THE CHEMICAL WORLD THIS WEEK
frigerated transportation, and for freezing cattle sperm for controlled breeding of dairy cattle. Public transportation may also benefit from cryogenics technology, Dr. Flynn says. For example, proposals to the Department of Transportation for high-speed trains include a magnetically suspended tube vehicle which uses superconducting coils. (Superconductivity is the disappearance of electrical resistance at low temperatures, especially in metallic conductors.) In air transportation, supersonic transports could well end up using as fuel liquefied natural gas or liquid methane. Cryogenics technology already plays a role in helium conservation and might one day be used for superconducting power transmission. Cryogenics is also and will continue to be important in education, Dr. Flynn points out, especially for basic research in high-energy physics and superconductivity. In the cryogenics field, the 1950's was an era of a developing liquid hydrogen technology. The 1960's, Dr. Flynn says, will probably be remembered as an era of developing liquid helium technology, adding that "It's possible that even now we are entering the era of superconducting technology."
PROFITS:
Chemicals' Slow Upturn Corporate profits in the U.S. are continuing their steady, if unspectacular, recovery from the disappointing levels of 1967. And with almost all midyear financial returns now available it appears that even the laggard basic chemical industry is picking up a little steam in its agonizingly slow upturn from the serious slump in profits that first struck back in the fall of 1966. Latest Department of Commerce figures put total U.S. corporation aftertax profits for the second quarter of this year at an adjusted annual rate of $50.3 billion, a solid 6% ahead of the $47.3 billion rate of the second quarter of 1967. This follows first-quarter earnings at a $49.1 billion rate, up 47c over the first quarter of last year. These gains—which put first-half profits at a $49.7 billion annual rate some 5% ahead of the $47.2 billion for the first half of last year—have been made in spite of the new 10% surcharge now being added to 1968 corporate income taxes. Without this extra burden, first-half after-tax earnings this year would have been at about a $53 billion rate, up some 12% over last year. 22 C&EN AUG. 26, 1968
Basic chemical makers are not doing quite as well. But at least industry profits are now clearly on the upturn, even if not by very much. A C&EN survey of 39 basic chemical makers, representing about 90% of the industry, reveals that the retroactive surcharge has turned an apparent 6% after-tax profit in the first quarter of this year over the first quarter of last (C&EN, April 29, page 14) into about a 1% decline. However, these same 39 companies had second-quarter after-tax earnings of $417 million. This is some 15% more than the $362 million they earned in the first quarter. It is also 5% more than their earnings for the second quarter of last year. These returns leave the basic chemical industry with first-half after-tax earnings running some 2% ahead of those for the year-earlier period. This is somewhat lower than the 6% earnings gains showed by the first 18 companies to report ( C&EN, July 29, page 9). Even if basic chemical earnings are still moving forward only hesitantly, sales are showing good and increasing gains. Of the 39 companies in the C&EN survey, 18 had lower midyear earnings this year than last. But only five had lower sales. These 39 companies had total firstquarter sales of $5.66 billion. This is 7% ahead of sales for the three months of 1967. Second-quarter sales reached $6.09 billion, 9% ahead of second quarter of last year. This puts firsthalf sales at $11.75 billion, some 8% more than for the first half of 1967. This compares with annual industry growth rates of 3.6% in 1967 and 9.0% in 1966.
POLYVINYL CHLORIDE:
Makers Switch Catalyst Polyvinyl chloride producers appear to be changing their catalyst for polymerizing vinyl chloride by the suspension process. Because of relative process economics, they're favoring isopropyl peroxydicarbonate (IPP) over the conventional lauroyl peroxide (LPO) as the free radical initiator. Uniroyal, which holds a process patent (Reissue No. 25,763) for the use of IPP catalyst, has offered licensing agreements to all 22 PVC producers. The company has just signed agreements with several leading producers and, in the next several weeks, expects to wrap up some additional agreements. Just last week, Uniroyal settled its seven-month-old lawsuit against Escambia Chemical Corp. for infringement of its patent. In an out-ofcourt settlement, Escambia recognized
the claims of the company's patent as valid and entered into a licensing agreement with Uniroyal. It's hardly surprising that PVC producers are now beginning to adopt the IPP process for savings which amount to only a fraction of a cent per pound of resin. With the overcapacity and weak selling prices of PVC resins, fractional savings on such a big-volume polymer could quickly swing what might be an unprofitable operation for some producers into the profit column of the ledger. Last year, 2.08 billion pounds of PVC were produced in the U.S. This year, production will total about 2.50 billion pounds. Of this total, 1.2 billion pounds will be polymerized by suspension methods and the remainder by emulsion, solution, and bulk methods. General-purpose-grade resin is now trading at 8 1 / 2 cents a pound, down from its 12 cent-a-pound nominal list price. Uniroyars IPP process, says Ivan Mankowich, manager of patents and contracts, cuts the manufacturing costs up to 3 / 4 cent per pound. A producer who operates a 100 million pound-ayear suspension plant could save $750,000 annually. And for all suspension producers together, he says, the savings could amount to more than $7.5 million a year. This year, nearly 500 million pounds of PVC will be made by suspension polymerization using the IPP process. Another 750 million pounds will be made by suspension polymerization using largely LPO. Uniroyal has been using the IPP process at its 135 million pound-a-year plant in Painesville, Ohio. Escambia has been using it at its 50 million pound-a-year plant in Pensacola, Fla., and several of the pending licensees are already substituting IPP for LPO at their plants. With the IPP process, no additional capital is required on the existing polymerization plant, Mr. Mankowich adds, except for some refrigerated storage for the catalyst. Leading producers of IPP, including PPG Industries and Wallace & Tiernan, recommend the catalyst be kept refrigerated under dry ice. LPO sells for just less than $1.00 a pound from more than a dozen producers, compared to more than $3.00 a pound for IPP. But only about 10% as much IPP by weight is required, which reverses this cost disadvantage to show a 0.25 cent-a-pound saving for the IPP initiator. Process savings bring total savings to nearly 3 / 4 cent a pound. IPP initiates polymerization with a linear reaction rate and no induction period. This means shorter cycle times and corresponding increases in productivity.
