NEWS OF THE WEEK rope, as well as by slower than expected economic recovery in the U.S. Monsanto's sales fell nearly 8% to Two candidates for directors on the for the Region IV post. Walsh, profes$2.28 billion. Excluding a special corpoAmerican Chemical Society Board of sor of chemistry at John Carroll Unirate reorganization charge taken in the Directors have been nominated by versity in Cleveland and councilor second quarter of 1991, Monsanto's net petition. The two nominees are from the Cleveland Section, will comincome dropped about 59% to $113 Stephen T. Quigley for Region IV di- pete against Paul S. Anderson, incummillion—owing largely to significant rector and James A. Walsh for direc- bent Joseph A. Dixon, Joan E. Shields, costs incurred by its drug business. and Larry F. Thompson for two attor-at-large. Union Carbide's sales and earnings Quigley, a science policy and man- large positions. have been restated to reflect the June 30 agement consultant and a councilor The elections will be conducted by spin-off of its industrial gas business as a from the Washington, D.C., Section, mail ballot this fall. The successful separate company, Praxair. Sales of will compete against Maurice M. Bur- candidates will serve three-year terms sey and incumbent William A. Nevill on the board, 1993-95. Union Carbide Corp., the remaining commodity chemicals and plastics firm, grew almost 4% to $1.26 billion for the campus. They consisted of a rigorous some 10,000 contenders nationwide. second quarter, with earnings soaring five-hour written exam and a five-hour All were recommended by their teach- 77% to $39 million. These results, says laboratory exam covering biochemistry ers to ACS local sections, which admin- Carbide chairman Robert D. Kennedy, reflect continuing efforts to drive down and organic, inorganic, physical, and istered qualifying exams. environmental chemistry. The mentors who trained the U.S. fixed costs, combined with better speThe delegations then traveled by bus students were Alfred Glatz of Living- cialty chemical volumes and steady pricto Washington, D.C., for four days of ston (N.J.) High School, Elizabeth Mar- es. He adds, however, that margins in tours, entertainment, and closing cere- tin of the College of Charleston (S.C), commodity markets continue to be very monies and awards at the National and Joseph Mitchener of South Caroli- tight. Academy of Sciences. na Governor's School for Science & Praxair reports growth in sales of The four students on the U.S. team Mathematics in Hartsville. about 8% to $662 million, and earnings were selected from 20 finalists who The olympiad events were planned up 21% to $34 million. On July 21, participated in last month's chemistry and coordinated by staffers in ACS's Praxair also declared its first stock divstudy camp at the U.S. Air Force Acad- Education Division. Principal financial idend of 6V4 cents per share, and its inemy in Colorado Springs, Colo. The fi- support came from the Exxon Educa- tention to establish a regular dividend nalists, in turn, were chosen from more tion Foundation, Miles Inc., and the payment schedule. than 700 outstanding high school stu- National Science Foundation. Specialty chemical producers, plagued dents picked from an original group of Ron Dagani less by the cyclic nature of the economy, racked up much stronger results in the quarter. Rohm & Haas, Great Lakes Chemical, Stepan, Goodrich, Crompton & Knowles, PPG Industries, Lubrizol, Chemical companies showed some covery in the chemical industry general- American Cyanamid, and Witco all resigns of recovery in the second quarter ly lags that in the general economy by as port double-digit earnings increases, as of 1992. Mixed financial results indus- much as six months. Positive signs are high as 60%. This occurred despite sales trywide suggest that not all companies slight increases in chemical production rises of generally only a few percent for have pulled out of the recessionary cy- and shipments, but on the downside, these companies. Exceptions were Lubrizol, Great Lakes, and Crompton & cle. But specialty chemical producers chemical prices still remain soft. showed stronger results. And pharmaFor the second quarter, Dow, Mon- Knowles, which posted sales increases of ceutical firms continued to post gains santo, Hercules, and W. R. Grace report about 12% on average. in both sales and earnings for the sec- decreases in either sales or earnings, or Pharmaceutical sales are not cyclical, ond quarter and first half of the year. both. Sales were down 2 to 3% for Her- and drug firms report growth in both For about 20 companies reporting by cules and Grace, for example, although sales and earnings for the quarter. Averpress time, sales and earnings on aver- earnings were up for both, excluding age sales growth for nine major pharmaage were up for the quarter, compared extraordinary items and discontinued ceutical companies, not including Merck, with last year's second quarter. But com- operations. And analysts do not expect rose about 9% over the same period in panies with energy-related or commodi- Du Pont, which has yet to release sec- 1991. Earnings increased an average of ty chemical sales—hit hardest by down- ond-quarter figures, to show strong re- 11%, but this would be even a few perturns in the economy—report sizeable sults because of a slowdown in its en- cent higher if Upjohn and Bristol-Myers Squibb were excluded. Bristol-Myers drops in financial performance. Howev- ergy-related business. er, comparisons to a year ago are comDow's sales were up slightly to $4.86 Squibb's earnings rose only 6%, excludplicated by the lingering impact of the billion for the quarter, just 1.4% higher ing a pretax charge of $46 million. And Gulf War on the chemical economy at than a year earlier. Earnings, however, Upjohn's earnings grew just 2% to $130 that time. dropped about 20% to $186 million. million, owing in part to decreased sales The outlook for the rest of the year is Both Dow and Monsanto were affected of its sleep medication, Halcion. Ann Thayer at best cautiously optimistic, because r e by lower prices and a slowdown in Eu-
Two petition candidates for ACS directors
Chemicals show a few second-quarter pluses
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JULY 27,1992 C&EN
