FACTS & FIGURES FOR THE CHEMICAL INDUSTRY - C&EN

COVER STORY

FACTS & FIGURES FOR THE CHEMICAL INDUSTRY

T

H E CHEMICAL INDUSTRY AROUND T H E WORLD IS H O P -

ing that 2003 was the year in which business turned around. In total, however, chemical industry data for the 12 months do not look very different from those of 2002. Production of chemicals, especially in the developed countries, changed little. The chemical industry still cut employees—especially production workers—as it had in the previous year because of the slack demand.

The industry also reduced forwardlooking spending such as that for new plants and equipment and for R&D. Most of the companies in the U.S., Europe, and Japan that were surveyed reduced such expenditures in 2003 from the previous year, which itself had been down from 2001. Prices, however, jumped to keep up with rising raw material costs. In fact, the increase in prices in some countries made it seem as if demand for chemicals, which is measured in currency as opposed to volH T T P : / / W W W . C E N - 0 N LI N E . 0 R G

ume, was rising rapidly But the increase in total value was almost all due to the rising prices. W h a t does not show up in the annual data, however, is that, in the final quarter of the year in some producing countries, including the U.S., the cost-cutting reorganizations of the previous few years finally began to have an effect on the bottom line, ^es, costs were still increasing, and p r o d u c t i o n was improving only slightly But coupled with the increased

prices, cost cutting—including the employment cuts—produced higher earnings for many producers in the fourth quarter of 2003. This improvement continued and became more widespread in the first quarter of 2004. C&EN's collection of industry data from the major chemical-producing countries and regions was accomplished by Assistant Managing Editor Michael McCoy Senior Correspondent Marc S. Reisch, and Associate Editor Alexander H. Tullo (all three in C&EN's Northeast News Bureau); Senior Correspondent Patricia L. Short (London); and Asia-Pacific Bureau Head Jean-François Tremblay (Hong Kong). The work was coordinated by Senior Correspondent William J. Storck (Northeast News Bureau).

FINANCES EMPLOYMENT PRODUCTION TRADE

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C & E N / JULY 5, 2004

23

COVER STORY the prior year. In Canada, however, chem ical demand growth was much less, with just a 3.5% increase to $29.4 billion. In Europe, chemical shipments were down for four of the seven countries sur veyed. Belgium, which had seen a big in crease in shipments in 2002, had a 0.7% decline in 2003 to $50.0 billion. Italy was off 0.5% to $73.7 billion. France fell 1.4% to $94.3 billion. And Germany saw chem ical shipments drop 1.6% to $147.5 billion. AST YEAR WAS A MIXED BAG FOR ecutives, at that time, were cautious about This leaves the Netherlands, Spain, and chemical company finances. De predicting any kind of upturn. Raw mate the U.K. Chemical shipments rose 2.0% mand for chemicals improved in rial and feedstock costs had cut deeply in in t h e U K . to $61.5 billion; many countries, chemical prices to earnings in 2003. Despite the 3.4% in the Netherlands to were higher—often much high huge increase in fourth-quarter $38.5 billion; and 4.2% in Spain er—but costs were rising, especially the earnings, and despite a 12.2% in to $44.4 billion. prices that companies were paying for raw crease in sales for the year, those materials. Meanwhile, prices were rising. 25 companies were able to man In the U.S., the producer price Although the year before last, econo age only a 4.6% earnings increase index for all chemicals jumped for all of 2003. mists predicted a turnaround for 2003, the 6.5% to 112.7. (All indexes are year turned out to be almost anything but. At Ferro, Chief Executive Of keyed to 1997 = 100.) And with It was not until the last quarter of 2003 ficer Hector R. Ortino said, "We in the broad category there were that, in the U.S. at least, chemical compa are cautiously optimistic about much bigger increases. Industri nies began to see some signs of a recovery the sustainability of the eco FACTS & al chemicals were up 11.3% to In that quarter, the 25 large and mediumnomic recovery that appears to FIGURES 112.1, and plastic materials and size chemical companies that C&EN reg be taking shape in North Amer resins rose 11.8% to 106.4. And for a really ularly surveys turned in higher earnings than ica." And at Dow, which had come from a big increase, inedible fats and oils had a they had the year before. That fourth quar big loss in fourth-quarter 2002 to a mod surge of 36.7%, but to an index ofjust 933. ter presented a remarkable increase: Earn est gain in the same period of 2003, CEO In Canada, prices were also climbing, but ings jumped 95.9% to $1.56 billion. William S. Stavropoulos said, "There is still in most cases not as fast as in the U.S. The uncertainty due to high feedstock and en But underlying that huge increase was index for all chemicals rose just 2.9% to ergy costs, which will remain volatile." the fact that just a few companies actually 110.4, spurred largely by a 78% increase in showed much real improvement. Of the 25, Stavropoulus was certainly right, as any the index for organic industrial chemicals four companies were still in the red and an one who buys gasoline or pays an electric or to 133.4. additional nine had lower earnings than they natural gas bill knows. European countries also had slower had shown in the fourth quarter of 2002. Chemical shipments in the U.S. in 2003 It was no wonder that U.S. chemical ex totaled $458.1 billion, an 8.9% increase over chemical price growth than the U.S. In Italy with its 0.5% decline in shipments, prices fell 0.2% to 109.9. On the positive side, DEMAND France's index rose 1.5% to 105.1; Spain, Chemical shipments rose in the U.S. and Canada , 2.9% to 109.9; the Netherlands, 3.0% to 112.7; the U.K., 3.4% to 115.6; and Germany $ Billions i Billions 5.2% to 109.4. 30 500 Π U.S. Chemical companies weren't ready to 400 spend alot ofmoney on newplant and equip 300 ment in 2003. In the U.S., capital spending for 25 companies surveyed by C&EN rose 200 just 2.2% to $6.46 billion. In Canada, how 10i ever, the four major firms spent a combined $623 million, up 25.9% from 2003. 1993 94 95 96 97 98 99 00 01 02 03 1993 94 95 96 97 98 99 00 01 02 03 European andJapanese companies were much more parsimonious. Capital spend but mostly on the strength of price increases ing at 17 European chemical producers de Price index, Price index, 1997 = 100 clined 21.8% to $10.8 billion. And injapan, 120 Canada 12 companies spent an aggregate $5.60 bil lion, 9.3% less than the year before. Spending on research and development was also lackluster, with an increase of just „ / 0.1% among the US. firms to a total $4.41 billion. The European companies cut R&D spending by 3.5% to $8.79 billion, and in 1993 94 1993 94 95 96 97 98 99 00 01 02 03 Japan, outlays for R&D declined 1.0% to SOURCES: Departments of Labor and of Commerce, Statistics Canada $3.43 billion.

FINANCES: PRICES DROVE IMPROVEMENT

Shipments were up, but so were costs; future-oriented spending continued to suffer

L

ι ι I II I I I I I

I I II I II I I I

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C & E N / JULY 5, 2004

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U.S. SHIPMENTS All categories except agricultural chemicals grew $ BILLIONS

1993

1994

1995

1996

1997

1998

1999

2000

2001

2003

2002

ANNUAL CHANGE 2002-03 1993-03

All chemicals $330.6 $350.5 $377.8 $385.3 $415.6 $416.6 $419.5 $442.2 $427.4 $420.5 $458.1 Chemicals, excluding pharmaceuticals 259.9 274.9 297.2 299.3 322.7 313.2 311.7 320.4 307.7 315.1 343.8 19.4 20.7 19.7 Agricultural chemicals 21.6 20.3 18.8 20.9 23.0 23.5 24.2 24.2 28.6 Coatings & adhesives 30.0 28.4 21.9 27.5 29.7 23.2 23.8 24.7 26.4 26.8 295.7 256.9 267.0 All other chemicals 219.3 230.8 250.5 251.0 272.1 262.1 262.5 270.3 114.3 Pharmaceuticals 70.7 75.6 80.6 86.0 92.9 103.4 107.8 121.8 119.7 105.4

8.9% 9.1 -1.5 0.7 10.7 8.4

3.3% 2.8 0.3 2.7 3.0 4.9

SOURCE: American Chemistry Council, using Department of Commerce data

CANADA SHIPMENTS Most chemical products were up in 2003 $ BILLIONS

1993

1994

1995

1996

1997

1998

1999

2000

2001

2003

2002

All manufacturing $216.9 $247.6 $278.2 $285.5 $304.4 $314.9 $364.3 $400.6 $387.0 $392.8 $389.5 29.4 Chemical manufacturing 28.4 27.5 17.7 19.8 21.5 24.4 26.5 21.6 22.4 23.2 8.6 Basic chemicals 8.1 8.2 5.1 6.1 6.3 6.6 7.8 5.8 6.4 6.1 3.1 2.9 Petrochemicals 3.1 3.2 1.6 1.9 1.7 2.1 1.8 1.3 2.0 Resins & synthetic rubber 4.8 4.6 4.6 2.4 3.1 4.4 5.0 3.6 3.7 4.0 4.2 Pesticide, fertilizer & other agricultural 2.0 chemicals 1.6 1.8 1.1 1.4 1.7 1.8 1.8 1.9 1.9 1.9 Pharmaceuticals & medicine 6.1 4.9 5.8 3.3 3.9 3.2 3.4 3.4 3.4 3.6 3.5 Paints, coatings & adhesives 2.0 1.9 1.4 1.9 1.4 1.4 1.9 1.8 1.6 1.7 1.6 Soaps, cleaners & toilet preparations 2.1 2.4 2.4 2.0 2.7 2.4 2.1 2.2 2.1 2.1 2.1


-0.8% 3.5 5.3 10.0

6.0% 5.2 5.2 9.3

4.7

7.0

21.7

5.8

4.9

6.3

3.7

4.0

-9.1

0.7

NOTE: Monetary statistics for all years were converted on the basis of the 2003 average exchange rate of $1.00 U.S. = $1,401 Canadian. SOURCE: Statistics Canada

EUROPE SHIPMENTS, BY COUNTRY Mixed performance in 2003 offered some hope of upturn for chemical industry $ BILLIONS

Belgium France Germany Italy Netherlands Spain U.K.

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

$23.7 63.3 116.1 50.3 21.2 24.2 43.6

$27.1 67.7 123.6 53.1 22.3 26.7 47.8

$30.5 73.2 127.0 55.3 27.0 28.8 46.0

$31.0 73.9 124.7 60.0 27.0 30.0 47.3

$31.1 78.4 133.7 63.3 29.2 31.2 52.4

$32.8 79.7 132.1 63.1 29.8 32.9 51.8

$33.3 83.0 137.3 64.5 30.8 34.3 55.5

$39.9 92.9 152.8 70.7 37.2 39.5 60.7

$47.9 96.3 151.5 72.6 37.2 41.4 62.2

$50.4 95.6 149.9 74.0 37.2 42.6 60.3

$50.0 94.3 147.5 73.7 38.5 44.4 61.5


-0.7% -1.4 -1.6 -0.5 3.4 4.2 2.0

4.0% 2.1 1.3 2.0 3.2 3.3 1.8

NOTE: Monetary statistics for all years were converted from local currencies to U.S. dollars on the basis of the 2003 average exchange rates of $1.00 U.S. = 0.884 euros and 0.612 pounds sterling. SOURCES: European Chemical Industry Council, national agencies


C&EN / JULY 5, 2004

25

FINANCES U.S. PRICE INDEX Modest to large increases seen in all categories PRODUCER PRICE INDEX, 1997=100 All commodities Industrial commodities Finished goods Chemicals & allied products Industrial chemicals Prepared paint

1993 93.2 93.2 94.6 89.3 87.3 87.6

1994 94.4 94.5 95.2 92.0 90.4 89.0

Paint materials Drugs & pharmaceuticals Fats & oils, inedible Agricultural chemicals Plastic resins & materials Other chemicals & products

92.9 91.7 72.3 82.8 85.3 94.1

93.4 94.0 83.6 90.4 89.1 95.3

1995 1996 97.7 100.1 98.3 99.7 97.0 99.6 99.2 99.0 101.6 100.2 93.4 96.8

1997 100.0 100.0 100.0 100.0 100.0 100.0

1998 97.5 97.7 99.2 100.2 96.0 101.8

1999 98.4 99.1 100.9 100.4 94.1 103.5

2000 104.0 105.6 104.7 105.2 102.1 105.7

2001 105.2 106.3 106.8 105.7 101.6 108.1

2002 102.7 103.7 105.4 105.8 100.7 109.7

2003 108.2 108.9 108.7 112.7 112.1 112.3

98.5 96.3 95.9 98.0 104.5 98.0

99.9 98.0 100.8 100.8 96.9 99.3

100.0 100.0 100.0 100.0 100.0 100.0

101.6 110.7 88.2 96.8 91.3 101.1

101.8 114.8 66.8 93.1 91.6 101.5

104.9 117.5 53.0 93.8 103.1 102.9

105.9 119.5 58.7 98.6 97.7 104.7

117.2 121.3 68.3 93.3 95.2 98.0

122.2 125.4 93.3 101.9 106.4 105.9

1995 1996 98.9 99.3 101.8 99.8 101.0 102.9 99.5 103.6 125.9 117.7 102.9 106.6

1997 100.0 100.0 100.0 100.0 100.0 100.0

1998 100.4 96.9 99.7 87.5 100.4 88.4

1999 102.2 98.6 97.7 84.4 90.2 84.0

2000 2001 106.5 107.6 104.8 107.4 98.6 104.4 82.1 91.1 91.3 118.6 86.5 91.4

2002 107.6 107.3 104.9 90.9 101.4 89.4

2003 106.2 110.4 106.7 87.4 99.4 97.8

ANNUAL CHANGE 2002-03 1993-03 5.3% 1.5% 5.1 1.6 3.2 1.4 6.5 2.4 11.3 2.5 2.3 2.5 4.2 3.3 36.7 9.2 11.8 8.0

2.8 3.2 2.6 2.1 2.2 1.2

SOURCE: Department of Labor

CANADA PRICE INDEX Prices tended to pick up in 2003 ANNUAL CHANGE 2002-03 1993-03 -1.3% 2.0% 2.9 2.4 1.7 2.3 -3.9 -1.1 -2.0 1.1 9.4 4.9

PRODUCER PRICE INDEX, 1997=100 All commodities Chemicals & chemical products Inorganic Industrial chemicals Sulfuric acid Caustic soda Ammonia

1993 86.8 87.0 85.4 97.7 89.5 60.5

1994 92.0 93.2 88.5 93.0 87.3 75.6

Organic industrial chemicals Benzene-toluene-xylene Olefins

76.2 84.4 82.9

94.5 96.9 94.8

107.1 93.5 101.7

97.2 92.0 100.3

100.0 100.0 100.0

91.6 80.2 95.7

98.4 90.4 115.3

119.1 128.3 144.3 119.8 142.4 158.3

123.8 107.3 145.0

133.4 106.2 169.8

7.8 -1.0 17.1

5.8 2.3 7.4

Synthetic resins Polyethylene3 Polystyrene Thermosets

79.5 73.5 87.0 82.7

90.8 83.5 97.7 94.1

106.9 104.5 122.8 101.7

98.0 96.3 106.7 99.1

100.0 100.0 100.0 100.0

90.6 87.7 96.2 98.4

92.8 91.2 95.8 93.9

103.2 100.7 97.3 94.7 100.9 100.4 103.2 133.1

99.0 91.0 100.0 108.4

101.3 96.1 103.6 108.4

2.3 5.6 3.6 0.0

2.5 2.7 1.8 2.7

Agricultural chemicals Pharmaceuticals Paints & varnishes

88.8 100.9 88.1

91.4 100.6 89.4

94.2 99.3 100.3 100.5 94.3 97.7

100.0 100.0 100.0

105.0 99.8 101.4

103.8 100.6 102.9

103.7 103.7 101.2 101.8 106.0 109.8

103.7 105.9 111.9

104.1 107.4 113.8

0.4 1.4 1.7

1.6 0.6 2.6

Soaps & cleaners Toilet preparations Pigments, lakes & toners

100.4 96.1 80.0

99.4 98.7 83.7

100.3 101.3 98.7 98.5 90.6 96.2

100.0 100.0 100.0

99.3 102.6 103.4

100.0 104.8 105.2

100.3 101.5 107.4 108.9 107.0 105.2

100.7 110.4 103.3

100.7 111.5 101.3

0.0 1.0 -1.9

0.0 1.5 2.4

a Includes includes high- and low-density polyethylene. SOURCE: Statistics Canada

EUROPE PRICE INDEX Producer prices rose in most major countries in 2003 CHEMICAL PRODUCER PRICE INDEX, 1997 = 100 Belgium France Germany Italy Netherlands Spain U.K.

1993 91.4 95.7 98.9 87.8 90.4 94.3 83.1

1994 97.1 97.2 100.4 88.3 94.2 92.5 85.7

1995 106.7 102.5 107.4 90.5 103.2 101.6 85.9

1996 102.5 101.5 101.8 96.6 99.2 101.1 86.5

1997 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1998 99.0 98.9 99.1 97.8 95.6 95.9 98.9

1999 99.1 98.6 98.3 98.5 94.3 96.2 100.0

2000 105.7 103.0 103.0 107.0 110.1 105.7 108.3

2001 111.9 104.2 105.1 107.5 109.1 105.9 111.6

2002 112.2 103.5 104.0 110.1 109.4 106.8 111.8

2003 na 105.1 109.4 109.9 112.7 109.9 115.6

ANNUAL CHANGE 2002-03 1993-03 1.5% 5.2 1.0% -0.2 2.3 3.0 2.2 2.9 1.5 3.4 3.4

na = not available. SOURCES: European Chemical Industry Council, national chemical associations

26

C&EN

/ JULY

5

2004


TOP 50 U.S. CHEMICAL COMPANIES Sales and profits improved for many of the major U.S. chemical producers in 2003

R A N K

2003

2002

1 2 3 4 b

1 2 3 4 8

6 7 8

b 6 7

9 10

11 9

11 12 13

12 10 13

14

16

15 16 17 18 19 20 21 22 23 24 25 26 27 28

14 17 15 20 21 23 22 18 25 24 26 27 28

29 30 31

31 29 32

32

30

33 34 35

36 35

36 37 38 39 40 41 42 43 44 45 46 47 48

39 34 42 37 33 38 41 40 44 46 47 48 49

49 50

—

—

—

50

COMPANY

CHEMICAL CHEMICAL SALES CHANGE SALES AS ($ MILLIONS) FROM % OF TOTAL 2003 2002 SALES HEADQUARTERS

Dow Chemical $32,632.0 18.2% DuPont d 30,249.0 13.2 ExxonMobil 6 20,190.0 73 11 General Electric 8,371.0 V4 Chevron Phillips 7,018.0 28.2 Huntsman Corp. 6,990.2 -2.9 PPG Industries 6,606.0 1U.2 Equistar Chemicals 6,545.0 18.2 Air Products 1 6,029.5 17.6 Eastman Chemical 5,800.0 9.0 Rohm and Haas 5,620.0 11.9 Praxair 5,613.0 9.5 Lyondell Chemical 3,801.0 16.5 Occidental Petroleum 3,178.0 175 Honeywell 3,169.0 - 1 1 Dow Corning 2,872.5 in 1 Monsanto 9 2,851.0 -7.7 Nalco 2,766.6 4.6 Solutia 2,430.0 8.4 IMC Global 2,190.6 6.5 Engelhard 2,054.4 9.9 Lubrizol 2,049.1 3.5 Crompton Corp. 2,031.8- -14.4 W.R. Grace 1,980.5 9.0 FMC Corp. 1,921.4 3.7 Hercules 1,846.0 8.3 Cabot Corp. f 1,795.0 15.3 Millennium Chemicals 1,687.0 8.6 Sunoco 1,627.0 19.5 Ferro Corp. d 1,622.4 6.1 Cytec Industries 1,471.8 9.3 Great Lakes Chemical 1,464.6 4.5 Georgia Gulf 1,444.5 17.4 Borden Chemica L 1,434.8 15.0 Westlake Chemical 1,423.0 32.7 Terra Industries 1,349.2 29.4 H.B. Fuller11 1,287.3 2.5 CF Industries 1,287.3 34.6 Kerr-McGee 1,262.0 5.5 Ashland f 1,170.0 -9.3 Noveon 1,135.9 6.2 Albemarle 1,110.2 13.3 Wellman 1,109.3 9.4 Arch Chemicals 1,009.1 7.4 NL Industries 1,008.2 15.2 ISP 892.9 5.6 Stepan 784.9 4.9 Resolution Performance Products 781.0 5.8 Ethyl Corp. 756.3 15.2 Sigma-Aldrich 714.0 7.5

100.0°/) Midland, Mich. 99.9 Wilmington, Del. 8.5 Irving, Texas 6.2 Fairfield, Conn. The Woodlands, 100.0 Texas 100.0 Salt Lake City 75.4 Pittsburgh

CHEMICAL OPERATING PROFITS3 ($ MILLIONS)

$2,082.0

na

CHEMICAL OPERATING PROFITS AS IDENTIFIABLE CHEMICAL OPERATING CHANGE % OF TOTAL OPERATING CHEMICAL ASSETS AS RETURN ON FROM OPERATING PROFIT ASSETS % OF TOTAL CHEMICAL 13 2002 PROFIT MARGIN ($ MILLIONS) ASSETS ASSETS0

78.7%

100.0%

na

na 6.7 4.0

1,432.0 72.5 803.0 -28.6 76.0 68.7 939.0

85.4 28.8

14.2

10.8

Houston Allentown, Pa.

-62.0 nm 651.9 -20.2

100.0 107.8

100.0 87.5 100.0

Kingsport, Tenn. Philadelphia Danbury, Conn.

223.0

100.0

1,444.0

4.7 na 6.3

100.0

Houston

-1.0

34.1 13.7 100.0 64.8 100.0 100.0 100.0 55.3 100.0 93.0 100.0 100.0 100.0 100.0

Los Angeles Morristown, N.J. Midland, Mich. St. Louis Naperville, III. St. Louis Lake Forest, III. Iselin, N.J. Wickliffe, Ohio Middlebury, Conn Columbia, Md. Philadelphia Wilmington, Del. Boston

100.0

213.0 136.0 340.8 20.0 329.4 -291.0 101.6 284.7 171.5 114.1 273.1 196.6 280.0 107.0

1.1 1.0

100.0 100.0 96.0

na

100.0 95.7

na

6.4% $30,566.0 na 23,813.0 19,508.0 7.1 15,044.0 9.6

def

73.0% 98.9 11.2

2.3

6.8%

na 7.3 5.3 1.2 0.8

6,242.0 8,737.4 5,450.0

100.0 100.0 64.7

17.2

5,028.0 9,127.9

100.0 96.8

def 7.1

100.0 82.5 100.0

3.6 na 17.4

na

3.8 na

100.0

25.7

6,230.0 7,792.0 8,305.0

nm

100.0

def

6,436.0

96.5

def

nm

7.5 5.4

6.7 4.3

100.0

11.9

3,512.0 3,239.0 6,008.2 4,826.0 6,163.8 2,446.0 3,670.7 1,665.4 1,942.3 2,444.9 2,874.2 2,828.8 2,766.0 2,308.0

19.3 11.0 100.0 51.0 100.0 100.0 100.0 56.8 100.0 96.7 100.0 100.0 100.0 100.0

6.1 4.2 5.7 0.4 5.3 def 2.8

138.6 24.3 -94.5 -15.3

nm -44.3 -1.6 -13.7 -53.4

7.5 5.2 4.1

def

0.7

100.0 100.0 100.0 101.1 100.0

11.9

def

def 4.6 13.9

8.4 5.6

17.1

8.8 4.7 9.5 6.9

13.8 10.2 15.2

-34.0

100.0 100.0 100.0 100.0

183.0 -6.2 84.0 95.3 72.0 -29.9

100.0 17.0 100.0

10.8

5.2 4.4

1,929.0 1,455.0 1,751.2

100.0 21.0 100.0

9.5 5.8 4.1

100.0

Red Bank, N J . Philadelphia Cleveland West Paterson, N.J.

20.4

100.0

9.9

2,025.9

100.0

7.2

100.0 100.0 100.0

Indianapolis Atlanta Columbus, Ohio

16.8 -85.6 69.7 -29.1 70.5 31.3

100.0 100.0 100.0

1.1 4.8 4.9

1,693.2 856.8 993.9

100.0 100.0 100.0

1.0 8.1 7.1

100.0 100.0 100.0 100.0 30.2 15.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Houston Sioux City, Iowa St. Paul, Minn. Long Grove, III. Oklahoma City Covington, Ky. Cleveland Baton Rouge, La. Shrewsbury, N.J. Norwalk, Conn. Houston Wayne, N.J. Northfield, III.

100.0 100.0 100.0 100.0

4.5 2.1 5.3 def def 2.6

1,385.9 1,125.1 1,007.6 1,323.0 1,733.0 749.0 1,759.2 1,387.3 1,117.1 976.4 1,264.1 1,436.2 464.2

100.0 100.0 100.0 100.0 17.0 10.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0

4.6 2.5 6.7 def def 4.1 6.9 7.4 1.3 2.4

100.0 100.0 55.0

Houston Richmond, Va. St. Louis, Mo.

856.0 645.4

100.0 100.0

na

na

9.1 100.0

145.1

64.1 27.7 68.0 -7.6 -48.0 31.0 121.7 102.9 14.0 23.8 144.5 132.5

443.2

nm 20.6

nm nm

def

9.8 -71.1

11.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0

41.0 -59.8 20.0 47.1

100.0 100.0

na

na

na

-64.4 -13.6 -3.9 -66.1 -27.7 150.0

7.7

6.0

10.7

9.3 1.3 2.4 14.3 14.8

1.2 5.2 2.6 na

10.1

4.6

11.4

9.2 2.1 4.8 3.1 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 of identifiable assets, d Sales include a significant amount of nonchemical products, e Profits and profitability ratios are after tax. f Fiscal year ended Sept. 30. g End of fiscal year changed to Aug. 31 in 2003. Sales and profit figures for 2003 are for 11 months, h Fiscal year ended Nov. 29. def = deficit, na = not available, nm = not meaningful.

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C & E N / JULY 5, 2 0 0 4

27

FINANCES

FINANCIAL ANALYSIS For U.S. chemical companies, many financial measures continued downward

YEAR

Air Products*

2003 2002 2003 2002 2003 2002 2003 2002

Albemarle Arch Chemicals Cabotf

Calgon Carbon

PROFIT MARGIN3

7.4% 9.6 7.3 7.2 1.5 1.4 4.2 7.6

RETURN ON INVESTMENTb

RETURN ON EQUITYC

DEBT AS% %OF OF DEBT TOTAL PLUS SALES EQUITY ABROAD

SALES DIVIDENDS PER EM- AS%OF PLOYEEd EARNINGS

3.4% 4.1 3.9 3.7 1.2 1.1 2.2 4.0

12.3% 15.0 12.7 12.5 4.5 3.8 7.0 12.1

36.4% 37.1 26.4 24.0 39.3 40.1 32.4 33.6

42.3% $340 314 38.9 370 57.2 327 51.7 349 49.0 294 44.0 408 62.7 346 58.6

40.4% 33.8 28.8 32.4 119.2 140.9 48.0 29.7

CAPITAL NET SPENDINGe PLANT AS % AS% R&D SALES AS%OF OF OF NET AS % OF A S % O F GROSS SALES P U N T SALES ASSETS PLANT

9.7% 11.6 3.7 3.9 2.0 3.7 7.2 9.4

10.9% 11.7 7.8 7.4 7.2 10.9 14.1 16.5

1.9% 66.8% 2.2 63.6 1.7 80.0 82.2 1.7 103.3 2.3 2.4 100.0 77.8 3.6 75.3 3.1

48.1% 49.4 32.8 34.7 31.0 37.5 41.5 43.8

2003 2002 2003 2002 2003 2002 2003 2002

1.6 1.7 0.1 10.0 0.1 def def 2.2

0.9 0.9 0.0 6.1 0.1 def def 2.2

2.8 2.8 0.1 12.6 0.2 def def 27.6

24.9 27.3 34.9 39.3 25.5 25.4 71.4 86.3

45.6 41.0 55.2 46.2 15.7 13.2 50.5 50.1

297 263 218 237 1,267 976 396 375

75.7 109.3 1,265.3 6.0 0.0 0.0 def 41.2

3.1 4.4 9.3 9.6 3.2 5.8 4.0 3.9

6.7 8.5 14.1 16.2 5.8 7.9 11.3 10.6

1.4 1.6 4.2 3.4 0.8 0.9 2.4 3.2

92.1 88.8 52.1 60.2 110.7 88.2 86.4 89.7

35.4 39.1 56.2 53.5 49.9 51.9 48.3 53.1

2003 2002 2003 2002 2003 2002 2003 2002

6.2 6.1 3.9 1.1 6.2 8.3 1.4 1.6

4.0 4.1 2.4 0.6 3.9 4.2 0.7 0.8

12.0 13.2 14.0 3.8 17.1 22.1 8.1 6.7

35.5 25.7 56.2 60.5 30.5 38.4 66.7 61.8

51.1 49.1 60.7 59.2 55.1 52.4 47.0 45.7

327 317 703 552 333 304 387 339

0.0 0.0 95.6 419.7 84.3 70.0 161.9 159.0

6.4 4.6 3.4 5.9 6.3 5.3 4.0 8.0

14.1 10.8 7.7 11.8 17.3 9.6 6.7 11.4

2.4 2.5 3.0 3.9 5.0 5.3 3.0 3.0

72.6 76.9 77.9 69.8 72.9 69.3 93.1 84.8

43.1 41.8 34.8 36.4 41.0 39.4 34.7 38.9

2003 2002 2003 2002 2003 2002 2003 2002

6.4 6.1 2.7 1.8 1.7 2.6 3.5 4.7

6.7 6.5 1.9 1.2 1.7 2.8 1.7 2.3

18.4 21.2 10.3 7.8 5.4 8.6 11.5 21.6

23.3 18.7 50.3 62.0 49.5 48.4 63.7 71.8

49.9 46.5 65.1 67.0 51.9 50.4 58.6 53.9

573 564 688 596 237 201 363 337

21.6 22.6 0.0 0.0 90.5 59.7 0.0 0.0

3.1 3.0 1.5 1.9 2.2 2.5 4.5 4.5

12.9 13.2 6.7 6.4 5.9 6.7 7.7 7.8

2.5 2.3 3.7 4.6 2.3 2.0 4.5 4.4

126.6 124.3 117.2 100.0 92.6 95.2 67.9 64.5

41.7 44.1 23.2 26.6 55.3 58.9 39.4 40.6

2003 2002 2003 2002 2003 2002 2003 2002

3.4 2.2 0.9 2.5 def 1.2 1.0 3.6

3.4 2.4 1.0 2.5 def 0.9 0.7 2.3

8.5 6.3 9.2 24.8 def nm 2.0 6.7

24.0 26.5 75.8 79.1 0.0 0.0 0.0 36.7

42.8 40.4 12.3 11.7 59.4 54.4 37.7 36.2

285 273 1,206 1,017 314 284 349 305

29.1 44.0 83.1 33.0 0.0 0.0 121.5 33.1

3.1 2.9 1.7 1.4 4.4 5.0 4.3 4.6

11.3 10.2 5.2 3.4 13.2 14.7 11.0 10.4

1.4 1.4 na na 2.6 2.8 1.9 1.9

127.8 130.7 168.6 140.6 68.9 67.6 86.5 81.6

42.1 45.7 45.2 50.4 35.0 36.7 44.1 46.9

2003 2002 IMC Global 2003 2002 International 2003 Flavors 2002 International 2003 Specialty Products 2002

4.0 4.0 def def 10.5 10.2 5.8 6.6

2.6 2.4 def def 10.5 10.1 3.8 3.0

112.1 nm def def 26.9 32.0 15.7 11.4

95.3 120.0 79.9 84.7 48.2 63.7 65.5 62.9

52.1 49.0 42.5 40.1 69.3 68.8 46.0 50.9

361 334 437 396 349 314 319 338

0.0 0.0 def def 29.1 30.9 68.1 0.0

2.6 2.5 5.5 6.8 3.5 4.5 11.4 6.9

7.1 6.8 5.1 6.1 12.9 15.7 17.9 10.3

2.1 2.5 na na 8.4 8.0 2.8 3.0

66.7 63.3 59.7 56.6 82.4 80.6 66.5 46.2

33.2 32.9 50.3 52.0 50.5 54.8 57.6 57.6

Lubrizol

5.2 6.4 def def

3.7 4.6 def def

11.1 14.5 def def

28.9 30.7 78.2 76.9

59.7 59.2 48.3 44.6

407 379 1,201 974

50.6 42.3 def def

4.3 3.3 7.1 0.7

12.8 9.6 10.2 0.9

4.6 4.7 1.0 0.9

105.5 106.5 49.8 43.8

35.2 37.5 75.9 79.0

Cambrex9 Chevron Phillips Chemical Crompton9

Cytec Industries Dow Chemical DuPont Eastman Chemical Engelhard Ethyl Ferro FMC Corp.

H.B. Fullerh Georgia Gulf W.R. Grace9 Great Lakes Chemical Hercules

2003 2002 2003 2002

Lyondell Chemical

28

C&EN

/ JULY

5.

2004


Monsanto' NL Industries Noveon9 PolyOne9 PPG Industries Praxair

Quaker Chemical Rohm and Haas Sigma-Aldrich Solutia

Stepan Terra Industries

AVERAGE

RETURN ON INVESTMENT b

RETURN ON EQUITYC

DEBT AS% %OF OF DEBT TOTAL PLUS SALES EQUITY ABROAD

SALES DIVIDENDS PER EM- AS % OF PLOYEEd EARNINGS

NET CAPITAL PLANT SPENDING6 SALES AS % OF AS % R&D AS% OF NET AS%OF AS % OF GROSS OF PLANT SALES ASSETS PLANT SALES

YEAR

PROFIT MARGIN3

2003 2002 2003 2002 2003 2002 2003 2002 2003 2002 2003 2002

7.6% 6.6 11.2 3.6 1.1 3.2 def 0.1 5.7 5.9 10.4 10.7

3.9% 3.4 5.7 2.2 1.0 3.0 def 0.2 4.5 4.7 4.8 5.1

7.2% 6.0 46.6 11.8 2.2 6.9 def 0.5 17.2 22.1 18.9 23.4

2003 2002 2003 2002 2003 2002 2003 2002

4.4 5.2 5.9 5.9 14.7 14.0 def 0.2

5.3 6.6 3.7 3.5 7.2 10.0 def 0.1

13.2 16.2 11.4 10.9 19.1 19.1 def -1.6

12.3 15.9 42.4 47.9 15.0 16.7 -35.4 142.2

55.2 54.5 52.8 44.5 56.6 51.5 39.3 38.3

298 264 371 325 219 201 386 307

53.5 53.8 50.0 53.4 18.5 14.9 0.0 100.0

3.7 3.9 5.3 7.1 4.4 5.0 3.2 2.6

20.2 22.3 11.4 13.8 10.5 11.3 8.6 6.3

2003 2002 2003 2002

0.6 2.7 def def

0.5 2.3 def def

3.0 12.7 def def

36.2 39.6 60.3 60.8

30.3 27.0 27.2 27.5

542 489 1,186 863

154.7 36.3 0.0 0.0

4.2 4.8 0.6 2.7

2003 2002

4.1% 4.4%

2.6% 2.6%

11.1% 11.9%

46.0% 49.2%

48.7% $408 46.7% $356

5.0% 5.4%

19.6% 14.1 64.0 55.0 59.2 62.9 67.4 45.9 31.5 44.1 46.3 51.8

0.0% $374 341 36.1 341 85.2 350 68.9 409 40.6 382 36.9 441 35.9 329 23.3 266 36.2 237 34.3 221 49.5 205 34.7

34.3% 40.3 42.5 506.4 0.0 0.0 0.0 810.7 58.8 60.3 25.5 22.4

71.1% 72.5%

52.2% 52.6 66.1 78.7 64.6 65.6 103.3 125.1 103.9 102.6 67.6 69.3

49.4% 51.0 40.7 41.5 76.7 83.9 50.7 52.8 33.7 36.2 48.7 49.5

3.0 3.3 3.7 4.5 3.3 3.4 2.2 1.7

118.4 128.3 68.0 59.0 83.8 86.9 99.3 67.1

45.7 42.8 38.6 40.8 50.4 53.8 25.9 27.6

15.6 17.1 1.2 3.6

1.9 2.0 na na

169.1 170.2 119.9 92.5

28.3 30.1 55.3 59.3

10.7% 10.1%

3.4% 3.7%

9.0% 9.6 8.1 8.6 8.3 7.8 5.9 11.0 8.5 9.0 18.7 10.7

4.2% 4.8 4.2 3.7 5.0 4.9 1.5 3.0 2.5 3.0 17.5 9.7

10.3% 11.3 0.8 0.7 3.9 2.3 0.9 0.8 3.5 3.6 1.3 1.3

78.0% 43.1% 73.1% 42.6%

NOTE: Earnings from continuing operations, excluding significant nonrecurring and extraordinary items, a Earnings as a percentage of sales, b Earnings as a percentage of current assets plus gross plant, c Earnings as a percentage of stockholder's equity, d Thousands of dollars, e Actual spending on new facilities and purchase of land and new equipment in consolidated companies, f Fiscal year ends Sept. 30. g Earnings include significant unusual items, h Fiscal year ends Nov. 30.1 Fiscal year ends Aug. 31. Sales and earnings data are unaudited, def = deficit, na = not available, nm = not meaningful.

U.S. STOCKS Prices trended upward through 2003 for chemical and biotech stocks Stock price index, 1992 = 100 220 [ 200 180 160 140 120 100 80

tr

H

m

I High U Close I Low 1996

1997

Chemical

tt

hw

Stock price index, 1992 = 100 700 1 High 600 U Close 1 Low 500

300

100 1999

2000

2001

2002

2003

NOTE: Based on stock prices for Air Products & Chemicals, Albemarle, Arch Chemicals, Cabot, Cambrex, Crompton, Cytec Industries, Dow Chemical, DuPont, Eastman Chemical, Ferro, FMC Corp., H.B. Fuller, Georgia Gulf, W.R. Grace. Great Lakes Chemical, Hercules, IMC Global, Lubrizol, Lyondell Chemical, Monsanto, PPG Industries, Praxair, Rohm and Haas, and Stepan.


ill

400

200 1998

Biotech

Hr> S M t » r f 1996

1997

1998

.r

|[

• ta

If. Hi

J

11I

f

1999

Ll*

2000

2001

2002

1

2003

NOTE: Based on stock prices for Amgen. Biogen Idee. Cèlera Genomics, Cephalon, Chiron, Cytogen. Genentech, Genzyme, Gilead Sciences, Icos, Medlmmune. Millennium Pharmaceuticals. Protein Design Labs, Vertex Pharmaceuticals, and Xoma.

C s.

EM

/

in\

FINANCES EXPLANATION

Column Headings In Tables Of Company Results Year. Data are for calendar year unless otherwise indicated. Data for earlier years are not restated to reflect subsequent acquisitions or divestitures. Net sales. Gross sales, less discounts, allowances, and returns; generally excludes excise taxes and other operating income or revenues. Earnings. Net sales and other income, less operating costs, nonoperating charges, depreciation, depletion, interest expense, deferred charges, minority interest in income, and taxes. Nonrecurring or extraordinary credits and charges have been excluded. Extraordinary charges that cannot be excluded are footnoted. Total assets. Sum at year's end of current assets, investments, prepaid expenses, net plant and equipment, and other tangible assets. Excludes insofar as possible intangible assets, including goodwill, value of patents, and the like. Net plant and equipment. Value at year's end of fixed assets, less accumulated depreciation, amortization, and depletion. Capital expenditures. Total spending during the year for new fixed assets, such as plant, equipment, and land, and for replacement and modernization of facilities. Stockholders' equity. Equity at year's end of preferred and common stockholders, 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: earnings divided by stockholders' equity. Dollars per share: earnings, less preferred dividends, divided by the number of shares of common stock outstanding. 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 dividends paid (or declared) on each share of common stock; excludes the value of stock dividends. Adjusted for stock splits. 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 and low market prices of common stock during the year, adjusted for stock splits but not stock dividends. Price/earnings ratio. Average of the high and low prices of the common stock during the year divided by earnings per share.

U.S. COMPANY RESULTS Sales increased, but earnings lagged among chemical companies; results were mixed among pharmaceuticals CHEMICALS

NET SALES

TOTAL ASSETS

NET PLANT AND EQUIPMENT

CAPITAL EXPEND1TURES

STOCKHOLDERS' EQUITY

% OF SALES

% OF STOCKHOLDERS' EQUITY

$ PER SHARE

DMDEND, $PER SHARE

DIVIDEND, YIELD, % OF PRICE

STOCK PRICE RANGE, $ PER SHARE HIGH

PRICE/ EARNINGS RATIO

(Money figures in millions of dollars unless otherwise indicated)

AIR PRODUCTS & CHEMICALS3 $6,297 $467 $8,259 2003 5,401 519 7,771 2002 5,717 519 7,303 2001 7,529 5,467 533 2000 ALBEMARLE $1,269 $81 2003 $1,110 1,158 980 71 2002 1,098 70 2001 917 960 918 97 2000 ARCH CHEMICALS $1,009 $15 $778 2003 740 939 13 2002 921 3 756 2001 42 891 2000 941 CABOT3 $2,189 2003 $1,795 $75 1,954 1,557 2002 118 1,670 136 1,898 2001 2000 1,517 114 2,113 CALGON CARBON $280 2003 $278 $4 2002 258 4 270 2001 271 8 258 269 2000 8 266

$5,637 5,378 5,119 5,257

$613 628 708 768

$2,609 2,737 2,325 2,079

7.4% 9.6 9.1 9.7

17.9% 19.0 22.3 25.6

$2.21 2.33 2.37 2.46

$0.88 0.82 0.78 0.74

2.1% $46.50 $36.97 1.8 53.52 36.15 2.0 49.00 30.50 2.4 39.13 23.00

18.9 19.2 16.8 12.6

$527 519 530 490

$41 38 50 52

$518 535 562 537

7.3% 7.2 7.6 10.6

15.6% 13.3 12.4 18.1

$1.91 1.64 1.50 2.07

$0.57 0.54 0.52 0.46

2.1% $30.70 $22.10 2.0 33.00 21.90 2.5 25.69 16.50 2.3 26.13 14.56

13.8 16.7 14.1 9.8

$281 320 332 331

$20 35 45 62

$139 130 192 237

1.5% 1.4 0.4 4.5

10.8% 9.7 1.7 17.7

$0.67 0.55 0.15 1.66

$0.80 0.80 0.80 0.80

3.9% $25.80 $15.15 3.9 15.70 25.68 3.8 17.40 24.70 22.19 4.2 15.63

30.6 37.6 140.3 11.4

$913 885 807 806

$129 146 122 137

$960 864 929 1,026

4.2% 7.6 8.1 7.5

7.8% 13.7 14.6 11.1

$1.08 1.65 1.82 1.55

$0.54 0.52 0.48 0.44

1.8% $30.30 $28.51 1.7 42.24 20.50 1.6 41.35 18.56 1.6 38.44 17.94

27.2 19.0 16.5 18.2

$129 135 144 151

$9 11 13 10

$140 133 110 111

1.6% 1.7 3.0 3.1

3.2% 3.2 7.4 7.5

$0.11 0.11 0.21 0.21

$0.12 0.12 0.20 0.15

2.2% 1.7 2.6 2.1

$6.89 9.89 9.50 9.44

$4.24 4.00 5.63 4.75

50.6 63.1 36.0 33.8

a Earnings data include unusual charges.


EARNINGS

YEAR

NET SALES

EARNINGS

TOTAL ASSETS


CAPITAL EXPENDITURES


%OF SALES


$PER SHARE

DIVIDEND, $ PER SHARE

$0.01 1.96 1.76 1.90

$0.12 0.12 0.12 0.12

nm nm nm nm

nm nm nm nm


STOCK PRICE RANGE, $ PER SHARE HIGH LOW


( M o n e y f i g u r e s i n m i l l i o n s of d o l l a r s u n l e s s o t h e r w i s e i n d i c a t e d )

CAMBREX 2003a $406 $0 $206 $269 $38 2002 522 52 586 311 50 2001 499 47 531 288 43 2000 493 50 520 287 39 CHEVRON PHILLIPS CHEMICAL 2003 $6,907 $7 $6,242 $3,864 $223 2002 5,389 -30 6,109 3,950 314 2001 5,871 -480 5,860 3,983 291 2000 3,402 -241 6,673 4,129 112 CROMPTON 2003a $2,185 $-119 $2,111 $775 $88 2002 2,547 55 2,257 943 100 2001 2,719 16 2,335 1,022 137 2000 3,038 104 3,379 1,182 155 CYTEC INDUSTRIES 2003 $1,472 $91 $1,616 $663 $94 2002 1,346 83 1,378 578 62 2001 1,387 78 1,274 598 64 2000 1,493 122 1,335 616 77 DOW CHEMICAL 2003 $32,632 $1,285 $38,086 $14,217 $1,100 2002 27,609 290 35,760 13,797 1,623 2001 27,805 466 31,778 13,579 1,587 2000 23,008 1,513 25,758 9,190 1,349 DUPONT 2003 $26,996 $1,669 $32,114 $9,892 $1,713 2002 24,006 2,001 30,345 13,286 1,280 2001 24,726 1,251 33,422 13,287 1,634 2000 28,268 2,878 31,061 14,182 1,925 EASTMAN CHEMICAL 2003 $5,800 $84 $5,880 $3,419 $230 2002 5,320 85 5,700 3,753 427 2001 5,384 110 5,472 3,627 234 2000 5,292 299 5,938 3,925 226 ENGELHARD 2003 $3,715 $237 $2,433 $881 $114 2002 3,754 228 2,563 861 113 2001 5,097 237 2,694 823 169 2000 5,543 241 2,864 768 137

ETHYL 2003 2002 2001 2000

$756 656 725 821

FERRO 2003 $1,622 2002 1,528 2001 1,501 2000 1,431 FMC CORP. 2003 $1,921 2002 1,853 2001 1,943 2000 3,926 H.B. FULLER13

$21 12 10 9

$583 587 641 915

$174 199 216 291

$-176 131 72 177

0.1% 10.0 9.4 10.1

nm 39.6% 64.5 28.2

$3,478 nm nm nm

0.0 def def def

$-116 -384 -350 605

def 2.2% 0.6 3.4

nm nm nm $0.49 nm 0.14 17.2% 0.91

$0.20 0.20 0.20 0.20

$346 249 261 232

6.2% 6.1 5.6 8.2

26.3% 33.1 29.8 52.6

$2.34 2.04 1.86 2.85

$0.00 0.00 0.00 0.00

$5,370 3,824 6,256 7,299

3.9% 1.1 1.7 6.6

23.9% 7.6 7.4 20.7

$1.38 $1.34 0.317 1.34 0.52 1.30 2.22 1.16

4.0% $42.00 4.4 37.00 4.0 39.67 3.3 47.17

$25.16 23.66 25.06 23.00

24.3 95.7 62.2 15.8

$4,856 4,787 7,555 4,934

6.2% 8.3 5.1 10.2

34.4% 41.8 16.6 58.3

$1.67 2.00 1.19 2.73

$1.40 1.40 1.40 1.40

3.5% 3.3 3.4 2.5

$34.71 35.02 32.64 38.19

24.2 21.2 34.7 20.5

$693 698 764 1,200

1.5% 1.6 2.0 5.7

12.1% 12.2 14.4 24.9

$1.08 1.10 1.43 3.88

$1.76 1.76 1.76 1.76

5.2% $39.53 4.2 49.04 4.1 55.25 4.0 54.13

$27.89 35.35 30.25 34.19

31.2 38.4 29.9 11.4

$786 620 702 572

6.4% 6.1 4.4 4.3

30.1% 36.8 32.1 42.1

$1.86 1.75 1.71 1.88

$0.41 0.40 0.40 0.40

1.7% $30.58 $19.02 13.3 1.5 33.00 21.18 15.5 1.7 29.20 18.20 13.9 2.3 21.50 12.56 9.1

$12 $137 2.7% 13 84 1.8 10 66 1.4 14 172 1.1

15.0% 14.3 15.1 5.2

$1.22 0.72 0.60 0.50

$0.00 0.00 0.00 0.63

0^0 nm nm nm

$28 40 39 73

$1,330 1,183 1,327 931

$1,330 578 625 426

$36 39 54 65

$105 51 -105 113

1.7% 2.6 2.6 5.1

27.1% 78.9 nm 64.6

$0.64 0.97 1.04 1.92

$0.58 0.58 0.58 0.58

$68 88 100 212

$2,673 2,742 2,361 3,251

$1,128 1,076 1,088 1,616

$87 84 146 240

$432 276 103 305

3.5% 4.7 5.1 5.4

15.6% 31.7 97.2 69.5

$1.90 2.55 3.10 6.72

$0.00 0.00 0.00 0.00

2003 $1,287 $44 2002 1,256 28 2001 1,274 45 2000 1,353 49 GEORGIA GULF 2003 $1,444 $13 2002 1,231 31 2001 1,206 -14 2000 1,582 64

0.5% 0.4 0.3 0.3

$29.84 44.30 56.99 49.44

nm nm nm nm

$15.18 2251.0 24.10 17.4 33.47 25.7 31.50 21.3

nm nm nm nm

3.5% 2.2 2.2 1.9 -

nm nm nm nm

$7.75 $3.63 13.00 5.44 18.8 12.19 6.20 65.7 14.19 6.94 11.6 $38.59 $25.98 34.00 19.20 39.50 19.00 41.31 22.38

$46.00 49.80 49.88 74.00

$22.30 7.40 2.44 23.5% 4.00

$34.85 41.92 43.89 76.44

13.8 13.0 15.7 11.2

$6.47 11.8 2.70 7.0 0.55 2.5 1.31 5.3

2.5% $27.47 $19.24 2.2 30.55 21.37 2.5 26.50 19.41 2.7 25.13 17.31 -

nm nm nm nm

36.5 26.8 22.1 11.1

$14.38 23.46 24.62 46.69

13.0 12.8 11.1 9.2

$911 870 883 918

$349 355 371 395

$39 $413 3.4% 2.2 36 357 3.5 31 350 3.6 49 313

10.5% $1.52 7.9 0.98 12.8 1.54 15.7 1.74

$0.45 0.44 0.43 0.42

1.8% $29.57 $19.71 1.5 33.20 24.15 1.8 31.18 16.32 1.7 34.28 13.98

16.2 29.3 15.4 13.9

$779 798 865 961

$461 521 568 627

$24 $59 18 48 18 19 22 39

0.9% 2.5 def 4.0

21.3% $0.38 64.9 0.97 def -0.43 164.1 2.03

$0.32 0.32 0.32 0.32

1.4% $29.75 $16.94 61.4 1.5 26.92 17.03 22.7 1.9 19.70 13.86 1.6 29.94 10.50 10.0

a Earnings data include unusual charges, b Fiscal year ends Nov. 30. def = deficit, nm = not meaningful.


C&EN

/ JULY

5, 2 0 0 4

31

EARNING5

YEAR

NET SALES

EARNINGS

TOTAL ASSETS




STOCKHOLDERSEQUITY

$86 91 63 65

$-269 -351 -255 -105

def 1.2% 4.6 7.6

nm nm nm nm

$63 65 166 157

$474 569 474 673

1.0% 3.6 1.3 6.8

$48 43 63 187

$-640 -789 -1,764 -1,575

%OF SALES

$ PER SHARE






W.R. GRACE 2003a $1,981 $-55 $2,789 $657 2002 1,817 22 2,559 621 2001 1,723 79 2,604 589 2000 1,597 121 2,551 602 GREAT LAKES CHEMICAL 2003 $1,465 $15 $1,424 $570 2002 1,402 50 1,541 622 2001 1,595 21 1,548 712 2000 1,671 113 1,857 751 HERCULES 2003 $1,846 $74 $2,060 $677 2002 1,705 69 2,027 633 2001 2,620 -2 2,573 903 2000 3,152 67 2,918 1,104 IMC GLOBAL 2003 $2,191 $-38 $3,382 $2,358 2002 2,057 -13 3,318 2,301 2001 1,959 -12 3,930 2,309 2000 2,096 84 3,933 2,346 INTERNATIONAL FLAVORS & FRAGRANCES 2003 $1,902 $200 $1,508 $511 2002 1,800 184 1,450 521 2001 1,844 135 1,472 533 2000 1,463 150 1,733 680 INTERNATIONAL SPECIALTY PRODUCTS 2003 $893 $51 $1,007 $565 2002 845 55 1,317 566 2001 787 1 1,670 561 2000 784 94 1,466 563 LUBRIZOL 2003 $2,049 $106 $1,671 $690 2002 1,980 126 1,649 679 2001 1,845 94 1,496 644 2000 1,776 103 1,488 677 LYONDELL CHEMICAL 2003 $3,801 $-302 $6,553 $2,640 2002 3,262 -133 6,318 2,369 2001 3,226 -145 5,601 2,293 2000 4,036 71 5,895 2,429 MONSANTO 2003b $4,936 $374 $8,122 $2,280 2002 4,673 310 7,490 2,339 2001 5,462 473 7,990 2,627 2000 5,493 440 8,120 2,659 NL INDUSTRIES 2003 $835 $94 $1,264 $436 2002 875 31 1,112 379 2001 835 86 1,151 330 2000 922 109 1,101 324 NOVEON 2003a $1,136 $13 $1,213 $683 2002 1,069 35 1,092 671 2001 1,063 -15 1,123 673 2000 1,168 50 993 563 POLYONE 2003a $1,965 $-95 $1,547 $486 2002 2,498 3 1,521 682 2001 2,655 -10 1,524 684 2000 1,888 25 1,921 704 PPG INDUSTRIES 2003 $8,756 $500 $6,772 $2,566 2002 8,067 476 6,302 2,632 2001 8,169 458 6,910 2,752 2000 8,629 658 7,477 2,941

$-0.84 0.34 1.20 1.78

$0.00 0.00 0.00 0.00

3.1% 8.8 4.5 16.8

$0.30 0.99 0.42 2.16

$0.36 0.33 0.32 0.32

4.0% 4.0 def 2.1

nm nm nm nm

$0.69 0.63 -0.02 0.62

$0.00 0.00 0.00 0.62

-

$5.52 3.75 4.38 14.94 1.5% 1.3 1.1 1.0

-

$1.48 0.99 1.31 1.31

7.0 2.4 4.6

$27.60 29.31 37.63 40.44

$19.51 78.5 21.24 25.5 20.00 68.6 26.50 15.5

$12.50 13.70 20.00 3.1% 28.00

$7.40 14.4 8.45 17.6 6.50 11.38 31.8 $5.95 8.52 7.99 11.00 20.8

$120 140 123 118

$238 73_ 222 346

def def def 4.0%

def def def 24.3%

$-0.36 -0.12 -0.11 0.73

$0.08 0.08 0.08 0.32

0.9% $11.27 0.7 15.55 0.7 16.12 2.1 19.38

$66 82 52 61

$-57 -208 -272 -125

10.5% 10.2 7.3 10.2

nm nm nm nm

$2.12 1.92 1.40 1.49

$0.63 0.60 0.60 1.29

1.9% 1.9 2.3 4.9

$101 58 102 58

$-7 -28 102 197

5.8% 6.6 0.0 12.0

nm nm 0.0 47.7%

nm $0.85 0.01 1.38

nm $0.00 0.00 0.00

$88 65 66 86

$682 658 607 581

5.2% 6.4 5.1 5.8

15.5% 19.2 15.5 17.7

$2.05 2.45 1.84 1.94

$1.04 1.04 1.04 1.04

3.3% $34.40 3.3 36.36 3.4 37.69 4.0 33.50

$268 22 68 104

$76 49_ -353 1,145

def def def 1.7%

def def nm 41.0%

nm $-0.99 -1.24 0.60

$0.90 0.90 0.90 0.90

6.4% $17.10 $10.96 6.4 17.59 10.33 6.6 17.95 9.45 6.4 19.50 8.44 23.3

$206 224 382 582

$3,817~ 3,780 4,044 3,735

7.6% 6.6 8.7 8.0

9.8% 8.2 11.7 11.8

$1.42 1.18 1.80 1.70

nc $0.48 0.48 0.09

nc na na na 2.1% $33.29 $13.01 19.6 1.5 38.80 26.88 18.2 0.4 27.38 19.75 13.9

$35 33 54 31

$201 265 387 324

11.2% 3.6 10.3 11.8

46.6% 11.8 22.1 33.6

$1.33 0.64 1.72 2.15

$0.80 3.30 0.80 0.65

4.9% $18.25 $14.51 12.3 20.7 18.83 13.01 24.9 4.5 24.31 11.60 10.4 3.4 25.00 13.00 8.8

$57 52 36 64

$39 -38 -43 545

1.1% 3.2 def 4.3

33.2% nm nm 9.2

na na na na

$29 75 80 63

$13 103 176 288

def 0.1% def 1.3

nm 2.7% nm 8.7

-$1.05 0.03 -0.11 0.41

$0.00 0.25 0.25 0.25

$217 238 291 561

$1,259 589 1,538 1,449

5.7% 5.9 5.6 7.6

39.7% 80.8 29.8 45.4

$2.92 2.80 2.71 3.79

$1.73 1.70 1.68 1.60

-

$0.00 0.00 — 0.00 — 0.00 _— 3.0% 3.1 2.3

$36.61 37.45 31.69 37.94

$29.18 15.5 26.05 16.5 19.75 18.4 14.69 17.7

$0.00 10.80 11.25 9.31

$0.00 nm 5.45 9.6 6.63 894.0 5.00 5.2

na na na na $6.95 13.40 10.70 17.25

$29.23 26.20 24.13 18.56

na na na na

15.5 12.8 16.8 13.4

nm nm nm nm

$3.08 3.03 273.8 5.69 4.56 26.6

3.2% $64.42 $42.61 3.3 62.84 41.41 3.4 59.75 38.99 3.2 65.06 36.00

18.3 18.6 18.2 13.3

a Earnings data include unusual charges, b Fiscal year changed to end Aug. 31. Thus, prior years are not comparable. Sales and earnings data for 2003 are unaudited. def = deficit, na = not available, nc = not comparable, nm = not meaningful.

32

C&EN/JULY5,

2004


EARNIN6S

YEAR

NET SALES

EARNINGS

TOTAL ASSETS




$5.252 4,666 4.817 4,771

$983 498 595 704

$1.957 1.305 1,297 1.260

%OF SALES


$ PER SHARE

DIVIDEND, $PER SHARE

DIVIDEND, YIELD. % OF PRICE




PRAXAIR 2003a $5.613 2002 5.128 2001 5.158 2000 5.043 QUAKER CHEMICAL 2003 $340 2002 275 2001 251 2000 268 ROHM AND HAAS 2003 $6.421 2002 5.727 2001 5.666 2000 6,879 SIGMA-ALDRICH 2003 $1.298 2002 1,207 2001 1.179 2000 1.096 SOLUT1A 2003 $2,430 2002 2.241 2001 2.817 2000 3,185 STEPAN 2003 $785 2002 749 2001 712 2000 699 TERRA INDUSTRIES 2003 $1.349 2002 1.044 2001 1,037 2000 1.063

$585 548 489 480

$7.174 6.366 6.535 6,665

10.4% 10.7 9.5 9.5

29.9% $1.77 $0.46 42.0 1.68 0.38 37.7 1.60 0.34 38.1 1.58 0.31

1.5% $38.26 $25.02 17.9 1.4 30.56 22.28 15.7 1.5 27.96 18.30 14.5 1.4 27.25 15.85 13.6

21.3% $1.52 $0.84 23.7 1.51 0.84 21.1 1.49 0.82 39.4 2.06 0.80

3.4% 3.8 4.2 4.9

$15 14 14 27

$244 186 162 171

$62 49 38 42

$13 11 8 6

$70 60_ 65_ 68_

4.4% 5.2 5.4 10.0

$382 339 189 381

$6.118 6,228 5,934 6.671

$2,966 2.954 2,916 3.339

$339 407 401 391

$30 -359 -601 -943

5.9% 5.9 3.3 5.5

$190 169 141 139

$1.435 1.259 1,312 1.230

$547 536 542 493

$58 61 110 69

$886 751 682 741

14.7% 14.0 12.0 12.7

$-78 4 20 121

$2.306 3.132 2.798 2.943

$909 930 1.143 1,205

$78 $-1.265 59 -459 94 -723 221 -672

def 0.2% 0.7% 3.8

nm nm nm nm

$5 20 19 15

$445 420 434 415

$211 211 212 199

$33 36 34 28

$143 139 158 154

0.6% 2.7 2.7 2.1

3.4% $0.45 14.5 2.05 12.1 1.88 9.7 1.47

$-22 -36 -80 -10

$1.125 1,128 1.336 1,513

$708 791 825 903

$9 28 15 12

$265 258 501 611

def def def def

nm nm nm nm

127.3% nm nm nm

$1.72 $0.86 1.53 0.82 0.84 0.80 1.73 0.78

21.5% $2.68 22.5 2.30 20.7 1.87 18.8 1.66 $-1.10 0.04 0.19 1.14

$0.50 0.35 0.33 0.32

2.5% $43.05 $26.26 20.1 2.3 42.60 30.19 23.8 2.5 38.70 24.90 37.9 2.1 49.44 24.38 21.3 1.0% $57.46 0.8 52.80 0.8 51.20 1.0 40.88

$0.00 0.04 0.5% 0.04 0.3 0.04 0.3 $0.76 0.74 0.71 0.66

$-0.28 $0.00 -0.48 0.00 -1.06 0.00 -0.14 0.00

$30.75 $18.07 16.1 25.50 18.22 14.5 22.30 17.00 13.2 19.25 13.38 7.9

3.2% 2.8 3.2 3.0 -

$41.17 18.4 38.16 19.8 36.17 23.4 20.19 18.4

$4.89 $0.23 13.20 2.81 200.1 15.07 11.25 69.3 17.19 10.38 12.1 $26.80 $21.55 53.7 29.21 23.55 12.9 26.38 17.80 11.8 25.00 18.50 14.8 $3.55 3.97 4.75 3.88

$0.97 1.45 1.90 1.06

-

PHARMACEUTICALS EARNINBS

YEAR

NET SALES

EARNINGS

TOTAL ASSETS




%OF SALES


$ PER SHARE


DIVIDEND. YIELD, % OF PRICE




ABBOTT LABORATORIES 2003 $19.681 $2.753 2002 17,685 3.243 2001 16.285 2.943 2000 13,746 2,786 BAXTER INTERNATIONAL 2003 $8.916 $922 2002 8.110 1.236 2001 7.356 675 2000 6.697 754 BRISTOL-MYERS SQUIBB 2003 $20.849 $3,106 2002 18,119 2,034 2001 17.987 2,043 2000 17.539 3.830 ELI LILLY 2003 $12.583 $2.561 2002 11.078 2.763 2001 11.543 2.809 2000 10.862 2.905

$18.176 16.607 16.002 13,728

$6.282 5.828 5,552 4,817

$1.247 1.296 1.164 1,036

$4.533 3,013 1.765 7,016

14.0% 18.3 18.1 20.3

60.7% $1.75 $1.04 107.6 2.06 0.94 166.7 1.88 0.84 39.7 1.78 0.76

2.6% 2.1 1.7 1.8

$47.15 58.00 57.17 56.25

$11.520 10.458 8.645 7.494

$4.585 3.907 3.306 2,807

$789 848 759 625

$1.064 919 2.059 1,420

10.3% 15.2 9.2 11.3

86.7% $1.52 $0.58 134.5 2.00 0.58 32.8 1.11 0.58 53.1 1.26 0.58

2.3% 1.4 1.2 0.8

$31.20 $18.56 16.4 59.60 24.22 21.0 55.55 40.75 43.4 88.62 51.88 55.8

$20.903 18,106 19.610 15,758

$5,712 5.321 4,879 4.548

$937 997 1.023 589

$3,218 2,199 3,289 7,744

14.9% 11.2 11.4 21.8

96.5% $1.60 $1.12 92.5 1.05 1.12 62.1 1.04 1.11 49.5 1.92 1.01

4.5% $28.86 3.1 51.50 1.8 71.50 1.7 73.94

$20.286 19.042 16.144 14.340

$6.539 5.293 4.532 4.177

$1.707 1.131 884 678

$8.372 8.274 6.814 5.696

20.4% 24.9 24.3 26.7

30.6% $2.37 $1.36 33.4 2.55 1.24 41.2 2.61 1.12 51.0 2.65 1.04

2.1% $73.89 $53.70 26.9 1.9 80.28 47.91 25.1 1.4 90.23 71.83 31.0 1.3 108.24 54.34 30.7

$33.75 29.80 42.00 29.38

$21.13 20.55 49.00 43.50

23.1 21.3 26.4 24.1

15.6 34.3 57.9 30.6

a Stock split (2 for 1) in 2003. def = deficit, nm = not meaningful.


C&EN

/ JULY

5, 2 0 0 4

33

EARNINGS NET SALES

YEAR 1

EARNINGS


TOTAL ASSETS

( M o n e y f i g u r e s in m i l l i o n s of d o l l a r s u n l e s s o t h e r w i s e i n d i c a t e d

JOHNSON & JOHNSON 2003 $41,862 $4,684 $36,724 2002 36.298 6.811 31.310 2001 33.004 5,884 29.411 2000 29.139 4.800 24.065 MERCK 2003a $22,486 $6,590 $38,638 2002 51.790 7.150 40.320 2001 47.716 7.282 36.530 2000 40.363 6.822 32.536 PFIZER 2003b $45,188 $12,722 $58,119 2002 32.373 9.946 45.156 2001 32.259 8.363 37.431 2000 29.574 6.487 31.719 SCHERING-PLOUGH 2003 $8,334 $507 $14,483 ! 2002 10.180 2.089 13.475 2001 9.802 2.326 11.514 2000 9.815 2.423 10.178 WYETH 2003 $15,851 $3,259 $27,081 2002 14.584 2.963 22.103 14.129 2001 2.900 19.116 2000 13.263 2.514 17,040

CAPITAL EXPENDI TURES

STOCK HOLDERS' EQUITY

% OF SALES


DIVI DEND. YIELD. % OF PRICE

DIVI DEND, $ PER SHARE

$ PER SHARE

STOCK PRICE RANGE, $ PER SHARE LOW HIGH

PRICE/ EARN INGS RATIO

) 1.7°/c) $59.08 $48.05 22.3 41.40 24.1 1.5 65.89 60.97 40.25 26.5 1.4 33.07 25.3 1.4 52.97

$9,846 8.710 7.719 6.971

$2,262 2,099 1,731 1,646

$11,330 13,451 15,156 11.552

11.2% 41.3% 18.8 50.6 17.8 38.8 16.5 41.6

$2.40 2.23 1.91 1.70

$14,169 14.196 13.103 11.482

$1,916 2,370 2,725 2.728

$13,627 10.960 8,574 7,458

29.3% 48.4% 13.8 65.2 15.3 84.9 16.9 91.5

$2.92 $1.45 3.14 1.41 3.14 1.37 2.90 1.21

2.8% 2.7 1.8 1.6

$63.50 64.50 95.25 96.69

$40.57 38.50 56.80 52.00

$18,287 10.712 10.415 9,425

$2,641 1,758 2,203 2,191

$6,721 18.750 16.571 14.285

28.2% 30.7 25.9 21.9

189.3% 53.0 50.5 45.4

$1.73 1.59 1.31 1.02

$0.60 0.52 0.44 0.36

1.9% 1.5 1.1 0.9

$36.92 42.46 46.75 49.00

$26.95 18.5 25.13 21.3 34.00 30.8 30.00 38.7

$4,527 4,236 3,814 3,362

$701 770 759 763

$6,718 7,481 6,465 5,492

6.1% 20.5 23.7 24.7

7.5% 27.9 36.0 44.1

$0.35 1.42 1.58 1.64

$0.57 0.67 0.62 0.55

3.0% 2.5 1.4 1.2

$23.68 $14.52 54.6 36.00 17.30 18.8 54.25 34.20 28.0 59.13 30.50 27.3

$8,661 7,236 6,282 5,035

$1,906 1.932 1.924 1.682

$5,343 4,264 221 -1,234

20.6% 61.0% 20.3 69.5 20.5 nm 19.0 nm

$2.44 2.22 2.18 1.90

$0.92 0.92 0.92 0.92

2.2% $49.95 $32.75 16.9 28.25 21.3 66.51 1.9 63.80 52.00 26.6 1.6 39.38 27.5 65.25 1.8

$0.93 0.80 0.70 0.62

17.8 16.4 24.2 25.6

BIOPHARMACEUTICALS EARNINGS NET YEAR

SALES

EARNINGS

NET PLANΤ

STOCK-'

R&D

R&D AS %

TOTAL

AND

HOLDERS'

% OF

SPENDINCi

OF SALES

ASSETS

EQUIPMEhIT

EQUITY

SALES

% OF STOCK HOLDERS' EQUITY

$ PER SHARE

STOCK PRICE RANGE, $ PER SHARE

PRICE/ EARN INGS

LOW

RATIO

$1.69 $71.54 1.39 62.48 74.19 1.03 1.05 78.00

$48.88 31.07 51.51 51.31

35.6 33.7 61.0 61.6

HIGH


AMGEN 2003 $7,868 2002 4.991 2001 3.511 2000 3.202 BIOGEN IDECC 2003 $1,852 2002 1.034 2001 972 2000 761 CHIRON 2003 $1,346 2002 914 2001 772 2000 627 GENENTECH 2003 $2,621 2002 2.164 2001 1.743 1.278 2000 GENZYME 2003 $1,564 2002 1.200 2001 1.110 2000 812 MEDIMMUNE 2003 $993 2002 848 2001 619 2000 540

$2,260 1.662 1.120 1.139

$2,260 1.117 865 845

28.7% $26,176 22.4 9.783 24.6 6,443 26.4 5,400

$3,799 2.814 1.946 1,782

$5,218 3,613 5,217 4,315

28.7%, 33.3 31.9 35.6

43.3% 46.0 21.5 26.4

$428 199 273 334

$546 368 315 303

29.5% $9,504 35.5 1,991 32.4 1,704 39.8 1,418

$1,253 738 556 400

$2,263 1,579 1,332 1,092

23.1°/c 19.2 28.1 43.9

18.9% $1.22 1.31 12.6 1.78 20.5 2.16 30.6

$42.15 57.42 74.50 119.50

$27.80 28.89 49.45 49.75

28.7 32.9 34.8 39.2

$181 248 175 178

$410 326 344 299

30.5% $4,195 35.7 2.574 44.6 2.494 47.7 2.053

$690 374 313 313

$1,170 1,689 1,553 1,476

13.5% 27.1 22.6 28.4

15.5% $1.15 1.29 14.7 0.90 11.3 0.89 12.1

$56.98 48.68 56.80 67.56

$34.41 27.41 37.06 34.13

39.7 29.5 52.1 57.1

$635 484 405 320

$722 624 526 490

27.5% $8,736 28.8 4.516 30.2 4.719 38.3 3.976

$1,618 1,069 866 753

$4,395 3,077 3,504 2,938

24.2°/c 22.4 23.2 25.0

14.4% $1.20 0.92 15.7 0.76 11.5 0.60 10.9

$95.35 55.15 84.00 117.25

$31.53 25.10 37.99 46.13

52.9 43.6 80.3 136.2

$-68 85 255 209

$335 309 264 169

21.4% $5,005 25.7 2.757 23.8 2,429 20.8 1.778

$1,151 802 635 504

$1.419 1.371 1.103 635

def 7.1% 22.9 25.7

def 6.2% 23.1 32.9

$0.42° 0.81d 1.20d 1.14d

$52.45d $28.45d 58.55d 15.64d 64.00d 34.34d 51.88d 19.84d

$192 107 149 111

$156 144 83 66

15.7% $2,795 17.0 2,059 13.4 1,237 12.2 1,017

$274 184 95 86

$1.589 1.548 1.044 844

19.3% 12.6 24.1 20.6

12.1% 6.9 14.3 13.2

$0.76 0.42 0.68 0.50

$42.09 48.35 54.56 86.13

$22.79 20.45 27.63 42.00

96.3d 45.8d 41.0d 31.6d 42.7 81.9 60.4 128.1

a S p u n o f f M e d c o H e a l t h S o l u t i o n s i n A u g u s t , b A c q u i r e d P h a r m a c i a i n A p r i . c B i o g e n a n d Idee P h a r m a c e u t i c a l s merged in November 2003. Data for years prior to 2003 are f o r B i o g e n . d F o r g e n e r a l division only, def = deficit, n m = n o t m e a n i n g f Jl.

34

C&EN

/ JULY

5,

2004


CANADA COMPANY RESULTS Sales jumped dramatically for the major Canadian companies

NET TOTAL SALES EARNINGS ASSETS

NET PLANT CAPITAL STOCKAND EXPEN- HOLDERSEQUIPMENT DITURES EQUITY

%OF SALES

STOCK PRICE RANGE, PRICE/ PER SHARE EARNINGS IGH LOW RATIO

EARNINGS % OF STOCKDIVIDEND, DIVIDEND HOLDERS' $ PER $ PER YIELD, EQUITY SHARE SHARE % OF PRICE


AGRIUM 2003 $2,630 2002 2,198 2001 2,063 2000 1,873

$-21 0 -45 82

$2,273 2,169 2,329 2,322

$1,260 1,400 1,494 1,484

$99 52 164 179

$821 764 698 819

METHANEX 2003 $2,630 2002 1,009 2001 1.U9 2000 1,061

$-21 112 82 145

$2,273 1,784 1,652 1,754

$1,260 980 1,032 1,046

$99 160 91 19

$821 869 894 996

NOVA CHEMICALS 2003 $3,949 $-118 2002 3,091 -106 2001 3,194 -202 2000 3,916 287

$4,413 4,154 4,389 4,754

$3,336 $130 71 3,033 168 3,159 440 3,296

$1890 1,561 1,614 1,926 "

POTASH CORP. 2003 $2,466 2002 1,914 2001 2,073 2000 2,232

$4,470 4,589 4,500 4,039

$3,108 $151 3,270 212 3,246 514 186 2,910

$1,877 1,996 1,990 1,906

$77 54 121 222

def $-0.25 0.0% 0.00 -0.39 def 0.62 10

$0.11 0.11 0.11 0.11

0.9% 1.0 0.9 1.0

C$21.47 C$14.28 12.66 17.85 14.00 21.00 21.95 10.00

18.4

$1.52 0.89 0.53 0.83

$0.47 0.10 0.00 0.00

4.6% 1.2

C$16.27 C$12.40 8.60 14.70 7.10 13.95 2.33 9.90

6.7 9.3 14.2 5.3

$-1.36 def def -1.24 def def -2.37 def def 3.06 7.3% 14.9%

$0.29 0.29 0.29 0.29

1.4% 1.2 1.3 1.4

C$35.05 C$24.65 28.48 40.15 23.25 37.90 22.00 37.20

— — —

$1.46 1.03 2.32 4.22

$1.00 1.00 1.00 0.99

1.4% C$115.50 C$81.50 79.38 109.02 1.5 81.00 115.55 1.4 120.40 61.00 1.5

def 0.0% def 4.4

13.4% 26.1% 12.9 11.1 7.1 9.2 14.6 13.7

3.1% 4.1% 2.8 2.7 5.8 6.1 11.7 10.0

— —

— — —

6.9

48.1 65.3 30.2 15.3

NOTE: Stock price ratios were converted on the basis of the 2003 average exchange rate of $1.00 U.S. = $1.Λ01 Canadian (C$). def = deficit.

EUROPE COMPANY RESULTS Tough year took its toll on corporate earnings CHEMICALS

YEAR

NET SALES EARNINGS

TOTAL ASSETS

NET PLANT CAPITAL STOCKAND EXPEN- HOLDERS' EQUIPMENT DITURES EQUITY

%OF SALES

EARNINGS % OF STOCKHOLDERS' $ PER EQUITY SHARE

DIVIDEND, DIVIDEND $ PER YIELD, SHARE % OF PRICE

STOCK PRICE RANGE, PRICE/ PER SHARE EARNINGS LOW RATIO HIGH


BELGIUM Solvay 2003 $8,551 2002 8,959 2001 9,872 2000 10,028

$448 561 456 490

$10,684 10,348 12,447 10,385

$3,098 2,956 2,777 2,403

$83 9 80 52

$2,823 2,819 2,772 2,725

FRANCE Air Liquide 2003 $9,498 2002 8,939 2001 9,423 2000 9,165

$821 795 794 738

$12,452 12,400 13,640 13,022

FINLAND Kemira 2003 2002 2001 2000


$3,914 $628 4,316 707 4,835 816 4,417 919

$3,017 3,267 3,389 4,224

5.2% 6.3 4.6 4.9

14.9% 17.2 13.5 11.6

$5.41 6.26 5.34 5.88

$2.04 2.04 1.92 1.92

3.1% 2.6 2.4 2.5

€69.30 78.00 67.65 83.90

€47.60 58.70 72.65 53.05

$1,229 1,213 1,220 1,188

$267 275 337 247

$1,208 1,195 1,262 1,270

2.7% 0.3 2.9 2.1

6.9% 0.8 6.3 4.1

$0.70 0.08 0.66 0.83

$0.37 0.34 0.34 0.34

4.4% 4.2 4.3 5.1

€9.30 8.50 8.75 6.80

$6,708 $828 6,963 803 7,784 871 7,699 1,030

$5,747 5,905 6,057 5,981

8.6% 8.9 8.4 8.0

14.3% 13.5 13.1 12.3

$8.33 8.01 7.91 7.24

$3.62 3.62 3.62 3.39

2.6% €140.90 €105.00 160.00 112.00 2.4 115.56 154.76 2.4 111.73 155.56 2.2

12.2 12.4 14.9 13.2

€5.75 12.1 5.75 101.8 5.30 12.1 4.92 8.0

16.7 19.2 19.3 20.9

C & E N / JULY 5, 2004

35

FINANCES

YEAR



%OF SALES


STOCK PRICE RANGE, PRICE/ PER SHARE EARNINGS HIGH LOW RATIO


Rhodia 2003 2002 2001 2000

$6,170 7.487 8,236 8.395

$-847 -5 -241 244

$7.388 8.698 10,198 10.765

$2.858 3,104 4.029 4.253

$264 423 547 569

GERMANY BASF 2003 $38,318 $1.030 $33.729 $14.789 $2.595 2002 36.452 1.809 35.780 15.552 3.029 2001 36.773 -297 37.263 16.056 3.436 2000 40.673 1.403 38.492 15.435 4.108 Bayer 2003 $32.324 $-1.540 $42.369 $11,244 $1,968 2002 33,520 1.203 47.174 14.071 2,696 2001 32,743 1,093 41,910 15,324 2,961 2000 35,044 2,246 41.244 15,100 2,995 Celanese 2003 $4,611 $148 $6,109 $1,532 $209 2002 4.894 212 6.933 1.834 247 2001 5.767 -436 7.993 2.158 246 2000 5.892 66 8.647 2.289 247 Degussa 2003 $12,930 $-180 $15,846 $5.722 $890 2002 13,312 257 17.182 5,953 1,087 2001 13,422 476 20,511 6,627 1,279 2000 14,465 459 21,677 6,648 1,100 Merck 2003 $8,149 $236 $7,900 $2,286 $318 2002 8,456 230 8,499 2,415 427 2001 8,518 712 9,341 2.434 532 2000 7.627 279 9.331 2.227 483 NETHERLANDS Akzo Nobel 2003 $14,767 2002 15,843 2001 15,965 2000 15.844 DSM 2003 $6.846 2002 7,541 2001 9,018 2000 9.154

$285 2.076 2,565 2,934

nm nm nm 2.9%

nm $-8.63 nm -0.02 nm -1.35 8.3% 1.39

$0.00 0.21 0.14 0.45

nm 2.1% 1.1 2.3

€8.44 12.40 15.95 24.19

€2.91 5.75 5.60 10.50

nm nm -9.1 14.1

$17.967 19.170 19.826 16.175

2.7% 5.0 nm 3.4

5.7% $1.83 9.4 2.94 -1.5 11.00 8.7 2.29

$1.58 1.58 1.47 1.47

3.8% 3.4 3.2 2.9

€44.58 49.80 50.45 50.68

€28.41 32.90 31.00 39.40

22.5 15.9 4.2 22.3

$13.819 17,352 19,147 18.262

nm 3.6% 3.3 6.4

nm $-2.10 6.9% 1.64 5.7 1.49 12.3 2.82

$0.57 1.02 1.02 1.58

3.0% 3.1 2.2 2.9

€23.22 40.80 57.80 56.25

€10.28 17.45 24.05 38.75

nm 20.1 31.0 19.1

$2,317 2.269 2.501 3,217

3.2% 4.3 nm 1.1

6.4% $3.00 9.3 4.21 nm -8.66 2.0 1.23

$0.50 0.45 0.45 0.12

1.9% 1.8 1.9 0.5

€33.50 27.42 27.50 24.55

€12.51 8.7 15.96 5.8 15.30 -2.8 16.28 18.7

$5,677 6,426 6,745 6,648

nm 1.9% 3.5 3.2

nm $-0.87 4.0% 1.24 7.1 2.32 6.9 3.28

$1.24 1.24 1.24 1.24

4.4% 3.6 3.7 3.1

€29.47 37.67 39.60 42.90

€20.62 nm 24.00 28.0 20.20 14.6 28.35 12.3

$2,674 2,324 2.644 2.459

2.9% 2.7 8.4 3.7

8.8% $1.30 9.9 1.34 26.9 4.14 11.4 1.63

$0.91 1.13 1.07 1.02

3.0% 3.4 2.2 2.4

€34.06 40.55 49.70 50.00

€20.01 18.03 37.55 26.30

23.5 24.8 11.9 26.5

11.5 13.1 14.1 14.4

$681 $13,526 1,009 14,471 1,052 14,625 1.082 14,378

$4.489 4,981 5.169 5,093

$657 780 930 820

$2.831 2,529 3.413 3,228

4.6% 6.4 6.6 6.8

24.1% $2.39 39.9 3.53 30.8 3.68 33.5 3.78

$1.36 1.36 1.36 1.36

5.0% 2.9 2.6 2.5

€32.44 54.50 57.85 59.15

€16.00 27.25 33.73 37.30

$157 $10,636 395 10,179 418 9,703 656 8,879

$2.727 3,264 4,081 3,542

$490 606 738 696

$5.565 5,818 4,796 3.440

2.3% 5.2 4.6 7.2

2.8% $1.40 6.8 13.67 8.7 16.41 19.1 6.56

$1.98 1.98 1.98 1.98

4.6% 3.9 4.7 5.0

€45.00 51.25 45.15 40.10

€31.29 30.8 37.90 3.7 28.80 2.6 30.00 6.0

5.2%

8.1% $3.74

$0.00

SWITZERLAND Ciba Specialty Chemicals 2003 $4,940 $256 $8,249 $2,202 $173 $3,155 2002 5,266 302 8,765 2,376 186 3,236 2001 5,476 329 8,710 2,650 193 2,905 2000 5,873 387 8,997 2,815 185 2,790 Clariant 2003 $6,330 $120 $5.948 $2.063 $224 $874 2002 6.935 -482 6.355 2.271 252 679 2001a 7.337 198 7.845 2.790 375 1.455 2000 7.866 375 9.623 3.285 398 2.651 Givaudan 2003 $2,018 $161 $3,380 $752 $117 $1.922 2002 1,988 190 3,390 748 68 2,056 2001 1.783 204 3,210 746 85 2.072 2000b 1,751 153 GÛ359 nà 97 Û 9 4

36

C & E N / JULY 5, 2004

5.7 6.0 6.6 1.9%

-6.9 2.7 4.8 8.0%

9.6 11.4 8.7

9.3 11.3 13.9 13.7%

-70.9 13.6 14.2

4.40 4.97 5.82 $0.80

0.00 1.49 1.49 $0.15

-3.20 -6.05 25.38

0.00 0.22 0.82

8.4% $20.09

$6.62

9.3 9.8 7.7

22.34 24.47 23.00

6.02 — -

nm

nm 2.1% 1.8 1.2%

nm 0.8 1.7

CHF98.65

128.00 115.75 122.50 CHF24.20

40.30 59.40 79.90

CHF72.13

CHF9.53

683.00 — —

15.6

21.50 nm 16.50 nm 46.10 1.8

1.7% CHF650.00 CHF427.00

1.4 nm nm

17.0

89.75 18.4 75.00 14.3 94.25 13.8

19.9

500.00 19.7 — nm nm


YEAR


NET PUNT CAPITAL STOCKAND EXPEN- HOLDERS" EQUIPMENT DITURES EQUITY

.EARNINGS % OF STOCKDIVIDEND. DIVIDEND %OF HOLDERS' $ PER $PER YIELD, SALES EQUITY SHARE SHARE % OF PRICE



Lonza 2003 $1,666 2002 1.885 2001a 1.874 2000 1.266 Syngenta 2003 $4,889 2002 4.606 2001c 4,700 2000b 3.624

$147 164 299 230

$2,462 2.432 2.961 2.541

$1.614 1,301 1,321 2,007

$315 260 201 110

$918 918 1,179 1,634

8.8% 8.7 15.9 18.1

$270 197 166 80

$8.150 8,191 8.427 9.533

$1.765 1,717 1,745 1.969

$164 123 188 138

$3,756 3,233 3,037 3,129

5.5% 4.3 3.5 2.2

$8.059 5,956 5,999 6,084

$4,760 4,946 5,178 5,383

$459 578 577 677

$2,835 2,752 3,409 3,716

6.1% 5.1 8.2 8.4

$8.510 8.991 10.293 11.535

$3.894 3.204 3.572 3,919

$252 351 389 384

$4,873 815 -595 -407

3.7% 7.3% 48.1 3.9 -68.4 3.9 4.3 --110.8

UNITED KINGDOM BOC International 2003 $6,950 $426 2002 6.566 332 2001 6,797 556 2000 6,338 533 ICI 2003 $9.558 $358 2002 10.009 392 407 2001 10.499 2000 10.483 451

16.0% 17.9 25.3 14.1 7.2% 6.1 5.5 2.6

15.0% 12.1 16.3 14.4

$3.11 3.38 5.52 36.33

$0.97 1.41 1.41 11.15

1.8% 1.9 1.9 1.6

CHF86.35 CHF59.75 79.90 120.50 88.20 109.10 810.00 1,018.00

17.5 22.0 13.3 18.7

$2.65 1.94 1.64 5.66

$1.26 0.63 0.59

CHF87.85 CHF55.10 72.00 109.72 75.00 87.00

—

2.4% 0.9 1.0 nm

—

20.1 34.8 36.8 nm

$0.87 0.92 0.95 1.05

$0.64 0.62 0.60 0.57

4.8% 3.9 3.9 3.1

£9.47 11.08 11.14 13.76

£6.70 8.36 7.80 8.71

15.3 17.4 16.3 17.6

$0.30 0.39 0.49 0.53

$0.10 0.12 0.22 0.43

3.9% 2.4 3.2 5.2

£2.41 4.30 5.57 6.74

£0.82 2.03 2.83 3.54

8.7 13.4 14.1 15.7

—

PHARMACEUTICALS

YEAR



%OF SALES




FRANCE Aventis 2003 $20,158 $2,151 2002 23.334 2.462 2001 25.958 1,848 2000 25,237 -33 SWITZERLAND Novartis 2003 $24.864 $5.016 2002 24.091 5.436 2001d 23.519 5.221 2000 26.613 5.359 Roche 2003 $23.205 $2.281 2002 22,094 -2,992 d 2001 21.676 2,748 2000 21,311 6,427 UNITED KINGDOM Astra Zeneca 2003 $18,849 $3,036 2002 17,841 2,836 2001 16.222 2.906 2000 17.882 2.277 GlaxoSmithKUne 2003 $35,038 $7,327 2002 34,663 7.561 2001 33,481 7.162 2000 29.543 6.041

$31,995 35.159 44,393 47.730

$4,673 5,041 6,495 8.484

$946 1,132 1,409 1,776

$11,806 12,826 13,602 11.950

10.7% 10.6 7.1 def

18.2% 19.2 13.6 def

$2.74 2.99 2.16 -0.21

$0.93 0.79 0.66 0.57

$49.317 46.976 49.622 43.256

$7.597 $1,318 6.321 1,235 6.734 1,004 6.712 1,006

$30.429 29,495 31.400 27.399

20.2% 22.6 22.2 20.1

16.5% 18.4 16.6 19.6

$1.51 2.16 2.03 81.76

$44.214 47,566 55.958 51.684

$9.286 $1,684 9.985 1,519 11.188 1,435 10,246 1,623

$17,519 15.468 21,535 20,520

9.8% def 12.7 30.2

$23.573 21,576 18.496 18,857

$7,536 $1,239 9.404 1.340 8,109 1,385 7.908 1.347

$13.178 11,172 9,586 9,389

$25,129 22.091 21.101 20.436

$10,525 $1,422 10,865 1.678 11.185 1.819 10.854 1.664

$12,615 10,754 12.076 12.601

1.8% 1.0 0.7 0.7

€54.55 85.89 94.75 93.70

€37.50 47.60 65.20 47.82

19.0 25.3 41.9 -

$0.74 0.71 0.67 25.27

2.0% CHF56.15 CHF46.05 1.6 69.10 49.20 1.4 74.15 54.91 55.0 73.90 49.72

25.2 20.3 23.6 0.6

13.0% $2.68 def -3.57 12.8 3.25 31.3 761.11

$1.23 1.08 0.97 85.48

1.1%CHF185.00 CHF121.00 0.9 195.00 130.50 0.8 201.00 114.00 0.5 26,375.00 16,800.00

42.4 36.0 21.1

16.1% 15.9 17.9 12.7

23.0% 25.4 30.3 23.0

$1.78 1.84 1.73 1.50

$0.80 0.70 0.70 0.70

1.6% 1.9 2.0 1.9

£49.47 36.25 35.55 36.00

£29.98 17.99 28.80 19.26

22.3 14.7 18.6 18.4

20.9% 21.8 21.4 20.4

58.1% $1.26 70.3 1.28 59.3 1.18 47.9 1.00

$0.67 0.65 0.64 0.62

3.4% 2.8 2.1 2.1

£13.90 17.80 20.32 21.10

£10.00 10.57 16.26 14.40

15.5 18.1 25.3 29.1

NOTE: € = euro. CHF = Swiss franc. £ = British pound. Monetary statistics for all years were converted from local currencies to U.S. dollars on the basis of the 2003 average exchange rates of $1.00 = 0.88Λ euros. 1.345 Swiss francs, and 0.612 pounds sterling, a Shares split 10 for 1. b Pro forma, c Acquired Zeneca agrochemicals. d Shareholding restructured, def = deficit, na = not available, nm = not meaningful.


C & E N / JULY 5, 2004

37

FINANCES

JAPAN COMPANY FINANCIALS Last fiscal year was the best on record for Japanese companies Sales, $ billions 100

1993 94 95 96 97

99 00 01 02 03

Net income as % of sales

Net income, $ billions 3

3[

1993 94 95 96 97 98 99 00 01 02 03

1993 94 95 96 97 98 99 00

02 03

NOTE: Based on results of 12 leading Japanese chemical companies: Asahi-Kasei. Dainippon Ink & Chemicals, JSR Corp.. Kaneka. Mitsubishi Chemical, Mitsui Chemicals. Nippon Sanso, Shin-Etsu Chemical, Showa Denko, Sumitomo Chemical. Teijin. and Toray. The fiscal year of these companies ends on March 31 of the following year, except for Showa Denko, which ends on Dec. 31. Monetary statistics are converted from yen to U.S. dollars on the basis of the 2003 average exchange rate of $1.00 U.S. = 115.97 yen.

JAPAN COMPANY RESULTS Earnings improved, and the price/earnings ratios came back to more earthly levels

NET SALES

EARNINGS

TOTAL ASSETS

NET PLANT STOCKAND HOLDERS' EQUIPMENT EQUITY

%OF SALES

EARNINGS % OF STOCK$PER HOLDERS' SHARE EQUITY

DIVIDEND, DIVIDEND YIELD, $PER SHARE % OF PRICE

STOCK PRICE RANGE, PER SHARE LOW


(Money figures in millions of dc liars unless otherwise ndicated)

ASAHI KASEI 2003 2002 2001 2000

$10,809 10,292 10,308 10,937

$239 -576 45 217

$10,772 10,454 10,287 10,692

$3,693 3,684 3,580 3,614

$3,884 3,515 4,284 4,450

2.2% def 0.4 2.0

6.1% def 1.0 4.9

$0.17 def 0.03 0.15

$0.05 0.05 0.05 0.05

1.3% 1.6 1.2 0.9

¥633 520 650 822

¥298 239 340 506

23.7 nm 137.1 38.1

DAINIPPON INK & CHEMICALS 2003 $8,405 $55 2002 8,449 21 2001 8,449 38 2000 8,466 129

$8,768 8,987 9,598 9,824

$3,190 3,222 3,405 3,371

$1,209 1,231 1,510 1,267

0.7% 0.2 0.5 1.5

4.5% 1.7 2.5 10.2

$0.07 0.02 0.05 0.16

$0.03 0.03 0.00 0.04

1.9% 1.7 0.0 1.0

¥256 291 368 545

¥176 171 161 323

27.9 82.8 47.1 23.0

JSR CORP. 2003 2002 2001 2000

$2,372 2,131 1,898 1,999

$167 95 41 49

$2,661 2,431 2,329 2,448

$732 730 754 774

$1,375 1,202 1,136 1,075

7.0% 4.4 2.1 2.4

12.1% 7.9 3.6 4.6

$0.65 0.37 0.16 0.19

$0.08 0.06 0.05 0.05

0.5% ¥2,540 0.7 1,282 0.7 1,005 0.7 1,021

¥1,141 856 599 600

24.5 25.0 43.4 36.5

KANEKA 2003 2002 2001 2000

$3,451 3,210 3,066 3,168

$135 115 81 91

$3,385 3,191 3,276 3,494

$1,107 1,137 1,183 1,188

$1,766 1,602 1,560 1,545

3.9% 3.6 2.6 2.9

7.6% $0.38 0.32 7.2 0.23 5.2 0.25 5.9

$0.07 0.07 0.07 0.07

1.0% 1.1 0.8 0.7

¥1,055 975 1,200 1,445

¥501 519 695 890

17.7 20.1 36.2 39.6

MITSUBISHI CHEMICAL 2003 $16,602 2002 16,276 2001 15,352 2000 15,066

$298 184 -390 27

$17,260 18,255 19,368 17,389

$6,237 7,001 7,279 6,567

$3,424 3,021 2,964 3,310

1.8% 1.1 def 0.2

8.7% $0.14 0.08 6.1 def def 0.01 0.8

$0.03 0.03 0.00 0.02

1.6% 1.1 0.0 0.5

¥318 332 434 482

¥187 190 230 254

16.0 26.8 nm 253.8

MITSUI CHEMICALS 2003 $9,395 2002 9,082 2001 8,215 8,104 2000

$107 175 66 147

$10,248 10,565 11,191 11,335

$4,732 5,008 5,035 4,766

$3,306 3,197 3,165 3,044

1.1% 1.9 0.8 1.8

3.3% 5.5 2.1 4.8

$0.14 0.22 0.08 0.19

$0.05 0.05 0.05 0.05

1.1% 1.1 1.3 0.9

¥680 687 666 900

¥406 429 280 451

34.4 21.7 48.8 31.2

NIPPON SANSO 2003 $1,986 2002 2,056 2001 2,083 2000 2,223

$39 37 27 15

$2,273 2,188 2,377 2,621

$872 926 1,053 1,022

$817 769 782 750

2.0% 1.8 1.3 0.7

4.8% $0.13 0.12 4.8 0.09 3.5 0.05 2.0

$0.05 0.00 0.05 0.03

1.5% 0.0 1.4 0.8

¥496 451 577 523

¥329 314 272 270

26.8 26.6 40.1 67.7

38

C & E N / JULY 5, 2004


YEAR

NET SALES

TOTAL EARNINGS

EARNINGS NET PUNT STOCK% OF STOCKDIVIDEND, DIVIDEND AND HOLDERS' % OF HOLDERS* $ PER $ PER YIELD, ASSETS EQUIPMENT EQUITY SALES EQUITY SHARE SHARE % OF PRICE



SHIN-ETSU CHEMICALS 2003 $7,181 2002 6,877 2001 6,684 2000 6,963

$645 630 591 556

$11,953 11,304 11,110 10,915

$3,750 3,807 3,931 3,262

$7,767 7,303 7,002 6,165

9.0% 9.2 8.8 8.0

8.3% $1.53 8.6 1.49 8.4 1.40 9.0 1.32

$0.14 0.12 0.10 0.09

0.4% 0.3 0.3 0.2

¥4,980 5,630 5,920 6,560

¥3,500 3,670 3,260 3,610

23.9 26.9 28.2 33.1

SHOWA DENKO 2003 $5,944 2002 5,812 2001 6,113 2000 6,441

$89 112 -295 24

$8,105 8,507 8,889 9,387

$4,640 4,877 4,953 5,170

$1,432 1,294 1,203 1,248

1.5% 1.9 def 0.4

6.2% $0.08 8.7 0.10 def def 1.9 0.02

$0.02 0.00 0.00 0.00

1.0% 0.0 0.0 0.0

¥251 225 294 195

¥146 119 108 110

21.9 15.0 nm 57.3

SUMITOMO CHEMICAL 2003 $9,989 2002 9,581 2001 8,781 2000 8,976

$296 268 294 159

$13,359 12,799 12,013 12,550

$4,155 4,015 3,464 3,533

$4,364 3,831 3,834 3,896

3.0% 2.8 3.3 1.8

6.8% $0.18 7.0 0.16 7.7 0.16 4.1 0.12

$0.05 0.05 0.05 0.04

1.5% 1.3 1.2 0.9

¥505 605 670 667

¥317 343 345 475

19.8 25.3 27.8 41.9

TEIJIN 2003 2002 2001 2000

$7,541 7,678 7,963 6,566

$73 -181 8 138

$7,886 8,938 9,525 9,127

$3,396 3,734 3,734 3,375

$2,534 2,402 2,686 2,766

1.0% def 0.1 2.1

2.9% $0.08 def def 0.3 0.01 0.15 5.0

$0.06 0.06 0.06 0.06

2.1% 1.8 1.1 1.3

¥361 492 759 593

¥253 248 394 391

34.3 nm 538.8 28.0

TORAY INDUSTRIES 2003 $9,386 2002 8,907 2001 8,758 2000 9,273

$180 50 33 146

$11,169 11,218 11,956 12,599

$4,685 5,030 5,461 5,424

$3,572 3,366 3,562 3,666

1.9% 0.6 0.4 0.0

5.0% $0.13 1.5 0.04 0.9 0.02 0.10 0.0

$0.05 0.04 0.04 0.06

1.5% 1.6 1.1 1.5

¥492 395 585 530

¥264 230 299 374

25.4 75.7 163.1 37.4

NOTE: All monetary statistics, except share prices, are converted to U.S. dollars at the 2003 average rate of $1.00 U.S. = 115.97 ¥. Statistics prepared on the basis of consolidated results. Fiscal years end March 31 of the following year, except at Showa Denko, where fiscal year ends Dec. 31. def = deficit, nm = not meaningful.


C & E N / JULY 5, 2004

39

FINANCES U.S. CAPITAL SPENDING Chemical companies showed a slight pick -up

$611 70 na 74 21

1995 $870 112 na 131 46

1996 $951 90 na 209 32

1997 $870 85 na 163 36

1998 $771 77 84 187 43

1999 $889 78 59 166 31

2000 $768 52 62 137 39

2001 $708 50 45 122 43

2002 $628 38 35 146 50

2003 $613 41 20 129 38

14 111 1,397 1,667 na

22 116 1,183 1,292 281

18 97 1,417 1,476 446

39 73 1,344 1,395 789

50 91 1,198 1,781 749

67 104 1,546 2,240 500

132 77 1,412 2,055 292

155 77 1,349 1,925 226

137 64 1,587 1,634 234

100 62 1,623 1,280 427

88 94 1,100 1,713 230

Ethyl FMC Corp.6 H.B. Fuller' W.R. Grace Great Lakes Chemical

205 205 42 310 79

141 271 65 445 123

45 428 91 538 247

29 485 90 457 237

44 317 69 259 133

23 266 62 101 161

14 236 56 83 119

14 240 49 65 157

10 146 31 63 166

13 84 36 91 65

12 87 39 86 63

Hercules Intl. Specialty Products Lubrizol Monsanto9 PPG Industries

U9 63 128 437 293

164 31 161 409 356

117 39 189 500 448

120 55 94 692 489

119 69 101 644 466

157 166 93 979 487

196 109 65 976 490

187 58 86 582 561

63 102 66 382 291

43 58 65 224 238

48 101 88 206 217

Praxair Quaker Chemical Rohm and Haas Solutiah Stepan

240 9 382

326 9 339

600 10 417

893 7 334

781 8 229 158 44

653 6 323 257 33

704 6 391 221 28

595 8 401 94 34

498 11 407 59 36

983 13 339 78 33

$9,333 7.5%

$8,807 -5.6%

$8,139 -7.6%

$7,074 -13.1%

$6,318 -10.7%

$6,459 2.2%

$ MILLIONS Air Products & Chemicals3 Albemarle Arch Chemicals Cabot3 Cambrex

1993 $491 88 na 65 16

Crompton" Cytec Industries Dow Chemical0 DuPontd Eastman Chemical

TOTAL ANNUAL CHANGE'

1994

—

—

—

—

25

43

39

45

902 6 254 165 36

$6,416 -7.8%

$6,553 -2.2%

$8,321 27.0%

$8,949 7.5%

$8,607 -5.7%

NOTE: Figures are for worldwide spending on construction, equipment, and land in consolidated businesses. Prior years are not restated to reflect company revisions, a Fiscal year ends Sept. 30. b Formed in 1999 from merger of Crompton & Knowles and Witco. Figures prior to 1999 are for Crompton & Knowles. c Sold off drug business in 1995. Acquired Union Carbide in 2001. d Acquired all of Pioneer Hi-Bred in 1999 and all of DuPont Merck Pharmaceutical in 1998. Sold drug operations in 2001. e Machinery business split off in December 2001. Data for 2002 and 2003 are for remaining chemical operations, f Fiscal year ends Nov. 30. g Merged with Pharmacia in 1999. Spun off from Pharmacia in August 2002. h Spun off from Monsanto in 1997. i Percentage changes are calculated for companies reporting in the previous year. na = not available.

CANADA CAPITAL SPENDING Outlays rose for three out of four companies in 2003

$ MILLIONS Agrium Methanex Nova Chemicals3 Potash Corp.

1993 na $69

1994 na $160 17

1995 $88 182 97 40

1996 $153 174 175 59

1997 $144 154 223 160

1998 $174 178 367 190

1999 $253 139 620 119

2000 $179 19 440 186

2001 $164 91 168 514

2002 $52 160 71 212

2003 $99 243 130 151

—

—

16

TOTALb

$85

$177

$407

$561

$681

$909

$1,131

$824

$937

$495

$623

NOTE: Data for Nova Chemicals for 1995 converted from Canadian dollars to U.S. dollars on the basis of the 2003 average exchange rate of $1.00 = $1.401 Canadian. a Nova Chemicals was spun off from Nova Corp. in 1998; figures for 1995 to 1997 are pro forma, b For companies reporting, na = not available.

40

C&EN

/ JULY

5,

2004


EUROPE CAPITAL SPENDING Total spending fell to half of level three years ago 1999

1998

2000

2001

2002

2003

$ MILLIONS

1993

1994

1995

1996

1997

Air Liquide (France) Akzo Nobel (Netherlands) BASF (Germany) Bayer (Germany)

$669 582 2,558 1,826

$506 784 1,894 2,030

$752 816 3,103 1,833

$1,182 893 3,972 2,185

$1,436 725 3,354 2,638

$1,623 927 4,674 3,058

$1,278 902 4,300 2,978

$1,030 820 9,773 2,995

$871 930 4,586 2,961

$1,030 780 3,722 2,696

$828 657 2,595 1,968

BOC International (U.K.) Celanese3 (Germany) Ciba Specialty Chemicals'5 (Switzerland) Clariantc (Switzerland)

671

679

—

—

837 101

1,032 111

1,105 535

976 390

825 296

677 266

577 261

578 247

459 209

—

—

—

415 421

389 351

294 344

198 316

185 398

193 375

186 252

173 224

Degussa (Germany) DSM (Netherlands) ICI (U.K.) Kemira (Finland)

289 353 760 162

267 190 629 124

285 390 1,028 177

273 548 1,677 229

308 518 1,172 239

na 662

1,181 732

905

m

1,100 696 472 247

1,279 738 389 337

1,087 569 351 275

890 490 252 265

110 483 569 919 185

196 532 547 816 253

259 427 423 707 165

315 318 264 628 221

Lonzad (Switzerland) Mercke (Germany) Rhodiaf (France) Solvay (Belgium) Syngenta9 (Switzerland) TOTAL*

289

190

—

—

—

—

—

243

307

299 614 785

308 384 841

303 361 380 724

207 406 421 1,040

—

—

—

—

—

—

539

558

319 553 578

—

—

—

$8,651

$7,968

$10,772

$14,634

$14,300

$15,911 $15,707

$20,924 $15,840 $13,754 $10,756

NOTE: Monetary statistics for all years were converted from local currencies to U.S. dollars on the basis of the 2003 average exchange rates of $1.00 U.S. = 0.884 euros, 0.612 pounds sterling, and 1.345 Swiss francs, a Spun off from Hoechst in 1999; prior figures are pro forma, b Spun off from Novartis in 1997. c Spun off from Sandoz in 1995; merged with Hoechst Specialty Chemicals in 1997. d Became independently listed company in 1999; prior figures are pro forma, e Privately held until 1996. f Spun off from Rhône-Poulenc in 1998; prior figures are pro forma, g Became an independent company in 2000; prior figures are pro forma, h For companies reporting, na = not available.

JAPAN CAPITAL SPENDING Sumitomo was the biggest spender for the second year in a row ^MILLIONS

Asahi Kasei Dainippon Ink & Chemicals JSR Corp. Kaneka Mitsubishi Chemical3 Mitsui Chemicalsb

1993

$647 na 53 na

— —

— —

na 297 na 508 na 749 $2,432

Nippon Sanso Shin-Etsu Chemical Showa Denko Sumitomo Chemical Teijin Toray TOTALc

1994

$755 na 123 na

1995

1996

1997

1998

1999

—.

$647 847 193 246 1,009 518

$608 673 198 211 904 449

$545 800 106 211 730 469

$597 471 94 211 744 531

$645 435 114 209 860 1,014

$810 372 138 154 736 593

$745 394 148 198 598 394

147 576 na 549 na 977

171 801 369 621 na 829

203 1,176 552 715 na 1,299

197 635 423 583 273 1,043

122 690 321 704 373 944

103 834 345 535 425 518

149 703 279 629 482 564

153 565 245 1,311 605 494

64 878 352 950 457 421

$3,703

$5,249

$7,404

$6,195

$6,015

$5,408

$6,083

$6,176

$5,600

$620 na 85 na 748

$631 498 158 272 899

—

na 584 na 155 na 805 $2,243

2000

2001

2002

2003

NOTE: Monetary statistics were converted from yen to U.S. dollars on the basis of the 2003 average exchange rate of $1.00 = 115.97 yen. Fiscal year ends March 31 of the following year, except for Showa Denko, which ends on Dec. 31. a Mitsubishi Chemical was formed in 1994 by the merger of Mitsubishi Kasei and Mitsubishi Petrochemical, b Mitsui Chemicals was formed in 1997 by the merger of Mitsui Toatsu and Mitsui Petrochemical, c For companies reporting, na = not available.


C&EN

/ JULY

5,

2004

41

FINANCES

U.S. R&D SPENDING Outlays by U.S. chemical companies were almost unchanged, while drug and diversified firms spent much more, helped by Pfizer-Pharmacia CHEMICAL $ MILLIONS Air Products & Chemicals3 Albemarle Arch Chemicals Cabot3 Cambrex

1993 $92 30 na 46 6

$97 28 na 49 6

$103 30 na 59 8

$114 30 na 79 9

$114 31 na 83 11

$112 30 16 83 14

$123 34 18 73 14

$124 26 17 43 14

$123 22 25 48 20

$121 17 23 48 18

$121 18 24 64 17

Cromptonb Cytec Industries Dow Chemical0 DuPontd Eastman Chemical

11 41 1.256 1.132 na

12 40 1,261 1,047 167

14 44 808 1.067 176

52 40 761 1,032 184

54 45 785 1.116 191

53 43 807 1,308 185

68 44 845 1,617 187

85 39 892 1,776 149

82 32 1,072 1,588 160

82 34 1,066 1,264 159

52 35 981 1,349 173

45 149 22 135 55

50 167 24 132 59

54 188 27 121 63

47 177 26 94 64

42 174 25 42 42

40 158 22 47 42

41 152 21 42 46

40 155 18 46 40

33 100 19 50 41

30 82 18 52 26

28 87 18 52 28

76

65

59

56

53

61

85

80

67

42

39

21 89 626 201

20 91 609 218

22 105 658 236

25 93 728 239

27 88 939 250

26 78 1,263 271

23 78 695 284

26 86 588 282

25 88 560 266

26 94 527 289

25 94 510 306

58 11 205

58 10 201

61 11 194

72 11 187

72 10 207 62 12

67 9 236 58 13

65 9 259 67 13

66 9 230 58 14

69 9 260 39 15

75 10 238 53 15

Ethyl FMC Corp.e H.B. Fullerf W.R. Grace Great Lakes Chemical Hercules Intl. Specialty Products Lubrizol Monsanto9 PPG Industries Praxair Quaker Chemical Rohm and Haas Solutiah Stepan TOTAL ANNUAL CHANGE'

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

—

—

—

—

13

12

12

13

79 10 200 60 12

$4,320 -3.8%

$4,423 -1.5%

$4,120 -6.9%

$4,133 0.3%

$4,473 6.8%

$5,023 11.9%

$4,873 -3.0%

$4,939 1.4%

$4,798 -2.8%

$4,408 -8.1%

$4,412 0.1%

1994 $1,108 839 318 1,231 1.497

1995 $1.199 1.042 353 1.331 1.854

1996 $1,276 1,190 345 1,487 2,166

1997 $1,385 1.382 349 1.684 2.536

1998 $1,577 1,739 394 1,821 3,305

1999 $1,843 1,784 909 2.068 4,036

2000 $1,939 2,019 818 2,344 4,435

2001 $2,259 2,235 832 2,456 4,847

2002 $2,218 2,149 757 2,677 5,176

2003 $2,279 2,350 751 3,178 7,131

956 578 1.030 663

1.162 620 1,054 817

1.304 657 883 1.355

1,399 723 947 1,429

1.469 847 1.002 1.558

1,546 1,007 1,016 1,655

1.726 1.191 1.038 1.740

1,899 1,333 1,101 1,688

1.769 1.312 1.064 1,870

1,601 1,425 1,070 2,080

1.665 1.469 1.102 2.094

$8,151 6.7%

$8,646 6.1%

$9,978 15.4%

$10,962 9.9%

$12,212 11.4%

$14,060 15.1%

$16,335 16.2%

$17,576 7.6%

$18,644 6.1%

$19,153 2.7%

PHARMACEUTICAL & DIVERSIFIED $ MILLIONS 1993 Bristol-Myers SquibbJ $1,128 Eli Lilly 955 Honeywellk 313 Merck 1,173 Pfizer1 1,355 Procter & Gamblem Schering-Plough 3M Wyeth TOTAL ANNUAL CHANGE'

$22,019 15.0%^

NOTE: Prior years are not restated to reflect company revisions except where noted, a Fiscal year ends Sept. 30. b Formed in 1999 from merger of Crompton & Knowles and Witco. Figures prior to 1999 are for Crompton & Knowles. c Sold off drug business in 1995. Acquired Union Carbide in 2001. d Acquired all of Pioneer HiBred in 1999 and all of DuPont Merck Pharmaceutical in 1998. Sold drug operations in 2001. e Machinery business split off in December 2001. Data for 2002 and 2003 are for remaining chemical operations, f Fiscal year ends Nov. 30. g Merged with Pharmacia in 1999. Spun off from Pharmacia in August 2002. h Spun off from Monsanto in 1997. i Percentage changes are calculated for companies reporting in the previous year, j Acquired DuPont Pharmaceuticals in 2001. k Merged with AlliedSignal in 1999. Figures prior to 1999 are for AlliedSignal. I Merged with Warner-Lambert in 2000, with Pharmacia in 2003. Prior years are restated for Warner-Lambert but not Pharmacia, m Fiscal year ends June 30. na = not available.

42

C & E N / JULY 5, 2004


EUROPE R&D SPENDING Only a few modest increases emerged η picture of falling R&D spending $ MILLIONS Air Liquide (France) Akzo Nobel (Netherlands) BASF (Germany) Bayer (Germany) BOC International (U.K.) Celanese3 (Germany) Ciba Specialty Chemicals5 (Switzerland) Clariantc (Switzerland) Degussa (Germany) DSM (Netherlands) ICI (U.K.) Kemira (Finland) Lonzad (Switzerland) Mercke (Germany) Rhodiaf (France) Solvay (Belgium) Syngenta9 (Switzerland) TOTALh

1993 $80 477 1,119 1,826 139

1994 $81 577 1,109 1,838 144

—

—

—

—

272 200 598 na

— 272

— 338

— $5,322

235 180 394 44

— 344

— 322

— $5,268

1995 $85 571 1,208 1,885 150 129

— 250 178 302 46

— 356 217 332

— $5,711

1996 $92 584 1,323 2,088 162 145

— 273 200 312 53

— 377 230 345

— $6,182

1997 $98 647 1,385 2,244 132 150

1998 $98 735 1,391 2,314 109 114

1999 $103 821 1,508 2,548 81 89

2000 $108 894 1,727 2,708 97 98

2001 $102 958 1,411 2,896 98 98

2002 $104 1,019 1,284 2,916 77 84

2003 $107 975 1,250 2,731 65 89

224 259 308 226 374 54

226 248 na 285 248 55

190 269 588 293 239 54

218 308 613 299 261 54

205 304 430 337 258 44

219 262 410 307 242 52

209 229 402 303 245 54

78 458 207 330

73 563 200 390 769

71 618 220 407 745

77 653 223 386 723

76 688 227 449 697

51 685 212 457 727

$8,781

$9,446

$9,203

$9,112

$8,792

— 444 226 321

— $7,095

— $6,899

NOTE: Monetary statistics for all years were converted from local currencies to U.S. dollars on the basis of the 2003 average exchange rates of $1.00 U.S. = 0.884 euros, 0.612 pounds sterling, and 1.345 Swiss francs, a Spun off from Hoechst in 1999; prior figures are pro forma, b Spun off from Novartis in 1997. c Spun off from Sandoz in 1995; merged with Hoechst Specialty Chemicals in 1997. d Became independently listed company in 1999; prior figures are pro forma, e Privately held until 1996. f Spun off from Rhône-Poulenc in 1998; prior figures are pro forma, g Became independent company in 2000; prior figures are pro forma, h For companies reporting, na = not available.

JAPAN R&D SPENDING Expenditures at most companies fluctuated a bit, and overall spending dipped $ MILLIONS Asahi Kasei Dainippon Ink & Chemicals JSR Corp. Kaneka Mitsubishi Chemical3 Mitsui Chemicalsb Nippon Sanso Shin-Etsu Chemical Showa Denko Sumitomo Chemical Teijin To ray TOTALc

1993 $462

1994 $459

1995 $477

1996 $479

1997 $492

1998 $490

1999 $431

2000 $429

2001 $427

2002 $425

2003 $417

na na na

na 45 na

— —

— —

97 41 na 596

110 35 na 634

119 43 na 647 349

109 48 87 579 339

92 52 106 574 329

104 45 113 587 315

110 114 113 729 336

111 121 121 785 320

129 130 125 763 284

— .

—

na na na 492 216 295

na na 171 477 212 288

na na 160 470 214 292

na na 158 473 210 309

na na 195 473 237 312

na na 205 513 238 327

34 233 194 511 245 334

30 224 143 510 261 334

30 243 133 575 275 321

22 235 133 628 258 307

20 228 135 648 283 268

$1,466

$1,652

$2,347

$2,409

$2,867

$2,935

$3,136

$3,094

$3,408

$3,466

$3,430

NOTE: Monetary statistics converted from yen on the basis of the 2003 average exchange rate of $1.00 * 115.97 yen. Fiscal year ends March 31 of the following year for all companies, except Showa Denko, where it ends Dec. 31. a Mitsubishi Chemical was formed in 1994 by the merger of Mitsubishi Kasei and Mitsubishi Petrochemical, b Mitsui Chemicals was formed in 1997 by the merger of Mitsui Toatsu and Mitsui Petrochemical, c Total for reporting companies only, na - not available.

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COVER STORY

EMPLOYMENT: FALLS ONCE MORE Chemical workforces decline again in most countries as companies continue to cut costs

C

other chemicals fell 2.0% to 111,300. The number of hourly chemical production workers declined 1.2% in 2003 to 525,400. Here, too, manufacturing industries as a whole had a much greater percentage decline, falling 5.3% to 10,200,000 workers. Again within the chemical industry, agricultural chemicals had the largest percent-

HEMICAL COMPANIES AROUND

the world were still not hiring new employees in 2003; they were continuing to cut jobs in an effort to offset rising raw material costs and boost their bottom lines. In the U.S., for instance, average annual chemical employment in 2003 declined 2.1%, or 19,600, from 2002 to 907,900,

major companies—Agrium, Methanex, Nova Chemicals, and Potash Corp. of Saskatchewan—fell by 500 employees, or 3.3%, to 14,600. The 2003 decline followed an increase in 2002 of 4.9%, unlike the U.S., which had lower employment in both years. Although many economists say Europe is lagging the U.S. in terms of economic recovery, European chemical companies were not as ruthless in shedding employees last year as were companies in other parts of the world. For 17 European companies, total employment declined just 2.2% from the year before, to 630,300. There were some increases, though, at a few European firms. The largest increase among these companies was at DSM, which added some 7,600 employees in

U.S. METRICS Measures weakened as chemical productivity gains slowed and unit labor costs increased % annual change

% annual change

8 I Productivity

Unit labor costs

t

I

-2 -A -6 1993

94

95

96

97

98

99

00

01

02

03

1993

94

95

96

97

98

99

00

01

02

03

All manufacturing • Chemicals SOURCES: Federal Reserve Board, Bureau of Labor Statistics, C&EN estimates

marking the fifth straight year of downage decline, down 5.4% to 28,100, while turn. Among the chemical sectors, acpharmaceuticals was the only sector that cording to government data, only pharshowed growth, rising 5.0% to 134,300. maceuticals scored an increase, If there is any good news for rising just 1.0% to 294,100. production workers, it is that, for This compares with a 4.8% the first time since the decline in decline in employment for all total employment began in 1999, manufacturing industries to fewer hourly workers were let go 14,525,000 employees—a total in the chemical industry than of 734,000 lost jobs. were salaried employees. While total employment was falling by Among the chemical sectors, 19,600 in 2003, the number of agricultural chemicals saw the largest percentage drop: 9.6% m salaried employees fell by 13,100 and hourly production workers, from 2002 to 40,400 employFACTS & by 6,500. ees. Basic chemicals lost 6,900 FIGURES employees, falling to 163,300 — In other countries where the the largest decline in terms of numbers. governments do not publish total indusAmong the other chemical sectors, resins, try employment figures, the data must be synthetic rubber, and fibers was down inferred from chemical company reports. 2.9% to 112,000; paints, coatings, and adIn most cases, this information shows the hesives fell 4.3% to 68,800; soaps and toisame trend as that for the U.S. letries declined 1.9% to 118,300; and all In Canada, employment among the four HTTP://WWW.CEN-ONLINE.ORG

2003 to bring total employment to 26,100. This increase, however, was mainly due to the company's acquisition of Roche's vitamins and fine chemicals division. Only two other European companies added employees: Air Liquide, up 1,100 to 31,900, and Kemira, up just 100 to 10,500. At 12Japanese companies, total employment declined 3.6%, or 8,000, to 211,700 employees. Two of the firms showed an increase for the year. Sumitomo added about 1,100 employees to bring its total to 19,000. And Shin-Etsu's 2003 total of 17,400 was 800 above that of2002. The company with the biggest decline was Mitsubishi Chemical, which lowered its employment rolls by 4,100 to 33,500. Teijin also had a significant decline, cutting 2,700 workers to bring its year-end total to 20,600. In the U.S., while the government was reporting a 2.1% decline in employment, major chemical companies were cutting C & E N / JULY 5, 20 04

45

EMPLOYMENT even faster. For 20 large and medium-size chemical companies, total employment declined by 7,500, or 3.3%, to a total of 219,000. The largest drop was at Dow Chemical, where a large cost-reduction program cut employment by 3,600, to 46,400. The cost-cutting programs among many U.S. chemical companies increased labor productivity for the industry Productivity, or output per hour, increased 1.2% in 2003 over the previous year. This, however, is much slower than the 6.1% increase in 2002.

But wages for chemical production workers, which are some of the highest in manufacturing, continued to increase. For 2003, the Labor Department reports that wages for chemical manufacturing rose an average of 3.1% from the previous year to $ 18.52 per hour. At the same time, the average hourly wage for all manufacturing increased a moderately slower 2.9% to $1574. There were, however, a couple of declines in hourly pay within the chemical industry sectors. For agricultural chemi-

cal workers, the average hourly wage fell 3.0% to $18.40 per hour, while the hourly wage for workers in the soaps and toiletries sector declined 0.8% to $14.15. This is the lowest hourly wage in the chemical industry The largest increase was the 9.2% rise to $19.78 for pharmaceutical workers. And as a result of productivity not keeping up with wage increases, unit labor costs—labor costs per unit of output—for the industry rose 1.8% last year. In 2002, unit labor costs were down3.6% from2001.

OVERALL U.S. EMPLOYMENT U.S. chemical employment declined for the fourth straight year THOUSANDS

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002


2003

Manufacturing 16,774 17,021 17,241 17,237 17,419 17,560 17,322 17,263 16,4*1 15,259 14,525 Chemicals 1,025 1,005 988 985 987 993 983 980 959 928 908 Basic chemicals 244 235 228 224 219 213 195 188 181 170 163 Resins, synthetic rubber & fibers 147 142 140 141 141 140 137 136 126 115 112 Agricultural chemicals 52 51 50 47 49 50 51 48 46 45 40 Pharmaceuticals 232 231 228 229 236 247 261 274 283 291 294 Paints, coatings & adhesives 81 80 79 76 77 78 78 80 75 72 69 Soaps & toiletries 129 126 126 127 128 131 131 129 127 121 118 Other chemicals 142 141 137 137 137 135 128 127 120 114 111

-4.8% -2.1 -4.1 -2.9 -9.6 1.0 -4.3 -1.9 -2.0

-1.4% -1.2 -3.9 -2.6 -2.5 2.4 -1.6 -0.8 -2.4

NOTE: Average annual domestic employment. SOURCE: Department of Labor

U.S. CHEMICAL EMPLOYMENT Major chemical companies shed jobs again in 2003 THOUSANDS 1993 Air Products & Chemica Is 14.1 Albemarle 3 — Cabot 5.4 Cambrex 0.8 Crompton 2.3

1994 13.3 3.7 5.4 1.3 2.5

1995 14.8 3.0 4.1 1.3 2.8

1996 15.2 2.8 4.7 1.3 5.7

1997 16.4 2.7 4.8 1.8 5.6

1998 16.7 2.7 4.8 1.8 5.4

1999 17.4 2.6 4.5 1.9 8.6

2000 17.5 2.5 4.5 1.9 8.3

2001 17.8 3.0 4.3 2.1 7.3

2002 17.2 3.0 4.5 2.2 6.8

2003 18.5 3.0 4.4 1.9 5.5

Cytec Industries Dow Chemical 13 Eastman Chemical Ethyl H.B. Fuller

5.2 55.4 18.0 5.5 6.0

5.0 53.7 17.5 1.5 6.4

5.0 39.5 17.7 1.8 6.4

5.0 40.3 17.5 1.8 5.9

5.2 42.9 16.1 1.5 6.0

5.1 39.0 15.9 1.5 6.0

4.9 39.2 14.7 1.5 5.4

4.8 41.9 14.6 1.5 5.2

4.5 52.7 15.8 1.1 4.9

4.3 50.0 15.7 1.1 4.6

4.5 46.4 15.0 1.1 4.5

Georgia Gulf W.R. Grace Hercules Lubrizol Monsanto

1.1 34.0 14.1 4.6 30.0

1.1 37.9 12.0 4.5 29.4

1.1 21.2 7.9 4.6 28.5

1.0 17.4 7.1 4.4 28.0

1.1 6.3 6.2 4.3 21.9

1.1 6.6 12.4 4.3 31.8

1.4 6.3 11.4 4.1 29.9

1.3 6.3 9.8 4.4 14.7

1.2 6.4 9.7 4.5 14.6

1.2 6.4 5.1 5.2 13.7

1.2 6.3 5.1 5.0 13.2

PPG Industries Praxair Rohm and Haas Solutia 0 Stepan

31.4 16.8 13.0

30.8 17.8 12.2

31.2 18.2 11.7

31.3 25.3 11.6

32.5 24.8 11.3 8.7 1.4

33.8 24.1 21.5 10.6 1.4

35.6 23.4 18.5 10.2 1.4

34.9 24.3 18.2 9.2 1.5

34.1 25.0 17.6 7.3 1.5

32.9 25.4 17.3 6.3 1.4

233.8 5.4%

245.2 4.9%

228.3 -6.9%

238.0 4.3%

226.5 -4.8%

219.0 -3.3%

— 1.3

— 1.3

TOTAL EMPLOYEES11 259.0 257.3 ANNUALCHANGE d -5.8% -2.1% SALES PER EMPL0YEE d ($ thousands) $235.0 $256.1

1.3

1.3

31.9 25.4 11.6 8.8 1.3

222.1 -13.7%

227.6 2.5%

221.8 -6.4%

—

$311.0

—

$311.4

$319.4

$302.0

$305.7

$356.8

$350.7

$355.5

$410.9

NOTE: Data are not restated for acquisitions, divestitures, or simila r developnriÊ nts. a Spun off from Ethyl in 1994. b Merged in 2001 with Union Carbide, c Spun off from Monsanto in 1997. d For companies reporting.

46

C&EN/JULY5,

2004


CANADA EMPLOYMENT Overall workforce at four companies slipped in 2003 THOUSANDS

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

na na

na na 1.7

3.5 0.9 5.7 4.6

4.4 0.9 3.4 4.5

4.4 0.8 3.4 5.7

4.5 0.9 3.3 5.7

4.5 0.8 4.7 5.5

4.0 0.8 4.7 5.3

4.0 0.8 4.6 5.0

4.8 0.8 4.3 5.2

4.7 0.7 4.3 4.9

1.7

U.7

13.2

14.3

14.4

15.5

14.8

14.4

15.1

14.6

Agrium Methanex Nova Chemicals3 Potash Corp.b

—

—

1.8

TOTAL EMPLOYEES0

1.8

a Spun off from Nova. Corp. in 1995. b Acquired Texas Gulf in 1995. c For companies reporting, na = not available.

EUROPE EMPLOYMENT Total employment continued to fall at European chemical firms THOUSANDS

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

Air Liquide (France) Akzo Nobel (Netherlands) BASF (Germany) Bayer (Germany)

24.8 67.9 112.0 150.4

24.6 66.3 106.3 146.7

26.1 68.4 106.6 142.9

27.8 68.0 105.6 142.2

27.6 85.9 105.0 144.6

28.6 68.9 105.9 145.1

29.0 70.7 104.6 120.4

30.3 69.8 103.3 122.1

30.8 70.4 92.5 116.9

30.8 67.9 89.4 122.6

31.9 66.4 87.2 115.4

BOC International (U.K.) Celanese9 (Germany) Ciba Specialty Chemicals6 (Switzerland) Clariantc (Switzerland)

40.3

39.4

Degussa (Germany) DSM (Netherlands) ICI (U.K.) Kemira (Finland) Lonzad (Switzerland)

32.1 20.6 87.1 11.4

e

Merck (Germany) Rhodiaf (France) Solvay (Belgium) Syngenta9 (Switzerland) TOTAL EMPLOYEES'1

—

—

40.1 17.2

40.9 17.9

41.4 17.5

37.1 15.8

33.4 14.9

42.7 13.2

43.2 12.5

46.3 10.7

44.5 9.5

—

—

8.4

32.5

21.4 30.9

24.5 29.3

20.1 29.0

20.3 31.5

19.7 28.9

19.0 27.8

18.7 27.0

27.1 17.0 64.8 10.5

26.0 18.4 64.0 10.6

25.7 17.5 69.5 10.4

27.0 23.0 60.6 10.8 5.7

62.5 21.8 53.6 10.7 5.7

62.9 21.8 45.9 9.6 4.6

53.4 21.5 39.8 10.2 6.2

47.6 18.5 38.0 10.4 6.2

46.6 26.1 36.2 10.5 5.7

28.9 24.5 33.1

32.7 24.8 32.8 23.5

33.5 29.4 32.3 21.0

34.3 26.9 29.4 20.5

34.5 24.5 30.3 20.0

34.2 23.0 30.1 19.1

690.2

694.2

657.1

644.5

630.3

27.3 19.4 67.5 11.2

— 26.0

— 26.0

— 43.2

— 39.9

— 615.8

— 27.8 31.7 38.6

—

—

574.6

627.2

—

—

28.7 29.1 35.4

28.9 25.1 34.4

647.1

—

—

—

641.8

685.8

a Spun off from Hoechst in 1999; prior figures are pro forma, b Spun off from Novartis in 1997. c Spun off from Sandoz in 1995; merged with Hoechst Specialty Chemicals in 1997. d Became independently listed company in 1999; prior figures are pro forma, e Privately held until 1996. f Spun off from Rhône-Poulenc in 1998; prior figures are pro forma, g Became independent company in 2000; prior figures are pro forma, h For companies reporting.

JAPAN EMPLOYMENT Workforce was cut at major companies 1999

2000

2001

2002

2003

1.8 18.9 8.9 16.3 17.3 33.8

27.8 24.9 3.0 0.0 na 13.6 1.7 19.2 13.6 15.9 17.6 32.9

29.3 25.7 3.0 7.2 na 12.6 na 18.4 13.5 15.8 17.2 34.3

26.6 31.0 3.0 6.6 33.5 11.7 7.0 18.8 12.5 17.5 22.0 35.5

26.7 30.3 3.1 7.0 33.0 12.8 6.3 19.4 13.2 17.4 22.3 35.7

26.2 28.4 2.7 6.7 38.6 13.2 5.5 16.5 12.0 17.0 24.0 34.9

25.7 27.0 2.7 6.7 37.6 12.7 4.8 16.6 10.9 17.9 23.3 33.8

25.0 26.5 2.7 6.6 33.5 12.3 4.6 17.4 10.6 19.0 20.6 32.9

152.6

170.2

176.9

218.9

227.2

225.7

219.7

211.7

THOUSANDS

1993

1994

1995

Asahi Kasei Dainippon Ink & Chemicals JSR Corp. Kaneka Mitsubishi Chemical3 Mitsui Chemicalsb Nippon Sanso Shin-Etsu Showa Denko Sumitomo Chemical Teijin Toray

28.4 23.9 3.1 0.0

28.6 24.8 2.8 0.0

— —

— —

28.2 25.6 2.9 0.0 na

—

—

2.1 11.7 6.3 17.4 15.1 31.5

2.0 16.1 6.1 17.2 15.9 31.9

2.0 17.1 9.0 16.8 16.2 32.9

139.6

145.4

150.6

TOTAL0

1996

26.7 25.9 3.0 0.0 na

1997

1998

NOTE: Fiscal year ends March 31 of following year at all companies, except Showa Denko, where it ends Dec. 31. a Formed in 1994 from the merger of Mitsubishi Kasei and Mitsubishi Petrochemical, b Formed in 1997 from the merger of Mitsui Toatsu and Mitsui Petrochemical, c For companies reporting, na = not available.


C& EN / JULY B 1ÙQL

Λ7

EMPLOYMENT

U.S. PRODUCTION WORKERS Only pharmaceuticals saw a rise in production employees THOUSANDS 1993 1994 Manufacturing 12,070 12,361 Chemicals 590 596 Basic chemicals 139 139 Resins,, synthetic rubber & fibers 98 101 Agricultural chemicals 34 33 Pharmaceuticals 111 115 Paints, coatings & adhesives 41 41 Soaps & toiletries 80 80 Other chemicals 87 87

1995 1996 1999 1997 1998 12,566 12,532 12,673 12,729 12,524 598 595 595 593 601 139 139 126 137 136 99 33 119 41 80 87

98 33 118 40 80 88

99 33 116 40 81 88

ANNUALCHANGE 2002-03 1993-03 2002 2003 2001 2000 -5.3% -1.7% 12,428 11,677 10,768 10,200 -1.2 -1.2 532 525 562 588 -3.7 -3.2 104 115 101 122

96 34 129 41 85 83

98 34 123 40 84 87

96 32 132 42 82 82

81 30 128 38 76 75

89 30 132 39 80 77

78 28 134 37 76 72

-3.8 -5.4 5.0 -3.7 -0.7 -3.4

-2.3 -1.9 2.0 -1.1 -0.6 -1.9

NOTE: Average annual domestic employment. SOURCE: Department of Labor

U.S. PAY Wages were up for all but agricultural workers 2000 $14.32 17.09 21.06 17.09 16.17 17.27 14.09 13.79 15.54

Manufacturing Chemicals Basic chemicals Resins, synthetic rubber & fibers Agricultural chemicals Pharmaceuticals Paints, coatings & adhesives Soaps & toiletries Other chemicals

HOURLY EARNINGS 2001 2002 $14.76 $15.29 17.97 17.57 21.84 21.43 17.45 17.78 18.96 17.39 18.12 17.77 15.64 14.78 14.26 14.11 16.41 16.02

2000 $590.65 721.90 949.09 724.65 768.18 693.10 597.93 549.43 642.40

2003 $15.74 18.52 22.11 17.90 18.40 19.78 16.01 14.15 17.02

WEEKLY EARNINGS 2002 2001 $618.75 $595.19 735.54 759.53 980.58 959.90 738.79 722.48 848.10 799.96 776.67 729.44 609.76 644.01 560.43 566.43 665.84 647.79

2003 $636.07 784.56 988.46 749.14 836.87 850.64 656.44 562.68 694.26

ANNUAL CHANGE 2002-03 6.4% 1.2 2.7 1.7 3.1 -4.4 6.4

NOTE: For production workers in domestic employment. SOURCE: Department of Labor

U.S. PRODUCTIVITY Of chemical sectors, only pharmaceuticals showed a decline in output per hour... PRODUCTIVITY3, 1997 = 100 Manufacturing Chemicals Basic chemicals Resin, rubber & synthetic fibers Agricultural chemicals Pharmaceuticals Paint, coatings & adhesives Soaps, cleaning compounds & toilet preparations

1993 83.2 89.9 94.0 87.9 92.4 87.0 93.5

1994 85.2 90.9 93.4 91.9 93.1 87.5 95.3

1995 89.4 92.1 92.9 94.5 94.5 85.9 94.5

1996 94.0 94.5 92.4 94.1 95.8 93.3 100.1

1997 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1998 107.1 101.0 100.5 105.5 99.0 100.6 100.1

1999 114.5 105.2 117.4 109.4 88.7 98.3 98.0

2000 121.2 109.5 119.7 109.1 91.3 98.7 97.7

2001 127.0 113.6 118.1 108.1 94.8 103.3 104.9

2002 136.3 120.5 135.2 123.6 99.9 103.7 111.0

2003 145.0 121.9 138.9 125.7 103.0 99.2 118.1

87.0

87.8

94.0

96.4

100.0

95.2

90.1

100.9

104.8

104.9

105.4

_

0.4

... and also a big increase in unit labor costs UNIT LABOR COSTS6, 1997 = 100 Manufacturing Chemicals Basic chemicals Resin, rubber & synthetic fibers Agricultural chemicals Pharmaceuticals Paint, coatings & adhesives Soaps, cleaning compounds & toilet preparations

1993 107.0 98.5 92.7 99.0 97.6 96.7 96.8

1994 107.5 99.2 96.5 96.1 98.8 97.0 97.6

1995 105.0 102.2 101.8 97.6 100.3 101.7 98.9

1996 103.2 103.0 105.3 103.1 101.7 97.3 96.6

1997 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1998 95.6 101.8 102.3 97.2 104.1 97.2 101.8

1999 92.1 98.8 86.3 96.2 120.5 101.0 106.7

2000 89.9 98.9 87.6 99.8 123.4 105.1 110.2

2001 88.4 98.0 90.4 102.9 127.7 103.3 107.6

2002 85.4 94.5 80.4 91.6 132.1 104.8 107.6

2003 82.6 96.2 79.3 90.7 124.4 119.7 103.6

ANNUAL CHANGE 2002-03 -3.2% 1.8 -1.4 -1.0 -5.8 14.2 -3.8

105.8

108.0

102.2

101.2

100.0

109.9

123.1

118.4

116.6

117.7

116.3

-1.2

a Productivity is output per workhour, calculated by dividing indexes for production by indexes for workhours of production workers, b Unit labor costs are calculated by dividing indexes for hourly wages by indexes for output per hour. SOURCES: Federal Reserve Board, Department of Labor, C&EN estimates


COVER STORY-

PRODUCTION: SOME IMPROVEMENT Output growth varied widely from country to country and product to product month the year before. However, this figure is still below the decade year-end high of 81.1% seen in 1994. In the inter vening years, capacity utilization fell in all but 1999. The government's report of an only 0.2% increase in pro duction of all chemicals last year to an index of 105.6 (all indexes are 1997 = 100) was toward the low end of output growth in the countries surveyed by C&EN. Canada's chemical in dex climbed 3.8% to 131.2. In Europe, the European Chemical Industry Council and national associations re port that in Germany and the Netherlands, the production indexes were unchanged from the year before at 107.5 and 124.0, respectively. T h e U.K. had an 0.5% growth rate to 112.9, while Italy had the best growth: 4.4% to 104.9. In the Asia-Pacific region, of Japan, Taiwan, and South Korea, production growth was the lowest in Japan. T h e Japanese Ministry of Economy, Trade & Industry reports just 1.5% growth to 97.3. And, as the index indicates, this was just 97.3% of production in 1997. Japan's chemical index excludes pharmaceuticals. U.S. PRODUCTION Meanwhile, South Ko Chemical output started to rise in 2003 rea's National Statistical Office reports growth in Production index, 1997 = 100 chemical output of 3.8% to 120 an index of 128.1, and Tai wan posted its 6.3% index 110 gain to 145.8. *-J * T h e Chinese govern 7 ment does not publish a S ψ 100 production index, but re ports of output of individ ual products and product 90 categories show continued good growth. For instance, 80 fertilizer production was 1999 2000 2001 2002 2003 up 7.1% last year. Produc • All industry Basic chemicals tion of plastics grew 16.6%, I Industrial organic • Chemicals chemicals with polyvinyl chloride up • Synthetic materials 18.2%, polyethylene up NOTE: Seasonally adjusted. SOURCE: Federal Reserve Board 16.5%, and polypropylene

C

HEMICAL PRODUCTION IN 2ΟΟ3

is hard to pin down. It ranged from no growth in Germany and the Netherlands to as much as 6.3% in Taiwan. In the U.S., which had growth in total chemical out put of just 0.2%, the range on a sector ba sis ran from a decline of 1.5% for basic chemicals to an increase of 5.1% for paints and coatings. These mixed results are against a back drop of global production that the Amer ican Chemistry Council estimates grew some 5.4% in 2003. And that figure is well above the 10-year average annual growth of 3.9% for the trade association's index of global production. Also hidden in the annual numbers is the fact that some countries, including the U.S., turned the corner in the mid dle of the year. Thus, the yearly average does not show much improvement even though the final two quarters were show ing better results than seen in the first half. An indication of this improvement is chemical plant capacity utilization in the U.S. After falling for three straight years, the government's year-end capacity use estimate finally increased in December 2003 to 74.4% from 72.8% in the same

">•• \ v ~ . ; . , \


up 14.1%. Polyester fiber output jumped 32.3%, while synthetic rubber increased at a low rate, by comparison, of 8.9%. For inorganic chemicals, growth ranged from 7.1% for hydrochloric acid to 14.2% for sodium hydroxide. Organic chemical p r o d u c t i o n growth in China ranged from 3.1% for alkylbenzene to 41.7% for methanol. Ethylene, t h e largest volume and probably the most i m p o r t a n t p e t r o chemical, is a good product to compare around the world, and there are big re gional differences in how it fared last year. In the U.S., ethylene production in 2003 declined 2.8% to 50.7 million metric tons, accord ing to the National Petrole um Refiners Association. In Canada, ethylene production eased a mere 0.1% to 4.73 mil lion metric tons. E l s e w h e r e in t h e world, however, there was growth in ethylene output. In the coun tries belonging to the Euro pean Union, ethylene produc tion increased 2.6% to 20.7 million metric tons. In the Asia-Pacific region, total ethyl ene output fromJapan, South Korea, Tai wan, and China rose 7 3 % to a total 22.1 million metric tons. Japan produced 737

GLOBAL OUTPUT Worldwide chemical production kept growing Production index, 1997 = 100 130 120 110 100 90 80 19

FACTS & FIGURES FOR THE CHEMICAL INDUSTRY - C&EN

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