Cowéfe
DETERGENT SILICATES j*oî, ctrnwousuatu* . . . your best source for high quality basic ingredients for laundry p r o d u c t s , metal cleaners, dairy cleaners, dish washing compounds, soap builders, paper de-inking compounds, household cleaners, floor cleaners, general purpose cleaners.
CRYSTAMET
®
(Pentahydrate Sodium Metasilicate)
Exceptionally pure hydrated metasilicate for medium pH jobs. Stable crystal structure and uniform spherical granules make CRYSTAMET ideal for compounding free-flowing, non-caking, dust-free mixtures.
DRYMET
®
(Anhydrous Sodium Metasilicate)
Most highly concentrated metasilicate . . . a source of controlled alkalinity. Economical DRYMET puts extra value into your cleaning compounds. Blends easily with other alkalies, soaps, synthetics.
DRYORTH
C&EN CHARTS The stock market seems to be saying one thing, businessmen another about the outlook for the chemical industry — a n d for business in general. In the wake of sharply higher earnings (C&EN, April 3 0 , page 2 3 ) , most chemical industry executives are optimistic, although cautiously so. Union Carbide president Morse G. Dial, for example, thinks that if the economy continues to improve, Carbide's earnings should rise at a somewhat greater rate than the economy itself. And Stauffer chairman Christian de Guigne looks for a "satisfactory profit recovery for the full year 1 9 6 2 . " Allied
DIVIDEND YIELD Chemicals
PRICE-EARNINGS RATIO Chemicals
4.0
35
RAPID DELIVERY FROM THREE LOCATIONS.. ILLINOIS
NEW Y O R K *
^NEW JERSEY
Coafc CHEMICAL COMPANY Cleveland 20, Ohio MAY
7,
30 1961
®
Ready-to-use, power-packed detergent silicate. DRYORTH »s an excellent heavy duty metal cleaner and laundry detergent — an economical constituent of high pH cleaning compounds.
C&EN
Percent
3.5
2.0
I I I I I I I I I I I I D J F M A M J J A S O N D
(Anhydrous Sodium Orthosilicate)
38
Chemical, which is not counting on significantly higher profits this year, does expect "substantially i m p r o v e d " earnings in 1 9 6 3 . Despite this confidence, chemical stocks have stumbled, falling about 1 0 % in less than two months to the lowest level since the beginning of 1961. Since mid-March, more than $3 billion has been clipped from the market value of chemical industry shares listed on the New York Stock Exchange. The combination of higher earnings and lower stock prices makes chemical shares look less expensive. Price-
1962
15
I I I I I I I I I I I I I D J F M A M J J A S O N D
CASH DIVIDENDS-Chemical Industry Billions of Dollars 1.2
THROUGH MARCH TOTAL
Source: Dept. of Commerce
This Week In Business earnings ratios are at the lowest level since the end of 1960; dividend yield is the highest in 18 months. Nevertheless, investors obviously are worried about business trends—about the over-all outlook for the economy
and about the impact of government actions on industry profits, for example. And they are concerned, too, about the effects of sharp competition, continuing excess capacity, and depressed prices on chemical com-
MAY
7,
1962
panies' results. They are looking beyond the bright current results—industry sales of $ 2 . 8 8 billion in March were higher than those of any previous month by 5 % — t o the less clear prospect for later this year.
C A E N INDEX OF STOCK PRICES CHEMICALS
January 1954 Opening Prices=100
DRUGS
550
550
500
500
435.2
400
400 APR. 27
300
300 SEC COMPOSITE: INDEX
200
246.5
200
150
3rd Qtr. 1961
150 1st Qtr. 1962
4th Qtr.
3rd Qtr. 1961
2nd Qtr.
PETROLEUM
RUBBER
550
550
500
500
1st Qtr. 1962
4th Qtr.
2nd Qtr.
383.1 400
400
APR.27
!
APR. 27 300
300 SEC COMPOSITE INDEX
260.1
,
. SEC COMPOSITE INDEX
^
246.5
246.5. 200
200
150
3rd Qtr. 1961
4th Qtr.
1st Qtr. 1962
150 2nd Qtr.
3rd Qtr. 1961
4th Qtr.
1st Qtr. 1962
MAY
7, 1 9 6 2
2nd Qtr.
C&EN
39
