The Chemical World This Week
Canadian chemical industry recovering slowly Although the evidence is less than overwhelming, the Canadian chemical industry continues to show signs that its recession is ending. Production so far this year is averaging about 8.5% higher than in 1976 and 12.3% ahead of the no-growth year of 1975, according to latest figures from Statistics Canada. Now second-quarter results from Canada's four largest publicly reporting chemical companies give further indication that the worst is behind. These "Big Four" companies— Canadian Industries Ltd. (CIL), Celanese Canada, Du Pont of Canada, and Union Carbide Canada—report combined second-quarter sales of $519.8 million, 14% higher than in second-quarter 1976 (all amounts in Canadian dollars). Net income rebounded to $24.5 million, up 39% from the like period last year. The improvement is relative, of course. That earnings jump is a measure of how bad things were last year, rather than of how good they are this year. Since first-quarter performance was poor (C&EN, May 9, page 5), sixmonth results help put things in perspective: Total sales were $946.8 million (up 8.8%); earnings came to $32.8 million (up 10.5%). And totals can be misleading. Even as Celanese and Du Pont (both heavily involved in fibers) struggled back to profitability, the other two companies saw their earnings decline. CIL had second-quarter sales of $211.1 million, 8.4% higher than in second-quarter 1976. But earnings fell 4% to $13.3 million. For the first six months, sales amounted to $360.5 million (up 10%), whereas earnings were off 4% to $16.0 million. Sales increased in all business areas, the company says, but sales gains were offset by cost increases, particularly in fertilizers and explosives, that couldn't be recovered through higher selling prices. CIL expects little improvement for the rest of the year. Union Carbide's second-quarter sales increased a modest 5% to $99.8 million. However, earnings declined 14% to $5.7 million. First-half sales totaled $192.9 million, about the same as last year. But first-half earnings came to only $9.7 million, off 30%. Improvements in plastics and chemical markets were offset by declines in demand for steel and construction 6
C&EN Aug. 8, 1977
Chemical earnings up 39% over second-quarter 1976 % year-to-year change
a Afler-tax earnings of four largest Canadian chemical companies — Canadian Industries, Celanese Canada, Du Pont of Canada, and Union Carbide Canada.
industry products. Also, startup and interest costs of Carbide's new polyethylene plant near Sarnia continued to erode net income. The company expects current conditions to prevail for the balance of the year. At Du Pont, second-quarter sales rose to $145.2 million, 24% ahead of last year. Earnings came to $4.8 mil-
lion—nothing to shout about, but still a 2000% improvement over negligible second-quarter 1976 earnings. For the first half, sales amounted to $269.2 million (up 19%), earnings to $6.2 million (up 1100%). All Du Pont products, except fluorocarbons, have been selling better than they did last year, and prices are moderately higher. Demand has been strong for polyethylene resins, explosives, and even fibers. However, Du Pont adds, it isn't clear yet whether the recent improvement can be sustained. Celanese second-quarter sales came to $63.7 million, 34% higher than in second-quarter 1976. Earnings were a modest $649,000, but that looked good compared to the $3.3 million loss incurred in secondquarter 1976. Sales were down sharply in the first quarter, so the first-half total of $123.8 million was only 3% ahead of 1976. Earnings for the six-month period were $933,000, compared to a $1.2 million deficit last year. Celanese says chemical sales remain strong. However, its fibers and fabric operations are still affected by weakness in demand. Government action to limit clothing imports may bring improvement later in the year. D
Tests of Drake's brass plate indicate fake Sir Francis Drake's Plate of Brass, housed at the University of California's Bancroft Library in Berkeley, has been a controversial object ever since its discovery 41 years ago. Now extensive chemical analyses have further undermined the authenticity of the 5 X 8 inch plate. Before its discovery, the plate had been sought for some time, since, according to accounts by several of his crew, Drake had a plate installed at the site on the California coast where he refitted for a month in 1579 before sailing across the Pacific. In 1936, a picnicker found the plate in question near the shore of San Francisco Bay. An inscription claimed the land for Queen Elizabeth. Although metallurgical tests at the time seemed to support the plate's authenticity, it has never been free of suspicion. The current tests were performed following a renewal of the controversy several years ago.
The tests were carried out at Lawrence Berkeley Laboratory and at the Research Laboratory for Archaeology and the History of Art at Oxford University, England. Chemists at LBL used neutron activation analysis to analyze for some 30 elements including copper, zinc, cadmium, iron, tin, and silver. X-ray fluorescence was used to analyze for lead and iron, emission spectroscopy for magnesium and iron, and atomic absorption for cadmium, lead, and silver. Gammaray absorption measured thickness and homogeneity of the thickness. The Oxford analyses were based mainly on x-ray fluorescence. The Oxford laboratory compared its analyses with 22 examples of English and Continental brasses created between 1540 and 1720. LBL made comparisons with old brasses ranging from the 14th to the 18th centuries. The findings of both labs were similar. For example, Oxford found the
