d'* 430 1992" 525 $57.8 17.7 2.7 4.2 $439 378 384 468 $213.2 201.9 206.1 277.3 $54.9 31.1 39.1 33.6 $220 178 161 188 9.0% 3.5 0.6 0,8 26.3% 9.9 1.7 2.2 $2.80 0.88 0.13 0.21 $0.35 0.30 0.30 0.30 1.4% 2.4 3.2 2.6 FMC 1995 1994 1993 1992 $4,510 4,011 3,754 3,974 $212.1 173.4 164.3 192.6 $3,956 3,143 2,721 2,763 $1,829.6 1,537.4 1,390.2 1,502.1 $494.1 356.0 244.5 314.5 $308 208 125 156 4.7% 4.3 4.4 4,8 68.9% 83.4 131.4 123.5 $5.72 4.66 4.45 5.04 0 0 0 0 __ -- -- -- H. 8. Fuller 1995' $1,244 1994' 1,097 1993* 975 1992' 934 $31.2 30.9 21.7s 35.6 $774 684 544 543 $355,1 295.1 232.5 223.2 $90.7 65.0 41.8 34.4 $244 216 229 237 2.5% 2.8 2.2 3.8 12.8% 14.3 9.5 15.0 $2.22 2.20 1.55s 2.55 $0.63 0.56 0.54 0.46 1.9% 1.6 1.5 11 Geon" 1995 1994 1993 $1,268 1,209 973 $71.3 57.9 2.2 $752 792 721 $444.7 478.0 481.6 $70.0 61.5 44.1 $209 240 230 5.6% 4.8 0.2 34.1% $2.75 24.1 2.06 1.0 0.08 $0.50 0.50 0.38 1.7% 1.7 1.8 Georgia Gulf 1995 $1,082 1994 955 1993 769 1992 779 $186.5 122.2 42.2 46.3 $507 508 405 419 $312.5 255,6 222,8 211.7 $66.3 59.1 29.6 14.3 $51 31 -111 -161 17.2% 12.8 5.5 5.9 365.7% 394.2 -- -- $4.73 2.88 1.01 1.18 $0.32 0 0 0 0.9% -- -- -- BF Goodrich 1995 $2,409 1994 2,199 1993' 1,818 1992 2,526 $118.0 65.7 15.3' -9.4k $1,913 1,919 1,814 2,206 $859.2 873.3 836.0 1,215.8 $147.7 129.3 146.2 200.2 $302 373 349 583 4.9% 3.0 0.8 -- 39.1% 17.6 4.4 -- $4.30 2.24 0.281 -0.69" $2.20 2.20 2.20 2.20 3.9% 5.1 4.7 4.5 W.R. Grace 1995' $3,666 1994 5,093 1993 4,408 1992 5,518 $194 7 283.3 234.4 79.4 $5,561 5,558 5,627 5,300 $1,736.1 1,730.0 1,454.1 1,707.9 $537.6 444.6 309.6 398.4 $495 832 1,036 1,246 5.3% 5.6 5.3 1.4 39.3% 34.1 22.6 64 $2,03 3.01 2.56 0.86 $1.18 1.40 1.40 1.40 2.2% 3.4 3.7 3.6 Great Lakes Chemical 1995 $2,361 $295.6 1994 2,065 278.7 1993 1,792 272.8 1992 1,496 232.7 $2,052 1,700 1,560 ,1,432 $765.3 605.9 468.0 429.8 $246.6 123.1 79.3 69.4 $1,000 900 916 753 12.5% 13.5 15.2 15.6 29.6% 31.0 29.8 30.9 $4.52 4.00 3.82 3.27 $0.44 0.39 0.35 0.31 0.7% 0.6 0.5 0.5 Hercules 1995m $2,427 1994 2,821 1993 2,773 1992 2,865 $332.8 274.2 208.4 167.9 $2,493 2,941 3,162 3,228 $999.7 1,216,1 1,309.3 1,348.3 $116.8 164.2 149.5 150.1 $1,082 1,295 1,368 1,746 13.7% 9.7 7.5 5.9 30.8% 21.2 15.2 9.6 $2.93 2.29 1.62 1.23 $0.84 0.75 0.75 0.75 1.7% 2.1 2.5 4.2 IMC Global 199Sa $1,924 1994d 1,442 1993d 897 1992d 1,059 $127.1 6.9 0.5 90.9 $2,693 2,778 2,056 1,778 $1,868.2 1,927.4 1,326.5 1,266.8 $64.2 40.7 106.1 177.7 $763 655 430 615 6.6% 0.5 0.1 8.6 16.7% 1.1 0.1 14,8 $4.30 0.28 0.02 4.12 $0.30 0 0.81 1.08 0.7% -- 2.3 2.0 Dlvl- Stock Price- price esm- range, ing* S per share______ ratio $13'/s-9V2 197e-9V 30%-16% 30Vs-23% 16.2 18.7 31.3 11.9 $307e-21% 3578-217s 3434-26Va 31 '/J-23V2 15.9 18.9 16.6 14.5 $34Vs-14'4 17-8 Vi 113/4-7% 1478-6 8.6 14.5 73.1 54.5 $79'/s-57% 65-45 Vs 53-41 % 53--42% 12.0 11.9 10.6 9.5 $3934-2734 4274-29 423A-31 'A 5374-3278 15.2 16.2 23.9 16.8 $313/8-26 31V8-25V8 24Va-19V8 10.4 13.9 271.1 $4034-26% 43'4-21% 233/a-I 6 Vi 287b-1534 7.1 11.3 19.9 18.8 $725/s-415/s 48-39'/s 5378-39% 56V8-3878 13.3 19.4 166.7 -- $71V4-38V2 4672-36 41 Va-34% 45-32 27.0 13.7 14.8 43.8 $7478-5434 82--48% 84-6472 717s-50V4 143 16.3 19.4 18. $6274-3874 4072-3278 3872-2178 2174-1478 17.2 15.E 18.` 14.: $547b-347b 4974-26 457/8-243/e 68--427e 10. 134. 1,756 13. a Excludes business spun off as Albemarle on Feb, 2B, 1994 In 1993. this business contributed $903 million in sales and $22.7 million in earnings, b On Feb. 28. 1994, sharenolde received one Albemarle share tor every two Ethyl shares, c Excludes insurance business, spun oft n 1993. In 1992. this business contributed $162.5 million to earnings, spin-off reduc stockholders' equity by $677.5 million, d Fiscal year ends June 30. e Excludes coal. oil. and certain other technology businesses discontinued in the 1992-93 fiscal year, in the year end> June 30. 1992. these businesses contributed $71 5 million to net sales and decreased earnings by $11 9 million, f Fiscal year ends Nov 30. g includes $6 million charge for restructurir h Became an independent company on April 29.1993; poor to that was part of 6F Goodnch. Data for 1993 are pro forma. 1 Excludes maior portion of vinyl business, spun off as separ. company in 1993 in 1992. this business contributed $894.3 million to net sales and decreased eamtngs by $79.6 million, j Includes $13 3 million charge for restructuring, k includes $l( million charge for restructunng. I Excludes health care operations in anticipation of spin-off in 1994. this business contributed $1,875 billion to net sales and $124.7 million in earnin' m Excludes 70% ot aerospace business sold to AUiant Techsystems in March 1995. 58 ?UNE24,1996 C&EN CMA 054572 >jarmfce*- ings ratio 18.2 18.7 31.3 11.9 15.9 18.9 16.6 14.5 8.6 14.5 73.1 54.5 12,0 11.9 10.6 9.5 15.2 16.2 23.9 16.8 10.4 13.9 71.1 7,1 11,3 19.9 18.8 3.3 9.4 56.7 17.0 37 48 3.8 4.3 6.3 9.4 8.6 7.2 5.9 8.4 4.7 3.3 4.4 3.3 34 ers Ting n9 ate ^7 3s Yaar Eaminpa Total assets Net plant and aqulpmant Capital StockhpMara' expenditures agility %of aalat EARNINGS % of stockholders' Spar equity______ ahara (Money figures in millions of dollars unless otherwise indicated) (Mvf* dand, Spar share Dlvi- dend yield, % of price Stock price range, Spar share Priceasmings ratio 1995 1994 1993 1992 $1,439 1,315 1,189 1,126 226.0 202.4 189.7 1,400 1,225 1,268 $466.6 405.7 323.4 286.4 International Spec 1995 $689 1994 600 1993 548 1992 571 $67.4 45.8 29.6" 57.2 $882 807 786 800 $475.6 477.1 478.5 452.1 Loctite 1995 1994 1993 1992 $785 704 613 608 82.4 68.3 72.3b $606 560 511 479 $286.7 203.3 164.5 139.0 Lubrizol 1995 1994 1993 1992 $1,664 $132.8 1,593 148.8 1,518 113.5 1,545 124.6 $1.492 1,353 1,146 1,112 $676.8 558.7 437.6 375.6 Monsanto 1995 $8,962 $728.0 1994 8,272 623.0 1993 7,902 479.0 1992 7,763 346.0 $8,647 7,757 7,451 8,019 $2,832.0 2,817.0 2,802.0 3,005.0 Morton international 1995c $3,326 $294.1 1994c 2,850 226.5 1993c 2,310 146.0 19921 2,044 144.5 $2,432 2.130 1,894 1,755 $1,119.5 1,004.9 914.3 835.2 Nalco Chemical 1995 $1,215 $135.7 1994 1,346 151.1 1993 1,389 152.7 1992 1,375 145.0 $1,239 1,168 1,100 1,232 $520.0 523.9 558.5 533.3 Occidental Petroleum 1995 $10,423 $511.0 1994 9,236 -36.0 1993 8,116 74.0a 1992 8,494 126.0* $17,815 17,989 17,123 17,877 $13,867.0 14,502.0 14,284.0 14,051.0 Olin 1995 1994 1993 1992 $3,150 $140.0 2,658 91.0 2,423 40.0 2,376 55.0 $2,151 1,921 1,816 1,904 $956.0 879.0 885.0 934.0 Petrolite 1995' 1994' 1993' 1992* $365 369 352 318 $6.2 7.0 20.5 16.5 $284 297 282 241 $111.4 127.1 124.1 107.0 PPG Industries 1995 $7,058 $767.6 1994 6,331 515.0 1993 5,754 295.0 1992 5,814 319.0 $6,194 5,894 5,652 5,662 $2,835.0 2,742.0 2,787.0 2,972.0 Praxair9 1995 1994 1993 1992 $3,146 $262.0 2.711 203.0 2,438 143.0 2,604 84.0 $3,819 3,430 3,188 3,283 $2,737.0 2,350.0 2,273.0 2,315.0 $94.5 101.1 82.3 51.1 $1,117 1,008 892 977 $38.9 31.1 62.9 70.5 $213 85 77 46 $33.9 59.1 46.3 40.2 $287 314 266 305 $189.3 160.5 127.9 95.8 $849 791 696 804 $500.0 409.0 437.0 586.0 $1,768 1,814 1,666 1,939 $252.2 219.9 201.4 200.1 $1,339 1,067 856 867 $126.7 125.6 117.8 131.0 $449 430 438 458 $979.0 1,103.0 1,083.0 860.0 $4,630 4,457 3,958 3,440 $201.0 149.0 132.0 173.0 $720 640 482 615 $12.6 21.8 . 18.9 18.3 $150 148 144 165 $454.0 356.0 293.0 283.0 $2,569 2,557 2,473 2,699 $600.0 326.0 240.0 333.0 $806 749 568 483 17.3% 17.2 17.0 16.8 22.3% 22.4 22.7 19.4 $2.24 2.03 1.78 1.64 $1.24 1.08 1.02 0.93 2.5% 2.6 2.8 2.6 $557a-45'/s 477/s-35ys 39%-33 3874-31 Vi 22.5 20.6 20.5 21.4 9.8% 7.6 5.4 10.0 31.6% 53.9 38.4 124.0 $0.68 $0 0.46 0.05 0.30* 0.05 0.57 0.05 0.7% 0.6 0.4 $11-6% 872-578 97.-574 1578-8% 12.8 15.1 25.8 21.6 10.7% 11.7 11.1 11.9 29.3% 26.2 25.7 23.7 $2.40 $0.96 2.33 0.82 1.88 0.79 1.99b 0.74 2.0% 2.0 2.0 1.6 $5078--43% 46%-35 45%-34% 507b~39% 19.6 17.5 21.4 22.7 8.0% 9.3 7.5 8.1 15.6% 18.8 16.3 15.5 $2.08 2.26 1.67 1.81 $0.93 0.89 0.85 0.81 3.0% 2.7 2.7 2.7 $3778-25% 38%-28% 3678-26% 347e-2478 15.1 14.9 18.9 16.4 8.1% 7.5 6.1 4.5 41.2% 34.3 28.8 17.8 $6.27 5.33 4.22 3.11 $2.70 2.47 2.30 2.20 2.8% 3.2 3.7 3.6 $1247.-68% 86V2-66V2 75--487a 7174-4974 15.4 14.4 14.7 19.5 8.8% 7.9 6.3 7.1 22.0% 21.2 17.1 16.7 $1.96 1.51 0.90 0.96 $0.44 0.37 0.32 0.32 1.5% 1.2 1.5 1.6 $32-257. 3774-2578 2672-167e 2178-1774 14.7 20.8 24.1 19.8 11.2% 11.2 11.0 10.5 30.2% 35.1 34.9 31.7 $1.71 1.89 1.88 1.90 $0.99 0.945 0.885 0.84 3.0% 2.8 2.6 2.4 $38%-287e 377e-2974 3778-3074 4078-3078 19.5 17.9 18.1 18.8 4.9% -- 0.9 1.5 11.0% -- 1.9 3.7 $1.31 $1.00 -0.36 1.00 0.12* 1.00 0.41* 1.00 4.7% 5.3 5.0 5.1 $247a--18 227s--157b 2372-167e 237s-1574 16.2 -- 168.2 47.4 4.4% 3.4 1.7 2.3 19.4% 14.2 8.3 8.9 $5.50 3.65 1.90 2.17 $2.40 2.20 2.20 2.20 3.8% 4.1 4.9 4.8 $777e-487s 607e--46 5072-3978 5474-3774 11.4 14.5 23.8 21.2 1.7% 1.9 5.8 5.2 4.1% 4.7 14.2 10.0 $0.55 0.62 1.82 1.45 $1.12 1.12 1.12 1.12 4.0% 3.3 3.5 4.2 $3272-2374 4074-28 4074-24 3172-217. 50.7 55.0 17,7 18.4 10.9% 8.1 5.1 5.5 29.9% 20.1 11.9 11.8 $3.80 2.43 1.39 1.51 $1.18 1.12 1.04 0.94 10.7% 7.2 4.3 4.7 $13-9 17-14 27-21 23-17 2.9 6.4 17.3 13.2 8.3% 7.5 5.9 3.2 32.5% 27.1 25.2 17.4 $1.82 1.45 1.06 0.64 $0.32 0.28 0.25 0.25h 1.2% 1.4 1.5 1.6" $3378-1978 247b-1 6% 1874-15 1778-1378' 14.8 14.1 15,7 24.0 CMA 054573 a Includes $13.9 million charge for restructuring, b Includes $12.7 million charge for restructunng. c Fiscal year ends June 30. d From continuing operations; excludes income from sale of coal business of $221 million, e From continuing operations; excludes loss from coal business of $622 million, f Fiscal year ends Oct. 31. g Became an independent company on June 30, 1992; prior to that was part of Union Carbide. Data for first half of 1992 are pro forma and are not included in Union Cartada data, h On full-year basis, i From June 30 only. JUNE 24,1996 C&EN 59 2 FINANCES OF THE U S. CHEMICAL INDUSTRY Veer Net tales Earnings Rohm and Haas 1995 53,884 1994 3,534 1993 3,269 1992 3,063 $292.0 264.0 126.0 174.0 Stepan 1995 1994 1993 1992 $528 444 439 436 $16.1 13.8 10.8 10.4a Sterling Chemicals 1995s $1,030 $153.2 1994b 701 19.1 1993h 519 -5.4 1992B 431 4.5 Union Carbide 1995 $5,888 1994 4,865 1993 4,640 1992 4,872 $863.0 389.0 165.0 119.0 Witco 1995 1994 1993 1992 $1,985 2,225 2,143 1,729 $66.9 107.1 79.9 53.9" Total assets Net plant and Capful Stortftotdcr* qulpmwil XpMKlttUI** putty EARNINGS %Of %of ttoefclwkMn' MlM aqutty *pw tlwn (Money figures in millions of dollars unless otherwise indicated} Dtvidend, *pw after* Dlvi- dend yield, % of price $3,577 $2,048.0 3,736 1,960.0 3,394 1,869.0 3,297 1,768.0 $417.0 339.0 382.0 283.0 $1,442 1.495 1.311 1,280 7.5% 7.5 3.9 57 20.2% 17.7 9.6 13.6 $4.22 3.79 1.74 2.53 $1.56 1.44 1.36 1.28 2.7% 2.4 2.5 2.5 $363 325 300 297 $192.5 183.7 168.9 167.9 $555 524 482 536 $309.1 291.1 314.3 343.8 $39.2 42.9 25.4 34.4 $54.0 12.3 12.2 16.0 $122 111 104 100 3.0% 3.1 2.5 2.4 13.2% 12.4 10.4 10.4 $1.51 1.29 0.98 0.95* $0.45 0.43 0.41 0.37 $184 39 13 24 14.9% 2.7 -- 1.0 83.3% 49.0 -- 18.8 $2.76 0.34 -0.10 0.08 $0 0 0.06 0.245 2.5% 2.9 2.6 2.1 _ 1.5% 5.4 $6,190 $2,808.0 4,991 2,542.0 4,645 2,420.0 4,856 2,539.0 $542.0 409.0 395.0 359.0 $1,979 1,472 1,384 1,153s 14.7% 8.0 3.6 2.4 43.6% 26.4 11.9 10.3 $6.01 2.44 1.00 0.76 $0.75 0.75 0.75 0.875c 2.2% 2.6 3.8 6.3 $2,044 1,728 1,622 1,562 $812.0 720.0 696.5 721.2 $115.8 107.4 103,7 72.6 $276 749 496 364 3.4% 4.8 3.7 3.1 24.2% 14.3 16.1 14.8 $1.18 1.91 1.56s 1.19* $1.12 1.03 0.94 0.92 3.7% 3.5 3.3 4.0 Stock price range, S par than Priceearn- tops ratio $64%-49Vz 68Vz-53'/4 62-47Vi 59Vs-42% 13.6 16.1 31.4 20.2 $20%--14% 17'Vi6-12% 1813/ie-12%s 22%-13'/b 11.8 11.7 16.0 18.9 S14-8V4 13%-3% 5-3 Vs 5%-3% 4.0 25.2 -- 56.3 $42%-25'/s 35%-21 % 23Vi-16 17Vs-10% 5.7 11.6 19.6 18.4 $36-24 35-24% 32V4-24 25V2-20 25.4 15.5 18.0 19.1 PHARMACEUTICALS Abbott Laboratories 1995 $10,012 $1,689.0 1994 9,156 1,516.7 1993 8,408 1,399.1' 1992 7,852 1,239.1 $9,413 $4,250.0 8,524 3,920.9 7,689 3,511.0 6,941 3,099.2 $947.0 929.5 952.7 1,007.2 American Home Products 1995 $13,376 $1,482.0 1994" 8,966 1,528.3' 1993 8,305 1,469.3 1992 7,874 1,370.7 $12,713 $3,960.3 12,494 3.811.9 6,971 2.059.8 6,433 1,777.8 $637.5 472.5 517,9 428.1 Bristol-Myers Squibb 1995 $13,767 $2,402.0 1994 11,984 2,330.0 1993 11,413 2,269.0 1992 11,727 2,108.0 $12,710 $3,760.0 11,971 3,666.0 11,910 3,374.0 10,651 3,141.0 $513.0 573.0 570.0 647.0 Johnson & Johnson 1995 $18,842 $2,403.0 1994 15,734 2,006.0 1993 14,138 1,787.0 1992 13,753 1,625.0 $14,923 $5,196.0 13,265 4.910.0 11,317 4,406.0 11,168 4,115.0 $1,256.0 937.0 975.0 1.103.0 Eli Lilly 1995 1994> 1993 1992 $6,764 $1,307.0 5,712 1,185.1* 6,452 491.1' 6,167 827.6' $10,307 $4,239.3 10,096 4,411.5 9,624 4,200.2 8,213 4,072.1 $551.3 576.5 633.5 912.9 Merck 1995 1994 1993 1992 $16,681 $3,335.2 14,970 2,997.0 10,498 2,166.2' 9,663 2,446.6 $17,006 $5,269.1 14,644 5.296.3 13,282 4,894.6 10,933 4,271.1 $1,005.5 1,009.3 1,012.7 1,066.6 $4,397 4,049 3,675 3,348 16.9% 16.6 16.6 15.8 38.4% 37.5 38.1 37.0 $2.12' 1.87 1.69' 1.47 $0.84 0.76 0.68 0.60 $-3,107 -4,927 3,160 2,854 11.1% 17.0 17.7 17.4 _ -- 46.5% 48.0 $4.78 4.97' 4.73 4.36 $3.02 2.94 2.86 2.66 $4,603 4,765 5,749 5,867 17.4% 19.4 19.9 18.0 52.2% 48.9 39.5 35.9 $4.75 4.58 4.40 4.07 $2.96 2.92 2.88 2.76 $6,095 4,719 4,643 4,455 12.8% 12.7 12.6 11.8 39.4% 42.5 38.5 36.5 $3,72 3.12 2.74 2.46 $1.28 1.13 1.01 0.89 $1,327 999' 4,164 4,440 19.3% 20.7 7.6 13.4 98.5% 118.6 11.8 18.6 $2.30 $1.33 2.05K 1.26 0.79m 1.22 1.43" 1.13 $4,909 3,927 3,376 4,849 20.0% 20.0 20.6 25.3 67,9% 76.3 64.2 50.5 $2.70 2.38 1.87 2.12 $1.24 1.14 1.03 0.92 2.2% 2.6 2.5 2.0 $44%~30% 34-25% 30%-22% 34%-26'/a 17.8 15.9 15.8 20.5 3.7% 4.8 4.6 3.6 $99%-61% 67V--55% 69-55% 84 Vi-63 Vt 16.9 12.3 13.2 16.9 4.1% 5.3 4.9 3.7 $87'/b-57% 61-50 67V4-50% 90'/s-60 15.3 12.1 13.4 18.4 1.8% 2.4 2.3 1.7 $92%-53Ve 56%-36 50%-35Vb 58%--43 19.6 14.8 15.7 20.7 4.7% 4,4 4.6 3.1 $33Vo-239/is 12.3 33Vo-23'/2 13.8 31-22% 33.9 43%-28% 25.d 2.4% 3.4 3.0 1.9 $67V4-36% 39%--28'/a 44Ve--25Ve 56Ve--4OV2 19.i 14.1 18.( 22.- CMA 054574 a Includes $6.5 million net charge for asset write-offs. restructuring, and environmental expenditures, b Fiscal year ends Sept, 30 c On dune 30. stockholders received one share in the nei formed industrial gases company. Praxair, for every snare of Union Carbide stock, the effect of this spin-off was to reduce Union Carbide stockholders' equity by $733 million d Indue $100.6 million charge for environmental expenditures, disposition of businesses, workforce reduction, legal judgment, and otner costs e Includes $20 million charge for consolidation offices f includes $70 million credit related to product withdrawal and $272 million gam on sale of investment, g Includes $215 million charge for product withdrawal h Reflects acquisition American Cyanamid. Dec. i. idga I Includes $173.7 million charge tor restructuring, j Reflects divestiture of medical devices and diagnostic businesses during 1994 k Includes $66 min charge tor recall of three products and $56 4 million charge for tmprocess R&O associated with September 1994 acquisition of Sphinx Pharmaceuticals. I Reduced by $4 41 btfkon for good related to acquisition of PCS. m includes $1.03 billion charge for restructuring, n includes $404 mtfbon charge for restructunng o Includes $775 million charge for restructuring, 60 JUNE 24, 1996 C&EN Priceearn ing* ratio 49% 53 Vi 47% 42% 13.6 16.1 31.4 20.2 14% 12% 12% e 13% 11.8 11.7 16.0 18.9 3Vi 4.0 3% V/b 2--5.2 3% 56.3 35% 5.7 >1% 11.8 6 19.6 0% 18.4 '4 25.4 4% 15.5 4 18.0 0 19.1 05/fe 17.8 5% 15.9 25/a 15.8 3 V$ 20.5 13/4 16.9 53/s 12.3 5Yz 13.2 3Y4 16.9 *3/4 15.3 ) 12.1 F/a 13.4 ) 18.4 m 19.6 > 14.8 j5/s 15.7 20.7 9/ig 12.3 v2 13.8 Vz 33.9 Ye 25.4 Vs 19.2 ye 14.2 v8 18.6 '/z 22.9 m the newly d Includes solidation of cquismon of ^ $66 million lor goodwill Y#er Earnings Total aaaata Not plant and aquipmant Capital Stockholder*' expenditures equity % of aalaa EARNINGS % of tockhoktaff' $ par equity______ anara {Money figures in millions of dollars unless otherwise indicated) Oivl* dends, dend $ par yield, % share of price Divl* Stock pnce rsnge, S per Share Pncaeammg* ratio Pfizer 1995 1994 1009 1992 $10,021 8,281 7478 7,230 $1,572.9 1,298.4 1,182.5 1,093.5" $11,486 10,773 9,100 9,222 $3,472.6 3,073.2 2,632.5 2,305.1 Rhone-Poulene Rorer 1995 $5,142 $433.7 1994 4,175 428.8 1009 4 019 417.0 1992 4,096 423.3 $5,167 $1,621.0 3,489 1,123.0 3,167 1,032.0 2,913 974.5 Srharina-Plouah 1995 1994 1009 $5,104 4,657 4.341 1992 4,056 $1,053.0 922.0 825.0 720.0 $4,665 $2,096.9 4,157 2,082.3 4,134 1,967.7 3,967 1,748.5 Warner-Lambert 1995 $7,040 1994 6,417 1993 5,794 1992 5,598 $740.0 694.0 645.0 643.7 $5,696 $2,006.0 5,153 1,846.0 4,514 1,599.3 3,921 1,507.1 $696.3 671.5 634.2 674,2 $281.5 220.9 250.4 284.3 $293.8 271.6 365.2 403.2 $387.3 406.4 347.1 334.3 $4,264 3,998 3,634 4,350 15.7% 15.7 15.8 15.1 36.9% 32.5 32.5 25.1 $2.50 $1.04 2.09 0.94 1.85 0.84 1.63" 0.74 3.1% 2.8 2.6 1.9 $39%-26% 39"/i6-26%6 3713/i6-26Vi 43%-32Vib 13.3 15.8 17.4 23.4 $-1,463 1,108 939 623 8.4% 10.3 10.4 10.3 -- 38.7% 44.4 67.9 $3.21 3.03 2.93 2.99 $1.20 1.12 1.10 0.68 2.7% 3.1 2.5 1.2 $53Vi-36% 42%--30'/2 54-32% 69%-44% 14.0 12.1 14.8 19.0 $1,623 1,406 1,399 1,407 20.6% 19.8 19.0 17.8 64.9% 65.6 59.0 51.2 $2.85 2.42 2.09 1.80 $1.13 0.99 0.87 0.75 2.3% 3.0 2.8 2.5 $60%-35'%6 37'%6-279/,6 35'/2-257/b 35Vi 6-24'Vi6 16.9 13.6 14.5 16.7 $1,841 1,437 1,076 1,372 10.5% 10.8 11.1 11.5 40.2% 48.3 59.9 46.9 $5.48 5.17 4.78 4.78 $2.60 2.44 2.28 2.04 3.0% 3.3 3.3 3.0 $98-73Va 86V--60 76Vs-59% 79Vi-58% 15.6 14.2 14.2 14.4 BIOPHARMACEUTICALS-------------------------------------------------------------------------------------------------------- EARNINGS Net plant %of Stock price Price- Net R&D R&Ds*% Total end Stockholder*' %of stockholders' f per range, eemings Year sales Earnings spending of sales assets equipment equity sale* equity share $ per share ratio (Money figures m millions of dollars unless otherwisei indicated) Amgen 1995 1994 1993 1992 $1,818.6 1,549.6 1,306.3 1,050.7 $537.7 319.7P 366.0C 357.6" $451.7 323.6 255.3 182.3 24.8% 20.9 19.5 17.4 $2,432.8 1,994.1 1,765.5 1,374.3 $743.8 665.3 586.9 426.0 $1,671.8 1,274.3 1,172.0 933.7 29.6% 20.6 28.0 34.0 32.2% 25.1 31.2 38.3 $1.92 1.14 1.30 1.22d $593/a-28Vi 29''/ib-171 Vis 35Vs-1534 38%-25 22.8 20.7 19.7 26.3 Biogen 1995 1994 1993 1992 $134.7" 140.4* 136.4* 121.7* $5.7 -4.9' 32.4 38.3 $87.4 91.2 79.3 60.4 64.9% 65.0 58.1 49.6 $461.2 369.7 349.5 311.2 $115.0 73.2 38.5 32.3 $375.0 321.8 318.0 284.9 4.2% -- 23.8 31.5 1.5% -- 10.2 13.4 $0.16 -0.15' 0.93 1.12 $66 Vi-32 55%-27'/4 47Vi-24Vi 49V,-18Vi 307.8 -- 38.7 - 30.4 Chiron 1995 1994 1993 1992h $992.9 276.0 147.9 111.6 $-512.2 18.3 18.4 -92.6' $343.8 166.2 140.0 142.9 37.3% 60.2 94.7 128.0 $1,418.6 963.9 906.6 712.4 $517.8 286.2 204.0 89.6 $600.8 486.8 460.3 492.9 -- 6.6% 12.4 -- -- 3.8% 4.0 -- $-12.62 0.53 0.55 -3.07' $113V4--47V4 95Vb-517/b 85VV-41 Va 733/4-34Vt -- 138.7 115.1 -- Genentech 1995 $635.3 1994 601.0 1993 457.4 1992 391.0 Genzyme 1995* 19941 1993 1992 $356.9 288.7 233.9 180.0 $146.4 124.4 58.9 20.8 $21.7 16.3 -6.1' -30.3 $363.0 314.3 299.4 278.6 - $68.9 55.3 48.3 39.7 57.1% 52.3 65.5 71.3 $2,011.0 1,745.1 1,468,8 1,305.1 $503.7 485.3 456.7 432.5 $1,602.0 1,348.8 1,116.8 1,007.3 23.0% 20.7 12.9 5.3 19.3% 19.2 20.6 22.1 $875.3 629.1 512.5 480.7 $329.4 296.8 196.2 87.9 $675.3 389.7 304.5 322.9 6.1% 5.6 -- -- 9.1% 9.2 5.3 2.1 3.2% 4.2 -- -- $1.21 1 04 0.50 0.18 $53-44% 53V2-41V4 50Vi-31 >/4 39'/2-257/b 40.3 45.8 81.8 181.6 $1.45* 1.22k -0.25' -1.40 $70V64-27'/4k 38 Vi-25 Vik 46 Vi-25 Vi 66 Vi-32 Vi 33.6h 26.1k -- -- Immune* 1995 1994 1993 1992 $137.6 135.8 119.1m 51.9 $-11.3 -29.1 -430.3""1 -77.6P $83.5 77.6 72.5m 37.1 60.7% 57.1 60.9m 71.5 $146.4 178.9 182.2 233.1 $87.5 96.3 100.5 97.0 $109.9 91.0 111.9 131.3 -- -- -- -- -- $-0.29 $18'/2-9V4 -- * -0.85 19V.-10V4 -- -- -9.58n0 34V4-13V40 -- -- -5.21p 68-22% -- CMA 054575 a includes $110.5 million net gain from $258.6 million sale of assets. $204 6 million charge lor restructunng, and $56 5 million gam associated with retirement benefits from divested operations, b Includes $116.4 million wnte-ott for in-process technology related id acquisition of Synergen on Dec 22.1994. c Includes $77 million legal award, d Includes $129 million legal assessment, e Includes royalty income from licensees' sales of several major products f includes $25 million charge for discontinuing the development of Hirulog, g Includes $454 million m extraordinary items largely relating to company's partnership with Ciba. h Results Of Cetus following Dec. 12. 1991. acquisition are included in data for 1992 and later years. I Includes $37.6 million wnte-ofl of technology. ] Consolidated financial data; includes general division and tissue repair division created December 1994. k For general division only I Includes $49 million purchase of R&D and $26.5 million goodwill and restructunng costs, m Merged June 2. 1993. with Lederte Laboratories' oncology business; combined figures tor predecessor and successor companies, n Includes $346.4 million tor acquisition of in-process R&D, $14.8 million for merger costs, and $25.6 million for modified stock option plan o Merged June 2. 1993, with Lederte Laboratories oncology business; figures for successor company only, p Indudes $58.7 million purchase of R&D. JUNE 24,19% C&EN 61 3 EMPLOYMENT IN THE U.S. CHEMICAL INDUSTRY Chemical employment continues downward n 1995, the overall economy and the demand for chem Iicals were fairly strong; however, top industry manag ers at major chemical companies continued their drive to increase operating efficiencies with fewer people, thereby Chemical employment enters into foiuih year of decline reducing employment costs and thus increasing profits. Back in 1992, chemical industry employment seemed on a steady keel, and the average number of employees stood at 1.084 million. However, the tide turned in 1993 when the industry began to downsize. In that year, the average num ber of industry employees declined to 1.081 million. Indus try employment continued to decline through 1995, when the number of employees stood at 1.045 million--a loss of 39,000 employees from 1992. All but one segment of the chemical industry have experi enced job losses since 1992. The only exception is in the paints and allied products sector, where employment has held steady. Department of Labor statistics show most cuts since 1992 affected white-collar and managerial workers. As production and product demand rose in recent years, 1992 1993 1994 1995 1995 the industry has cautiously increased the numbers of its production workers. The annual average number of chemi a Seasonally adjusted employment mUS chemicals and allied products industry. March and April 1996 figures are preliminary. Source; Department of Labor cal industry production workers rose from 567,000 in 1992 to 582,000 in 1995--an increase of 15,000 jobs. The number W.R. Grace has an agreement in effect to sell its kidney of production workers rose in most chemical industry seg dialysis unit and no longer counts the unit's employees in ments in 1995, except for the plastic materials and synthet its active duty rosters. Grace counted 16,700 fewer employ ics segment, where it declined 3%, and the soap, cleaners, ees in 1995 than it did in 1994. And Dow Chemical sold its and toilet goods sector, where it declined 1%. Marion Merrell Dow pharmaceutical operations to Bayer, Employment at 22 major chemical firms followed the in and sold some other units as well. Dow Chemical counted dustry trend. The major chemical firms collectively reduced 14,200 fewer employees in 1995 than it did in 1994. employment by 34,200 from 1994 to 1995. Although the Although overall chemical industry jobs declined, the nearly 12% reduction in employment for the major chemi ranks of chemists and engineers increased for the chemi cal companies is far greater than the nearly 2% drop in all cals and allied products category, at least for 1994, accord chemical industry jobs, employment levels at two compa ing to the most recent statistics from the National Science nies largely accounted for the change. Foundation. INDUSTRIAL EMPLOYMENT: No chemical segments gained employees in 1995 Thouaanda 1985 1986 1967 1988 1989 1990 1991 1992 1993 1994 1995 % annual change 1994-95 1965-95 All manufacturing 19,248 18,947 18,999 19,314 19,391 19,076 18,406 18,104 18,075 18,303 18,405 i% 07, Chemicals & allied products 1,044 1,021 1,025 1,057 1,074 1,086 1,076 1,084 1,081 1,061 1,045 -2 0 Industrial inorganic chemicals 143 135 131 133 135 138 129 136 135 132 129 -2 -1 Plastic materials & synthetics 172 168 168 177 182 160 178 173 166 162 158 -2 -1 Drugs 206 208 215 228 232 237 247 257 265 263 259 -2 2 Soap, cleaners & toilet goods 148 146 152 159 160 159 155 154 157 153 152 -1 0 Paints & allied products 63 63 63 63 62 61 58 58 58 58 58 0 -1 Industrial organic chemicals 160 154 148 146 150 155 155 154 151 144 143 -1 -1 Agricultural chemicals 59 54 51 52 54 56 57 58 56 55 53 -4 -1 Miscellaneous chemical products 94 93 97 100 99 100 97 94 92 93 93 0 0 Petroleum & coal products 179 169 164 160 156 157 160 158 152 149 144 -3 -2 Rubber & miscellaneous plastics products 816 823 842 866 888 888 862 878 909 952 972 2 2 Note; Average annual domestic employment Source: Department of Labor 62 JUNE 24.19% C&EN CMA 054576 JLL 1996 dney es in =>lyid its ayer, nted . the emi:ordence snga as-95 0% 0 -1 -1 2 0 -1 -1 -1 0 -2 2 PRODUCTION WORKERS: Chemical industry gained for third straight year ThoUMnd* % annual change 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1994-95 1985-95 All manufacturing Chemicals & allied products Industrial inorganic chemicals Plastic materials & synthetics 13,084 12,864 12,952 13,193 13,230 12,947 12,434 12,287 12,341 12,615 12,727 i% -i% 577 568 575 596 603 600 580 567 573 579 582 1 0 72 69 67 69 70 70 64 61 58 57 57 0 -3 114 113 HI 116 119 116 110 104 104 109 106 -3 Drugs 95 96 99 101 102 105 109 112 117 121 127 5 2 Soap, cleaners & toilet goods 93 93 97 102 101 98 95 94 96 95 94 -1 0 Paints & allied products 31 30 31 31 32 31 30 30 30 30 31 1 0 Industrial organic chemicals 82 81 83 86 88 86 81 76 78 80 81 1 0 Agricultural chemicals 37 33 32 33 34 34 34 35 33 31 31 0 -2 Miscellaneous chemical products 54 53 55 58 59 59 58 56 54 55 56 2 0 Petroleum & coal products Rubber & miscellaneous plastics products 109 106 107 104 102 103 103 103 99 97 93 -4 632 639 653 674 692 686 662 677 703 741 756 2 -1 2 Note: Average annual domestic employment. Source: Department of Labor EMPLOYMENT OF WOMEN: Decade brought increases in all chemical fields 1984 1994 % of % of Thousand* total Thousand! total All manutacturing 6,295.0 Chemicals & allied products 282.5 Industrial inorganic chemicals 24.9 Plastic matenals & synthetics 38.5 Drugs 89.3 Soap, cleaners & toilet goods 61.3 Paints & allied products 11.9 Industrial organic chemicals 26.1 Agricultural chemicals 9.0 Miscellaneous chemical products 21.5 Petroleum & coal products 29.9 Rubber & miscellaneous plastics products 280.4 32% 5,987.0 27 335.2 17 30.3 22 40.1 43 120.2 42 68.3 19 12.0 16 30.6 15 10.8 23 22.8 16 24.8 34 325.2 33% 32 23 25 46 45 21 21 20 25 17 34 Note: Average annual domestic employment. Source: Department of Labor WORKWEEK: Mixed for chemicals and allied products, shorter for all manufacturing Hourt 1992 1993 1994 1995 All manufacturing Chemicals & allied products Industrial inorganic chemicals Plastic matenals & synthetics Drugs Soap, cleaners & toilet goods Paints & allied products Industrial organic chemicals Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastics products 41.0 41.4 42.0 41.6 43.1 43.1 43.2 43.3 43.5 43.8 44.4 45.4 43.8 44.1 44.1 44.2 42.5 41.4 41.3 41.8 41.3 41.9 41.3 40.9 41.6 42.2 43.2 42.6 45.6 45.4 45.4 45.1 44.7 44.7 45.5 45.0 42.6 42.9 43.4 43.5 43.8 44.2 44.4 43.8 41.7 41.8 42.2 41.5 Note: For production workers in domestic employment Source: Department of Labor EMPLOYMENT OF SCIENTISTS, ENGINEERS: Grew again in chemical industry in 1994 ThoUMnd* 1984 1985 1986 1987 1988 1988 1880 1981 1992 Total, all Industry Chemicals & allied products Drugs & medicines Industrial chemicals Other chemicals Petroleum refining & extraction 584.1 69.8 30.8" 25.6 13.4 13.3 622.5 71.1 30.8 23.5 16.7 13.5 671.0 75.8 31.8 24.9 19.1 10.4 695.8 75.2 32.6 22.4" 20.2 9.9 708.6 75.8 33.0 22.5s 20.3 9.5 722.5 78.3 34.4 23.1s 18.8 10.7 743.6 80.4 34.3 23.0s 18.9 11.1 773.4 81.6 35.4 22.7s 17.0 11.4 779.3 85.6 38.7 29.9 17.0 11.5 Note: Full-time equivalent number of R&D scientists and engineers in industry, as of January of each year, a Partly estimated. Source: National Science Foundation 1993 764.7 86.5 42.3 26.4 17.8 11.0 1994 768.5 93.1 48.5 28.8 15.8 9.7 CMA0S4577 JUNE 24,19% C&EN 63 3 EMPLOYMENT IN THE U.S. CHEMICAL INDUSTRY k. CHEMICAL EMPLOYMENT: Jobs at major firms are down nearly 12% from a year ago Thousands Air Products Betz Laboratories Cabot Crompton & Knowles Dow Chemical 1995 18.7 2.5 7.7 2.3 53.2 1996 16.6 2.6 6.6 1.3 51.3 1997 12.1 2.0 5.1 1.3 53.1 1989 13.3 3.1 5.2 1.6 55.5 1989 14.1 3.4 5.5 1.7 62.1 1990 14.0 3.7 6.0 1.8 62.1 1991 14.6 4.0 5.3 2.0 62.2 IMS 14.5 4.2 5.4 2.2 61.4 1993 14.1 4.1 5.4 2.3 55.4 1994 13.3 4.0 5.4 2.5 53.7 1995 14.8 4.1 4.1 2.8 39.5 Ethyl* H. B. Fuller BF Goodrich W.R. Grace Hercules 10.5 10.5 10.0 10.4 5.5 5.7 6.0 6.3 5.5 1.5 1.8 4.4 4.5 4.6 5.2 5.5 5.6 5.6 5.8 6.0 6.4 6.4 26.2 11.9 12.0 12.3 11.9 14.7 14.4 13.4 13.4 13.4 13.3 116.9 41.4 39.4 45.7 46.4 49.0 46.6 44.1 34.0 37.9 21.2 25.4 25.1 23.2 22.7 23.3 19.9 17.3 15.4 14.1 12.0 7.9 International Flavors Loctite Lubrizol Monsanto Nalco Chemical 3.7 3.8 4.1 4.2 4.2 4,2 4.2 4.2 4.4 4.6 4.7 2.6 2.9 3.2 3.3 3.5 3.7 3.6 3.7 4.0 4.2 4.3 5.2 4,8 4.8 4.8 5.3 5.2 5.3 4.6 4.6 4.5 4.6 56.1 51.7 49.7 45.6 42.2 41,1 39.3 33.8 30.0 29.4 28.5 5.1 4.9 5.1 5.4 5.5 5.9 6.8 6.7 6.8 5.6 6.1 Olin PPG Industries Praxair*' Rohm and Haas Stepan 14.9 13.2 14.1 16.4 15.4 15.2 14.4 13.5 12.4 12.8 13.0 37.5 36.5 36.8 36.3 35.5 35.1 33.7 32.3 31.4 30.8 31.2 -- -- -- -- -- -- 18.6 16.8 17.8 18.2 11.8 12.1 12.0 12.4 13.0 12.9 12.9 13.8 13.0 12.2 11.7 0.9 0.9 1.0 1.0 1.2 1.3 1.3 1.3 1.3 1.3 1.3 Union Carbide Wltco 91.5 50.3 43.1 44.0 46.0 38.8 36.7 15.1 13.1 12.0 11.5 8.1 8.0 7.8 7.6 7.4 7.3 6.9 8.4 8.2 8.0 8.1 TOTAL EMPLOYEES ANNUAL CHANGE SALES PER EMPLOYEE ($ thousands) 505.2 360.9 344.5 356.0 358.6 353.2 343.1 328.7 300.3 293.3 259.1 2.3% -28.6% -4.5% 3.3% 0.7% -1.5% -2.9% -4.2% -8.6% -2.3% -11.7/, SI 09.2 $143.8 $169.4 $191.9 $200.1 $213.1 $211.2 $222.4 $232.7 $253.0 $300.0 Noti; Data are not restated for acquisitions, divestitures or simitar developments a Spun off Albemarle m 1994 b Spun off from Union Carbide m 1992. Source: Company data WAGES: Hourly earnings rose last year for most categories of chemical production workers Hourly wmtnfli__________________ __________________Wwkty oornlngt 1992 1993 1994 199$ 1992 1993 1994 All manufacturing Chemicals & allied products Industrial inorganic chemicals Plastic materials & synthetics Drugs Soap, cleaners & toilet goods Paints & allied products Industnal organic chemicals Agncuitural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastics products $11.46 14.51 15.72 15.38 14.11 12.03 12.68 17.29 14.82 13.06 17.90 10.36 $11.74 14.82 16.37 15.29 14.68 12.39 12.71 17.68 15.07 13.49 18.53 10.57 $12.06 15.14 16.79 15.40 14.78 12.69 12.99 18.19 15.34 14.05 19.07 10.70 $12.36 15.66 17.53 16.13 15.20 12.79 13.10 19.11 15.74 14.48 19.39 10.92 $469.86 625.38 683.82 673.64 . 599.68 496.84 527.49 788.42 662.45 556.36 784.02 432.01 $486.04638.74 717.01 674.29 607.75 519.14 536.36 802.67 673.63 578.72 819.03 441.83 $506.52 654.05 745.48 679.14 610.41 524.10 561.17 825.83 697.97 609.77 846.71 451.54 Not*: For production workers in U.S. employment Source: Department of Labor 1995 $514.18 678.08 795.86 712.95 635.36 523.11 558.06 861. Bf 708.31 629.61 849.2 453.1 64 JUNE 24,1996 C&EN CMA 054578 EMPLOYMENT IN THE U.S. CHEMICAL INDUSTRY Chemical industry productivity rose again 11.7 1.3 11.5 8.1 59.1 11.7% 30.0 ncreased chemical output and Imore efficient use of production la Productivity growth bor drove chemical industry pro ductivity higher again last year. But at slowed in 1995 ... the same time, higher wages increased % annual change* unit labor costs. In fact, after the gov ... but unit labor costs increased moderately % annual change* ernment revised its production and employment data, new calculations showed that despite massive reduc tions in chemical employment, unit lau~~ -ncjs had fallen in only four out of the past 10 years. Productivity is an index measuring the amount of production for each unit of labor. The unit labor cost index mea sures the labor cost per unit of output. Ideally, the productivity index should rise and the unit labor cost index 1985 86 87 B8 89 90 91 92 93 94 93 1985 86 87 88 89 90 91 92 93 94 95 should fall. Using statistics from the Labor De * Chemicals and aided products. Sourtaa: Federal Reserve Board. Bureau of Labor Statistics. C&EN estimates partment and revised data from the Federal Reserve Board, C&EN esti mates that productivity for chemicals and allied products rose 2.4% last year to an index of 120.7 (1987 = 100). The productivity increase came on 3.1% growth in the production index to 125.1 and a modest 0.77c rise in the in dex of aggregate production workhours to 103.6. However, growth of hourly produc tion wages in the chemical industry outstripped that of productivity, driv ing unit labor costs up slightly last year. According to the Labor Depart ment, average hourly production wag es increased 3.57o in 1995. This, cou pled with the lower 2.4% growth in productivity, caused the index of unit labor costs to rise 1.0%> to 104.9. Last year, the chemical industry was outperformed by the overall U.S. manufacturing segment, where pro ductivity rose 3.87c on a 3.7% increase in output and essentially unchanged workhours. And unit labor costs for all manufacturing fell 1.47o as hourly wages for production workers in creased just 2.47c. PRODUCTIVITY: Most factors improved for chemicals and all manufacturing again in 1995 >5 indexes, 1987 = 100 1988 1980 1967 1988 1989 1990 1991 1992 1993 1994 , 1995 18 CHEMICALS & ALLIED PRODUCTS 08 Production 91.4 94.6 100.0 106.0 109.2 111.8 110.5 114.4 115.4 121.3 125.1 .86 .95 .36 Workhours Productivity* Hourly production wagas Unit labor costs'1 99.6 91.8 93.5 101.8 98.0 96.5 96.8 100.3 100.0 100.0 100.0 100.0 103.6 102.3 102.7 100.4 105.2 103.8 105.8 102.0 105.0 106.4 109.5 102.8 102.3 108.0 113.5 105.1 100.7 113.6 117.3 103.3 101.6 113.6 119.8 105.5 102.9 117.9 122.4 103.8 103.6 120.7 126.7 104.9 11 ALL MANUFACTURING 06 Production 86 Workhours 91.6 94.3 100.0 104.7 106.4 106.1 103.8 108.2 112.3 119.7 124.1 99.9 98.8 100.0 102.1 102.1 99.4 95.4 95.0 96.4 99.9 99.8 30 Productivity* 91.7 95.5 100.0 102.8 104.2 106.7 108.8 113.8 116.5 119.8 124.3 88 Hourly production wages 96.3 98.2 100.0 102.8 105.8 109.3 112.8 115.6 118.5 121.7 124.6 28 Unit labor costs'1 105.0 102.9 100.0 100.3 101.5 102.4 103.7 101.6 101.6 101.6 100.2 4 g Note: Data tor 190S and subsequent years have been revised: earlier years have not. a Productivity is output per workhour, calculated by dividing indexes tor production by indexes tor worxhours ol production employees, b Unit labor costa are labor costs per unit ot output, calculated by dividing indexes tor wages by indexes for output per workhour Sources: Federal Reserve Board. Department ot Labor. C&EN estimates CMA 054579 JUNE 24,19% C&EN 65 4 MARKETS FOR THE U.S. CHEMICAL INDUSTRY Growth slowed for big chemical markets he general U.S. economy im manipulation by the Federal Reserve Tproved last year from the year Board. before, but growth slowed. And Spending on goods and services, an many major end-use markets for chemssential part of GDP growth, did not icals actually declined, according to contribute as it had the year before. data from government sources. Personal consumption expenditures According to the Commerce Depart rose 4.7% last year on a current-dollar ment, current-dollar gross domestic basis. This followed 5.6% growth the product (GDP) increased 4.6% in 1995 year before. And real (1992 dollar) compared with 5.8% growth in the spending increased just 2.5% in 1995, economy in 1994. And constant-dollar down from a 3.0% annual increase in (1992) GDP increased just 2.1% last the previous year. year after 3.4% growth the year before. Big end-use chemical markets really Much of the slowdown came in the slowed last year. Increasing mortgage second half of last year as the economy rates and an end to so-called pent-up was held in check by interest rate demand cut into the construction mar kets. Total housing starts fell 7.5% in 1995 from the year before, and starts for single-family housing declined 10% on an annual basis. Automotive output last year could be called lackluster, at best. Automo bile production fell 2.5% following a 13% rise in 1994, and output of trucks, buses, and trailers rose just 1.7% after a 16% increase the year before. Smaller volume end markets grew some last year. For instance, tire pro duction increased 6.9%; paper and products grew a slight 2.0%; plastic products gained 2.7%; and household appliances inched up 1.5%. Housing starts Millions Tires Production index, 1987 - 100 1601 Motor vehicles Production index, 1987 = 100 180 160 140 120 100 80 60 198586 87 88 89 90 91 92 93 94 95 Source: Federal Reserve Board Paper and products Production index, 1987 = 100 Crops Acres harvested, millions Note; For eight major crops Source: USDA Plastic products Production index, 1987 - 100 1601 Souie*: Federal BaserTM Board 66 JUNE 24,19% C&EN 1985 86 87 88 89 90 91 92 93 94 95 Source; Federal Reserve Board 1985 86 87 88 89 90 91 92 93 94 95 Source: Federal Reserve Board CMA 054580 5 ,5% in starts d 10% could tomoing a rucks, \fter a grew pro and dastic ehold 1 \ Gross domestic product X Trillions 8 $ Constant (1992) 6 $ Current 4 2 i I ___J____ 1____ 1____ 1____ 1____ 1____ 1985 86 87 88 89 90 91 92 93 94 95 Source: Department of Commerce Personal consumption expenditures $ Trillions b $ Constant (1992) 4 ^ / ~ $ Current 2 1 0 1 1 1-------------111 1 1 1985 86 87 88 89 90 91 92 93 94 95 Source; Department of Commerce Textile mill products Production index, 1987 - 100 1201 Apparel Production index, 1987 - 100 1101-------------------------------- Furniture and fixtures 1985 86 87 88 89 90 91 92 93 94 95 Source: Federal Reserve Board Aluminum Production index, 1987 100 198588 87 88 89 90 91 92 93 94 95 Source: Federal Reserve Board Buie steel and mill products Production index, 1987 - 100 198586 87 88 89 90 91 92 93 94 95 Source: Federal Reserve Board Household appliances Production index, 1987 = 100 4 i i Sourer Feooral Roxrvo Boom CMA 054581 JUNE 24, 1996 C&EN 67 [5 FOREIGN TRADE U.S. chemical trade was robust in 1995 A lthough the overall U.S. trade def/% icit continued to climb in 1995, jTMl. the U.S. chemical industry maintained a trade surplus. Spurred by the relative strength of the world's economies in 1994, international chem ical trade growth carried over into 1995, reaching its peak at midyear. But in fourth-quarter 1995 and into 1996, chemical trade felt the malaise of the world's overall economy. U.S. chemical makers exported $61.7 billion worth of products in 1995, a 20% gain from 1994. And the chemical trade surplus reached $21.3 billion-- compared with $17.7 billion in 1994-- despite a 19% rise in chemical imports. The 1995 surplus surpassed the previ ous record high, $18.8 billion in 1991. Asia, excluding Japan, continued to be the leading growth generator for U.S. chemical exports. The value of chemicals shipped to that region, in cluding China and Vietnam, grew 33% in 1995. The value of imports from Chi na grew 18%, and those from Vietnam and the rest of Asia grew 13%. However, U.S. chemical export growth recovered substantially with Ja pan during 1995, as well as with Aus tralia, the Middle East nations, Africa, and the Eastern Europe nations. In 1994, U.S. chemical export sales to these nations and regions dropped to single-digit growth. And chemical trade between the U.S. and Latin America continued to grow, despite the recession in Mexico and the continuing economic difficulties in Brazil and oth er South American nations. For the most part, U.S. chemical ex ports and imports grew in all categories on a product-by-product basis. Howev er, the 20% increase in fertilizer exports in 1995 did not match the 50% growth in 1994. And U.S. fertilizer imports grew just 7% in 1995, compared with 14% in 1994. US. trade in inorganic chemicals ended the year with a $74 million deficit, double that of 1994. Worldwide chemical trade reached an estimated $437 billion in 1995, a 15% increase over 1994. The U.S., Japan, Ita ly, and the U.K. experienced healthy growth in chemical exports in 1995. But those four countries also had higher growth in chemical imports in 1995. U.S. TOTAL TRADE BALANCE: Exports outpaced imports, but balance widened $ Billions 1992 1993 1994 Total exports Total Imports Trade balance $448.2 532.5 -84.3 $456.9 589.4 -132.5 $502.5 668.6 -166.1 nm * not meaningful- Source: Department of Commerce 1995 $574.9 749.3 -174.4 % change 1994-$ 14% 12 nm U.S. CHEMICAL TRADE: Exports, imports, and surplus continued to advance $ Millions1992 1993 1994 % change 1995 1994-95 Chemical exports $43,956 $45,066 $51,600 $61,701 20% Chemical imports 27.684 28,502 33.915 40,378 IS Chemical trade balance 16,272 16.564 17,685 21,323 21 Source: Department of Commerce U.S. chemical trade balance grew again... ... as U.S. share of exports also inched up U.S. share of world chemical exports, %a 1993 1994 Running 12-montti totals. Source: Bureau of me Census 68 JUNE 24, 1996 C&EN 1995 1995 86 87 88 89 90 91 9! 93 94" 95" U.S. chemical exports as a percentage of total world chemical exports less U.S. chemical imports, b C&EN estimates. CMA 054582 t oth- tl ex;ories wevports thin grew % in ucals efidt. ched 15% , ita- llthy But ghcr 5. j -isnge 4-95 10% 9 11 V S. CHEMICAL TRADE: Asia, Latin America led strong export growth again in 1995 1992 Exporta Imports 1993 Expert* Importi 1994 Export* Importe 1995 Exports imports % change, 1994-95 Exports Imports European Union Canada Latin America Japan Communist Asia Rest of Asia Australia Middle East Africa Eastern Europe Other TOTAL $12,050 7,285 7,222 4,708 1,208 7,054 1,432 766 609 174 1,448 $43,956 $12,067 4,950 1,582 3,175 509 1,589 332 408 108 270 2,694 $27,684 $11,599 8,224 7,715 4,966 843 7,431 1,218 762 607 263 1,438 $45,066 $12,249 5,494 1,737 3,572 576 1,676 177 506 126 429 1,960 $28,502 $12,868 9,416 9,337 5,201 1,529 8,500 1.270 777 577 246 1,878 $51,600 $13,574 6,679 2,290 4,181 741 1,917 270 766 148 802 2,039 $33,915 $14,682 10,653 11,465 6,129 2,027 11,273 1,555 900 610 273 2,547 $61,701 $15,698 8,150 2.859 5,107 876 2.168 227 958 112 1,019 3,204 $40,378 14% 13 23 18 33 33 22 16 6 11 14 20% 16% 22 25 22 18 13 -16 25 -24 27 26 19% Source Department ot Commerce _______ __ ---------------------*------------------------------------------------------------------------------------------------------------------------------ WORLD CHEMICAL TRADE: Imports expanded in U.S., Japan, Italy, and the U.K. I Millions European Union* Germany France U.K. Netherlands Belgium-LuxemCourg 1992 Expona Imports $110,134 $94,687 60,814 39,812 31,343 23,762 26,312 18,491 26,200 16,813 24,832 20,695 1993 Exports Imports $114,747 $91,595 57,868 34,289 31,795 24,540 27,940 20,994 24,102 16,628 27,095 21,225 1994 Expona Import* $140,804 $115,659 66,305 39,139 36,088 28,577 29,847 22,590 28.685 18,624 31,824 23,279 1999 Exports Import* $157,721 $132,041 70,477 43,263 40,821 33,585 32,327 32,673 27,343 20,988 35,889 25,339 % change,1994-95 Exports Imports 12% 14% 6 11 13 14 13 21 13 13 13 9 Italy U.S. Japan Switzerland Canada WORLD 10,661 17,275 43,956 27,684 25,760 23,379 17,977 9,685 4,738 6,909 $333,245 $333,245 13,192 18,590 45,066 28,502 23,910 21,316 18,899 10,025 5,447 8,578 $330,291 $330,291 15,225 22,340 51,600 33,915 25,239 21.220 19.666 10,605 7,120 10,773 $379,835h $379,835B 19,575 27,553 61,701 40,378 30,077 24,546 20,332 10,978 8,882 12,405 $436,810b $436,810b 29 23 20 19 19 16 24 25 15 15% 15% a Includes, in addition to listed countries, Denmark, Ireland. U.S, share ot world chemical exports, Spain, and Greece: 1992, 1993. and 1994 data lor Germany revised la include all 16 German states, b C&EN estimates. Source: European Chemical Industry Council (CEFIC) U.S. TRADE, BY PRODUCTS: Exports, imports in all categories grew strongly S Millions Organic chemicals Plastics in primary form Medicinals & pharmaceuticals Inorganic chemicals 1092 Exports Import* $10,993 7,178 5,357 4,119 $9,366 2,247 3,812 3,300 1993 Exports imports $11,076 7,224 5,750 3,809 $9,279 2,520 4,135 3,284 1994 Experts Import* $12,826 $10,799 8,675 3,512 6,093 4,680 4,068 4,105 1995 Expons Imports $16,395 $13,325 10,756 4,331 6,554 5,544 4,581 4,655 % change. 1994-95 Exports imports 28% 24 8 13 23% 23 18 13 Plastics in nonprimary form 3,076 2,046 Essential oils & perfume materials 2,631 1,712 Dyeing, tanning & coloring materials 1,867 1,626 Fertilizers, manufactured 2,372 952 Other 6.363 2,623 TOTAL $43,956 $27,684 Source: Department of Commerce 3,517 2,328 3,046 1,808 2,013 1,700 1,797 1,136 6,834 2,312 $45,066 $28,502 3,810 2,422 3,536 1,995 2,323 1,868 2.699 1,296 7,570 3,238 $51,600 $33,915 4,337 2,821 3.943 2,309 2,621 2.080 3,226 1.392 9.288 3,921 $61,701 $40,378 14 12 13 20 23 20% 16 16 11 7 21 19% CMA0S4S83 JUNE 24,1996 C&EN 69 6 FOREIGN CHEMICAL INDUSTRIES - CANADA he Canadian chemical industry posted strong growth the dollar value of sales revenue in 1996." Prices are project Tin 1995. And Canada's chemical producers' depen ed to drop 7% this year, causing a nearly 3% decline in the dence on the U.S. export and import markets less value of chemical sales. ened further in 1995, as both U.S. chemical export and im port share continued to decline. The Canadian Chemical Producers' Association (CCPA), with a membership of 68 companies, reported that member companies posted record sales, profits, and exports for 1995. Sales for those compa nies rose 17% from the previous year. Canada's chemical production grew modestly Production index, 1986 100 160 B Drugs Canadian chemical exports reached nearly $11 billion in 1995, compared with nearly $8.5 billion in 1994. Chemical imports were nearly $12 billion, compared with $10 billion in 1994. Therefore, the chemical trade deficit fell to $1.1 bil lion in 1995, from $1.6 billion in 1994. Export growth bene Chemicals & chemical products 140 All manufacturing Industrial chemicals _ fited from an increase in both organic chemicals and syn thetic rubber and plastic materials; exports of each grew about 40% from 1994. "There's no question that we see this as the top of what appears to be an eight-year cycle, and our forecasts tell us we can look forward to sustained growth in volume in 1996," says Bernard West, CCPA's chairman. Much of the industry's growth in 1995 was attributed to chemical prices. CCPA reported, on average, that prices were up 14% last year from 1994. But based on member 60 1985 K 87 N company outlooks, both prices and margins have peaked Sourc*: Statistics Canada and "the industry will be hard-pressed to register a gain in COMPANY RESULTS: Methanex's sales fell % Millions (U.S.) Salas Net Profit. Capital Employee* Income* margin" axpendlturea (thou*endi Celanese Canada 1995 $470.0 1994 458.0 1993 355.6 1992 326.9 $82.0 73.0 44.2 26.7 17.4% 15.9 12.4 8.2 $55.0 12.2 15.8 11.0 1.5 1.5 1.6 1.5 DuPont Canada 1995 1994 1993 1992 $1,335.3 1,221.9 1,144.5 1,032.5 $132.7 113.1 47.8 59.6 Methanex 1995 1994 1993 1992 $1,249.2 1,487.9 533.4 116.2 $200.1 440.7 10.6 -8.6 Nova Corp. 1995 1994 1993 1992 $3,266.8 $511.7 2,895.8 419.1 2,429.3 139.2 2,222.3 110.8 9.9% 9.3 4.2 5.8 16.0% 29.8 2.0 -7.4 15.7% 14.5 5.7 5.0 $90.2 62.4 66.7 79.0 na na na na $543.7 359.3 325.1 176.4 3.7 3.7 4.0 4,1 na na na na 5.7 6.6 6.3 6.3 Potash Coro, of Saskatchewan 1995c $927.3 $163.0 17.6% na 4.6 1994 416.0 93.2 22.4 na 1.7 1993 255.6 45.7 17.9 na 1.6 1992 252.8 40.7 16.1 na 1.4 Not*: Monetary statistics tor alt years converted from Canadian doUarc to U.S. dollars on the tea* of the 1995 average exchange rate of Si,00 U.S -$1.372Canattan a Excludes extraor dinary gains and losses b Net income as a percentage of sales, e Acoutred Texasgutf in March 1995 and Whit* Spnngs Agricultural Chemicals in September 1995 na * not available PRODUCTION: Most chemicals grew Thoueands of metric tons INORGANIC CHEMICALS Aluminum sulfate Ammonia Ammonium nitrate Carbon black Chlorine Hydrochloric acid Hydrogen peroxide Nitric acid Sodium chlorate Sodium hydroxide Sulfuric acid ORGANIC CHEMICALS Benzene Butadiene Ethylene Formaldehyde Methanol Propylene Toluene Urea Xylenes PLASTICS Polyesters, unsaturated Polyethylene, high density Polyethylene, low density Polystyrene* Polyvinyl chloride 1992 1993 1994 % change 1995 1994-95 170 193 173 171 3,770 4,181 4,384 4,655 1,064 1,025 938 1,031 161 166 167 176 1,364 1,170 1,074 1,131 168 134 134 138 119 128 143 145 960 917 910 991 728 830 962 1,020 1,428 1,225 1,153 1,182 3,225 3,713 4,065 4,220 -2% 6 10 5 5 3 1 9 6 3 4 686 685 770 781 181 174 170 205 2,521 2,536 2,716 3,130 133 154 168 na 2,154 2,253 na na 753 766 716 719 372 337 288 277 2,550 3,090 3,153 3,331 339 311 356 434 1 21 15 -- -- 0 --4 6 22 _____ 40 45 60 58 -3 648 652 694 765 10 1,041 1,090 1,214 1.308 8 167 158 177 189 7 385 419 470 434 --8 a includes acryionrtNo butadane-atyrene resins na & not available. Source; Sta&s&cs Canada 70 JUNE 24,19% C&EN CMA 054584  rojectin the stly SHIPMENTS: Industrial chemicals and plastics were up strongly in Canada last year 1990 1991 1992 1993 1994 1995 % chana 1994-95 All manufacturing Chemicals 4 chemical products Industrial chemicals, inorganic Industrial chemicals, organic Plastics & synthetic resins Medicinals & pharmaceuticals Adhesives Paints & varnishes Soaps & cleaners Toilet preparations Printing ink $214,268 16,271 1,872 3,766 2,054 2,542 140 1,179 1,106 716 192 $201,539 15,767 1,733 3,398 1,884 2,747 131 1,138 1,215 764 173 $204,373 16,040 1,752 3,416 1,886 2,820 139 1,096 1,374 808 207 $225,774 16,371 1,899 3,191 1,932 3,165 229 1,086 1,185 792 213 $254,951 18.072 1,989 3,280 2,931 3,384 266 1,135 1,125 715 244 $282,777 20,006 2,281 3,861 3,595 3,422 273 1,163 1,120 697 254 N t* Monetary statistics for all years are converted from Canadian dollars to U.S dollars on the basis of the 1995 average exchange rate of $1,00 U.S. $1,372 Canadian. Source: Statistics Canada n% ii 15 18 23 1 3 2 0 -2 4 95 nange 2% 6 0 5 5 3 1 9 3 4 __ 1 1 5 CHEMICAL EXPORTS: Strong growth $ Millions (U.S.) Inorganic chemicals Organic chemicals Fertilizers & fertilizer materials Synthetic rubber & plastic materials Other chemical products TOTAL Exports to U.S. U.S. share 1892 $1,171 1,330 1,221 . 1993 $1,248 1,436 1,271 1994 $1,469 1,735 1,560 1995 $1,630 2,419 1,683 1,972 2,282 2,799 3,946 709 $6,403 $4,777 75% 829 $7,066 $5,487 78% 891 $8,454 $5,072 60% 1,113 $10,791 $5,900 55% Note: Converted from Canadian dollars at the following exchange rates: 1992. Si 00 U.S * Si 271 Canadian. 1993' $1 00 U.S. $1 295 Canadian, 1994: $1.00 U.S. * $1 366 Canadi an 1995 $1,00 U.S - $1,372 Canadian Source: Statistics Canada CHEMICAL IMPORTS: U.S. share dropped S Million* <U.S.) 1992 1993 1994 1995 Organic chemicals Synthetic rubber & plastic materials Other chemical products TOTAL Imports from U.S. U.S. share $1,732 2,560 3,012 $7,304 $5,571 76% $2,036 $ 2,430 $ 2,905 2,744 3,307 4,115 3,793 $8,573 $6,571 77% 4,314 $10,051 $ 6,010 60% 4,875 $11,894 $ 6,536 55% Note: Converted from Canadian dollars at the following exchange rates 1992 $1 00 U S 1.271 Canadian: 1993: $1 00 U.S. - $1,295 Canadian: 1994 $1 00 U S > $1 366 Canadi an: 1995: $1.00 U.S. - $1 372 Canadian. Source: Statistics Canada PRICES: Ammonia, urea, plastics surged Price Index, 1986 = 100 1992 1993 1994 1995 1994-95 All commodities Chemicals & chemical products Inorganic industrial chemicals Sulfuric acid Chlorine Ammonia Organic industrial chemicals Benzene-toluene-xylene Olefins Urea Synthetic resins Polyethylene Polystyrene Thermosets Agricultural chemicals Mixed fertilizers Pharmaceuticals Paints & varnish Soaps & cleansers Toilet preparations Pigments, lakes & toners Inks 109.1 113.6 102.7 99.5 82.4 77.9 111.7 104.9 139.2 86.9 97.7 92.2 109.9 112.3 120.6 107.0 134.6 121.4 118.3 119.5 108.2 104.7 112.7 116.4 105.4 95.4 86.3 85.4 119.7 97.6 153.6 93.2 101.4 90.3 114.9 127.8 121.7 106.2 136.4 121.9 118.4 121.4 112.1 105.6 119.2 124.0 111.5 89.7 107.9 105.5 139.4 112.1 175.0 106.0 116.3 105.7 130.5 146.1 123.6 113.6 137.2 124.3 116.9 125.4 117.1 106.0 128.8 135.4 128.8 94.1 109.6 141.3 158.6 115.5 183.6 139.3 139.3 137.2 165.8 155.5 127.1 131.0 137.3 130.9 117.5 125.3 124.0 110.2 8% 9 16 5 2 34 14 3 5 31 20 30 27 6 3 15 0 5 1 0 6 4 a Includes both high- and low-density polyethylene Source: Statistics Canada TOTAL TRADE BALANCE: Surplus swelled. ... while chemical trade deficit improved $ Billion* (U.S.) Total exports Total imports Trade balance 1992 1993 1994 %chung* 1995 1994-95 $121.0 $136.5 $165.4 $192.1 116.4 130.8 148.4 164.3 4.6 5.7 17.0 27.8 16% 11 64 $ Million* (U.S.) 1992 1993 1994 199$ %ehang* 1994-95 Chemical exports $6,403 $7,066 $8,454 $10,791 Chemical imports 7,304 8,573 10,051 11,894 Chemical trade balance -901 -1,506 -1,596 -1,103 28% 18 nm Not*: Converted tram Canadian dollars at me tallowing exchange rates: 1992: *1,00 U S. - *1 271 Canadian. 1993: *1.00 U.S. - $1,295 Canadian: 1994- $1 00 U S - $1,366 Canadian: 1995 $1,00 U.S < $1 372 Canadian, nm not meaningful Source: Statistics Canada CMA 054585 JUNE 24,19% C&EN 71 6 FOREIGN CHEMICAL INDUSTRIES - EUROPE In Europe, strong three quarters led industry n 1995, the picture was only slightly less rosy for the IEuropean chemical industry than in 1994, when the in dustry decisively turned the comer from recession to upturn. Chemical production in Western Europe grew 2.5% in vol ume in 1995, although growth varied widely among coun tries. Although the year as a whole showed growth in output and demand, the statistics do not take into account the quar terly records. After an exceptionally strong first-quarter per formance, and strong second and third quarters, tire industry saw a serious slump in the fourth quarter to levels below those reached in the corresponding quarter in 1994. Customers bought heavily in the first several months of 1995, responding both to the pipeline effects of genuine con sumer demand and in anticipation of rising prices. In fact, producer prices rose more than 7%, on average, in 1995 af ter several years of stability. Their increase in the first half extended an upward trend that began late in 1994. However, by the third quarter, consumer demand began to flatten slightly, and prices peaked then fell back to more sustainable levels. Chemical industry customers stopped buying. The falloff was dramatic, but it was camouflaged in yearly totals. A similar picture was seen in European chemical compa ny sales and profits. A yearly picture shows substantial growth over 1994, with particularly strong recovery in prof its. A quarterly picture, however, would show growth in the first nine months, then a drop in the last three. On the other hand, the synthetic fibers industry in Eu rope saw a discouraging drop in fiber production across the board. Production of different types of fibers fell in most Western European countries, although it tended to stabilize or even pick up in Central European countries. However, viscose and rayon fibers--riding the wave of current popu larity in European fashion--were sheltered, with most countries reporting increases in production. The drive to shed jobs has tapered off, according to indi vidual company reports and country statistics compiled by the European Chemical Industry Council (CEFTC). That is true even in some of the chemical industries of Central European countries where chemical federations are being integrated into the CEFIC network. Output dipped in Germany, rose elsewhere Production index, 1990 = 100 a Data before 1994 are far former West Germany only. Source: European Chemical Industry Council (CEFIC) WESTERN EUROPEAN CHEMICAL INDUSTRY TRENDS: Sales were up across the board J Blllioni GERMANY" Sales Exports Imports Capital spending Production index6 Price index6 Employees (thousands) 1991 1992 1993 1994 1995 $115.7 58.1 40.1 9.1 102.1 99.4 594 $119.5 60.8 39.8 9.8 103.1 97.5 655 $114.2 57.9 34.3 8.6 101.0 95.4 609 $122.2 66.3 39.1 8.4 105.2 97.0 570 $125.4 70.5 43.3 8.5 102.7 102.0 538 FRANCE Sales Exports Imports Capital spending Production Index6 Price index6 Employees (thousands) $72.6 30.5 25.7 4.5 102.1 100.1 264 $73.1 31.3 26.3 4.3 108.4 98.8 260 $73.9 31.8 24.5 3.9 110.5 96.8 255 $79.0 36.1 28.6 3.2 117.0 97.1 250 $85.3 40.8 32.7 3.2 119.2 101.4 248 72 JUNE 24, 1996 C&EN $ Billions 1991 U.K............................... Sales Exports Imports Capital spending Production Index6 Price index6 Employees (thousands) $45.6 22.0 17.3 3.8 103.0 104.0 306 1992 $46.6 23.8 18.5 3.3 107.2 105.7 305 1993 $52.1 27.9 21.0 3.0 107.4 110.6 293 1994 $56.0 29.9 22.6 3.0 113.4 113.4 237 1995 $61.6 33.6 27.3 3.1 117.7 120.2 236 ITALY Sales Exports Imports Capital spending Production index6 Price index6 Employees (thousands) $38.7 9.5 16.1 . 2,3 98.9 102.8 215 $39.3 10.7 17.3 2.2 95.8 97,5 208 $41.1 13.2 18.6 2.0 97.2 104.9 200 $44.2 15.2 22.3 1.8 100.5 110.4 193 $50.9 19.6 27.5 2.0 103.2 125.8 191 CMA 054584 tabilize >wever, t popui most :o indiiled by xies of jns are ere 995 31.6 33.6 27.3 3.1 '7.7 20.2 i6 0.9 9.6 7.5 2.0 3.2 5.8 1 INI 1902 1993 1994 1995 BELU'um----------------- $32.3 Sale* 24.2 Export#' Imports' Capital spending Production index price index" Employees (thousands) 20.4 2.8 98.3 99.3 99 $32.3 24.8 20.7 2.5 108.9 98.7 99 $32.1 27.1 21.2 1.8 106.9 98.1 97 $35.6 31.8 23.3 1.7 107.2 100.9 94 $39.0 35.9 25.4 1.9 114.2 107.8 94 SPAIN________ _____ Sales Exports imports Capital spending Production index11 $32.3 5.2 9.5 0.8 98.8 Price index" Employees (thousands) 100.6 225 $23.8 4.2 8.8 0.9 82.5 88.5 129 $23.9 4.4 9.4 0.9 93.4 100.7 125 $27.7 6.7 12.0 0.9 112.1 105.6 122 $32.0 8.4 15.2 1.3 115.0 118.9 122 Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) $27.4 26.9 16.1 2.3 100.0 97.8 92 $27.0 26.2 16.8 2.1 99.1 97.8 89 $24.8 24.1 16.6 1.7 94.0 91.0 85 $28.0 28.7 18.6 1.6 99.0 98.0 81 $31.0 32.3 21.0 1.7 102.0 103.0 81 Sales Exports Imports Production index Price index" Employees (thousands) $18.9 16.2 9.0 100.8 100.0 72 $20.3 18.0 9.7 104.4 100.2 72 $21.6 18.9 10.0 112.7 102.8 72 $23.8 19.9 10.6 129.1 99.0 70 $25.0 20.3 11.0 141.9 95.5 70 Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) $6.9 4.0 4.3 0.6 92.3 103.6 40 $6.9 4.2 4.3 0.6 99.1 101.6 37 $7.9 5.4 5.3 0.5 115.5 107.0 36 $8.3 6.3 6.3 0.6 145.9 115.2 30 $9.7 7.4 7.6 0.8 149.5 132.3 31 IHFLAND Sales Exports Imports Production index" Price index" Employees (thousands) pnt AMn Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) AUSTRIA Sales Exports Imports Capital spending Production index" Employees (thousands) $5.1 4.3 2.7 117.7 98.5 15 $1.8 0.4 0.4 0.2 na 133.4 148 $9.0 4.2 5.7 0.9 105.2 54 $5.9 5.2 2.7 142.9 100.0 15 $2.5 0.6 1.2 0.2 na 153.1 160 $6.1 4.2 5.8 1.0 101.3 33 $6.3 5.6 2.8 156.8 107.0 15 $3.7 0.8 1.9 0.2 104.9 163.0 164 $5.8 4.2 5.8 0.8 98.2 50 $8.3 7.6 3.6 187.5 106.5 17 $4.6 1.2 0.3 0.4 121.0 259.0 137 $6.0 4.7 6.5 0.6 105.5 49 $8.8 8.0 3.9 na 109.1 17 $6.7 na na 0.5 136.0 341.0 140 $6.3 na na 0.6 114.4 49 TURKEY Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) $0.2 $0.9 $1.1 $3.4 $6.0 0 0.2 0.2 0.4 0.7 0.1 0.6 0.6 2.0 4.6 na 0 0 na na 71.7 100.0 108.4 na na 71.7 132.0 196.0 632.0 1,135.0 40 39 38 41 45 s Billion* DENMARK Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) FINLAND Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) NORWAY Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) HUNGARY Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) CZECH REPUBLIC Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) SLOVAKIA Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) GREECE Sales Exports Imports Capital spending Production index" Price index" Employees (thousands) PORTUGAL Sales Exports Imports Production Index" Employees (thousands) 1991 $4.9 3.9 4.2 0.4 100.7 101.4 27 $3.6 1.5 2.3 0.4 94 1 101.7 19 $3.4 2.2 2.3 0.2 97.6 101.4 14 $1.5 0.6 1.0 0.1 87.2 133.4 70 na na na na na na na na na na na na na na na na na na na na na $5.0 0.9 2.1 na na 1992 1993 1994 $5.3 4.2 4.3 0.4 107.0 97.7 27 $5.2 4.3 4.0 0.5 109.0 100.5 28 $5.4 4.9 47 0.4 122.0 105.0 29 $3.7 1.6 2.7 0.2 92.9 104.5 19 $4.1 2.0 3.0 0.2 93.5 107 1 18 $4.6 2.3 3.5 0.2 108.4 109 1 18 $3.4 $3.5 $3.9 2.2 2.2 2.4 2.4 2.6 2.7 0.2 0.2 0.3 96.4 100.3 103.8 97.7 100.5 102.4 12 12 13 $1.5 0.6 1.0 0.1 70.4 153.1 59 $1.6 0.6 1.2 0.1 71.0 163.0 57 $2.2 0.9 1.8 0.1 75.1 194.1 56 $1.9 1.2 1.4 na 55.7 229.7 na $1.8 1.3 1.7 na 52.0 240.3 na $2.9 1.6 2.1 ' 0.4 65.9 240.6 43 $3.1 0.6 0.4 0.3 78 0 221.2 49 $3.2 11 0.6 0.3 74.0 216.5 40 $1.3 1.1 1.1 0.1 65.5 225.9 28 na na na na na na na na na na na na na na na na na na na na na na na na na na na na na na na na 73.6 na na na 1999 $5.8 5.3 5.1 na 134.0 107.0 na na na na na 110.5 110.3 na $3.9 2.7 3.0 0.6 105.5 106.4 13 $3.3 1.7 2.5 0.2 76.3 255.0 53 $3.1 18 2.8 na 65.4 263.0 42 $1.5 1.2 1.1 0.1 72.0 261.6 27 $1.0 0.2 0.5 na 125.0 160.0 5 na na na 72.7 na Not*: Monetary statistics for all years are converted from local currency to U S dollars on the basis ot 1995 conversion rates as follows. St .00 - 10 08 Austrian schillings; 29 48 Bel gian Irancs; 26.54 Czech crowns; 5.60 Danish crowns. 4.37 Finnish mahts: 4.99 French trancs: t 43 German marks. 231 58 Greek drachmas. 125.68 Hungarian Iannis; 0.624 Irish pounds; 1.630 Italian lire: 1 61 Netherlands guilders. 6 33 Norwegian crowns; 2.4250 new Polish zlotys; 150 Portuguese escudos. 26 6 Slovakian crowns: 124.7 Spanish pesetas; 7.13 Swedish crowns; 1.18 Swiss Irancs: 45.845 Turkish lire, and 0.634 British pounds, a All 16 German states included tor 1992-95. data tor 1991 are tor 11 former West German states only b 1990 100 e Includes Luxembourg, d 1989 . 100 na - not available. Source; European Chemical Industry Council ICEFIC) CMA 054587 JUNE 24, 1996 C&EN 73 MAN-MADE FIBERS: Production slipped in Western Europe, held steady or grew in Eastern Europe Millions of lb Germany* U.S.S.R./C.I.S." Italy Turkey Benelux countries Spain U.K.b,c Austria Poland France Ireland Czech Republic* Romania" Switzerland Portugal Finland Bulgaria" Hungary" 1M1 NoncoHulosict C*Hulo*ic* 1.779 1,834 1,482 708 606 382 1,119 79 24 115 558 6$ 514 218 84 262 137 56 260 0 210 0 178 90 288 84 238 0 141 0 24 104 151 9 61 0 1992 NoncdiuloMc* C*Muto*tc* 1,804 1,445 1,528 739 598 360 650 71 23 110 595 49 529 242 90 282 189 .49 269 0 240 0 176 86 242 63 247 0 163 0 24 124 103 9 27 0 1993 Nonc*Uuto*lc* CeJMoeies 1,797 1,317 1,378 746 593 392 531 $8 23 99 578 20 512 213 82 289 199 51 260 0 240 0 167 90 228 29 212 0 148 0 30 126 96 9 32 0 1994IMS NonctUuMci CMlutoMca 1,867 1,450 1,528 782 695 434 387 63 24 115 672 61 500 245 93 296 251 51 286 0 267 0 169 92 220 26 220 0 152 0 35 129 96 S 55 0 Now MMuloafc* 1.793 1,455 1,386 780 682 624 495 91 247 286 na 175 220 215 135 na 97 58 C*ttUlO*lC* 442 400 69 25 117 79 240 307 49 0 0 92 25 0 0 126 8 0 Seeing*, 199-S NonC*flulOttCS Cellciioafc* -4% 2% 03 -9 10 04 -2 2 -7 30 -1 -2 -2 4 -2 -4 0 nm -- nm 40 0 -4 -2 nm -11 nm -- -2 10 6 nm * Data lot 1991 are tot west Qeimany only, suOsequsnt yaare are tor unitwi Germany. b C&EN astimatss tot 1995. e Figures taf 1998,1993. and 1994 revised to show acetate tow with cel luloses. d Includes Slovakia, na - not available, ran > not meaningful. Source: International Rayon & Synthetic Fibers Commute* PRODUCTION: Germany posted solid gains; mixed results in other countries Millions of lb 1992 FRANCE Sulfuric acid Hydrochloric acid 6,642 1,327 Chlorine 3,091 Sodium hydroxide 3,250 Carbon black Ammonia Benzene 510 3,097 1,618 Toluene 70 Ethylene Propylene Butadiene 5,629 3,971 731 Formaldehyde Polyethylene 90 2,954 Polypropylene 1,975 Polystyrene Polyvinyl chloride Synthetic rubber 1,119 2,416 1,098 Nitrogen fertilizers* 4,006 Phosphate fertilizers* 607 GERMANY* Sulfuric acid Hydrochloric acid Nitric acid Chlorine Sodium hydroxide Sodium carbonate Sodium sulfate Carbon black Ammonia Benzene Toluene Xylenes Aniline Ethylene Propylene Butadiene Ethylene oxide Ethylene glycol Propylene oxide Propylene glycol n-Butanol Acetaldehyde Acetic acid Ethanol Methanol Formaldehyde Phthalic anhydride 6,851 1,836 2,869 5,670 6,174 2,726 229* 828 3.480 3.383 1,184 1,233 298 7,346 4,405 1,414 1,378 501 1,226 391 753 721 721 199 1,691 1,478 389 1993 5,061 1.260 3,073 3,240 450 3,263 1,604 113 5,600 3,667 706 92 2,930 2,139 1,059 2,587 1,069 3,932 332 6,691 1,819 4,390 6,011 6.568 3,490 239 736 4,621 3,341 988 1,235 251 8,591 5,366 1,939 1,371 509 1,327 424 696 766 749 342 2,645 1,411 460 1994 4,907 1,319 3.248 3,438 517 3,260 1,683 125 6,154 4,105 769 265 3,140 2,425 1,146 2,639 1,140 3,913 359 6.802 1,904 4,455 6,898 7,156 3,037 224 657 5,796 4,277 1,313 1,473 286 9.201 5,870 2.039 1,445 489 1,561 502 870 790 892 365 3,164 1,594 453 %eftan0 1995 1994-99 5,240 838 3,114 3,300 570 3,257 1,742 129 5,868 4,285 726 259 3,118 2,352 1,120 2,395 1,346 4,160" 382 7% -36 -4 -A 10 0 4 3 -5 4 -6 -2 -1 -3 -2 -9 18 6 6 8,209 1,918 5,189 7.437 7,739 4,757 na 747 6,595 5,982 1,161 1.589 na 9,754 6,414 2,129 1,648 623 1,631 494 990 850 1,024 na 3,107 1,556 469 21% 1 17 8 8 57 -- 14 14 40 -12 8 -- 6 9 4 14 27 4 -2 14 8 15 -- -2 -2 4 Million* ol lb 1992 1993 1994 1995 ttehang* 1994-85 Polyethylene' Polypropylene Polyvinyl chloride Synthetic rubber Nitrogen fertilizers Phosphate fertilizers ITALY1 Sulfuric acid Nitric acid Hydrochloric acid Chlorine Sodium hydroxide Sodium perborate Carbon black Ammonia Benzene Toluene Xylenes Formaldehyde Polyethylene Polystyrene Polyvinyl chloride Nitrogen fertilizers* U.K ` Sulfuric acid Hydrochloric acid Chlorine Calcium carbonate Sodium hydroxide Carbon black Benzene Toluene Ethylene Propylene Formaldehyde Polyethylene1 Polypropylene Polyvinyl chloride Synthetic rubber 1,511 1,225 2,482 1,076 1,419* 91* 6,102 2,065 1,265 1,946 2,123 286 402 2,988 1,137 285 710 191 2,039 674 1,358 5,802 2,170 328 1,980 na 1,993 na 1,717 na 4,263 1.835 131 693 721 647 558 1,557 1,385 2,661 1,284 2,867 378" 1,746 1,555 2,780 1,415 2.637 364h 5,067 1,595 1,217 1,901 2,055 277 377 1.948 1.320 431 325 131 2,091 555 1,346 5,017 4,346 1,170 1,281 1,959 2,096 180 419 na na na na 128 2,139 609 1,316 3,763 .............. 2,699 2,134 463 361 1,980 832 na na 361 818' 257m 2.557' 357 1,775 395 1,149 185 2,847 632 1,701 214' 187 658' 1,598 821' 484 724' 799 762' 979 2,221 1,079 2,877 1,177 2.569 87* 4,800 1,294 1,340 1,959 2,029 149 457 na na na na 106 2,315 598 1,266 3,515 2,153 437 607 361 1,704 413k 1,462 226 2.571 1,432m 265 1,720 394 854 945 27% -31 4 -17 -3 -76 10% 11 5 0 -3 -17 9 -- -- -- -- -17 8 -2 -A -7 1% 15 -27 1 -A 5 27 22 -10 -16 42 8 -19 7 --4 a As N. b C&EN estimate based on 10 months' data, c As P205, d Data tor 1992 are for West Germany only, subsequent years are for unified Germany; 1995 data are C&EN estimates based on six months' data. The classification system changed effective first-quarter 1995. and data are not necessarily dwactty comparable, e C&EN estimate based on nine months data, f High density, g Compounded nitrogen fertilizers, h Compounded phosphate fertilizers. I C&EN estimates based on 11 months' data j U K. data collection revised m 1993 to be based on manufacturers sales; subsequent years' data are not comparable unless shown as revised; 1995 data are C&EN estimates based on nine months' data, k C&EN estimate based on three months' data. I Revised, m C&EN estimate baaed on six months' data, na not available. Souveea; "U.K. Markets." CSO/TNAGB, government agencies for each country 74 JUNE 24,19% C&EN CMA 0S4588 ri Europe ng>, C1Kik>ic % 2% 3 10 4 2 30 -2 4 -4 nm nm 0 -4 nm nm -2 0 nm ta tow with cel- iaa4-5 27% -31 4 -17 ' -3 -76 10% 11 5 0 -3 -17 9 -17 8 -2 -4 -7 1% 15 -27 1 -4 5 27 22 -10 -16 42 8 -19 7 ^ tor West estimates 1995- and ins data, i i C&EN based on 7 revised. ' on three able. COMPANY RESULTS: Chemical companies' profit margins improved, employee cuts slowed Net Profit Capital ft&D Employee* Net income margin, %B spending spending (thousands) -------------------- -------------------------------------------- Hoechst (e|r4n^n5y,1^66.5 1995 $346461 951.1 1994 32 131 5275 11999923 h3b2.nunu7r 5= 824.8 4.3% $2,354.3 $2,427.6 2.7 2,193.1 2.350.8 1,6 2'5099 2,120.6 2.6 2,636.9 2.026.4 161.6 165.7 172.5 177.7 BASF <tJ$34472'T~$l7723.9 1999 32 491 8 896.0 30 090.7 ]g92 31.067.2 598.7 428.9 5.0% $2,110.1 $1,456.9 2.8 1,888.9 1.337.1 2-0 2,888.1 1,349.5 1.4 2,896.5 1,429.3 106.6 106.3 112.0 123.2 BMS' ,la$3l'lO^r"?^70-5 gg^gB 1,374.6 low 28 614.2 957.4 1992 28745.4 1,057.8 1995'aVV$ *7 594 ^ $1,823.3 5-4% $2,211.3 $2.274.1 142.9 4.5 2,458.3 2.216.9 148.2 3.3 2,202.2 2,202.9 151.9 3.7 1,995 2,160.4 156.4 10.4% $1,079.1 $1,678.6 84.1 ,094 18646.1 1,617.8 8.7 1,154.3 1.819.0 84.0 1993 19 151 8 1.504.4 7.9 1,470.6 1,862.2 87.5 1992 18 777.2 1,285.4 6.8 1,570.4 1,987.3 90.6 ?9Mne"P$16,987 5 19g4 1993 1992 17 290.2 16 140.2 16.369.6 $427.5 383.7 369.4 437.5 2.5%$1,222.1 $1,410.0 3.5 1,046.6 1,342.3 2.3 1,244.1 1,283.2 2.7 1,156.4 1,194.4 82.5 79.0 81.7 83.3 1995" 1994" 1993" 1992 $16,209.9 14^05.1 16783 19,038.7 $844.5 426.2C 400.9d -479.9* 5.2% 2.9 2.4 -- $992.9 607.7 734.0 1,278.6 $292.0 380.4 577.7 1,187.1 64.8 67.5 87.1 117.5 1995' 1994' 1993 1992 $13,382.3 13,8307 10.281.4 10,493.9 $818.2 733.6 434.7 455.3" 6.1% $1,028.8 $692.5 5.3 1,017,0 700.0 4.2 7287 578.6 4.3 581.1 578.6 69.8 70.4 607 62.5 1995*1 * * *$*12*,8791.3 1994 13.4207 1993 12769.6 1992 12,191.1 $1,742.1 1,466.4 1,437.6 1,264.3 13.5% $1,072.3 $1,304.0 10.9 712.1 1.3827 11.3 854.1 1,480.2 10.3 1,008 1,265.1 53.4 60.3 52.6 53.4 1995 $12,585.6 $1,125.9 1994 11,264.4 637,1 1993 9,841.8 472.9 1992 9,165 -30.81 Roche Group (Switzerland! 1995 $12,199.6 $2,851.6 1994 12,471.9 2,418.6 1993 12,105.7 2,095.6 1992 10,953.9 1,620.3 Deaussa (Germany) 1995" $9,672.5 $207.9 1994" 9,640.6 121.7 1993" 10,2977 84.4 1992* 8,942.2 84.4 8.9% $1,380.4 57 1,086.2 4.8 1.172 -- 1,204.9 $111.0 95.5 110.5 112.1 23.3% 19.4 17.3 14.6 $1,260.0 $1,936.6 1,145.9 1,972.1 1,189.9 1,829.2 1,093.4 1.689.6 2.1% 1.3 0.8 0.9 $343.3 322.4 347.5 422.2 $302.1 284.0 327.3 336.3 32.4 32.4 32.5 30.1 50.5 61.4 56.1 56,3 27.1 27.3 32.1 33,4 $ Millions Nst sales Nat Profit Capital fl&D Employees income margin, %* spending spending (thousand*) Rnlvay (Belgium) 1995 $9,272.4 $424.4 4,6% $698.8 $400.6 38.6 1994 8.895.1 235.4' 2.6 675.0 3897 39.9 1993 8,281.8 -134.4m -- 651.3 408.8 43.2 1992 8,632 EniChem (Italy) 1995 $8,552.1 289.4" $674.8 4 1 1,509.5 413.5 45.4 7.9% $1577 $97.5 21.3 1994 7,055.2 -525.8 -- 145 4 122.1 23 5 1993 6,536.2 -1,636.8 -- 311.7 132.5 30.6 1992 6.843.6 -957.1 Air Liquids (France) 1995 $6,448.8 $532.9 -- 722.10 188.3 8.3% $874.7 $159.5 33.0 26.1 1994 6,361.2 491.2 7.7 587.0 94.0 24.6 1993 6,085.3 445.7 7.3 776.5 93.3 24.8 1992 5.868.8 445.0 7.6 685.0 92.8 28.0 DSM (Netherlands) 1995 $6,117.0 $667.0 10.9% $492.0 $214.9 17.0 1994 5,590.7 331.3 5.9 280.3 218.0 19.4 1993 5,007.2 -37.4 -- 462.7 242.9 20.6 1992 5,547.1 139.5 2.5 663.9 2647 22.4 BOC International (U.K.) 1995* $5,922.5 $393.1 6.6% $808.8 $144.4 40.1 1994* 5,498.2 202.5" 3.7 656.0 138.9 39.4 1993* 5,107.3 321.9 6.3 648.6 134.6 40.3 1992* 4,311.3 307.0r 7.1 622.4 128.2 37.1 Courtaulds (U.K.) 1995* $3,403.3 $129.0 3.8% $257.3 $63.1 17.0 1994* 3,363.5 161.6 4.8 287.3 71.0 18.5 1993* 3,149.6 1637' 5.2 209.2 61.9 19.0 1992* 3,274.2 239.3 Borealis (Denmark) 1995 $3,199.0 $365.8 7.3 167.3 60.9 11.4% $134.6 $67.8 21.0 67 1994" 2,843.8 737 2.6 74.1 62.5 6.5 1993 -- _____ 1992 _ _____ Kemira (Finland) 1995 $2,8287 $126.5 4.5% $212.2 $55.2 10.5 1994 2,678.8 52.3 2.0 150.4 52.7 11.2 1993 2710,9 63.5 2.3 1947 na 11.4 1992 2,5637 -158.0 Novo Nordisk (Denmark) 1995 $2,4497 $279.0 -- 209.5 11.4% $216.4 na $348.1 12.6 13.0 1994 2,414.1 255.6 10.6 310.2 338.5 12.8 1993 2,171.2 254.6 117 427.0 311.5 11.6 1992 1,909.9 227.8 Laporte (U.K.! 1995 $1,685.6 $126.0V 11.9 349.3 7.5% $113.9 2717 $17.8 107 7.6 1994 1.522.5 139.4 9.2 93.4 16.4 7.1 1993 1,384.4 122,5 8.8 77.0 15.5 7.1 1992 823.7 Dyno (Norway! 1995 $1,5837 101.0 12.3 117.0 $39.5" 2.5% $109.4 9.6 5.4 na 6.9 1994 1,582.7 66.0 4.2 102.0 na 7.6 1993 1,298.2 23.9 1.8 135.1 $17.1 7.3 1992 1,180.7 8.0 0.7 122.2 16.2 7.5 Note: All corporate consolidated sales exclude sales of companies owned less than 50% Monetary statistics for all years are converted from local currency to U S dollars on the basis of 1995 conversion rates as follows: $1.00 29.48 Belgian francs. 5 50 Danish crowns 4.37 Finnish marks: 4.99 French francs: 1.43 German marks. 1.630 Italian lire, 1 61 Netherlands guilders. 6 33 Norwegian crowns. 1 18 Swiss francs; and 0 834 British pounds a Net income as a percentage of sales, b Data exclude results of Zeneca, spun off June 1. 1993. c Excludes nonrecurring charge ot $129,4 million d Excludes nonrecurring charges of $183.1 million e Excludes nonrecumng charges of $419 9 million f Data include results of Nobel Industnes. acquired Nov. 8. 1993 g Excludes nonrecurnng charge of $89.9 million, h Excludes nonrecumng charge of $41 2 million. I Data reflect demerger of chemical operations, effective July 1. 1995. J Excludes non recumng gam of $309.1 million k Fiscal year ends Sept. 30.1 Excludes nonrecumng gam of $34 6 million m Excludes nonrecurnng charge of $100.1 million n Excludes nonrecumng gam of $45 7 million o Excludes nonrecumng charges of $770.6 million, p Excludes nonrecumng charges of $621 5 million q Excludes nonrecumng charge of $26 2 million, r Exdudes nonrecumng charges of $162.7 million $ Fiscal year ends March 31 t Excludes nonrecumng charge of $35 2 million, u Company formed on March 1. 1994 v Excludes nonrecurnng charges of $112.9 mil lion w Excludes nonrecurnng gain of $14,7 million na - not available. CMA 054589 JUNE 24.19% C&EN 75 6 FOREIGN CHEMICAL INDUSTRIES - ASIA-PACIFIC he Asia-Padfic region generally had a stronger year PRODUCTION: Inorganics mixed, others up Tin 1995 than it did the year before. In Japan, which has been especially weak, chemical production grew Thousend* of metric tons, relatively strongly, but sales and profitability for chemicuanlteee otherwiee indicated 1992 1993 1994 % change 1995 1994-95 producers continued only the modest growth begun the previous year; the country's chemical industry still has a long way to go to get back to the high profitability of the late 80s. Other Asia-Pacific countries did better, however. In Tai wan, all sectors of the chemical industry showed solid growth in output. South Korea posted a 7% increase in chemical production, with chemical prices rising 12%. In China, for which composite data are unavailable, produc tion of individual products rose strongly, with most basic organic and inorganic chemicals in the double-digit range. JAPAN INDUSTRY TRENDS: Most chemicals grew INORGANIC CHEMICALS _ _. Ammonia Ammonium chloride Ammonium sulfate Calcium carbide Calcium superphosphate Carbon black Chlorine, liquid Hydrochloric acid Nitrogen* Oxygen* Sodium carbonate Sodium hydroxide Sodium silicate Sulfuric acid Titanium dioxide 1,788 233 1,830 270 396 771 978 706 9,129 8,067 1,057 3,866 722 7,100 252 1,708 221 1,681 245 393 702 900 689 8,957 7,944 1,056 3,777 729 6,937 246 1,713 213 1,710 246 395 696 872 665 9,098 8,277 1,050 3,786 831 6,594 238 1,831 210 1,771 273 367 757 942 621 9,130 8,598 1,049 4,004 836 6,888 249 7% -1 4 11 -7 8 8 -7 0 4 0 6 1 4 5 Production index, 1990 100 % chinos 1992 1993 1994 1995 1994-95 ORGANIC CHEMICALS All manufacturing All chemicals* Petrochemicals Aromatics Alkalies & chlorine Inorganic chemicals & pigments Organic chemicals Cyclic intermediates & dyes Plastics Synthetic fibers Synthetic rubber Fertilizers 95.5 102.0 104.5 119.3 97.0 96.2 91.2 100.1 102.2 127.1 94.2 90.8 92.0 105.5 109.4 132.9 93.8 90.9 1 94.9 112.4 120.3 149.3 98.6 95.6 105.7 102.0 105.4 116.5 105.9 104.8 116.3 126.0 99.4 106.3 97.5 95.5 96.3 106.9 91.9 92.9 102.2 108.8 94.7 91.4 110.4 116.1 105.0 91,7 a Excludes pharmaceuticals. Source: Ministry of International Trade & industry 3% 7 10 12 5 5 11 8 8 7 11 0 Japan's chemical exports, imports grew $ Billions 401 Acetaldehyde Acetic acid Acetone Acrylonitrile Benzeneb Butadiene Butanol Caprolactam Cyclohexane Dioctyl phthalate Ethylene Ethylene dlchloride Ethylene glycol Ethylene oxide Methanol Octanol Phenol Phthalic anhydride11 Propylene Propylene glycol Styrene Terephthallc acid Toluene0 Toluene diisocyanate Urea Xylene0 391 451 377 621 3,309 851 371 548 632 297 6,104 2,708 560 721 34 327 538 165 4,536 302 2,182 1,425 1,150 132 725 3,203 350 484 350 594 3,327 809 388 510 633 279 5,773 2,735 527 680 58 312 513 152 4,272 286 2,167 1,553 1,191 137 725 3,462 369 519 354 610 3,620 856 380 519 640 292 6,125 2,792 567 716 43 305 675 171 4,435 283 2,598 1,579 1,219 144 694 3,627 395 574 396 663 4,013 991 424 545 681 298 6,944 2,932 709 803 75 321 771 170 4,956 304 2,939 1,681 1,374 160 719 4,154 7 11 12 9 11 16 12 5 6 2 13 5 25 12 74 5 14 -1 12 7 13 6 13 11 4 15 PLASTICS Phenolic reeins Polyethylene Polypropylene Polystyrene Polyvinyl chloride 356 2,960 2,038 2,005 1,981 328 2,762 2,031 1,966 1,980 330 2,944 2,225 2,099 2,112 327 3.193 2,502 2.149 2.274 -1 8 12 2 8 SYNTHETIC RUBBER 1,388 1,310 1,349 1,498 11 Note: Excludes rubber and photographic material. Source: Ministry of international Trade 4 industry e Millions of cubic meters, b Petroleum-based product only Source: Ministry of international Trade & Industry 76 JUNE 24,19% C&EN CMA 054590 >*nfl* 4-05 7% 1 4 1 7 3 3 7 3 4 3 5 1 4 4 JAPANESE COMPANY RESULTS: Profit margins improved and losses ended Net sales Net Income asani u.iit?iniwo_.ic ---$10,837 10.419 9,958 199? 1991 10,572 10.365 $153.4 116.9 118.8 176.5 312.1 Dainippon i**u a. Chemicals'7 1995 $5,044 $63.5 1994 5,008 63.8 1993 4,938 66.5 1992 5,205 74.5 1991 5,501 84.4 Profit margin1 1.4% 1.1 1.2 1.7 3.0 1.3% 1.3 1.3 1.4 1.5 Total assets $11,342 11,694 11,603 11,728 11,046 $7,207 7.442 7,352 7,214 6,878 Employ***0 (thouwnd*) 16.3 17.1 17.6 18.1 15.5 7.1 7.2 7.3 7.2 7.0 1995 1994 1993 1992 1991 $2,730 2,604 2,676 2,979 3,309 $44.2 34.0 22,7 22.7 11.3 1.6% 1.3 0.8 0.8 0.3 $2,085 2,084 2,098 2,260 2,331 4.8 4.9 5.2 5.6 5.8 1995 1994 1993 1992 1991 $11,553 9,196 7,405 7,546 7,732 $91.4 5.3 33.9 53.1 56.7 Mitsui Toatsu Chemicals' 1995 $4,181 $43.3 1994 3,987 0 1993 3,827 3.4 1992 4,201 32.2 1991 4,488 75.6 Sekisui Chemical' 1995 $7,875 1994 7,548 1993 7,308 1992 7,171 1991 6,910 $173.9 122.2 119.0 106.4 226.0 0.8% 0.1 0.5 0.7 CT.7 $14,812 14,314 10,122 10,121 11,120 1.0% -- 0.1 0.8 1.7 $6,583 7,017 7,026 6,745 6,775 2.2% 1.6 1.6 1.5 3.3 $6,469 7,017 7,072 7,110 6,709 13.6 14.3 11.3 10.0 9.3' 5.1 5.5 5.6 5.7 5.6 6.0 6.0 6.0 6.0 5.8 $ Millions Net aalea Net income Shown Danko* 1995 $4,817 1994 4,783 1993 4,919 1992 5,409 1991 6,132 $2.2 -197.6 -242.3 70.1 2.1 Sumitomo Chemical* 1995 $6,164 1994 5,955 1993 5,800 1992 6,636 1991 7,455 $95.2 36.3 -2.9 59.2 162.0 Takeda Chemical Industries' 1995 $6,400 $440.1 1994 6,081 425.3 1993 5,971 394.1 1992 6,004 336.0 1991 5,963 345.1 Tel|in' 1995 1994 1993 1992 1991 $3,438 3,433 3,305 3,530 3,605 $94.7 63.8 80.7 114.7 158.3 Torav Industries' 1995 $5,776 1994 . 5,582 1993 5,626 1992 6,167 1991 6,370 $189.6 170.2 196.2 255.2 288.8 Ube Industries' 1995 $3,873 1994 3,775 1993 3,921 1992 4,500 1991 5,169 $52.8 5.3 -16.5 29.2 75.2 Profit mtrgln* 0.1% -- -- 1.3 -- 1.5% 0.6 -- 0.9 2.2 6.9% 7.0 6.6 5.6 5.8 2.8% 1.9 2.4 3.2 4.4 3.3% 3.0 3.5 4.1 4.5 1.4% 0.1 -- 0.6 1.5 Total assets $8,708 7,302 7,500 8,731 8,984 $8,581 8,985 9,050 9,052 9.545 $9,238 8,505 8,405 8,232 7,899 $5,868 5,953 5,949 6,728 6,217 $9,532 8,910 8,843 8.829 8,835 $6,617 9,250 9,452 10,305 10,171 Employees* (thousands) 4.3 5.0 5.3 5.4 5.4 70 7.5 8.0 8.0 7.9 10.9. 11.2 11.2 11.2 11.1 7.2 7.7 7.6 7.2 6.8 10.5 10.5 10.8 10,7 10.4 6.6 6.9 7.5 7.7 7.6 Note: Monetary statistics tor all years converted from yen to U.S. dollars on the basis of 1995 average exchange rate of Si 00 94 06 yen. e Net income as a percentage of sales, b As of Sept 30. 1995. c Fiscal year ends March 31. d Resultant company from October 1994 merger of Mitsubishi Kasei and Mitsubishi Petrochemical, e Fiscal year ends Dec. 31 Sources: B2W Securities. Toyo Keizai Shmposha. SBC Warburg CMA 054591 JUNE 24,19% C&EN 77 6 FOREIGN CHEMICAL INDUSTRY - ASIA - PACIFIC SOUTH KOREA PRODUCTION: Polyvinyl chloride, acrylonitrile-butadiene-styrene rose strongly Thousand* of metric tone 1992 1993 1994 % change 1999 1994-99 Ethylene Composite fertilizers Propylene Polypropylene Polyethylene, high density Benzene Polyethylene, low density Polystyrene Polyvinyl chloride 2,769 2,188 1,482 1,223 1,019 964 761 754 726 3,273 2,365 1,808 1,436 1,189 1,139 853 809 760 3,667 2,514 2,095 1,607 1,294 1,255 923 869 791 3,721 2,454 2,131 1,619 1.232 1,225 970 905 914 i% -2 2 1 -5 -2 5 4 16 Sources: Korean National Statistical Office. Korea Petrochemical Industry Association Thousands of metric tons Vinyl chloride Butadiene Sodium hydroxide Acrylonitrile-butadiene- styrene Synthetic detergents Carbon black Paint Acrylonitrile 199? 1993 1994 667 680 687 376 486 547 524 507 496 310 350 409 360 339 365 248 300 311 330 289 298 104 124 136 %chenge 1995 1994-95 675 -2% 555 1 532 7 491 20 357 -2 323 4 315 6 146 7 PRICES: Plastics, basic chemicals surged Producer priee index. 1990= 100 1992 1993 1994 1995 % change 1994-95 All commodities Chemical products Basic chemicals Synthetic rubber & plastic materials Chemical fibers Drugs, pharmaceuticals Soaps, detergents & toiletries Other chemical products Rubber & plastic products Rubber products Plastic products 107.0 102.0 94.9 94.4 103.3 104.0 106.7 111.3 101.2 103.4 100,6 108.6 101.0 91.2 90.0 100.1 104.5 111.3 112.2 101.4 104.3 100.6 111.6 102.8 94.4 94,1 104.8 106.0 113.9 109.4 102.7 104.5 102.3 116,8 115.2 114.6 118.2 120.4 107.8 117.2 116.6 113.3 116.1 112.5 5% 12 21 26 15 2 3 7 10 11 10 Sources: Korean National Statistical Office. Korea Petrochemical Industry Association South Korea's chemical industry continued rapid growth Production index, 1990 = 100 Source: Korean National Statistical Office FOREIGN TRADE: Petrochemicals boomed $ Million* 1982 1993 1994 1995 % change 1994-95 Overall trade Exports3 Imports6 Trade balance $76,632 $82,236 81,775 83,800 -5.143 -1,564 $96,013 $125,058 102,348 135,119 -6,335 -10,061 30% 32 nm Chemical trade6 Exports3 Imports6 Trade balance 4,454 7,661 -3,207 4,921 8,228 -3,307 6,339 9,763 -3,424 8.944 13,156 -4,212 41 35 nm Petrochemicals Exports3 Imports6 Trade balance 2,570 2,577 -7 2,880 2,669 211 3,813 3,150 663 5.758 4.929 829 51 56 25 Note: Data supplied in U-S- dollars, e Free on board, b Includes cost, insurance, and freight c Includes chemicals and related products nm - not meaningful. Sources: Korean National Statistical Office. Korea Petrochemical Industry Association 78 JUNE 24,19% C&EN INDUSTRY TRENDS: Chemical output up 7% Index, 1990 s 100 1992 1993 Chemicals and chemical products Production Shipments 138.1 152.3 134.1 149.1 Inventories 181.7 203.5 1994 164.9 164 4 197.8 1995 % change 1994-95 176.1 174.6 209.1 7% 6 6 Rubber and olastic Droducts Production 114.8 Shipments 112.2 Inventories 125.2 119.9 118.3 132.7 129,7 130.2 135.3 136.1 135.9 151.3 5 5 12 All manufacturing Production Shipments Inventories 116.2 116.6 129.8 121.1 122.9 132.8 134,4 137.7 142.1 150.6 155.2 163.3 12 13 15 Source*: Korean National Statistical Office. Korea Petrochemical Industry Association CMA 054592 VTSJXJ chang* >94-95 -2% 1 7 20 -2 4 6 7 95 7% rhange 94-95 7% 6 6 5 5 12 12 13 15 TAIWAN PRODUCTION: Mixed results, plastics stable Thousands of metric tone,' unieae otherwise noted 1992 1993 1994 % change 1995 1994-95 ORGANIC CHEMICALS Benzene Butadiene Dioctyl phthalate Ethylene Ethylene glycol Propylene Purified terephthallc acid Styrene Toluene Urea Vinyl chloride Xylene 267 94 225 734 178 401 1,302 336 17 221 650 215 281 90 210 742 174 418 1,635 369 12 236 780 231 456 127 241 889 188 506 1,793 419 38 215 853 487 513 121 207 847 199 475 2,153 415 23 256 806 580 13% -5 -14 -5 6 ~"6 20 -1 -39 19 -6 19 INORGANIC CHEMICALS Ammonia, anhydrous Ammonium sulfate Calcium superphosphate Carbon black Hydrochloric acid Liquid caustic soda Oxygen* Sulfuric acid 272 267 262 274 445 370 467 494 332 335 297 329 65 63 81 90 329 339 397 390 361 383 484 534 377 376 401 434 715 644 727 769 5 6 11 11 -2 10 8 6 PLASTICS & FIBERS Acrylonitrile-butadienestyrene Polyester*1 Polyethylene* Polypropylene Polystyrene Polyvinyl chloride 569 642 742 757 1,641 360 225 522 1,043 1,753 369 220 587 1,078 1,905 411 341 618 1,114 1,984 426 417 664 976 2 4 4 22 7 -12 SYNTHETIC RUBBER8 109 108 198 250 26 PAINTS 379 419 474 512 8 a Thousands of cubic meters, b Includes both fiber and staple without double counting, c High and low density, d Includes styrene-butadiene and polybutadiene Source: Taiwan Ministry of Economic Affairs INDUSTRY TRENDS: Output mostly rose Index, 1991 * 100 1992 1993 All manufacturing Chemicals Basic chemicals Petrochemicals Fertilizers Synthetic fibers Plastics & resins Synthetic rubber Chemical products Paints & varnishes Drugs & medicines Pesticides Industnal catalysts & additives 104.0 114.2 112.5 112.8 102.0 112.4 119.7 102.4 108.5 113.2 105.9 102.3 109.4 106.4 121.7 118.5 120.9 100.5 115.9 131.8 110.3 115.6 124.9 106.2 100.4 124.0 Rubber products Plastic products 103.2 93.4 96.0 90.8 Source: Taiwan Ministry of Economic Affairs 1994 112.6 145.2 124,0 141.7 104,6 129.8 172.9 151.1 128.2 141.3 114,8 104.6 151.9 91.4 91.9 1995 117.6 153.2 133.6 146.7 112.7 137.2 183.7 188.8 134.9 147.7 120.3 109.4 157.9 93.2 83.7 % change 1994-95 4% 6 8 4 8 6 6 25 5 4 5 5 4 2 -9 FOREIGN TRADE: Chronic chemical deficit $ Million* 1992 1993 1994 % change 1995 1994-95 Exports $74,643 $81,636 $89,559 $107,516 Imports 65,910 73,643 81,575 98,765 Trade balance 8,732 7,992 7,984 8,751 Chemical exports* 6,647 7,349 8,509 10,929 Organic chemicals 434 462 651 1,115 Inorganic chemicals 138 172 191 243 Dyeing, tanning & colonng materials 377 446 536 656 Pharmaceuticals 45 39 45 43 Essential oils, perfumes & cleansing materials 145 164 175 175 Plastics, plastic products 4,430 4,827 5,460 6,859 Rubber products 589 657 727 941 Chemical Imports* 8,833 9,815 11,636 14,721 Organic chemicals 3,323 3,673 4,424 6,393 Inorganic chemicals 696 683 841 852 Dyeing, tanning & coloring matenals 637 699 774 822 Pharmaceuticals 275 321 367 426 Essential oils, perfumes & cleansing matenals 264 299 390 470 Plastics & plastic products 1,733 1,941 2,335 2,726 Rubber products 581 564 610 736 20% 21 10 28 71 27 22 -A 0 26 29 26 45 1 6 16 20 17 21 Chemical trade balance -2,186 -2,466 -3,128 -3,792 nm Note: Converted from Taiwan dollars to U S. dollars on the basts of the 1995 conversion rate, $1,00 U.S. $27.32 Taiwan, a Includes chemicals and related products, nm - not meaningful. Source: Taiwan Directorate General of Customs CHINA PRODUCTION: All chemicals but rubber grew Thousand* of metric tone 1992 1993 1994 1995 % change 1994-95 Synthetic ammonia Fertilizer* Nitrogen Phosphate Sulfuric acid* Sodium carbonate Sodium hydroxide* Plastics Man-made fibers Ethylene Synthetic detergents Benzana Synthetic rubber Pesticides* 22,981 22,035 24,095 27,047 20,479 20,160 23,027 25,872 15,705 15,506 17,264 19,158 4,622 4,652 5,369 6,334 14,087 13,140 14,890 17,410 4,550 5,300 5,706 5,744 3,795 3,885 4,227 5,054 3,308 3,354 3,620 4,172 2,132 2,215 2,690 2,867 2,003 2,040 2,192 2,430 1,666 1,765 1,961 2,218 803 832 869 961 373 385 494 493 281 249 268 361 12% 12 11 18 17 1 20 15 7 11 13 11 0 35 a Nutrient content basis, as N. P205. or KzO, b 100%. c On basis of active substance. Sourcea: State Statistical Bureau of China, China Statistics Consultants Ltd. CMA 054593 JUNE 24,19% C&EN 79