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C&EN / JUNE

24, 2002

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I

F SOMETHING COULD GO WRONG FOR THE CHEMI-

cal industry last year, it did. Around the world, dedining economies took their toll on the global chemical business. Demand for chemicals declined because of lackluster end-use markets. Prices in many areas of the world raced but did not catch up with increased costs. These two factors alone produced a big downturn in earnings from already poor results during the first half of the year before. If that weren't enough, the events of Sept. 11,2001, caused further consternation and uncertainty in the U.S. and beyond, driving the industry down even more. When the year was over, it was apparent that 2001 had contributed to one of the worst downturns in the chemical industry in decades. The data included in this year's Facts & Figures for the Chemical Industry spotlight just how bad it was for chemical businesses worldwide. The collection of the vast amounts of information and statistics from around the world that make up this special report has largely been the work of Assistant Managing Editor Michael McCoy, Senior Correspondent Marc S. Reisch, and Associate Editor Alexander H. Tullo (Northeast News Bureau); Editor-at-Large Michael Heylin (Washington); Senior Correspondent Patricia L. Short (London); Houston Bureau Head Ann M. Thayer; and Asia-Pacific Bureau Head Jean-François Tremblay (Hong Kong); coordinated by Senior Correspondent WilliamJ. Storck (Northeast News Bureau).

Finances Sales fell and earnings plummeted at major chemical companies, driving down profitability ratios and practically all other measures offinancialperformance. Spending on research and development and on new plants and equipment fell victim to the worseningfinances.PAGE 64

Production Total U.S. chemical production was down slightly from 2000, but the modest drop masked big declines in commodity sectors such as basic organic chemicals, inorganic chemicals, and synthetic materials, which includes plastics and syntheticfibers.PAGE 60

Employment As production dropped, so did the number ofplant workers. And despite companies saying they were cutting across the board, the decline in production workers was almost twice that of total industry employment. The upside: "Worker productivity improved. PAGE 66

International Canada's chemical industry followed the downward path of the U.S. In Europe, chemical producers also ran up against declining fundamentals. In the Asia-Pacific region, most country chemical industries were down for the year, Japan being the worst. China's industry, however, measured by production, improved over 2000. PAGE 72


C & E N / J U N E 2 4 , 2002

43

FINANCES Q-

FINANCES: INDUSTRY PULLED BACK AGAIN Sales and earnings deteriorated once more, and the effects spread to many areas

T

HERE NEVER HAS BEEN AN OLD

saying that goes, "What goes down must come up." But there are many chemical company ex ecutives in the U.S. and, indeed, around the world who are wishing that there were. At the least, these executives are un doubtedly hoping that Dec. 31, 2 0 0 1 , marked the finish of a five-quarter string of double-digit declines in earnings as well as the end of the degradation of practical ly every financial ratio used to measure company performance. C&EN's quarterly survey of 25 leading chemical companies showed the trend. Fol lowing two quarters of earnings declines at the end of 2000, including a 22% fourthquarter drop, 2001 began with a 46% de cline in the first quarter, followed by a slight ly more moderate 38% drop in the second three-month period. Then, when it looked as if earnings couldn't get any worse, be cause they were being measured against lower results in the previous year, earnings got worse. In the third quarter, they fell 53%, and they were down 58% in the final three months. Thus, earnings for the 25 companies for the full year were down 47% from what they had been in 2000. Full-year sales at the companies were al so lower than they had been in 2 0 0 0 , falling 7% for all of 2001. And the average profit margin for the companies fell to 4.1% from 7.2% the year before. 44

C&EN

/ JUNE

2Λ,

2002

In a larger sample of 40 chemical com panies (see page 48), the decline in prof itability was even worse, with the average profit margin falling to 3.4%, less than half the 6.9% recorded in 2000. Other prof itability measures also plummeted to less than half what they were the year before: Return on equity dropped to 77% from 15.8%, and return on investment fell to 2.1% from 4.6%. It all began with prices and costs at the beginning of the year. Chemical produc ers were caught in a classic squeeze, actu ally beginning in the last quarter of 2 0 0 0 but worsening considerably in the first two quarters of 2001. Costs of energy and feed stock rocketed, and companies couldn't raise prices fast enough to keep up. At the end of the first quarter, Dow Chemical said that energy and feedstock costs were near ly $600 million above where they had been in the same period a year earlier. Average prices for all chemical products for the year, according to Labor Depart ment data, managed to eke out a slight gain, rising 0.5% from 2 0 0 0 to a producer price index of 151.8 (1982 = 100). But two big in dustry sectors suffered. T h e industrial chemicals price index declined 0.5% to 128.4, while the index for plastic resins fell 5.2% to 134.2. But prices held up despite declining de mand. According to the American Chem istry Council, shipments of all chemicals in 2001 were off 1.6% from the prior year to

$447.8 billion. Demand for basic indus trial chemicals fell 7.4% to $146.8 billion. Surprisingly demand for chemicals used on farms took a turn upward last year, de spite a continuing poor agricultural econo my ACC data show fertilizers ending a fouryear decline, with shipments rising3.0% to $10.4 billion. However, given that output was down, producers must have been sell ing out ofinventory Crop protection chem icals did even better. Shipments improved for this segment by 14.2% to $137 billion. Shipments got little help from foreign trade last year. Chemical exports declined a slight 0.3% to $82.3 billion, but U.S. chem ical producers saw increased competition from overseas products as imports jumped 7.1% to almost $78.9 billion. This resulted in a trade surplus of just $3-5 billion, down 61% from an already low year in 2000. Net demand (shipments minus exports plus imports) for chemicals within the U.S. shows a slightly healthier picture than do shipments data alone. Net demand de clined just 0.4% from 2 0 0 0 compared with the 1.6% for total chemical ship ments, indicating some upside potential for chemicals shipments if trade condi tions improve for the U.S. industry The effects of the downturn in the US. chemical economy and its basic finances spread across almost all aspects of the in dustry Employment was cut to keep pace with the downturn in chemical production and to streamline company operations. With capacity utilization in the 70 to 75% range throughout the year, there was less need for companies to consider building new plants than there was for saving mon ey Thus, capital expenditures at 25 compa nies surveyed fell for the fourth time in five years and saw the largest drop in a decade. Capital spending among these compa nies fell 13.1% to $7.07 billion, with increases at Dow Chemical, Eastman Chemical, Great Lakes Chemical, International Spe cialty Products, and Rohm and Haas. Asia the increase at Dow is because it acquired Union Carbide early in the year— data from prior years are not restated to reflect ac quisitions and divestitures. Many companies scaled back research spending for the year. The same 25 chem ical companies spent $4.80 billion on R&D in 2001, down 2.8% from the prior year. However, pharmaceutical and diver sified companies pumped more money in to the research pipeline. Because of the in creases at drug firms, total spending at 10 companies surveyed rose 5.9% to $20.9 billion. This, though, is the lowest growth in research spending among these compa nies since 1994. HTTP://PUBS.ACS.ORG/CEN

SHIPMENTS Value dropped for commodity chemicals $ BILLIONS Total chemicals Basic chemicals Basic industrial chemicals Fertilizers Specialty chemicals

1991 1992 $318.6 $323.5 142.7 144.1

Life sciences Pharmaceuticals Crop protection Consumer products

1993 1994 1995 $335.0 $354.5 $386.2 144.6 155.4 171.2

1996 1997 1998 $393.4 $417.5 $418.7 168.4 176.3 163.9

ANNUAL CHANGE 2001 1999 2000 2000-01 1991-01 $431.0 $455.0 $447.8 3.5% -1.6% 164.8 168.5 147.2 -12.6 0.3

132.5 10.1 68.6

134.0 10.1 69.6

134.5 10.1 71.7

144.2 11.3 74.7

158.7 12.4 81.9

155.7 12.7 83.7

163.4 12.8 90.3

151.6 12.2 94.0

154.0 10.8 98.1

158.5 10.1 105.0

146.8 10.4 108.6

-7.4 3.0 3.4

1.0 0.3 4.7

70.1 60.3 9.8 37.2

74.8 64.6 10.2 35.1

80.6 40.1 10.5 38.0

86.0 74.7 11.3 38.4

92.7 80.7 12.0 40.5

98.8 86.4 12.4 42.5

106.1 93.3 12.8 44.9

114.8 101.7 13.0 46.2

122.1 109.2 12.8 46.1

134.4 121.3 12.0 47.2

133.6 119.9 13.7 48.4

-0.6 -1.2 14.2 2.5

6.7 7.1 3.4 2.7

Source: American Chemistry Council

PRICES Only industrial chemicals and resins showed declines ANNUAL CHANGE

PRODUCER PRICE INDEXES, 1982 = 100 All commodities Industrial commodities Finished goods Chemicals & allied products Industrial chemicals Prepared paint Paint materials Drugs & pharmaceuticals Fats & oils, inedible Agricultural chemicals & chemical products Plastic resins & materials Other chemicals & allied products Rubber & plastic products

1991 116.5 116.5 121.7 125.6 111.8 129.9 135.8

1992 117.2 117.4 123.2 125.9 109.3 131.6 131.1

1993 118.9 119.0 124.7 128.2 110.4 133.2 131.5

1994 120.4 120.7 125.5 132.1 114.3 135.3 132.1

1995 124.7 125.5 127.9 142.5 128.4 142.1 139.4

1996 127.7 127.3 131.3 142.1 126.7 147.2 141.3

1997 127.6 127.7 131.8 143.6 126.4 152.1 141.5

1998 124.4 124.8 130.7 143.9 121.4 154.9 143.8

1999 125.5 126.5 133.0 144.2 118.9 157.4 144.1

2000 132.7 134.8 138.0 151.0 129.1 160.8 148.5

2001 134.2 135.7 140.7 151.8 128.4 164.4 149.8

2000-01 1.1% 0.7 2.0 0.5 -0.5 2.2 0.9

1991-01 0.1% 0.1 0.2 0.1 -0.1 0.2 0.1

182.6 86.8

192.2 93.0

200.9 95.6

206.0 110.6

210.9 126.9

214.7 133.3

219.1 132.3

242.6 116.7

251.5 88.4

257.4 70.1

261.8 77.6

1.7 10.7

0.2 1.0

111.7 120.0

110.3 116.4

109.9 117.1

119.9 122.4

130.1 143.5

133.7 133.1

132.7 137.3

128.5 125.3

123.6 125.8

124.5 141.6

130.8 134.2

5.1 -5.2

0.5 -0.5

121.5 115.1

123.3 115.1

125.5 116.0

127.1 117.6

130.6 124.3

132.4 123.8

133.3 123.2

134.7 122.6

135.3 122.5

137.2 125.5

139.6 127.2

1.7 1.4

0.2 0.1

SOURCE: Department of Labor

CHEMICAL STOCKS

BIOTECH STOCKS

Prices peaked in first half of 2001

Prices fell off in 2001

Stock price index, 1992 = 100 220 I High

Stock price index, 1992= 100 700 1 High

200 U Close

600 U Close

180

140

1 r·[

I Low

m

M ίτ

160

120

η

I Low

500

μ

'[

400

.1II

300

,

200

***t

100

100

80

1

* •

*

, r

rr " r * - r t -

r

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Ψ m

t

Mr

M

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0 1994

1995

1996

1997

1998

1999

2000

2001

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


1994

1995

1996

1997

1998

1999

2000

2001

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

C & E N / J U N E 2 4 . 2002

45

Cl M A M P c c

BAD YEAR IN U.S. Domestic economic downturn made sales slip for most companies in 2001

CHEMICAL CHEMICAL SALES CHANGE SALES AS 1$ MILLIONS) FROM % OF TOTAL INDUSTRY 2001 2000 SALES CLASSIFICATION

RANK RANK 2001 2000 COMPANY

1 2 3 4 5

$27,805.0 2 Dow Chemical 26,787.0 1 DuPontd 3 ExxonMobil* 15,943.0 8,500.0 4 Huntsman Corp. 7,069.0 5 General Electric*

6 7 8 9

6 7 10 8

BASF* Chevron Phillips PPG Industries Equistar Chemicals 11 Shell Oil

6,851.9 -9.1 6,010.0 -21.3 5,933.0 -5.5 5,909.0 -21.2

100.0 100.0 72.6 100.0

5,524.0 -11.8

20.5

5,466.8 5,384.0

4.4 1.7

95.6 100.0

13 14 15

14 Air Products1 13 Eastman Chemical 15 BP 16 Praxair 12 Rohm and Haas

3.9 5,300.0 5,158.0 2.3 4,917.0 -18.1

16 17 18 19

17 21 18 19

Atofina Monsanto Honeywell Lyondell Chemical 20 Nova Chemicals

Diversified Basic chemicals Diversified Basic chemicals

$1,247.0 -45.0% na na 882.0 -24.0 na na 1,596.0 -17.0 na na -431.0 nm 586.0 -31.8 nm -44.0

100.0% na 5.8 na 10.3

4.5% $35,515.0 na 25,566.0 5.5 17,019.0 na na 22.6 10,154.0

100.0% 99.6 11.9 na 2.1

3.5% na 5.2 na 15.7

na 100.0 71.5 100.0

na def 9.9 def

na 5,860.0 5,265.0 6,308.0

na 100.0 62.3 100.0

na def 11.1 def

na

na

na

na

na

na

na

Industrial gases Diversified

864.9 -126.0

-3.5 nm

100.5 100.0

15.8 def

7,768.8 6,086.0

96.1 100.0

11.1 def

6.3 100.0 86.8

Petroleum Industrial gases Specialty chemicals

62.0 -89.3 1,333.0 9.3 na na

0.9 100.0 na

1.2 25.8 na

na 7,715.0 8,394.0

na 100.0 81.1

na 17.3 na

4,380.0 -13.1 3,755.0 -3.3 3,313.0 -18.3 3,226.0 -20.1

100.0 68.7 14.0 100.0

Diversified Agrochemicals Diversified Basic chemicals

na na 775.0 -29.5 52.0 -84.4 274.0 -37.7

na 144.6 1.9 100.0

na 20.6 1.6 8.5

na 5,923.0 4,053.0 6,181.0

na 51.8 16.7 92.2

na 13.1 1.3 4.4

3,194.0 -18.4

100.0

Basic chemicals

62.0 -91.4

100.0

1.9

4,359.0

100.0

1.4

3,092.0 -18.5

22.1

nm

def

def

3,411.0

19.1

def

22 23 24 25

22 Occidental Petroleum 27 Degussa 23 ICI 25 Solutia 26 Hercules

3,007.9 3.9 2,962.7 2.3 2,817.0 -11.6 2,620.0 -16.9

100.0 100.0 100.0 100.0

Specialty Specialty Specialty Specialty

chemicals chemicals chemicals chemicals

na na na na 28.0 -50.9 346.0 -27.6

na na 100.0 100.0

na na 1.0 13.2

na 1,723.2 3,408.0 5,049.0

na 100.0 100.0 100.0

na na 0.8 6.9

26 27 28 29 30

31 30 29 24 32

Ondeo Nalco Crompton Corp. Dow Corning Akzo Nobel Potash Corp.

2,600.0 8.3 2,516.1 -7.8 2,440.0 -11.3 2,172.7 -2.2 2,072.7 -7.1

100.0 92.5 100.0 100.0 100.0

Specialty chemicals Diversified Specialty chemicals Diversified Agrochemicals

na na 234.1 -33.4 56.0 -75.8 na na 299.5 -19.4

na 107.2 100.0 na 100.0

na 9.3 2.3 na 14.4

na 3,130.7 na na 4,597.3

na 96.9 na na 100.0

na 7.5 na na 6.5

31 32 33 34 35

39 33 34 28 36

Formosa IMC Global FMCCorp. Celanese Engelhard

2,000.0 17.6 1,958.7 -6.5 1,943.0 -5.6 1,913.0 -10.8 1,849.3 -2.0

100.0 100.0 100.0 100.0 36.3

Basic chemicals Agrochemicals Basic chemicals Diversified Catalysts

na na 107.1 -53.3 191.2 -35.1 -383.1 nm 283.2 -5.1

na 100.0 100.0 100.0 88.5

na 5.5 9.8 def 15.3

na 4,248.9 2,477.2 3,426.8 1,870.0

na 100.0 100.0 100.0 62.4

na 2.5 7.7 def 15.1

36 37 38 39 40

38 43 41 45 40

Lubrizol Rhodia W.R.Grace Cabot Corp.* Great Lakes Chemical

1,844.6 1,741.2 1,723.2 1,670.0 1,594.7

3.9 8.9 7.9 10.1 -4.5

100.0 100.0 100.0 100.0 100.0

Specialty chemicals Specialty chemicals Specialty chemicals Basic chemicals Specialty chemicals

173.3 na 250.1 205.0 -10.2

-3.1 na -1.8 2.5 nm

100.0 na 100.0 100.0 100.0

9.4 na 14.5 12.3 def

1,662.3 1,621.2 2,717.0 1,919.0 1,687.6

100.0 100.0 100.0 100.0 100.0

10.4 na 9.2 10.7 def

41

1,590.0 -11.3

100.0

Basic chemicals

192.0 -41.1

100.0

12.1

2,327.0

100.0

8.3

42 43 44 45

37 Millennium Chemicals 44 Solvay 47 Ferro Corp.d 46 Cytec Industries 50 Shin-Etsu9

1,502.1 1,501.1 1,387.1 1,382.7

1.4 3.7 -7.1 9.1

67.8 100.0 100.0 100.0

Diversified Specialty chemicals Specialty chemicals Basic chemicals

na na 84.4 -39.5 125.5 -33.6 163.9 18.6

na 100.0 100.0 100.0

na 5.6 9.0 11.9

na 1,732.6 1,650.4 2,110.6

na 100.0 100.0 100.0

na 4.9 7.6 7.8

46 47 48 49 50

— 52 48 68 49

1,372.1 1,302.5 1,274.1 1,264.0 1,248.0

-0.3 13.5 -5.8 73.2 -2.7

100.0 100.0 100.0 9.0 16.2

Basic chemicals Diversified Specialty chemicals Petroleum Petroleum

72.9 -5.3 na na 88.1 -13.8 15.0 -73.7 58.0 -38.9

100.0 na 100.0 2.0 6.8

5.3 na 6.9 1.2 4.6

1,129.3 na 966.2 1,325.0 944.0

100.0 na 100.0 22.3 13.6

6.5 na 9.1 1.1 6.1

10 11 12

20 21

46

20.9% 100.0% Diversified -5.7 96.7 Diversified -8.9 7.5 Petroleum 6.3 100.0 Basic chemicals -9.1 5.6 Diversified

CHEMICAL OPERATING PROFITS AS CHEMICAL IDENTIFIABLE CHEMICAL OPERATING OPERATING CHANGE % OF TOTAL OPERATING CHEMICAL ASSETS AS RETURN ON PROFITS* FROM OPERATING PROFIT ASSETS % OF TOTAL CHEMICAL 6 ($ MILLIONS) 2000 PROFIT MARGIN ($ MILLIONS) ASSETS ASSETS'

C&EN

Borden Chemical DSM H.B. Fuller" Sunoco AshlandT

/ JUNE

2k,

2002

Petroleum

Petroleum

-437.0


RANK RANK 2001 2000 COMPANY

Georgia Gulf Kerr-McGee CF Industries Wellman Ciba Specialty Chemicals

51 52 53 54 55

42 51 56 55 35

56 57 58 59 60

53 Noveon 54 Goodyear 59 Terra Industries — 3M d 58 Clariant

61 62 63

61 Arch Chemicals 63 Albemarle Resolution Performance Products 62 NL Industries 64 Cognis

6Λ 65

CHEMICAL OPERATING CHEMICAL PROFITS AS IDENTIFIABLE CHEMICAL OPERATING OPERATING CHANGE % OF TOTAL OPERATING CHEMICAL ASSETS AS RETURN ON PROFITS* FROM OPERATING PROFIT ASSETS % OF TOTAL CHEMICAL ($ MILLIONS! 2000 PROFIT MARGIN 6 ( $ MILLIONS) ASSETS ASSETS6

CHEMICAL CHEMICAL SALES CHANGE SALES AS ($ MILLIONS) FROM % OF TOTAL INDUSTRY 2001 2000 SALES CLASSIFICATION

$1,205.9 -23.8% 100.0% 1,127.0 -10.6 31.0 1,087.4 -1.2 100.0 1,081.3 -3.2 100.0 1,076.9 -10.2 100.0

Basic chemicals Petroleum Agrochemicals Basic chemicals Specialty chemicals

$35.8 -78.7% 69.0 -62.7 nm -117.6 27.5 -56.3 na na

102.3 -30.5 60.2 -6.2 nm -61.8 141.0 -37.3 nm -14.8

100.0 16.4 100.0 6.2 100.0

9.6 5.8 def 13.8 def

1,661.8 601.6 1,336.0 1,208.0 619.3

100.0 4.5 100.0 8.3 100.0

6.2 10.0 def 11.7 def

-2.2 -0.1

100.0 100.0

Specialty chemicals Specialty chemicals

31.6 -47.8 100.5 -29.2

100.0 100.0

3.4 11.0

952.0 1,129.5

100.0 100.0

3.3 8.9

863.0 -9.1 835.1 -9.5 814.0 -10.5

100.0 100.0 100.0

Specialty chemicals Basic chemicals Specialty chemicals

143.0 15.3 132.5 -24.2 na na

100.0 100.0 na

16.6 15.9 na

734.0 1,151.1 na

100.0 100.0 na

19.5 11.5 na

0.4

100.0

Specialty chemicals

127.7

14.0

100.0

16.2

2,172.6

100.0

5.9

Basic chemicals

-38.5

nm

100.0

def

510.1

100.0

def

Agricultural supplies Paper

-64.6

nm

def

def

647.1

23.7

def

na

na

na

na

na

na

na

2.1 -96.0

100.0

0.3

719.6

100.0

0.3

-2.5 na na nm na

100.0 na na def na

4.4 na na def na

435.5 na na 611.1 na

100.0 na na 18.0 na

7.2 na na def na

920.8 916.9

743.5 -24.1

6.3

741.0 -12.3

2.8

70

724.5 -11.7

100.0

Basic chemicals

71 72 73 74 75

70 Stepan — OMG 73 Sigma Aldrich 71 Vulcan 69 Alcoa

711.5 650.2 648.7 641.7 636.0

100.0 27.5 55.0 23.3 2.8

Specialty chemicals Metals Specialty chemicals Basic chemicals Metals

69

3.8% 4.2 def 2.2 na

Specialty chemicals Basic chemicals Agrochemicals Diversified Specialty chemicals

100.0

68

100.0% 14.9 100.0 100.0 100.0

100.0 7.1 100.0 6.4 100.0

743.6 -31.0

67

$942.8 1,636.0 1,242.8 1,230.4 637.0

1,063.4 -8.9 1,037.3 -8.2 3.1 1.032.6 1,022.0 -14.6 951.4 -10.5

67 International Specialty Products 57 Sterling Chemicals f 60 Farmland Industries' 65 International Paper 66 Ethyl Corp.

66

3.0% 6.1 def 2.5 na

100.0% 6.4 100.0 100.0 na

787.2

1.8 75.2 18.3 5.9 -9.5

31.2 na na -19.6 na

NOTE: Revised, 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 Chemical sales include a significant amount of nonchemical products, e Profits and profitability ratios are after tax. f Fis cal year ended Sept. 30. g Fiscal year ended March 31. h Fiscal year ended Dec. 1. i Fiscal year ended Aug. 31. def = deficit, na = not available, nm = not meaningful.

METHODOLOGY

Compiling The Top 75

C

&EN ranks the Top 75 U.S. chemical produc ers by chemical sales, defined as sales of chemical and allied products, except pharmaceuticals. Ranking the companies by chemical sales is the only way that privately held companies, some diversi fied producers, and U.S. oper ations of many foreign-owned producers can be included. If, for example, C&EN used mar ket capitalization, the ranking couldn't include Huntsman.


Because chemical sales are derived from company an nual reports, nonchemical products often creep in. For instance, DuPont includes sales of seeds along with agrochemicals in its agricul tural products segment. C&EN does not restate prioryear results, except when a company changes accounting procedures. Thus, Dow jumped from number two to number one because of its ac quisition of Union Carbide.

Nor does C&EN routinely restate prior-year rankings. In the case of mergers, acquisi tions, or name changes, the prior-year ranking of the sur viving company is used, as in the case of Noveon, which was listed as BFGoodrich last year. C&EN tries to treat the chemical sales of U.S. opera tions of foreign-owned com panies the same as it treats those of U.S.-owned compa nies—that is, as chemical sales that are administered by the U.S. headquarters. Thus, if the U.S. headquarters has re sponsibility for the products,

all sales are counted, regard less of destination. A compari son of total global operations of chemical producers is scheduled to appear in the Ju ly 29 issue of C&EN. To compile the information included for the Top 75 U.S. chemical producers, C&EN uses, for the most part, offi cial company documents such as annual reports and 10-K filings with the Securities & Exchange Commission. In the case of privately held compa nies and some foreign-owned producers, company inter views are used.

C&EN

/ JUNE

24. ?0ϋ.'

Ul

FINANCES

FINANCIAL ANALYSIS Poor performance in 2001 highlighted on company income and balance sheets DEBT AS%

Air Products & Chemicals f Albemarle Arch Chemicals Cabot f

Calgon Carbon Cambrex ChemFirst Crompton

Cytec Industries Dow Chemical DuPont Eastman Chemical Ethyl Ferro FMC Corp. H.B. Fuller 5

Georgia Gulf W.R. Grace Great Lakes Chemical Hercules

IMC Global International Flavors International Specialty Products Lubrizol

Lyondell Chemical Millennium Chemicals Mississippi Chemical 2 Monsanto

48

PROFIT MARGIN3

RETURN ON INVESTMENTb

2001 2000 2001 2000 2001 2000 h 2001 20001

9.1% 9.7 7.6 10.6 0.4 4.5 8.1 7.5

4.4% 4.4 3.8 5.9 0.3 3.0 4.8 3.8

16.7% 18.9 11.7 17.4 0.9 10.0 14.3 10.9

39.5% 48.1 2.0 14.9 40.6 37.1 30.6 23.9

33.1% 33.6 45.7 45.0 42.49 30.2 9 54.7 57.4

2001 2000 2001 2000 2001' 2000 2001 k 2000

3.0 3.1 9.4 10.1 4.0 6.0 0.6 3.4

1.9 1.9 5.9 6.7 2.5 4.1 0.6 3.7

4.5 4.5 13.0 14.8 5.0 9.8 2.9 13.8

22.8 20.6 46.5 33.3 2.1 15.2 71.8 66.2

39.0 44.6 46.7 46.7 24.1 18.0 50.0 45.9

271 269 238 259 556 549 372 366

95.1 94.0 6.6 6.0 51.8 26.1 141.5 22.1

2001 1 2000 m 200Γ 2000 2001 2000 200Γ 2000 p

5.1 8.2 1.7 6.6 5.1 10.2 2.0 5.7

3.8 6.4 1.0 4.4 2.6 6.2 1.0 2.8

11.2 19.8 4.7 16.5 8.7 21.6 8.0 16.5

33.1 33.5 48.1 34.6 27.0 33.4 60.9 51.4

46.9 46.5 57.8 61.5 51.2 48.7 44.6 43.0

312 311 528 549 313 304 341 362

2001 2000 2001 q 2000 200Γ 2000 2001 2000

1.4 1.1 2.6 5.1 5.1 5.4 3.5 3.6

1.0 0.8 2.4 5.7 3.0 4.5 3.9 4.1

6.9 3.5 13.0 23.6 45.5 26.5 10.3 12.1

67.8 57.9 73.4 53.2 74.9 52.2 31.9 38.2

61.1 50.8 45.75 41.8 9 54.6 56.7 40. ? 40.4'

2001 2000 2001 2000 2001 2000 2001 2000 u

def 4.0 4.6 7.6 1.3 6.8 def 2.1

def 5.0 3.4 5.2 1.0 4.5 def 1.9

def 53.8 nm nm 3.5 11.9 def 8.2

85.8 84.0 0.0 0.0 46.2 42.0 73.3 74.2

200Γ 2000 2001 2000 w 200Γ 2000 2001 2000

def 4.0 7.3 10.2 0.1 12.0 5.1 5.8

def 1.7 7.2 6.9 0.0 5.4 3.9 4.3

def 12.4 25.8 23.7 0.1 13.6 12.2 13.7

2001 2000 y 2001 2000 2001 2000 2001 2000

def 1.7 def 6.8 def def 8.7 8.0

def 1.7 def 4.7 def def 5.0 4.7

def 6.2 def 12.4 def def 6.3 6.0

C & E N / J U N E 2k.

2002

RETURN ON EQUITY0

CAPITAL SPENDING^

OF DEBT TOTAL PLUS SALES EQUITY ABROAD

SALES DIVIDENDS PER EMAS % OF PLOYEEd EARNINGS

NET pLANT

AS % OF SALES

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

12.4% 14.0 5.4 5.7 4.9 6.6 7.3 9.0

13.8% 14.6 9.4 10.6 13.5 18.7 15.1 17.0

2.2% 2.3 2.4 2.8 2.8 1.8 2.9 2.8

4.7 3.5 8.6 7.9 6.9 4.4 5.0 5.1

8.8 6.3 14.9 13.6 12.7 7.9 13.4 13.1

2.1 2.8 3.9 2.8 2.9 2.1 3.0 2.8

81.6 79.1 61.0 72.4 91.9 100.0 84.1 86.1

42.8 45.8 528 56.5 49.6 53.1 59.1 67.7

0.0 0.0 228.1 51.8 116.7 50.9 122.7 45.2

4.6 5.2 5.7 5.9 6.6 6.8 4.3 4.3

10.7 12.5 11.7 14.7 12.3 13.6 6.5 5.8

2.3 2.6 3.9 39 6.4 6.3 30 2.8

84.0 86.9 78.3 83.2 61.3 71.7 88.5 80.8

44.5 46.5 37.8 36.1 39.3 40.9 39.0 43.4

659 547 161 202 324 265 261 260

0.0 177.8 58.4 32.2 0.0 0.0 26.9 24.5

1.3 1.7 3.6 4.5 7.5 6.1 2.4 3.6

4.4 4.8 8.6 15.3 13.4 14.9 8.3 12.4

4.6 4.9 2.0 2.1 5.1 3.9 1.5 1.3

100.7 81.9 86.6 1270 78.4 1048 131.9 1340

28.4 37.9 58.7 51.4 42.9 47.4 48 9 52.2

13.3 11.1 51.5 48.3 33.7 37.9 44.5 46.0

980 1.217 269 253 285 324 271 322

def 15.6 0.0 0.0 74.6 15.0 def 140.3

1.5 1.4 3.7 4.1 10.4 9.4 2.4 59

3.1 3.5 10.7 10.8 23.4 20.9 70 16.9

na na 2.9 2.9 2.6 2.4 2.6 2.5

127.9 152.0 63.4 61.8 94.5 78.3 51.9 59.4

55.9 624 37.2 39.2 48.3 50.8 40.4 43.1

80.4 76.0 64.2 39.8 60.4 43.2 33.4 33.5

36.4 37.3 62.0' 67.8* 52.1 50.3 59.8 61.0

377 269 311 222 303 302 410 404

def 31.0 42.3 86.8 0.0 0.0 56.5 53.4

63 5.6 28 4.2 12.9 7.4 3.6 4.8

5.3 5.0 9.8 9.0 18.1 10.3 10.3 12.7

na na 7.3 77 3.2 33 4.7 48

46.1 49.2 81.3 58.8 36.2 40.0 111.0 107.1

53.3 55.3 54.6 59.6 60.5 64.3 39.1 41.3

83.7 77.0 57.2 43.8 57.1 45.7 10.7 11.6

45.3 47.9 38.2 39.9 2.3 3.7 38.5 43.8

978 1.261 410 408 394 321 374 374

def 150.4 def 28.7 def def 24.5 5.2

2.1 2.6 6.1 6.1 2.8 4.3 7.0 10.6

3.0 4.3 11.0 11.5 3.8 4.7 14.5 21.9

1.0 0.9 1.3 1.5 na na 10.3 10.7

48.1 57.3 52.9 55.7 69.3 55.7 47.8 46.8

86.5 90.5 54.0 55.9 48.8 527 55.5 59.6

$321 312 306 375 312 266 388 337

31.8% 29.3 34.2 20.4 536.4 42.9 25.0 28.1

70.7% 66.1 81.2 93.5 96.7 87.6 87.0 71.1

50.1% 51.0 37.2 36.9 36.2 38.1 43.5 44.9


PROFIT MARGINa NL Industries Noveonaa PolyOne" PPG Industries

Praxair Quaker Chemical Rohm and Haas

RETURN ON INVESTMENTb

RETURN ON EQUITY0

DEBT AS% OF DEBT TOTAL PLUS SALES EQUITY ABROAD

CAPITAL SPENDINGe SALES DIVIDENDS PER EMAS % OF PLOYEEd EARNINGS

AS% OF SALES

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

2001

10.3%

6.5%

22.1%

33.6%

69.1%

46.5%

6.4%

0.7%

72.5%

43.1%

2000

11.8

8.3

31.7

36.2

66.1

369

30.3

3.4

9.6

0.7

82.2

42.8

2001

def

def

def

63.8

35.2

381

def

3.4

5.4

2.1

64.0

92.4

2000

4.3

3.5

5.5

0.0

31.1

na

nm

5.5

11.4

2.8

85.9

54.2

2001

def

def

def

37.4

23.5

332

def

3.0

11.7

0.7

128.8

56.3

2000

1.3

1.3

3.0

34.8

20.4

210

60.0

3.3

8.9

1.1

76.7

60.4

2001

5.6

4.6

14.9

35.6

33.1

234

61.8

3.6

10.6

3.3

96.7

38.5

2000

7.6

6.5

21.2

36.9

33.3

242

41.9

6.5

19.1

3.3

94.6

41.5 52.1

$334

16.3%

2001

9.5

4.6

19.7

52.4

33.4*

213

22.5

11.5

12.4

1.3

66.9

2000

9.5

4.7

20.4

52.8

45.7*

216

20.4

14.0

14.8

1.3

65.0

53.6

2001

5.4

7.2

16.8

19.3

56.2

262

54.4

3.2

20.9

3.5

140.4

39.2

2000

10.0

12.7

31.5

20.6

56.3

285

26.1

2.2

14.3

3.2

142.6

38.9

3.3

2.1

5.0

41.6

53.0

311

90.5

7.1

13.8

4.1

54.7

44.1

2001 c c 2000 dd

5.5

4.0

10.4

46.9

56.5

372

43.8

5.7

11.7

3.8

61.1

49.5

2001

12.0

8.2

17.4

18.0

48.7

181

17.4

9.3

20.3

na

81.9

54.6

2000 ee

12.7

8.6

16.2

10.5

50.1

177

18.7

6.3

14.0

na

81.3

54.6

2001

0.7

0.4

nm

122.0

42.6

307

20.3

3.3

8.2

2.1

82.7

32.3

2000"

3.8

2.7

nm

104.5

39.1

312

3.3

6.9

18.3

2.1

88.9

34.2

2001

2.7

2.2

12.0

40.7

22.7

478

38.7

4.8

16.0

1.9

163.4

31.8

2000

2.1

1.9

9.7

38.4

18.6

499

46.7

4.0

14.1

1.9

168.4

32.1

Sterling

2001

def

def

def

nm

30.7

806

nm

2.3

6.0

na

145.8

35.2

Chemicals f

2000

def

def

def

232.4

19.6

898

nm

2.7

9.1

na

153.8

39.7

Terra Industries

2001

def

def

def

46.6

28.5

830

nm

1.4

1.8

na

77.6

64.1

2000

def

def

def

43.4

29.5

830

nm

1.1

1.3

na

70.3

69.6

2001

3.4%

2.1%

44.7%

46.7%

$342

89.6%

5.9%

11.2%

4.0%

70.6%

43.8%

2000

6.9%

4.6%

42.6%

47.1%

$338

40.6%

6.5%

12.9%

4.0%

73.9%

45.8%

Sigma-Aldrich

Solutia Stepan

AVERAGE

7.7% 15.8%

NOTE: Earnings from continuing operations, excluding significant nonrecurring and extraordinary items, a Earnings as a percentage of sales, b Earnings as a percent age of current assets plus gross plant, c Earnings as a percentage of shareholders 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 Excludes Canada, h Acquired Hickson and personal care intermediates business of Brooks Industries, i Sold liquefied natural gas business and spun off microelectronics business, j Sold custom and fine chemicals business in June, k Divested industri al colors and nitrile rubber businesses. I Acquired BP's carbon fibers and 3M's composite materials businesses, m Sold paper chemicals and Criterion catalyst busi nesses, η Acquired Union Carbide, ο Acquired Hercules' polymer business in May. ρ Acquired McWhorter in July, q Acquired dmc 2 in September, r Machinery business split off as FMC Technologies in December. Results for remaining chemical operations, s Fiscal year ends Nov. 30. t Excludes Canada and Mexico, u Sold nitrocellulose and food gums businesses. Acquired Quaker Chemical's paper chemicals business, ν Sold Salt and Odgen businesses; chemicals considered discontinued operations pending sale, w Acquired Bush Boake Allen and Laboratoire Monique Remy. χ Acquired Degussa's industrial biocides business and FineTech. y Sold polyols business to Bayer, ζ Fiscal year ends June 30. aa Formerly BFGoodrich's performance materials business. Results for 2000 as Goodrich business; 2001 includes two months. bb Created from merger of Geon and M. A. Hanna. 2000 results include eight months for Geon and four months for new company, cc Sold agrochemicals business in June, dd Expanded electronic chemicals business through several acquisitions. Sold industrial coatings, thermoplastic polyurethanes, 50% interest in TosoHaas, and European salt business, ee Sold B-line Systems metal business. Acquired Amelung GmbH, First Medical, and ARK Scientific GmbH, ff Acquired CarboGen and AMCIS AG. Astaris joint-venture operations began. Completed sale of polymer modifiers business to Ferro. def = deficit, na = not available, nm = not meaningful.

Ο Ν TAP

Related Topics Of Interest Scheduled To Appear In Upcoming C&EN Issues P e r f o r m a n c e C h e m i c a l s — J u l y 15

E-Business—September 9

Top 50 Global P r o d u c e r s — J u l y 29

B i o t e c h n o l o g y — O c t o b e r 14

3rd Quarter Sales & E a r n i n g s — N o v e m b e r 18 E m p l o y m e n t O u t l o o k — N o v e m b e r 25

Focus on I t a l y — A u g u s t 12

Paints & Coatings—October 21

Pharmaceutical Review—December 2

2nd Quarter Sales & E a r n i n g s — A u g u s t 19

Emerging Companies—November U

Chemical Year in R e v i e w — D e c e m b e r 16

..^èM-^atz^r


C & E N / J U N E 2 4 , 2002

49

FINANCES

EXPENDITURES

R&D SPENDING Continued to decline as a percentage of sales

Capital and R&D spending affected by economy

A

R&D spending as % of sales

S T H E ECONOMY SLOWED LAST

year, chemical producers made dramatic cuts in their spend ing on plants and equipment and modest decreases in their R&D investments. The only bright spot was among pharmaceutical and diversified firms, which increased R&D spending but at a lower level than in the past. Combined capital spending for 25 ma jor chemical producers surveyed by C&EN dropped 13.1% in 2001 to $707 billion. The decline was the third in three years, with investment down 24.2% from a high of $933 billion in 1998. In fact, capital spending levels in 2001 looked much more like those of nearly 10 years ago. Capital expenditures as a percentage of

CAPITAL SPENDING Dropped dramatically as a percentage of sales Capital spending as % of sales 10

IB jp4BJ1

=

8

1991 92 93 94 95 96 97 98 99 00 01

En-

6

NOTE: R&D spending by major chemical producers listed below, excluding Arch Chemicals and Eastman Chemical. SOURCE: Company data

Ή -1S-

4 2

ο

sales fell to 6.4%, from 7.2% in 2000, hit ting a new 11-year low Although these fig ures exclude Arch Chemicals, spun off from Olin in 1999, and Eastman Chemi cal, created in 1994, including them would not have changed the downward trend.

BB

199192 93 94 95 96 97 98 99 00 01

NOTE: Global data for major chemical producers listed below, excluding Arch Chemicals and Eastman Chemical. SOURCE: Company data

CAPITAL SPENDING Overall spending plummeted again for chemical producers in 2001 $ MILLIONS Air Products cVGhemicals 3 Albemarle6 Arch Chemicals 0 Cabota-d Cambrex

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

$491

$611

$870

$951

$870

$771

$889

$768

— —

88

70

112

90

85

77

78

52

50

—

—

—

—

84

59

62

45

198

78

65

74

131

209

163

187

166

137

122

7

9

16

21

46

32

36

43

31

39

43 137

$506

— —

$428

—

$708

Crompton e

11

13

14

22

18

39

50

66.6

132

155

Cytec Industries

95

101

111

116

97

73

91

103.8

77

77

64

Dow Chemical f

1,908

1,595

1,397

1,183

1,417

1,344

1,198

1,546

1,412

1,349

1,587

DuPont 9

2,045

2,058

1,667

1,292

1,476

1,395

1,781

2,240

2,055

1,925

1,634

281

446

789

749

500

292

226

234

Eastman Chemical

—

—

—

Ethyl

166

157

205

141

45

29

44

23

14

14

10

FMC Corp.

169

180

205

271

428

485

317

266

236

240

146 31

H.B. Fuller h

30

34

42

65

91

90

69

62

56

49

W.R. Grace'

447

398

310

445

538

457

259

101

83

65

63

71

69

79

123

247

237

133

161

119

157

166

214

150

149

164

117

120

119

157

196

187

63

63

31

39

55

69

166

109

58

102

Great Lakes Chemical Hercules Intl. Specialty Products

34

71.-

82

96

128

161

189

94

101

93

65

86

66

Monsanto*

591

586

437

409

500

692

644

979

976

582

382

PPG Industries

335

282

293

356

448

489

466

487

490

561

291

Praxair k

417

333

240

326

600

893

902

781

653

704

595

8

7

9

9

10

7

6

8

6

6

8

265

283

382

339

417

334

254

229

323

391

401

Lubrizol

Quaker Chemical Rohm and Haas Solutia 1

—

—

—

—

—

—

165

158

257

221

94

Stepan

34

34

25

43

39

45

36

44

33

28

34

TOTAL

$7,633

$6,962

$6,416

$6,553

$8,321

$8,949

$8,607

$9,333

$8,807

$8,139

$7,074

ANNUAL CHANGE

-12.0%

-8.8%

-7.8%

-2.2%rn

27.0%

7.5%

-3.8%

7.5% n

-5.6%

-7.6%

-13.1%

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 Spun off from Ethyl in 1994. Data for 1993 are pro forma, c Spun off from Olin in 1999. Data for 1998 are pro forma, d May include acquisi tions and investments. Spun off microelectronics business in 2000. e Formed in 1999 from merger of Crompton & Knowles and Witco. Figures prior to 1999 are for Crompton & Knowles, which acquired Uniroyal Chemical in 1996. f Sold off drug business in 1995. Acquired Union Carbide in 2001. g Acquired all of Pioneer Hi-Bred in 1999 and all of DuPont Merck Pharmaceutical in 1998. Sold drug operations in 2001. h Fiscal year ends Nov. 30. i Sold off water treatment and process chemicals, health care, and agbiotech businesses in 1996. j Merged with Pharmacia in 1999, after which drug operations are included in Pharmacia's results. kSpun off from Union Carbide in 1992. Data for 1991 are pro forma. I Spun off from Monsanto in 1997. m Excludes Eastman CKemical. η Excludes Arch Chemicals.

50

C&EN / JUNE 2 4 , 2002


Companies with specialty and life sci ences businesses were exceptions. Capital spending rose at Cambrex, Dow Chemical, Great Lakes Chemical, International Spe cialty Products, and Rohm and Haas. DuPont, which sold its drug unit last year, cut 2001 spending by 15.1% to $1.63 billion.

The trend in R&D budgets was similar, although not as drastic. Overall spending for the 25 companies fell 2.8% to $4.80 billion. But spending as a percentage of sales inched down to only 4.3%, from 4.4% the year before. Still, the overall trend of the past few years is down, even more so

from about a decade ago when the aver age was near 5.5%. Agroup of 10 major drug producers and diversified firms eked out a 5.9% increase in combined R&D spending to hit $20.9 bil lion. But the increase was down substan tially from earlier years' double-digit gains.

R&D SPENDING Chemical producers made cuts, while drug and diversified firms increased spending $ MILLIONS CHEMICAL COMPANIES Air Products & Chemicals 3 Albemarle b Arch Chemicals 0 Cabota-d Cambrex Crompton 6 Cytec Industries Dow Chemical 1 DuPont 9 Eastman Chemical

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

$80

$85

$92

$97

$103

$114

$114

$112

$123

$124

$123

34 18 73 14

26 17 43 14

22 25 48 20

— —

— —

30

28

30

30

31

—

—

—

—

—

38 3

38 4

46 6

49 6

59 8

79 9

83 11

30 16 83 14

10 35 1,159 1,298

10 34 1,289 1,2.77

11 41 1,256 1,132

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

—

—

—

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

69 135 17 150 39

73 145 20 151 47

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

Hercules Intl. Specialty Products Lubrizol Monsanto 1 PPG Industries

86 18 80 627 220

70 21 90 651 203

76 21 89 626 201

65 20 91 609 218

59 22 105 658 236

56 25 93 728 239

53 27 88 939 250

61 26 78 1,263 271

85 23 78 695 284

80 26 86 588 282

67 25 88 560 266

Praxair k Quaker Chemical Rohm and Haas Solutia 1 Stepan TOTAL ANNUAL CHANGE

58 10 183

62 11 199

58 11 205

58 10 201

61 11 194

72 11 187

—

—

—

12 11 13 $4,327 $4,491 $4,320 -3.8% -1.9% 3.8%

PHARMACEUTICAL & DIVERSIFIED COMPANIES $1,128 Bristol-Myers Squibb 0 $993 $1,083 925 955 Eli Lilly 0 767 320 313 Honeywell 0 · 381 Merck & Co. 1,112 1,173 998 Pfizer r 1,355 1,084 1,259 Pharmacia s Procter & Gamble* Schering-Plough 3M Wyeth u TOTAL ANNUAL CHANGE

12 13 12 $4,423 $4,120 $4,133 -1.5%m -6.9% 0.3%

79 67 65 72 10 10 9 9 200 236 259 207 60 58 67 62 12 12 13 13 $4,473 $5,023 $4,873 $4,939 1.4% 8.2% 11.9% r ' -3.0%

$1,108 839 318 1,231 1,497

$1,385 1,382 349 1,684 2,536

—

—

$1,199 1,042 353 1,331 1,854

—

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

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

$1,843 1,784 909 2,068 4,036

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

66 9 230 58 14 $4,798 -2.8%

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

2,263 1,254 1,266 1,199 2,165 2,120 1,163 1,217 — — 1,144 1,769 1,899 1,304 1,399 1,469 1,546 1,726 956 1,162 861 786 1,191 1,333 1,312 657 723 847 1,007 620 426 522 578 947 1,064 1,016 1,038 1,101 1,054 883 1,002 9U 1,007 1,030 1,870 1,688 1,655 1,740 663 817 1,355 1,429 1,558 431 552 $20,907 $11,232 $12,228 $13,429 $15,259 $18,455 $19,741 $9,809 $6,780 $7,641 $9,295 7.0% 5.9% 14.5% 8.9% 20.9% 9.8% 13.6% 12.7% 6.7% v 5.5% 11.1%

NOTE: Prior years are not restated to reflect company revisions except where noted, a Fiscal year ends Sept 30. b Spun off from Ethyl in 1994. Data for 1993 are pro forma, c Spun off from Olin in 1999. Data for 1998 are pro forma, d Spun off microelectronics business in 2000. e Formed in 1999 from merger of Crompton & Knowles and Witco. Figures prior to 1999 are for Crompton & Knowles, which acquired Uniroyal Chemical in 1996. f Sold off drug business in 1995. Acquired Union Carbide in 2001.g Acquired all of Pioneer Hi-Bred in 1999 and all of DuPont Merck Pharmaceutical in 1998. Sold drug operations in 2001. h Fiscal year ends Nov. 30. i Sold off water treatment and process chemicals, health care, and agbiotech businesses in 1996. j Merged with Pharmacia in 1999, after which drug operations are included in Pharmacia's results, k Spun off from Union Carbide in 1992. Data for 1991 are pro forma. I Spun off from Monsanto in 1997. m Excludes Eastman Chemical. η Excludes Arch Chemicals, ο Acquired DuPont Pharmaceuticals in 2001. ρ Spun off and sold medical device businesses in 1994. q Merged with AlliedSignal in 1999. Figures prior to 1999 are for AlliedSignal. r Merged with Warner-Lambert in 2000. Prior years are restated, s Merged with Monsanto in 1999; figures include Monsanto's former drug, but not agricultural, operations, t Fiscal year ends June 30. u Name changed from American Home Products in early 2002. ν Excludes Pharmacia.


C&EN

/ JUNE

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2002

51

FINANCES

COMPANY RESULTS U.S. chemical producers reported declines in sales and earnings, while drug firms prospered

C

actually reflected mergers and acquisitions. The remaining 60% of companies reported lower sales, with the declines ranging between 0.1% and about 30%. Although FMC Corp.'s sales appear to have dropped 50.5%, the change came largely from spinning off of its machinery business. On a pro forma basis, FMCs sales fell only 5%. The picture was more dismal on the earnings front. Only six companies — Cabot, Ethyl, Monsanto, Praxair, SigmaAldrich, and Stepan—had earnings growth. Excluding special charges, the increases ranged from between 1.4% at SigmaAldrich and 27.3% at Stepan. Even worse, 10 companies reported losses in 2001, up from just three in 2000. And those three—Mississippi Chemical, Sterling Chemicals, and Terra Industries— also had much larger losses in 2001.

HALLENGING ECONOMIC CON-

ditions that began in 2000 only worsened in 2 0 0 1 and contributed to one of the poorest years for the U.S. chemical industry in recent history. Chemical companies suffered from high raw material and energy costs, sluggish demand, depressed capacity utilization rates, falling prices, and a strong dollar that boosted imports but hindered exports. Still, 13 out of 40 major U.S. companies surveyed by C&EN reported increased 2001 sales that were up between 0.4% and 11% when compared with 2 0 0 0 . There were a few with even larger gains—Dow Chemical, up 20.8%; International Flavors & Fragrances, up 26.0%; and PolyOne, up 40.6%. However, since figures for previous years aren't restated, these increases

Business was much brighter for pharmaceutical producers. The six leading US. biopharmaceutical firms also all reported higher sales. Of the 10 major drug firms surveyed, eight had increased sales. Abbott Laboratories, Johnson & Johnson, and Merck also achieved double-digit rates of growth, with Abbott and Bristol-Myers Squibb both helped by acquisitions. Schering-Plough, which had manufacturing issues, saw its sales edge down 0.1%. Although Pharmacia's sales appear to have fallen nearly 24%, it was because Monsanto's agribusiness unit was counted as a discontinued operation pending its spinoff. On a pro forma basis, Pharmacia's sales were up 9% and earnings up 30%. Earnings overall were strong, with eight major drug (including Pharmacia) and three biopharmaceutical firms reporting increases. Schering-Plough and Eli Lilly, which faced generic competition, had decreases of just a few percent. Whereas Biogen saw its earnings drop more than 18% as a result of 44% less royalty income, Amgen and Chiron nearly held steady with less than 2% declines.

COMPANY RESULTS Sales and earnings fell for many chemical producers, whereas the drug sector generally continued to grow CHEMICALS EARNINGS NET SALES

EARNINGS

TOTAL ASSETS

DM-, DEND. YIELD, % OF PRICE

% OF ST0CKHOLDERS' EQUITY

$ PER SHARE

DIVIDEND, $ PER SHARE

22.4% 25.6 17.3 20.9

$2.37 2.46 2.09 2.28

$0.78 0.74 0.70 0.64

2.0%

12.4% 18.1 17.1 19.7

$1.50 2.07 1.73 1.64

$0.52 0.46 0.40 0.37

2.5%

1.7% 17.7

$0.80 0.80 0.60

3.8%

9.1 7.9

$0.15 1.66 1.82 1.55

14.6% 11.1 15.6 17.3

$1.82 1.55 1.45 1.56

$0.48 0.44 0.44 0.42

1.6%

3.0%

7.4%

7.5 4.1 9.8

$0.21 0.21 0.11 0.33

$0.20 0.15 0.29 0.32

2.6%

3.1 1.5 4.3

CAPITAL EXPENDITURES

STOCKHOLDERS' EQUITY

% OF SALES

$5,119 5,257 5,193 4,786

$708

$2,325 2,079 2,612 2,342

9.7 9.0 9.9

$530

$50 52 78 77

$562

NET PLANT AND EQUIPMENT

STOCK PRICE RANGE, $ PER SHARE HIGH LOW

PRICE/ EARNINGS RATIO

(Money figures in millions of dollars unless otherwise indicated)

AIR PRODUCTS & CHEMICALS $7,303 2001 a $519 $5,717 533 7,529 2000 a 5,467 7,886 1999a 5,020 451 4,919 489 7,165 1998a ALBEMARLE $917 $70 $1,098 2001 97 960 2000 918 936 81 1999 846 917 821 85 1998 ARCH CHEMICALSb 2001 $921 941 2000 c 1999 880 1998 863 CABOT 2001 d $1,670 2000d-e 1,517 1999d 1,695 1998d 1,648 CALGON CARBON 2001 $271 269 2000 1999 296 301 1998

490 495 515

768 889 771

537 473 431

$3 42 41 40

$756

$332

331 327 332

$45 62 59 84

$192

891 723 687

$136

$1,898 2,113 1,822 1,781

$807

$122

806

137 166 187

$929 1,026

114 107 118

$8 8 4 13

1,024

978

$258

$144

266 285

151 162 189

329 .

$13 10 9 19

237 452 505

686 682 $110

111 104 132

9.1%

7.6% 10.6

9.6 10.4 0.4%

4.5 4.7 4.6 8.1%

7.5 6.3 7.2

0

2.4 1.8 1.7

2.3 1.9 1.8

4.2 3.1

— 1.6 1.7 1.4

2.1 4.5 3.3

$49.00 39.13 49.13 45.38

$30.50 23.00 27.94 29.75

16.8 12.6 18.4 16.5

$25.69 26.13 25.31 26.19

$16.50 14.56 16.63 16.00

14.1

$24.70 22.19 25.31

$17.40 140.3 15.63 11.4 13.94 10.8

—

—

9.8 12.1 12.9

—

$41.35 38.44 31.69 39.94

$18.56 17.94 19.75 21.75

16.5 18.2 17.7 19.8

$9.50 9.44 7.75 13.88

$5.63 4.75 5.06 5.31

36.0 33.8 58.2 29.1

a Fiscal year ends Sept. 30. b Spun off from Olin in February 1999. Figures for 1998 are pro forma, c Acquired Hickson and personal care intermediates business of Brooks Industries, d Fiscal year ends Sept. 30. e Sold liquefied natural gas business and spun off microelectronics operations.

52

C&EN

/

JUNE

24,

2002


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, which are indicated by a footnote. 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.

$PER SHARE

DIVIDEND, $PER SHARE

DIVI-, DEND, YIELD, % OF PRICE



25.7 21.3 16.0 15.9

EARNINGS NET SALES

TOTAL ASSETS



STOCKHOLDERSEQUITY

%OF SALES

% OF STOCKHOLDERS' EQUITY

(Money figures in million s of dollars unless otherwise indicated)

CAMBREX 2001 $499 $47 2000 493 50 1999 44 485 1998 39 442 CHEMFIRST 2001a $278 $11 2000 23 384 1999b 23 312 1998 322 25 c CROMPTON 2001d $2,719 $16 104 2000 3,038 e 1999 2,092 95 117 1998 1,796 CYTEC INDUSTRIES $71 $1,387 2001f 2000g 122 1,493 1999 121 1,413 125 1998 1,445 DOW CHEMICAL h 2001 $466 $27,805 2000 1,513 23,008 1999' 18,929 1,393 1998 18,441 1,434 DUPONT 2001' $24,726 $1,251 2,878 2000 28,268 1999k 2,843 26,918 1 1998 2,913 24,767

$531 520 516 486

$288 287 280 255

$43 39 31 43

$72 177 137 146

9.4% 10.1 9.1 8.8

64.5% 28.2 32.1 26.7

$1.76 1.90 1.72 1.54

$0.12 0.12 0.12 0.11

0.3% $56.99 $33.47 49.44 31.50 0.3 0.4 34.44 20.56 0.4 29.44 19.63

$289 367 384 427

$151 216 226 227

$19 17 25 44

$206 218 271 269

4.0% 6.0 7.4 7.7

5.3% 10.6 8.5 9.2

$0.77 1.43 1.22 1.27

$0.40 0.40 0.40 0.40

1.7% 1.9 1.7 1.8

$27.90 24.75 28.00 28.38

$19.60 30.8 17.63 14.8 18.13 18.9 15.56 17.3

$3,087 3,379 3,575 1,350

$1,022 1,182 970 473

$137 155 132 67

$402 605 608 8

0.6% 3.4 4.5 6.5

4.0% 17.2 15.6 nm

$0.14 0.91 1.14 2.48

$0.20 0.20 0.10 0.05

2.2% 1.9 0.7 0.2

$12.19 14.19 21.38 32.81

$6.20 65.7 6.94 11.6 7.13 12.5 13.25 9.3

$1,274 1,335 1,365 1,381

$598 616 656 668

$64 77 77 104

$261 232 111 82

5.1% 8.2 8.6 8.6

27.3% 52.6 109.0 153.0

$1.71 2.85 2.73 2.68

$0 0 0 0

— — — —

$32,385 25,758 23,665 22,189

$13,579 9,190 8,490 8,447

$1,587 1,349 1,412 1,546

$6,863 7,299 6,489 5,788

1.7% 6.6 7.4 7.8

6.8% 20.7 21.5 24.8

$0.52 2.22 2.08 2.14

$1.30 1.16 1.16 1.16

4.0% 3.3 3.1 1.3

$33,422 31,061 32,053 27,553

$13,287 14,182 14,871 14,131

$1,634 1,925 2,055 2,240

$7,555 4,934 4,151 11,388

5.1% 10.2 10.6 11.8

16.6% 58.3 68.5 25.6

$1.19 2.73 2.58 2.55

$1.40 1.40 1.40 1.37

3.4% $49.88 $32.64 34.7 2.5 74.00 38.19 20.5 2.2 75.19 50.06 24.3 84.44 51.69 26.7 2.0

$39.50 $19.00 41.31 22.38 31.50 20.00 58.31 15.13

17.1 11.2 9.4 13.7

$25.06 23.00 28.50 24.90

62.2 15.8 17.9 13.7

$39.67 47.17 46.00 33.81

a Sold custom and fine chemicals business, b Sold engineering products and services business, c Formed from September 1999 merger of Crompton & Knowles and Witco. Results for 1998 are for Crompton & Knowles. d Divested industrial colors and nitrile rubber businesses, e Sold textile colors and oleochemicals businesses, f Acquired BP's carbon fibers and 3M's composite materials businesses, g Sold paper chemicals and Criterion catalyst businesses, h Acquired Union Carbide in February, i Acquired Angus Chemical, j Sold drug operations, k Completed Conoco split-off in August and acquired remaining 80% of Pioneer Hi-Bred in October. I Acquired DuPont Merck Pharmaceutical. Conoco counted as discontinued operation, nm = not meaningful.


C & E N / J U N E 2 4 , 2002

53

EARNINGS NET SALES

YEAR

EARNINGS

TOTAL ASSETS


$PER SHARE

DIVI DEND, $PER SHARE

DIVI-. DEND, YIELD, % OF PRICE

14.4% 24.9 9.2 14.3

$1.43 3.88 1.54 3.45

$1.76 1.76 1.76 1.76

4.1% 4.0 3.7 3.0

1.4% 1.1 6.0 5.3

15.1% 5.2 44.0 72.2

$0.12 0.10 0.61 0.62

$0 0.13 0.25 0.25

4.7% 4.9 4.2

$-105 113 204 232

2.6% 5.1 5.4 5.1

nm 64.6% 35.8 29.9

$1.04 1.92 1.85 1.80

$0.58 0.58 0.55 0.50

$146 240 236 278

$103 305 238 330

5.1% 5.4 4.7 4.2

97.2% 69.5 81.9 56.1

$3.10 6.72 6.03 5.45

$0 0 0 0

$31 49 56 62

$350 313 277 238

3.5% 3.6 4.2 2.8

12.8% 15.7 20.6 15.7

$1.54 1.74 2.06 1.36

$18 22 14 26

$19 39 -26 -56

—

—

4.0% 5.0 6.4

164.1% nm nm

$63 65 83 101

$-227 -105 132 50

4.6% 7.6 8.8 6.0

$166 157 119 161

$474 673 747 938

$63 187 196 157

$-1,764 -1,575 -1,707 -1,989

2.1% 6.5 10.6

$123 118 248 368

$222 346 544 796

$52 61 102 90

$-272 -125 858 945

$102 58 109 166

$102 197 76 -25

CAPITAL EXPENDI TURES

STOCK HOLDERS' EQUITY

% OF STOCK HOLDERSEQUITY

$234 226 292 500

$764 1,200 1,313 1,915

2.0% 5.7 2.6 6.1

$10 14 14 23

$66 172 116 72

$54 65 76 60

%OF SALES


PRICE/ EARN INGS RATIO

(Money figures in millions of dollars unless o t h e r w i s e indicated)

EASTMAN CHEMICAL $3,627 2001a $5,384 $110 $5,472 299 3,925 2000b 5,292 5,938 121 5,857 3,950 1999c 4,590 273 5,857 4,060 1998 4,481 ETHYL $10 $641 $216 2001 $725 291 9 2000 821 915 1999 844 333 51 892 1998 974 52 376 951 FERRO $625 2001d $1,501 $39 $1,327 426 2000e 1,431 73 931 330 1999 1,355 879 73 69 274 1998 1,362 798 FMC CORP. $1,088 2001f $1,943 $100 $2,361 2000 3,926 212 1,616 3,251 19999 4,111 1,692 195 3,490 1998 4,378 3,767 1,728 185 H.B. FULLER h $371 2001 $1,274 $45 $883 49 395 2000h 1,353 918 1999h 1,364 57 927 413 37 414 1998h 1,347 943 GEORGIA GULF 2001 $1,206 $-14 $568 $865 627 2000 1,582 64 961 1999' 858 672 43 1,015 J 401 1998 875 56 585 W.R. GRACE $79 $589 2001 $1,723 $2,632 2000 1,597 121 2,551 602 617 1999 1,472 130 2,468 k 88 661 1998 1,463 2,540 GREAT LAKES CHEMICAL $712 2001 $1,595 $21 $1,548 20001 1,671 113 1,857 751 1999m 1,453 141 2,014 752 1998° 1,394 1,889 690 131 HERCULES 2001 $2,620 $2,573 $903 $-2 1,104 67 2000° 3,152 2,918 1999 3,248 211 3,326 1,321 1998* 2,145 1,438 228 3,285 IMC GLOBAL $2,309 $-12 2001q $1,959 $3,930 2000r 2,096 84 2,346 3,933 1999s 2,369 3,251 166 4,660 229 3,697 1998* 2,383 5,393 INTERNATIONAL FLAVORS & FRAGRANCES 2001 $1,844 $533 $135 $1,472 680 2000u 1,463 150 1,733 1999 1,439 189 524 1,401 1998 1,407 499 204 1,388 INTERNATIONAL SPECIALTY PRODUCTS $1,670 $561 200Γ $787 $1 2000 784 94 563 1,466 w 1999 787 50 1,324 570 553 1998x 824 64 1,239

—

$55.25 $30.25 29.9 54.13 34.19 11.4 60.31 36.00 31.3 72.94 43.50 16.9 $2.44 4.00 6.69 8.50

$0.55 1.31 3.50 3.44

12.5 26.6 8.4 9.6

2.5% $26.50 $19.41 22.1 2.7 25.13 17.31 11.1 30.94 2.2 19.19 13.5 30.13 2.1 18.00 13.4

— — — —

$43.89 76.44 74.31 82.19

$24.62 46.69 39.63 48.25

11.1 9.2 9.4 12.0

$0.43 0.42 0.41 0.39

1.8% 1.7 1.5 1.6

$31.18 $16.32 34.28 13.98 36.44 19.06 32.41 17.00

15.4 13.9 13.5 18.2

$-0.43 2.03 1.38 1.79

$0.32 0.32 0.32 0.32

1.9% 1.6 1.6 1.2

$19.70 $13.86 29.94 10.50 31.13 10.00 36.75 14.50

10.0 14.9 14.3

nm nm 98.5% 176.0

$1.20 1.78 1.92 0.93

$0 0 0 0

1.3% 6.8 9.7 9.4

4.5% 16.8 18.9 14.0

$0.42 2.16 2.41 2.21

$0.32 0.32 0.32 0.40

—

nm nm nm nm

$-0.02 0.62 2.03 2.53

$0 0.62 1.08 1.08

—

—

4.0% 7.0 9.6

24.3% 30.5 28.8

$-0.11 0.73 1.45 2.00

7.3% 10.2 13.1 14.5

nm nm 22.0% 21.6

0.1% 12.0 6.4 7.8

0.6% 47.7 65.8 nm

— — — —

—

$4.38 14.94 21.00 21.69

$1.31 1.31 11.81 10.00

2.4 4.6 8.5 17.0

1.1% $37.63 40.44 1.0 50.00 0.8 54.19 0.9

$20.00 26.50 33.19 36.69

68.6 15.5 17.3 20.6

$20.00 28.00 40.69 51.38

$6.50 — 11.38 31.8 22.38 15.5 24.63 15.0

$0.08 0.32 0.32 0.32

0.7% $16.12 19.38 2.1 27.13 1.6 1.1 39.50

$7.99 — 11.00 20.8 12.75 13.8 17.81 14.3

$1.40 1.49 1.79 1.90

$0.60 1.29 1.52 1.48

2.3% 4.9 3.7 3.5

$31.69 $19.75 18.4 37.94 14.69 17.7 48.50 33.63 22.9 51.88 32.06 22.1

$0.01 1.38 0.72 1.05

$0 0 0 0

— — — —

$11.25 9.31 13.81 20.50

— 3.1% 3.4 2.8

$6.63 894.0 5.00 5.2 7.00 14.5 9.56 14.3

a Acquired Hercules" p o l y m e r business, b Acquired M c W h o r t e r . c Acquired L a w t e r I n t e r n a t i o n a l , d Acquired d m c 2 . e Acquired Solutia's polymer modifiers business, P f a n s t i e h l L a b o r a t o r i e s , and E M C A - R e m e x film pastes business. Sold P y r o - C h e k f l a m e r e t a r d a n t s business, f M a c h i n e r y business split off as F M C Technologies in D e c e m ber. Results for r e m a i n i n g c h e m i c a l operations, g Acquired Tg Soda Ash and Pronova Biopolymer. Sold b y p r o d u c t s and process additives businesses. h Fiscal year ends Nov. 3 0 . 1 Acquired vinyls business of Condea Vista. Exited m e t h a n o l business, j Acquired N o r t h A m e r i c a n Plastics, k Packaging business combined with S e a l e d Air Corp. 1 Acquired Aqua Clear. Sold 4 0 % stake in OSCA energy services and products business, m Acquired NSC Technologies and PAD f l a m e r e t a r d a n t s business. η Spun off p e t r o l e u m additives business, ο Sold nitrocellulose and food g u m s businesses. Acquired Q u a k e r C h e m i c a l s paper c h e m i c a l s business, ρ Acquired B e t z D e a r b o r n , Citrus Colloids, paper c h e m i c a l s division of Houghton I n t e r n a t i o n a l , and Alliance Technical Products adhesives business, q Sold Salt and Ogden businesses; c h e m i cals considered discontinued operations pending sale, r Salt, Ogden, and c h e m i c a l s businesses considered discontinued operations pending sale, s Oil and gas business considered discontinued operation pending s a l e , t Acquired H a r r i s C h e m i c a l and sold Vigoro l a w n and g a r d e n business, u Acquired Bush B o a k e Allen and Laboratoire Monique R e m y . ν Acquired Degussa's industrial biocides business and F i n e T e c h . w Acquired M o n s a n t o s Kelco alginates business, χ P u r c h a s e d Polaroid's fine c h e m i c a l s plant. Closed b u t a n e d i o l plant in Calvert. Ky., but acquired a l l of f o r m e r butanediol joint v e n t u r e with Huls. n m = not m e a n i n g f u l .

54

C&EN

/ JUNE

24,

2002


EARNINGS

YEAR

NET SALES

EARNINGS

TOTAL ASSETS




$PER SHARE

DM-, DEND, YIELD, V> OF PRICEΕ

15.5% 17.7 19.5 14.5

$1.84 1.94 2.30 1.55

$1.04 1.04 1.04 1.04

3.4% $37.69 4.0 33.50 4.2 31.38 3.3 40.19

nm 41.0%

$-1.24 0.60 -0.77 0.67

$0.90 0.90 0.90 0.90

6.6% $17.95 6.4 19.50 5.4 22.38 3.4 38.13

$9.45 8.44 23.3 11.25 15.00 39.6

$-0.90 1.90 0.91 1.46

$0.60 0.60 0.60 0.60

4.2% $19.00 3.4 22.88 2.7 27.63 2.2 36.88

$9.44 12.69 9.4 16.63 24.3 18.50 19.0

$0.03 0.19 0.40 0.40

0.8% 2.8 3.1 2.1

$2.43 2.94 8.13 15.06 22.2

5.1% 5.8 7.2 5.4

—

%OF SALES



% OF STOCK HOLDERSEQUITY


(Money 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 )

LUBRIZOL $94 2001 $1.845 103 1,776 2000 125 1999 1,734 a 87 1998 1.615 LYONDELL CHEMICAL15 2001 $3,226 $-145 71 2000c 4,036 -80 1999 3,693 52 1998d 1,447 MILLENNIUM CHEMICALS $-57 $1.590 2001 122 2000 1.793 63 1999e 1,589 110 1998 1.597 MISSISSIPPI CHEMICAL $-37 2001f $540 -24 2000f 485 -4 1999f 468 23 1998f 520 9 MONSANTO $473 2001 $5.462 440 2000 5.493 562 1999h 9,146 580 1998' 8,648 NL INDUSTRIES 2001 $86 $835 109 2000 922 70 1999 908 90 1998J 895 NOVEONk $-15 2001 $1.063 2000 1,168 50 POLYONE1 $-10 2001 $2,655 2000 25 1.888 1999 1,261 53 23 1998m 1.284 PPG INDUSTRIES 2001 $8.169 $458 658 2000 8.629 647 1999 7,757 801 1998 7.510 PRAXAIR $489 2001 $5.158 2000 480 5,043 1999 441 4.639 1998 425 4.833 QUAKER CHEMICAL $14 2001 $251 27 2000 268 1999 16 258 1998 257 14 ROHM AND HAAS $189 200Γ $5.666 2000° 6.879 381 1999p 5.339 410 1998 453 3.720

$1.496 1.488 1,532 1,476

$644 677 671 719

$66 86 65 93

$607 581 640 602

$5,601 5,895 7,953 7,795

$2.293 2.429 4.291 4,511

$68 104 131 64

$-353 1.145 1.007 574

$2,626 2,829 2,846 3,688

$880 957 995 1,044

$97 110 109 215

$500 592 611 1.166

$675 704 727 736

$410 446 472 461

$15 21 40 96

$186 225 248 273

— — —

— — —

4.4%

8.4%

$-1.41 -0.91 -0.14 0.84

$7,990 8.120 11.865 10,677

$2,627 2,659 3,320 3,254

$382 582 976 979

$4.044 3.735 679 -1,061

8.7% 8.0 6.1 6.7

11.7% 11.8 82.8 nm

$1.80 1.70 0.77 0.86

$0.48 0.09 0.12 0.12

1.5% 0.4 0.3 0.2

$38.80 27.38 50.81 63.94

$26.88 18.2 19.75 13.9 32.75 54.3 33.75 56.8

$1.151 1.101 1.034 1.156

$330 324 348 382

$54 31 36 22

$387 324 249 152

10.3% 11.8 7.7 10.1

22.1% 33.6 28.1 59.2

$1.72 2.15 1.35 1.75

$0.80 0.65 0.09 0.14

4.5% $24.31 3.4 25.00 0.7 15.44 0.7 27.06

$11.60 10.4 13.00 8.8 8.75 9.0 12.75 11.4

$1.123 993

$673 563

$36 64

$-43 545

4.3%

nm 9.2%

na na

$0 0

$1,524 1,921 980 720

$684 704 338 444

$80 63 60 41

$176 288 152 132

—

—

1.3% 4.2 1.8

8.7% 34.9 17.2

$-0.11 0.41 1.08 0.48

$0.25 0.25 0.25 0.25

3.1% $10.70 2.3 17.25 1.7 18.50 2.4 13.00

$5.69 4.56 26.6 10.78 13.6 8.13 22.0

$6,910 7,477 7,252 6,811

$2,752 2,941 2,933 2.905

$291 561 490 487

$1,538 1,449 1,444 2,304

5.6% 7.6 8.3 10.7

29.8% 45.4 44.8 34.8

$2.71 3.79 3.68 4.52

$1.68 1.60 1.52 1.42

3.4% $59.75 3.2 65.06 2.6 70.75 2.3 76.63

$38.99 18.2 36.00 13.3 47.94 16.1 49.13 13.9

$6,535 6,665 6,609 6,824

$4.817 4.771 4.720 4.875

$595 704 653 781

$1,297 1,260 1,177 1,060

9.5% 9.5 9.5 8.8

37.7% 38.1 37.5 40.1

$3.19 3.16 2.72 2.68

$0.68 0.62 0.56 0.50

1.5% 1.4 1.2 1.2

$36.60 14.5 31.69 13.6 32.00 16.6 31.25 15.8

$162 171 166 169

$38 42 45 50

$8 6 6 8

$65 68 65 63

5.4% 10.0 6.2 5.3

21.1% 39.4 24.6 21.4

$1.49 2.06 1.74 1.54

$0.82 0.80 0.77 0.74

4.2% $22.30 4.9 19.25 18.38 4.8 4.4 21.00

$17.00 13.38 13.50 13.00

$5.934 6,671 6,774 3,337

$2.916 3.339 3.496 1.908

$401 391 323 229

$-601 -943 -1,007 1,250

3.3% 5.5 7.7 12.2

nm nm nm 36.2%

$0.84 1.73 2.09 2.55

$0.80 0.78 0.74 0.70

2.5% $38.70 2.1 49.44 49.25 1.9 2.2 38.88

$24.90 37.9 24.38 21.3 28.13 18.5 26.00 12.7

1.7%

—

—

3.6

9.1

— 6.8% 4.0 6.9

— 20.6% 10.3 9.4

$5.36 10.8117.31 22.19

$24.13 18.56 18.00 22.38

16.8 13.4 10.7 20.2

| I

| |

|

—

— —

na na

na na

nm nm |

|

$55.92 54.50 58.13 53.56

13.2 7.9 9.2 11.0

a M a d e s e r i e s of s m a l l a c q u i s i t i o n s w i t h c o m b i n e d a n n u a l s a l e s of $ 1 6 2 m i l l i o n , b O w n s Λ 1 % of E q u i s t a r C h e m i c a l s , 7 5 % of L y o n d e l l M e t h a n o l , a n d 5 8 . 7 5 % of L y o n d e l l - C i t go R e f i n i n g , c S o l d p o l y o l s b u s i n e s s t o B a y e r , d A c q u i r e d A r c o C h e m i c a l , e S o l d s t a k e in S u b u r b a n P r o p a n e , f F i s c a l y e a r e n d s J u n e 3 0 . g M e r g e d w i t h P h a r m a c i a in M a r c h 2000. R e s u l t s in 2 0 0 0 a n d 2 0 0 1 f o r a g r i b u s i n e s s o p e r a t i o n s o n l y , h S o l d O r t h o l a w n a n d g a r d e n a n d S t o n e v i l l e P e d i g r e e d S e e d b u s i n e s s e s . A l g i n a t e s , a r t i f i c i a l s w e e t e n e r s , a n d b i o g u m s c o n s i d e r e d d i s c o n t i n u e d o p e r a t i o n s p e n d i n g s a l e , i A c q u i r e d t h r e e m a j o r s e e d c o m p a n i e s , j S o l d Rheox b u s i n e s s , k F o r m e r l y B F G o o d r i c h ' s p e r f o r m a n c e m a t e r i a l s b u s i n e s s . R e s u l t s f o r 2 0 0 0 a s G o o d r i c h b u s i n e s s ; 2 0 0 1 i n c l u d e s t w o m o n t h s . 1 C r e a t e d f r o m m e r g e r of Geon a n d M. A. H a n n a in S e p t e m b e r 2000. R e s u l t s f o r 2000 i n c l u d e e i g h t m o n t h s f o r G e o n a n d f o u r m o n t h s f o r P o l y O n e . F i g u r e s f o r 1999 a n d e a r l i e r a r e f o r G e o n . m C o n t r i b u t e d v i n y l o p e r a t i o n s t o OxyVinyls j o i n t v e n t u r e , η S o l d a g r o c h e m i c a l s b u s i n e s s t o D o w C h e m i c a l in J u n e , ο E x p a n d e d e l e c t r o n i c c h e m i c a l s b u s i n e s s t h r o u g h s e v e r a l a c q u i s i t i o n s . S o l d i n d u s t r i a l c o a t i n g s , t h e r m o p l a s t i c p o l y u r e t h a n e s , 5 0 % i n t e r e s t in T o s o H a a s , a n d E u r o p e a n s a l t b u s i n e s s , ρ A c q u i r e d L e a R o n a l in J a n u a r y a n d M o r t o n I n t e r n a t i o n a l in J u n e , n a = n o t a v a i l a b l e , n m = n o t meaningful.


| |

C&EN

/ JUNE

2Λ. 2 0 0 2

55

I |

| | I

| | I

I

EARNINGS NET SALES

EARNINGS

TOTAL ASSETS




$PER SHARE



20.7% 18.8 12.5 15.1

$1.87 1.66 1.45 1.65

$0.33 0.32 0.30 0.28

0.8%

nm nm nm nm

$0.19 1.14 2.15 2.04

$0.04 0.04 0.04 0.04

0.3%

$0.71 0.66 0.61 0.56

%OF SALES

% OF STOCK HOLDERS' EQUITY

12.0% 12.7 14.1 13.9



(Money figures in millions of dollars unless otherwise indicated) SIGMA-ALDRICH 2001 $1,179 $141 2000 a 1,096 139 1999b 146 1,038 1998 1,194 166 SOLUTIA 2001 $2,817 $20 2000c 3,185 121 1999 2,830 246 1998 2,835 250 STEPAN 2001 $712 $19 2000 699 15 1999 667 28 1998 610 24 STERLING CHEMICALS 2001 d $744 $-224 1,078 -87 2000 d 1999 d 721 -106 823 1998d -46 TERRA INDUSTRIES 2001 $1,037 $-80 1,063 2000 -10 1999 -90 833 1998 910 -26

$1,312 1,230 1,341 1,319

$542

$110

$682

493 482 519

69 92 130

741

$2,798 2,943 3,226 2,765

$1,143 1,205 1,316

$94 221 257 158

$-723 -672 -462

$434

$212

199 209 215

$34 28 33 44

$158

415 415 364

154 155 108

2.1 4.2 3.9

18.1 21.8

$1.88 1.47 2.67 2.12

$500

$285

685 753 739

319 403 450

$17 29 30 27

$-786 -564 -477 -375

— — — —

nm nm nm nm

$-17.27 -7.13 -8.60 -3.99

$1,336 1,513 1,601 2,038

$825

$15 12 52 55

$501

— — — —

— — — —

$-1.06 -0.14 -1.20 -0.35


%OF SALES

% OF STOCK HOLDERS' EQUITY

$PER SHARE


$1,765 7,016 5,853 4,364

18.1% 20.3 18.6 18.7

166.7% 39.7 41.8 53.5

$1.88 1.78 1.59 1.53

$0.84 0.76 0.68 0.60

1.7%

$3,289 7,744 7,143 5,989

24.4% 22.5 20.6 19.9

144.0% 52.9 58.3 60.7

$2.41 2.08 2.06 1.79

$1.10 0.98 0.86 0.78

1.8%

nm nm 70.6% 65.0

$2.09 1.04 0.76 0.66

$0.56 0.58 0.60 0.60

944

903 998 1,018

1,168 1,102

-7

611 657 748

0.7%

3.8 8.7 8.8 2.7%

12.1%

9.7

$51.20 40.88 35.25 42.75

$36.17 20.19 24.50 25.75

23.4 18.4 20.6 20.8

$15.07 17.19 26.31 32.00

$11.25 10.38 13.50 18.69

69.3 12.1

3.0 2.5 2.0

$26.38 25.00 26.69 32.25

$17.80 18.50 22.19 23.13

11.8 14.8

$0 0 0 0

— — — —

$2.13 7.13 7.25 13.00

$0.09 1.38 2.63 7.00

— — — —

$0 0

— —

0.07 0.20

2.4

$4.75 3.88 7.50 13.13

$1.90 1.06 0.94 3.88

— — — —



1.0 1.0 0.8

0.3 0.2 0.2 3.2%

1.7%

9.3 12.4

9.2 13.1

PHARMACEUTICALS EARNINGS NET SALES

TOTAL ASSETS




(Money figures in millions of dollars unless otherwise indicated) ABBOTT LABORATORIES 2001 e $16,285 $2,943 2000' 13,746 2,786 1999 13,178 2,446 19989 τ 2,478 2,333 BRISTOL-MYERS SQUIBB 2001 h $19,423 $4,736 2000' 18,216 4,096 1999 20,222 4,167 1998 18,284 3,636 GLAXOSMITHKLINE' 2001 $29,504 $6,323 2000 27,480 5,619 1999 26,186 5,190 1998 24,797 4,799 JOHNSON & JOHNSON 2001 k $33,004 $5,884 2000 29,139 4,800 19991 27,471 4,200 1998 m 23,657 3,666 ELI LILLY 2001 $11,543 $2,809 2000 10,862 2,905 2,517 1999n 10,003 1998° 9,237 2,173 MERCKp 2001 $47,716 $7,282 2000 40,363 6,822 1999 32,714 5,891 q 1998 26,898 5,377

$16,002 13,728 12,896 11,866

$5,552 4,817 4,770 4,739

$1,164 1,036

$19,610 15,758 15,612 14,685

$4,879 4,548 4,621 4,429

$1,023

$27,807 12,143 9,203 9,233

$10,099 10,096 10,371

$-3,416

na

$1,602 1,547 1,848 1,721

7,352 7,385

21.4% 20.4 19.8 19.4

$29,411 24,065 21,592 19,002

$7,719 6,971 6,719 6,240

$1,731 1,646 1,728 1,460

$15,156 11,552 8,642 6,381

17.80/. 16.5 15.3 15.5

38.8% 41.6 48.6 57.5

$1.91 1.70 1.49 1.36

$0.70 0.62 0.55 0.49

$16,144 14,340 12,706 11,078

$4,532 4,177 3,982 4,096

$884

678 528 420

$6,814 5,696 4,894 2,912

24.3% 26.7 25.2 23.5

41.2% 51.0 51.4 74.6

$2.61 2.65 2.28 1.94

$1.12 1.04 0.92 0.80

$36,530 32,536 28,151 23,566

$13,103 11,482 9,677 7,844

$2,725 2,728 2,561 1,973

$8,574 7,458 5,658 4,515

15.3% 16.9 18.0 20.0

84.9% 91.5 104.1 119.1

$3.14 2.90 2.45 2.27

$1.37 1.21 1.10 0.95

987 991

589 709 788

55

$57.17 56.25 53.31 50.06

$42.00 29.38 33.00 32.50

26.4 24.1 27.1 27.0

1.7 1.3 1.4

$71.50 73.94 77.94 66.91

$49.00 43.50 57.44 44.91

25.0 28.2 32.9 31.2

2.1%

$29.25

$23.41

12.6

na na na

na na na

na na na

$60.97 52.97 53.44 44.88

$40.25 33.07 38.50 31.69

26.5 25.3 31.0 28.3

$90.23 108.24 97.44 91.31

$71.83 54.34 61.50 57.69

31.0 30.7 34.9 38.4

$95.25 96.69 87.38 80.88

$56.80 52.00 60.94 50.69

24.2 25.6 30.3 29.0

1.8 1.6 1.5

na na na 1.4%

1.4 1.2 1.3 1.4%

1.3 1.2 1.1 1.8%

1.6 1.5 1.4

a Sold B-line Systems metal business. Acquired Amelung GmbH, First Medical, and ARK Scientific GmbH, b Acquired remaining 25% of Riedel de Haen. Metal business consid ered discontinued operation pending sale, c Acquired CarboGen and AMCIS AG. Astaris joint venture began operations in April. Sold polymer modifiers business to Ferro. d Fiscal year ends Sept. 30. e Acquired Vysis and BASF's Knoll Pharmaceutical business in March, f Sold agrochemical business to Sumitomo Chemical, g Acquired International Murex Technologies, h Acquired DuPont Pharmaceutical. Sold Clairol and Zimmer businesses.· Zimmer and Clairol businesses considered discontinued operations pending sale. j Formed from merger of Glaxo Wellcome and SmithKline Beecham in December 2000. Figures for 2000 and earlier are pro forma, k Acquired Alza Corp. I Acquired Centocor. m Acquired DePuy orthopedics company, η Sold PCS health care management business, ο PCS health care management business considered discontinued operations pending sale, ρ Includes Medco pharmacy benefits management business slated for spin-off in 2002. q Sold interest in DuPont Merck Pharmaceutical to DuPont. nm = not meaningful. na = not available.

56

C & E N / J U N E 2 i , 2002


EARNINGS NET SALES EARNINGS


TOTAL ASSETS

YEAR (Money figures in millions of dollars unless otherwise indicated)

PFIZER $32,259 2001 29.574 2000 a 16.204 1999 13.544 1998b PHARMACIA $13,837 2001 c 2000 d 18.146 1999 7.253 6.758 1998e SCHERING-PLOUGH $9,802 2001 2000 9.815 1999 9.176 8.077 1998 WYETH* $14,129 2001 2000 9 13,263 1999 13.550 1998h 13.463

STOCKHOLDERS' EQUITY


%OF SALES

% OF STOCKHOLDERS' EQUITY

$PER SHARE

DIVIDEND, $PER SHARE

DM-, DEND. YIELD. % OF PRICE

0.9 0.8 0.8

$8,363 6.487 3.199 2.600

$37,431 31,719 19,811 17,489

$10,415 9,425 5,343 4,415

$2,203 2,191 1,561 1,198

$16,571 14,285 8,124 7,997

25.9% 21.9 19.7 19.2

50.5% 45.4 39.4 32.5

$1.31 1.02 0.85 0.67

$0.44 0.36 0.31 0.25

$1,899 1,902

$4,875 7,171 3,284 3.226

$1,020 1,356

$10,887 6,662 4.458 4,362

13.7% 10.5 11.1 12.3

17.4% 28.5 18.0 19.0

$1.43 1.45 1.49 1.58

$0.53

803 830

$20,874 21.397 9.571 9.074

$2,326 2,423 2,110 1,756

$11,514 10,178 8,787 7,275

$3,814 3,362 2,939 2,675

$759

$6,465 5,492 4,577 3,437

23.7% 24.7 23.0 21.7

36.0% 44.1 46.1 51.1

$1.58 1.64 1.42 1.20

$0.62 0.55 0.49 0.43

1.2 1.0 1.0

$2,900 2,514 2.240 2.384

$19,116 17,040 16,181 13.084

$6,282 5,035 4,565 4,290

$1,924 1.682 1.000

$221 -1,234 -1,510 1,620

20.5% 1.314.1% nm 19.0 16.5 nm 17.7 147.2

$2.18 1.90 1.71 1.78

$0.92 0.92 0.91 0.87

1.8 1.7 1.8

589 644

763 543 389

810

nm 1.08 1.08

1.1%

1.1%

nm 2.0 2.4 1.4%

1.6%



$46.75 49.00 50.05 42.98

$34.00 30.00 31.55 23.69

30.8 38.7 48.0 50.0

$60.00 61.00 66.38 57.25

$37.60 34.25 43.50 33.75

34.1 32.8 36.9 28.8

$54.25 59.13 60.75 57.50

$34.20 30.50 40.75 30.84

28.0 27.3 35.7 36.8

$63.80 65.25 70.25 58.74

$52.00 39.38 36.50 37.74

26.6 27.5 31.2 27.1

BIOPHARMACEUTICALS % OF

% OF STOCKHOLDERS'

$PER

STOCK PRICE RANGE, $ PER SHARE

SALES

EQUITY

SHARE

HIGH

EARNINGS

YEAR

NET SALES

EARNINGS

R&D SPENDING

PRICE/ EARNINGS

R&D AS %

TOTAL

NET PLANT AND

OF SALES

ASSETS

EQUIPMENT

24.6% 26.4 27.0 26.4

$6,443 5,400 4,078 3,672

$1,946 1,782 1,554 1.450

$5,217 4,315 3,024 2,562

31.9% 35.6 36.0 35.0

21.5% 26.4 36.2 34.3

$1.03 1.05 1.02 0.83

$74.19 $51.51 78.00 51.31 64.88 26.14 26.22 11.78

61.0 61.6 44.6 22.9

32.4% 39.8 35.6 44.8

$1,704 1.418 1.264

$556

$1,332 1,092

966 719

28.1% 43.9 35.4 35.2

20.5% 30.6 22.8 19.3

$1.78 2.16 1.40 0.94

$74.50 $49.45 119.50 49.75 90.44 38.75 43.44 16.63

34.8 39.2 46.1 31.9

44.6% 47.7 71.8 73.7

$2,494 2.053 2,304 2,357

$313

$1,553 1,476 1.538 1.379

22.6% 28.4 30.3 19.0

11.3% 12.1

$0.90 0.89 0.71 0.43

$56.80 $37.06 67.56 34.13 43.25 20.00 26.63 13.75

52.1 57.1 44.5 46.9

30.2% 38.3 35.3 55.2

$4,719 3,976 3,472 2,790

$866

753 730 700

$3,504 2,938 2,201 2,279

23.2% 25.0 23.8 25.3

11.5% 10.9 11.2

$0.76 0.60 0.47 0.35

$84.00 $37.99 80.3 117.25 46.13 136.2 71.50 18.63 96.9 19.94 14.81 49.6

23.8% 20.8 17.1 19.4

$2,429 1,778 1,325 1,411

$635

$1,103

504 363 383

635 932 893

22.9% 25.7 30.9 10.3

23.1% 32.9 19.0

21.3% 20.1 24.5 70.6

$2,273 2,012

$200

$2,041 1,811

17.7% 18.6

8.3%

STOCK-' HOLDERS'

EQUITY

LOW

RATIO

(Money figures in millions of dollars unless otherwise indicated)

AMGEN $3,511 2001 3,202 2000' 1999 3,043 2.514 1998 BIOGEN 2001 $972 761 2000 1999 621 1998 395 CHIRON 2001 $772 2000 j 627 1999 422 399 1998 k GENENTECH 2001 $1,743 20001 1.278 1999 1,039 1998 718 GENZYME 2001 m - n $1,110 2000m«p 812 1999 m 572 m q 1998 ' 614 IMMUNEX 2001 $960 829 2000 r 1999 519 170 1998

$1,120 1,139 1,096

$865

879

845 823 663

$273

$315

334 220 139

303 221 177

$175

$344

178 128 76

299 303 294

$405

$526

320 247 182

490 367 396

$255

$264

209 177 63

169 98 119

$170

$205

154 44 1

167 127 120

909

918 302

400 240 183

313 299 303

174 110 90

332 224

8.5 0.6

8.3 5.5

8.0

7.1

$1.20° $64.00° $34.34° 41.0° 1.14° 51.88° 19.84° 31.6° 1.00° 31.56° 15.38° 23.5° 0.77° 25.00° 11.75° 24.0°

13.3

$0.30 0.28 0.08

0.4

0

8.5

$46.38 $10.75 95.2 83.60 24.19 192.5 40.17 9.53 298.2 nm 10.53 3.96

a Merged with Warner-Lambert in June, b Sold medical technology group, c Excludes Monsanto's agribusiness operations pending spin-off. d Merged with Monsanto in March. Includes Monsanto's agribusiness and drug operations. Figures for previous years are for Pharmacia & Upjohn, e Sold nutrition business to Fresenius. f Name changed from American Home Products in March 2002. g Decreased ownership in Immunex from 51% to 41%; results no longer consolidated. Sold American Cyanamid agribusiness to BASF in June, h Sold medical device business and acquired vitamin and nutritional supplements business. I Acquired Kinetix Pharmaceutical, j Acquired Pathogenesis, k Sold in vitro diagnostics business to Bayer in November. I Roche ownership reduced to 58%. m Consolidated financial data; includes general, molecular oncology, and biosurgery divisions, n Acquired Novazyme Pharmaceuticals, Focal, and Wyntek Diagnostics. Sold Snowden-Pencer business, o For general division only. p Acquired BioMatrix and formed biosurgery division. Acquired GelTex Pharmaceuticals, q Sold research products division to Techne in July, r American Home Products (now Wyeth) reduced ownership from 55% to 41%. nm = not meaningful.


C&EN

/ JUNE

24,

2002

57

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Fundamentals of High Performance Liquid Chromatography Thursday-Friday, August 15-16

Headspace Gas Chromatography: A Practical Guide Friday, August 16

How to Develop, Validate, and Troubleshoot Capillary GC and HPLC Methods

Flavor Research Workshop

Interpretation of Mass Spectra


Thursday-Saturday, August 15-17


Organic Chemistry of Drug Design and Drug Action

LC/MS: Fundamentals and Applications

LC/MS: Fundamentals and Applications


Monday-Wednesday, August 19-21

The Organic Chemistry of Sugars Friday-Saturday, August 16-17

NMR Spectroscopy: Methods, Interpretation, and Strategies for Problem Solving

Synthetic Organic Chemistry: Modern Methods and Strategies


Monday-Wednesday, August 19-21 COMPUTERS

Electronic Laboratory Notebooks and Knowledge Management Systems in R&D Friday-Saturday, August 16-17

Microsoft Excel for Chemists Thursday-Friday, August 15-16 ENGINEERING

Chemical Engineering and Process Fundamentals for Chemists Thursday-Saturday, August 15-17

Friday-Saturday, August 16-17 POLYMER

Mechanical Behavior of Polymers: Correlation with Structure Friday-Saturday, August 16-17

Sunday-Monday, August 18-19

Friday-Saturday, August 16-17 STATISTICS/EXPERIMENTAL ^-c ; f V , CHEMOMETRK*'

Polymer Coatings

Chemometric Techniques for Quantitative Analysis


Friday, August 16

Polymer Synthesis

Experimental Design for Formulation


Beyond the Basics: Chemical Engineering for Chemists

NEW! Peptide and Protein Characterization with Mass Spectrometry

Thursday-Saturday, August 15-17 QUALITY/REGULATORY/COMPLIANCE

Experimental Design for Productivity and Quality in R&D

NEW! Effective Technical Writing

Good Laboratory Practices and ISO 9000 Standards: Applications in Food, Pharmaceutical, and Environmental Laboratories

Statistical Analysis of Laboratory Data




Effective Supervision of Scientists and the Technical Staff

Methods Development, Validation Procedures, and Conformity Assessment in the Analytical Laboratory

MANAGEMENT/BUSINESS/ PROFESSIONAL DEVELOPMENT


NEW! Leadership Principles for R&D Managers & Scientists Saturday, August 17

Project Management for Technical Professionals Friday-Saturday, August 16-17 ORGANIC/PHYSICAL

Asymmetric Synthesis Friday-Saturday, August 16-17

Dispersion of Fine Particles in Liquids: Suspensions, Emulsions, and Foams Friday-Saturday, August 16-17

NEW! Emulsion Technology: Fundamentals and Applications Friday-Saturday, August 16-17


Quality Assurance/Quality Control in the Analytical Testing Laboratory Thursday-Friday, August 15-16

NEW! Verification and Validation of Cleaning Procedures for Pharmaceutical and Process Industries Monday, August 19 SPECTROMETRY

Fourier Transform Infrared Spectroscopy: A Hands-on Workshop Thursday-Friday, August 15-16

Interpretation of IR Spectra Tuesday-Thursday, August 20-22

Monday-Wednesday, August 19-21

To receive by mail a free catalog describing the ACS Short Courses program in conjunction with the 224 t h ACS National Meeting in Boston, Massachusetts, call the ACS Short Course Office at (800) 227-5558, ext. 4508 or at (202) 872-4508 or e-mail us at to: [email protected]

PRODUCTION

production change. Losses were widespread With production of basic inorganic chemicals sliding 6.5%, it comes as no surprise that, of 16 high-volume inorganic chemicals for which the Bureau ofthe Census provided data, production of 13 declined—four by double-digit percentages.

ganic chemicals tracked by the National Petroleum Refiners Association declined for 12 of 13 commodity organic chemicals. Two-thirds experienced double-digit percentage declines. The only organic chemical to show an increase was aniline, up 2.2%. Urea—data for which comes from the Bureau of the Census—declined 7.6%. Synthetic materials posted a 75% decline in production, according to the Federal Reserve. Output of plastic materials dipped 3.6%, and synthetic fiber output plummeted 16.7%. The American Plastics Council, which more closely tracks resin production, reported a 5.6% decline in output for 2001. The thermoplastic category as a whole fell

Only three registered production increases—sodium sulfate, up 11.8%; aluminum sulfate, up 6.8%; and hydrogen, up 4.8%. Production of industrial organic chemicals fell 14.4% in 2001, according to the Federal Reserve. Output of specific or-

5.5% with output at 67.1 billion lb. However, four of nine classes of resins experienced double-digit production declines. Polyamine output dropped 18.9%—more than any other resin. Only one resin, polypropylene—up 0.6%—experienced

PRODUCTION: DOWN BUT NOT OUT Output of chemicals and products declined with few exceptions as U.S. manufacturing faltered

I

N 2 0 0 I , U.S. OUTPUT OF GOODS

slipped and chemical production faltered as well. Lackluster demand from end-use markets and competition from imports caused many production cuts. And, in some cases, high energy and raw material costs forced plant shutdowns. Chemical production declined by 0.7% compared with the year before, according to the Federal Reserve Board's index of production for chemicals and products. However, the total manufacturing segment did poorly—output declined 4.5%. The production index for the subcategory of chemicals and synthetic materials—basic industrial chemicals plus polymers—took it on the chin. It dropped 9.8%, indicating the severity ofthe impact of last year's slowdown on commodity chemicals and plastics makers. Only two of 12 chemical categories posted production gains, according to Federal Reservefigures.One category showed no

PRODUCTION Most chemical sectors followed total manufacturing downward trend INDUSTRIAL PRODUCTION INDEXES, 1992=100

1991

1992

1993

1994

1995

Total index Manufacturing, total Nondurable manufacturing Chemicals & products Chemicals & synthetic materials

97.0 96.2 97.0 96.4 97.0

100.0 100.0 100.0 100.0 100.0

103.4 103.7 101.5 100.9 98.5

109.1 110.0 104.8 103.7 102.1

114.4 115.8 106.5 106.0 103.3

119.6 121.5 107.4 108.8 103.2

Basic chemicals Alkalies & chlorine Inorganic pigments Inorganic chemicals3

97.7 98.9 88.8 97.4

100.0 100.0 100.0 100.0

95.1 89.9 99.3 92.5

88.7 71.3 102.4 86.1

90.9 76.2 95.0 90.0

Industrial organic chemicals

99.9 100.0

98.7

Synthetic materials5 Plastic materials Synthetic fibers

92.9 100.0 90.4 100.0 97.0 100.0

Chemical products Drugs & medicines Soaps & toiletries Paints

95.8 93.2 98.7 98.6

Agricultural chemicals Rubber & plastic products

PRODUCTION 1996 1997

ANNUAL CHANGE 2000-01 1991-01

1998

1999

2000

2001

127.9 131.1 112.0 115.9 110.6

134.5 138.8 113.4 118.3 109.3

139.4 144.7 113.7 119.1 109.8

145.7 151.6 114.8 122.0 112.3

140.1 144.8 111.4 121.1 101.3

-3.8% -4.5 -3.0 -0.7 -9.8

92.6 80.2 100.0 92.2

99.6 74.5 108.4 98.2

101.7 74.1 103.7 100.0

102.8 77.3 94.8 104.5

115.7 78.5 95.6 122.5

108.2 70.7 88.5 114.9

-6.5 -9.9 -7.4 -6.2

1.0 -3.3 0.0 1.7

104.9

106.0 106.7

114.7

106.3

107.0

105.0

89.9 -14.4

-1.0

101.0 98.0 104.3

109.0 111.9 103.0

109.7 107.4 113.0 109.3 104.1 104.4

114.2 120.2 98.6

118.8 129.8 99.3

118.5 125.3 104.2

117.2 121.9 106.2

108.4 -7.5 117.5 -3.6 88.5 -16.7

1.6 2.7 -0.9

100.0 100.0 100.0 100.0

102.6 99.6 106.8 105.6

105.1 103.4 106.1 113.3

108.4 113.5 107.0 114.2 111.7 115.3 109.8 109.4

120.6 121.2 122.9 110.4

125.7 131.4 121.6 110.9

127.3 136.0 117.4 110.0

131.6 144.3 116.6 107.6

138.8 160.2 116.6 103.4

5.5 11.0 0.0 -3.9

3.8 5.6 1.7 0.5

97.6 100.0 90.7 100.0

100.8 106.9

100.5 116.5

100.3 102.4 119.7 123.3

106.7 130.9

110.0 135.7

104.8 142.5

97.8 144.9

92.8 136.8

-5.1 -5.6

-0.5 4.2

3.7% 4.2 1.4 2.3 0.4

a Not elsewhere classified, b Includes synthetic rubber. SOURCE: Federal Reserve Board

60

C&EN / J U N E 24, 2002


The Federal Reserve's chemical an actual increase in production. products category registered a 5.5% Data from the Fiber Economics PRODUCTION rise in output. Production of drugs Bureau indicate that overall celluU.S. chemical ouput steadied during 2001 and medicines accounted entirely losic and noncellulosic fiber output for the positive performance of the fell 15.0%. That figure is closely in Production index, 1992 = 100 overall category Production within line with the ki.7% drop registered 160 another subcategory—soaps and in the Federal Reserve's index. toiletries —was unchanged from the Production of the cellulosics acyear before. Paint production, howetate and rayon fell by nearly oneever, slipped 3.9%. third. Alarge part ofthe decline was due to the Acordis shutdown of its The Department of Commerce rayonfiberplant inMobile, Ala. The reports a falloff ofonly 1.2% in paint company blamed high raw materishipments. Product coatings shipal and energy costs and an inability ments actually rose 8.4%. But speto raise prices. cial-purpose coatings slipped 137%. Shipments of architectural coatings, U.S. demand for textilefiberssufthe largest of the three categories, fered as domestic textile mill pro1997 1998 1999 2000 2001 declined 4.3%. duction slipped for the sixth year in : Basic chemicals • All industry a row and apparel production fell In the final chemical category • Chemicals & allied products I Industrial organic • Synthetic materials chemicals for the second year in a row. Acthat the Federal Reserve tracks, NOTE: Seasonally adjusted. SOURCE: Federal Reserve Board cording to the Federal Reserve, the agricultural chemicals, production textile mill products production indeclined 5.1%. An effort to control dexhas fallen 21.3% since 1994. In the past fertilizer runoffinto streams and rivers may that synthetic rubber shipments fell 9.5%. year alone, the index slipped 12.3%. The account in part for the decline. Low comAfter a surge in tire production in 2 0 0 0 apparel production index is off 14.4% since as consumers bought new cars and also modity prices and crops genetically engi1997, and dropped 8.6% between 2 0 0 0 neered to resist insect attacks likely caused rushed to replace defective Firestone tires, and 2001. farmers to cut pesticide use. U.S. production fell 133%, according to the Federal Reserve's tire production inAnd even though the Department of Noncellulosicfiberoutput dropped last dex. About 84% of styrene-butadiene rubAgriculture noted a modest 1.3% increase year, in keeping with the shortfall in textile ber went into tire production last year, re- in the number of acres planted last year, output. The Fiber Economics Bureau reports IISRE Styrene-butadiene shipments fertilizer production slipped, according to ports a 14.4% drop-off in noncellulosic declined by 10.5%. the Fertilizer Institute. Record import levfiber production. Polyester slipped more els account in part for some of the disthan any other, down 19%. Olefin declined But rubber shipments slowed for reacrepancies between the number of acres by 8.3%—less than any other. sons other than a drop in tire production: planted and U.S. fertilizer production. U.S. Only 2.5% of ethylene-propylene shipWhile the Federal Reserve's synthetic production in seven of 11 fertilizer catements found their way into tire producmaterials production index includes rubgories fell by double-digit percentages. tion, according to IISRP. However, ethylber, specific figures come from the InEvery category except for potassium chloene-propylene shipments fell 11.2%—even ternational Institute of Synthetic Rubber ride declined. more dramatically than styrene-butadiene. Producers (IISRP). The institute reports

ORGANIC CHEMICALS Only aniline production rose; most others showed double-digit declines MILLIONS OF LB UNLESS OTHERWISE NOTED

1991

1992

1993

1994

1995

2,676 961 1,569 3,054 4,168

2,829 1,009 1,636 3,232 466

2,489 991 1,677 3,117 4,393

3,026 1,263 2,074 3,376 5.217

3,207 1,391 2,168 3,682 5,625

Ethylbenzene3 Ethylene Ethylene dichloride3 Ethylene oxide 2-Ethylhexanola

8,871 11,108 9,336 39,955 40,924 40,019 13,713 15,150 17,947 5,248 5,829 5,330 692 695 657

10,758 44,602 16,762 7,238 732

Propylene6 Sty re ne Ureaf Vinyl acetate

21,549 23,421 21,470 8,114 9,000 9,594 16,266 17,532 16,572 2,732 2,657 2,773

23,943 11,294 15,904 3,036

Acrylonitrile Aniline3 Benzene,b,c mg 1,3-Butadiened Cumene



1998

1999

2000

2001

3,120 1,545 2,237 4,066 6,713

3,120 1,586 2,401 4,282 6,970

3,419 1,866 2,419 4,429 8,247

2,961 -13.4% 1,907 2.2 1,921 -20.6 3,794 -14.3 6,961 -15.6

13,656 10,359 46,966 49,097 17,263 11,336 7,239 7,621 743 760

11,975 12,661 51,078 52,061 26,294 24,560 8,140 8,241 768 811

13,106 55,777 22,836 8,884 878

13,156 10,233 -22.2 55,364 49,633 -10.4 -5.8 21,850 20,583 8,526 7,370 -13.6 735 -10.6 822

1.4 2.2 4.1 3.5 1.1

25,691 25,111 11,386 11,874 16,240 17,096 2,893 2,914

27,533 28,690 11,366 11,390 16,608 17,730 2,935 2,939

29,105 31,873 29,042 -8.9 11,898 11,916 9,290 -22.0 17,814 15,242 14,076 -7.6 3,037 3,300 2,784 -15.6

3.0 1.4 -1.4 0.2

3,373 1,079 2,116 3,845 5,879

3,291 1,339 2,342 4,107 6,119

1.0% 7.1 2.0 2.2 5.3

NOTE: As of Oct. 1,1996, the International Trade Commission no longer collects or publishes annual synthetic organic chemicals data, a Reporting method changed in 1996; data may not be comparable with preceding years, b Tar distillers and coke-oven operators not includ_eo\j: Specification grades, d Rubber grade, e All grades. f Data from 1995 on are from the Bureau of the Census. mg = millions of gallons. SOURCES: National Petroleum Refiners Association, Bureau of the Census


C & E N / J U N E 2 4 , 2002

61

PRODUCTION INORGANIC CHEMICALS Only hydrogen, aluminum sulfate, and sodium sulfate production rose in 2001 THOUSANDS OF TONS UNLESS OTHERWISE NOTED 1991 Aluminum sulfate 13

1992

1993

1994

1995


1998

1999

2001a

2000


1,185

1,047

1,050

1,140

1,144

1,197

1,161

1,166

1,196

1,091

1,165

17,169

17,924

17,195

17,869

17,403

17,923

17,891

18,475

17,337

16,806

13,046

-22.4

-2.7

Ammonium nitrate e

7,819

7,981

8,280

8,568

8,489

8,498

8,604

9,079

7,630

7,498

7,101

-5.3

-1.0

A m m o n i u m sulfate f

2,243

2,391

2,432

2,584

2,647

2,662

2,702

2,787

2,599

2,868

2,556

-10.9

1.3

11,572

11,757

12,079

12,187

12,395

12,460

12,922

12,841

13,353

13,131

12,019

-8.5

0.4

3,301

3,610

3,492

3,754

3,904

4,116

4,570

4,659

4,499

4,718

4,422

-6.3

3.0

153

162

213

331

352

386

526

552

454

481

504

4.8

12.7 -0.1

Ammonia c , d

Chlorine 9 Hydrochloric acid h Hydrogen, bcf, 100% ,J Nitric acid, 100% k

6.8%

-0.2%

7,927

8,136

8,254

8,714

8,840

9,205

9,433

9,285

8,945

8,479

7,823

-7.7

Nitrogen gas, bcf, 100%*·1

770

818

796

870

844

816

809

871

858

933

908

-2.7

1.7

Oxygen, bcf, 100% l

470

515

547

605

630

682

743

676

685

661

582

-12.0

2.2

12,109

12,826

11,515

12,792

13,134

13,210

13,159

13,891

13,708

13,143

11,605

-11.7

-0.4

449

555

539

559

617

662

626

779

818

939

906

-3.5

7.3

11,713

12,244

12,466

12,539

11,408

11,563

10,973

13,113

13,199

11,518

10,687

-7.2

-0.9

660

509

569

11.8

-3.3

44,756 44,032

40,054

-9.0

-0.8

1,463

-5.4

2.9

Phosphoric acid, P 2 0 5 Sodium chlorate Sodium hydroxide Sodium sulfate" 1 Sulfuric acid"

794

609

592

652

711

664

706

629

43,466

44,524

39,839

44,813

47,519

47,770

47,929

48,512

1,095

1,253

1,279

1,380

1,382

1,352

1,466

1,459

Titanium dioxide 0

1,493

1,547

a Preliminary data, b Commercial, 17% Al203; includes municipalities, c Synthetic anhydrous, d Excludes by-product ammonia liquor and ammonium sulfate, e Original solution, f Synthetic and noncoke by-product, g Includes quantities liquefied for use, storage, or shipment, h Includes anhydrous hydrochloric acid produc tion. I High- and low-purity gas. j Liquid and gas; excludes amounts vented and used as fuel and amounts produced in petroleum refineries for captive use. k Includes unspecified amounts produced but not withdrawn from the system. I Excludes amounts produced and consumed in making synthetic ammonia or ammonia deriva tives, m Anhydrous, high and low purity, and Glauber's salt, η Gross (new and fortified), ο Composite and pure, bcf = billions of cubic feet. SOURCES: Department of Commerce, Bureau of the Census

MINERALS Another poor year for mineral production, but sodium chloride was up significantly PRODUCTION 1996 1997 250 272 21,168 21,719 3.0 3.1 50,054 50,605 1,731 369

1998 254 22,160 3.1 48,731 417

1999 264 21,719 3.1 44,761 300

2000 243 21,609 3.0 42,557 330

2001a 225 20,617 2.0 37,706 55

1,532 5,446 6,494 11,246 46,526 11,687 57,992

1,544 6,053 7,166 11,797 45,644 10,099 54,023

1,433 5,270 6,174 11,135 45,423 9,779 53,890

1,323 4,298 5,623 11,246 49,052 9,779 57,771

1,433 5,072 6,174 11,246 50,274 9,878 56,889

1,323 4,961 5,954 11,356 49,723 11,025 59,756

-7.7 -2.2 -3.6 1.0 -1.1 11.6 5.0

-3.7 -0.1 -0.4 1.2 2.2 4.9 3.0

13,010 11,466

13,021 11,444

13,252 11,543

12,822 11,047

12,480 11,025

11,367 10,231

10,144 9,041

-10.8 -11.6

-1.6 -1.5

1,544 15,766

1,577 14,994

1,709 15,325

1,775 15,545

1,455 14,774

1,136 13,781

1,103 11,466

-2.9 -16.8

-2.6 -2.6

1994 1992 1993 188 195 215 17,857 18,412 19,184 2.5 2.8 2.5 51,770 39,132 45,313 4,104 3,528 3,087

1995 240 20,396 2.9 47,959 3,043

Potash (K 2 0 equivalent)' 1,928 Imports 4,990 Apparent consumption 9 6,186 Sodium carbonate'1 10,093 Sodium chloride 40,021 Imports 6,824 Apparent consumption 9 44,431

1,544 1,665 1,879 5,292 4,807 4,683 6,406 5,898 5,987 9,878 10,275 10,340 39,690 43,218 44,210 6,472 10,617 5,942 43,218 47,849 53,582

1,632 5,314 6,417 11,135 46,415 7,817 52,038

Sulfur' 11,928 Recovered elemental 10,488 & Frasch Other production 1,440 Apparent consumption 9 14,865

11,753 10,326

12,183 10,606

12,678 11,157

1,427 14,717

1,577 13,892

1,521 14,443

THOUSANDS OF TONS 1991 Bromine, consumption" 187 Lime c 17,270 Lithium, c o n s u m p t i o n ^ 2.9 Phosphate rock 53,016 Exports 5,602 •

ANNUAL CHANGE 2000-01 1991-01 -7.4% 1.9% -4.6 1.8 -33.3 -3.6 -11.4 -3.4 -83.3 -37.0

,

a Preliminary data, b Elemental bromine sold as such or used in preparation of bromine compounds by primary producers, c Sold or used by producers for commer cial or captive use. Produced from limestone and dolomite; does not include amount regenerated by paper industry; excludes Puerto Rican production, d Estimated, e Lithium content bases, f Includes muriate and sulfate of potash, potassium magnesium sulfate, and parent salts; excludes other chemical compounds containing potassium, g Calculated from shipments plus imports and minus exports, h Natural only, i Sulfur content basis. SOURCE: U.S. Geological Survey

62

C & E N / J U N E 2 4 , 2002


PLASTICS Polypropylene alone eked out a production gain in 2001 MILLIONS OF LBTHERMOPLASTIC RESINS Polyethylene Low density" Linear low density 6 High density 0 Polypropylene*1

7,226 4,841 9,941 8,629

4,578 5,022 11,117 9,539

7,643 5,243 11,211 10,890

7,784 6,361 12,373 11,991

7,691 6,888 12,557 13,320

7,578 7,227 12.924 13,825

5,096 113

5,383 105

5,848 138

5,656 130

6,065 121

6,380 96

6,237 122

6,471 123

6,844 128

6,106 -10.8 127 -0.8

2.1 1.5

2,287 576

2,610 668

2,924 768

3,230 943

2,908 1,020

2,969 1,103

2,997 1,222

3,191 1,285

3,099 1,349

3,120 1,281

2,725 -12.7 1,039 -18.9

1.8 6.1

9,164

9,989

10,257

11,712

12,295

13,220

14,084

14,502

14,912 14,442 14,257

-1.3

4.5

46,215

48,622

50,074

52,127

56,996

61,987 65,235

66,891

71,118 71,048 67,140

-5.5%

3.8%

497

457

512

601

632

662

654

639

610 -12.0%

2.1%

46,712

49,079

50,586

52,728

57,628

62,649

65,889

67,530

1993

7,236 4,346 9,213 8,330

7,273 4,644 9,808 8,421

4,954 109

THERMOSETTING RESINS** Epoxyh GRAND TOTAL

1998

1999

2000

2001


1995

1992

Styrene polymers Polystyrene Styrene-acrylonitrile® Acrylonitrile-butadienestyrene & other styrene polymers e,f Polyamine, nylon type Polyvinyl chloride & copolymers TOTAL


1994

1991

7,700 7,575 6,940 -8.4% 8,107 7,951 7,630 -4.0 13,864 13,968 12,479 -10.7 15,493 15,739 15,837 0.6

657

693

71,775 71,741 67,750

-5.6%

-0.4% 5.8 3.1 6.6

3.8%

NOTE: Totals are for those products listed and exclude some small-volume plastics, a Dry-weight basis unless otherwise specified, b Density 0.940 and below, c Den sity above 0.940. d Data include Canada from 1995. e Data include Canada from 1994. f Includes styrene-butadiene copolymers and other styrene-based polymers. g Excludes urea, melamine, phenolic, and other tar acid resins because data are no longer available, h Unmodified. SOURCE: American Plastics Council

PAINTS AND COATINGS Only product coatings shipments grew last year MILLIONS OF GAL Architectural Product 3 Special purpose

1991 538 320 180

1992 576 312 173

1993 608 357 179

1994 645 373 194

1995 621 376 195

TOTAL

1,038

1,061

1,144

1,212

1,192

SHIPMENTS 1997 1996 656 640 425 399 182 209

1998 632 428 173

1999 660 440 174

2000 646 453 182

2001 618 491 157

1,263

1,233

1,274

1,281

1,266

1,248

ANNUAL CHANGS 2000-01 1991-01 1.4% -4.3% 4.4 8.4 -1.4 -13.7 -1.2%

2.0%

a For original equipment manufacturers. SOURCE: Department of Commerce

SYNTHETIC RUBBER Polybutadiene, nitrile, and polychloroprene all slipped less than the average 9.5% for the group THOUSANDS OF METRIC TONS Styrene-butadiene η bber Polybutadiene Ethylene-propylene Nitrile, solid Polychloroprene Other 3 TOTAL

1991 727 416 192 71 70 362

1992 796 465 207 74 72 381

1993 817 473 227 78 70 400

1994 851 505 262 84 76 408

1995 878 523 270 83 70 427

1,838

1,995

2,065

2,186

2,251

SHIPMENTS 1997 1996 932 907 564 535 309 289 85 85 73 70 437 449 2,323

2,412

1998 908 561 320 87 69 447

1999 910 588 339 88 66 478

2000 874 605 349 89 64 484

ANNUAL CHANGE 2001 2000-01 1991-01 0.7% 782 -10.5% -7.1 3.1 562 4.9 310 -11.2 -6.7 1.6 83 -1.9 58 -9.4 1.9 435 -10.1

2,392

2,469

2,465

2,230

-9.5%

2.0%

NOTE: Data include Canada, a Includes butyl styrene-butadiene rubber latex, nitrile latex, polyisoprene, and miscellaneous others. SOURCE: International Institute of Synthetic Rubber Producers


C & E N / J U N E 2 4 , 2002

63

PRODUCTION

SYNTHETIC FIBERS Production dropped in every category, but cellulosics were hardest hit PRODUCTION

CELLULOSIC FIBERS Acetate" & rayon GRAND TOTAL

ANNUAL CHANGE

1992

1993

1994

1995

1996

1997

439 2,556 1,970 3,576 8,541

433 2,659 2,114 3,557 8,763

442 2,740 2,388 3,858 9,428

432 2,703 2,391 3,887 9,413

465 2,799 2,414 3,827 9,505

486

495

505

500

498

8,725

9,036

9,268

9,928

9,911

MILLIONS OF LB 1991 NONCELLULOSIC FIBERS Acrylic 3 454 Nylon 2,535 Olefin 1,839 Polyester 3,411 TOTAL 8,239

1998

1999

2000

2001

2000-01

1991-01

461 2,836 2,681 4,090 10,068

346 2,686 2,924 3,897 9,853

316 2,683 3,075 3,827 9,901

339 2,606 3,221 3,804 9,970

302 2,199 2,953 3,082 8,536

-10.9% -15.6 -8.3 -19.0 -14.4%

-4.0% -1.4 4.8 -1.0 0.4%

475

459

365

295

349

235

-32.7%

-7.0%

9,980

10,527

10,218 10,196

10,319

8,771

-15.0%

0.1%

a Includes modacrylic. b Includes diacetate and triacetate; excludes production for cigarette filters. SOURCE: Fiber Economics Bureau

AEROSOLS Output increased only in food products and miscellaneous categories PRODUCTION

MILLIONS OF UNITS Personal products Household products Automotive & industrial products Paints & finishes Insecticides '"Food products Animal products Miscellaneous TOTAL

ANNUAL CHANGE

1991 905 690 450

1992 990 695 455

1993 930 738 420

1994 973 751 438

1995 1,007 725 420

1996 1,017 852 417

1997 979 784 450

1998 941 785 433

1999 952 802 444

2000 930 802 446

2001 893 788 404

2000-01 1991-01 -0.1% -4.0% -1.7 1.3 -9.4 -1.1

350

380

390

410

374

454

465

468

446

440

403

-8.4

1.4

200 192 8 19

200 190 8 71

207 205 6 44

200 215 7 79

184 252 7 34

205 228 7 32

187 256 7 32

185 298 2 23

208 323 2 25

201 335 3 43

199 360 2 46

-1.0 7.5 -33.3 7.0

-0.1 6.5 -12.9 9.2

2,814

2,989

2,940

3,073

3,003

3,212

3,160

3,135

3,202

3,200

3,095

-3.3%

1.0%

NOTE: Data include Puerto Rican production. SOURCE: Consumer Specialty Products Association

FERTILIZER PRODUCTION Nitrogen and phosphate products declined, but potash managed an increase PRODUCTION

NITROGEN PRODUCTS Ammonia Ammonium nitrate Ammonium sulfate Urea Nitrogen solutions

ANNUAL CHANGE

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

13,790 2,551 2,195 4,241 na

13,309 2,487 2,342 4,164 na

12,588 2,584 2,382 3,863 na

14,475 2,744 2,554 4,614 6,113

15,670 2,732 2,579 5,177 8,844

16,814 3,060 2,605 5,551 9,557

16,550 3,345 2,671 5,275 9,834

16,517 3,588 2,743 5,530 11,143

15,037 3,307 2,839 5,453 10,217

13,889 2,814 2,789 4,792 10,523

11,575 2,380 2,505 4,211 9,463

-16.7% -15.4 -10.2 -12.1 -10.1

-1.7% -0.7 1.3 -0.1

12,964

14,641

15,989

15,484

15,641

15,643

15,590

12,450

11,024

-11.5%

-2.1%

2,693

2,869

2,715

3,488

3,589

4,089

3,999

4,789

4,426

-7.6

7.1

1,631 1,757 39,172 43,992 11,979 12,420

1,667 45,080 42,378

1,423 42,928 12,222

1,298 44,110 12,650

1,187 39,802 12,324

1,241 38,410 11,333

1,192 32,142 10,381

-3.9 -16.3 -8.4

-4.6 -3.3 -0.5

1,840

1,734

1,874

1,590

1,680

1,495

1,496

THOUSANDS OF TONS

PHOSPHATE PRODUCTS Diammonium phosphate 13,573 14,119 Monoammonium 2,227 2,342 phosphate Concentrated superphosphate 1,914 2,074 Phosphate rock 44,877 45,941 Phosphoric acid (P 2 0 5 ) 10,934 11,354 POTASH PRODUCTS Potassium chloride

2,387

2,337

1,555 34,800 10,503

1,927

1,845

2000-01 1991-01

0.1%

—

-4.6%

NOTE: Figures are based on Fertilizer Institute surveys and may not represent the entire industry, na = not available. SOURCE: Fertilizer Institute

64

C & E N / J U N E 2 4 , 2002

H T T P : / / P U B S . ACS.ORG/CEN

MACROECONOMICS Gross domestic product

Personal consumption expenditures

$ Trillions

$ Trillions

$ Constant (1996]

$ Current

$ Constant (1996]

$ Current 1991 92

93

94

95

96

97

98

99

00

01

1991 92

93

94

95

96

97

98

99

00

01

SOURCE: Department of Commerce


END USES Motor vehicles Production index, 1992 = 100

Housing starts Millions of units 2.0

Total

Trucks, buses & trailers

Crops Acres planted, millions 270 i

Automobiles Single-family 1991 92 93 94 95 96 97 98 99 00 01 SOURCE: Department of Commerce

1991 92 93 94 95 96 97 98 99 00 01 SOURCE: Federal Reserve Board

1991 92 93 94 95 96 97 98 99 00 01 NOTE: For eight major crops. SOURCE: USDA

Tires

Paper and products

Plastic products

Production index, 1992 = 100 UOf

Production index, 1992 = 100 120

Production index, 1992 = 100

199192 93 94 95 96 97 98 99 00 01 SOURCE: Federal Reserve Board



Textile mill products

Apparel

Furniture and fixtures

Production index, 1992 = 100 120 r

Production index, 1992 = 100

Production index, 1992= 100

199192 93 94 95 96 97 98 99 00 01

i io r

199192 93 94 95 96 97 98 99 00 01

1991 92 93 94 95 96 97 98 99 00 01

SOURCE: Federal Reserve Board



Aluminum Production index, 1992 = 100 120 f

Basic steel and mill products Production index, 1992 = 100

Household appliances Production index, 1992 = 100 U0|

U0I

120 100

199192 93 94 95 96 97 98 99 00 01 SOURCE: Federal Reserve Board




C & E N / J U N E 2k,

2002

65

EMPLOYMENT

EMPLOYMENT: CUTS CONTINUED TREND All chemical sectors lost jobs last year, paralleling loss in all manufacturing

A

S CHEMICAL INDUSTRY P R O

duction spiraled downward in 2001, so too did industry employment. By the end of 2001, the D e p a r t m e n t of Labor recorded a 0.5% drop in annual average

employment in the chemicals and allied products sector to 1.033 million. Manufacturing jobs disappeared at an even faster pace, down 4.2% for the year. The drop in employment continued a decade-long trend for both chemical and

manufacturing jobs. Between 1991 and 2001, each category experienced average annual job losses of 0.4%. For the chemical industry, the recent decline in employment was not just part of a larger productivity drive. Between 1998 and 2001, industry overcapacity and falling product demand meant that fewer production workers were needed. In fact, the industry employed an average of 566,000 production workers in 2001—21,000 fewer than in 1998. But the average number of white-collar workers—industry employment minus production workers—rose by 11,000 to 467,000 in2001 from 456,000 in 1998. Al-

CHEMICAL ENPLOYHENT Jobs at major firms were up 4% in 2001 but would have been flat without Dow's acquisition of Carbide THOUSANDS

1991

1992

1993

1994

1995

1996

Air Products & Chemicals Albemarle3 Cabot Cambrex Crompton Cytec Industries Dow Chemical15 Eastman Chemical Ethyl H.B. Fuller

14.6

U.5

14.1

14.8 3.0 4.1 1.3 2.8 5.0 39.5 17.7 1.8 6.4

15.2 2.8 4.7 1.3 5.7 5.0 40.3 17.5 1.8 5.9

16.4 2.7 4.8 1.8 5.6 5.2 42.9 16.1 1.5 6.0

16.7 2.7 4.8 1.8 5.4 5.1 39.0 15.9 1.5 6.0

17.4 2.6 4.5 1.9 8.6 4.9 39.2 14.7 1.5 5.4

17.5 2.5 4.5 1.9 8.3 4.8 41.9 14.6 1.5 5.2

17.8 3.0 4.3 2.1 7.3 4.5 52.7 15.8 1.1 4.9

1.1 21.2 7.9 4.6 28.5 31.2 18.2 11.7

1.0 17.4 7.1 4.4 28.0 31.3 25.3 11.6

1.1 6.3 6.2 4.3 21.9. 31.9 25.4 11.6 8.8 1.3

1.1 6.6 12.4 4.3 31.8 32.5 24.8 11.3 8.7 1.4

1.4 6.3 11.4 4.1 29.9 33.8 24.1 21.5 10.6 1.4

1.3 6.3 9.8 4.4 14.7 35.6 23.4 18.5 10.2 1.4

1.2 6.4 9.7 4.5 14.6 34.9 24.3 18.2 9.2 1.5

221.8 -6.4%

233.8 5.4%

245.2 4.9%

228.3 -6.9%

238.0 4.3%

Georgia Gulf W.R. Grace Hercules Lubrizol Monsanto PPG Industries Praxair Rohm and Haas Solutiac Stepan

—

—

—

5.4 0.7 2.2

13.3 3.7 5.4 1.3 2.5 5.0 53.7 17.5 1.5 6.4 1.1 37.9 12.0 4.5 29.4 30.8 17.8 12.2

6.0 5.6

6.3 5.8

5.4 0.8 2.3 5.2 55.4 18.0 5.5 6.0

1.1 46.6 17.3 5.3 39.3 33.7

1.1 44.1 15.4 4.6 33.8 32.3 18.6 13.8

1.1 34.0 14.1 4.6 30.0 31.4 16.8 13.0

5.3 0.6 2.0

—

—

62.2

61.4

—

— 12.9

— 1.3

—

— 1.3

— 1.3

— 1.3

— 1.3

— 1.3

261.3 259.0 257.3 222.1 227.6 TOTAL EMPLOYEES 253.8 -4.4% -5.8% -2.1% -13.7% 2.5% ANNUAL CHANGE -2.9% SALES PER EMPLOYEE ($ thousands) $235.0 $256.1 $311.0 $311.4 $221.6 $224.8

1997

$319.4

1998

$302.0

1999

$305.7

2000

$356.8

2001

$350.7

NOTE: Data are not restated for acquisitions, divestitures, or similar developments, a Spun off from Ethyl in 1994. b Merged in February 2001 with Union Carbide. c Spun off from Monsanto in 1997. SOURCE: Company data

66

C&EN / JUNE 24, 2002


WAGES Weekly earnings dropped for industrial inorganic, industrial organic, and paint production workers HOURLY EARNINGS 2000 1999 $14.38 $13.90 18.15 17.42 19.33 18.72 21.81 20.84 18.32 18.95 17.98 17.26

1998 $13.49 17.09 19.02 20.51 17.82 17.06

All manufacturing Chemicals & allied products Industrial inorganic chemicals Industrial organic chemicals Plastic materials & synthetics Drugs

13.87 14.44 17.22 15.33 20.91 11.89

Soaps, cleaners & toilet goods Paints & allied products Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastic products

14.86 14.79 17.94 15.84 21.43 12.40

15.91 15.15 18.73 16.25 22.00 12.85

2001 $14.84 18.59 19.83 21.91 19.27 18.38

1998 $562.53 738.29 854.00 916.80 773.39 718.23

16.40 16.15 19.69 16.86 22.09 13.39

572.83 615.14 780.07 662.26 911.68 495.81

WEEKLY EARNINGS 1999 2000 $579.63 $598.21 749.06 771.38 778.75 800.26 937.80 974.91 801.59 787.76 737.00 773.14 615.20 635.97 805.51 693.79 908.63 517.08

2001 $603.99 786.36 795.18 970.61 807.41 799.53

639.58 645.39 807.26 706.88 932.80 531.99

665.84 637.93 823.04 746.90 945.45 544.97

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

INDUSTRIAL EMPLOYMENT Only drug workforce increased last year THOUSANDS All manufacturing Chemicals & allied products Industrial inorganic chemicals Industrial organic chemicals Plastic materials & synthetics Drugs

ANNUAL CHANGE 1992 1996 1997 1998 1991 1993 1994 1995 1999 2000 2001 2000-01 1991-01 18,406 18,104 18,075 18,321 18,524 18,495 18,675 18,805 18,552 18,469 17,698 - 4 . 2 % -0.4% 1,043 1,035 1,038 1,033 -0.5 1,076 1,084 1,081 1,057 1,038 1,034 1,036 -0.4 129 136 129 119 117 111 99 98 135 120 96 -2.0 -2.9 154 151 146 146 143 138 136 120 -1.7 -2.7 155 126 118 167 162 160 159 178 173 158 158 155 154 149 -3.2 -1.8 257 261 281 247 264 263 260 269 297 315 330 4.8 2.9

Soaps, cleaners & toilet goods Paints & allied products Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastic products

155 58 57 97 160

154 58 58 94 158

157 58 56 93 152

153 57 55 93 149

153 55 53 93 145

155 52 53 93 142

156 52 52 94 141

158 52 53 94 139

159 53 54 92 132

155 52 51 93 127

154 49 49 88 127

-0.6 -5.8 -3.9 -5.4 0.0

-0.1 -1.7 -1.5 -1.0 -2.3

862

878

909

953

980

983

996

1,005

1,009

1,011

954

-5.6

1.0

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

PRODUCTION WORKERS Every chemical category cut jobs last year THOUSANDS 1991 1992 All manufacturing 12,434 12,287 Chemicals & allied products 580 567 Industrial inorganic chemicals 64 61 76 Industrial organic chemicals 81 104 Plastic materials & synthetics 110 Drugs 109 112 Soaps, cleaners & toilet goods 95 Paints & allied products 30 Agricultural chemicals 34 Miscellaneous chemical products 58 103 Petroleum & coal products Rubber & miscellaneous plastic products 662

1993 1994 1995 1996 1997 12,341 12,632 12,826 12,776 12,907 575 573 573 578 580 56 54 55 57 58 79 82 80 83 79 106 109 106 106 105 124 121 117 121 127

ANNUAL CHANGE 1998 1999 2000 2001 2000-01 1991-01 12,952 12,747 12,628 11,922 - 5 . 6 % -0.4% -1.9 577 566 587 583 -0.2 55 54 53 61 -1.9 -1.9 79 -2.0 66 -2.9 72 68 -0.9 104 100 -3.8 103 105 2.1 140 143 128 135 2.8

94 30 35 56 103

96 30 32 54 99

95 30 31 55 97

95 29 31 55 94

95 28 31 56 92

95 28 31 57 93

98 28 32 57 92

101 28 33 57 89

96 28 30 57 87

95 26 29 55 88

-1.0 -7.1 -3.3 -3.5 1.1

0.0 -1.4 -1.6 -0.5 -1.6

677

703

742

763

762

773

779

786

792

739

-6.7

1.1


HTTP://PUBS. ACS.ORG/CEN

C&EN

/ JUNE

24. 2002

67

EMPLOYMENT ACS

MEMBERS

Patterns Of Employment Shift Among Chemists Data from the American Chemical Society's two long-established annual surveys of the salaries and employment situation for chemists are revealing some significant shifts in the profile of where chemists work, especially for those employed by industry. One survey is of ACS members in the domestic workforce; the other is of all new chemistry graduates. Today, manufacturing industries continue to employ about 55% of working ACS members. However, the surveys quantify a quite strong drift away from traditional chemical manufacturers and toward pharmaceutical, health, and biotechnology concerns. Of those with full-time jobs responding to the 1990 member survey, 22.7% were employed by the chemical industry and only 12.3% by the pharmaceutical and related industries. By 2001, this relationship was reversed, with a lower 17.7% of respondents working for chemical makers and a substantially higher 21.6% for drug manufacturers. Both ACS surveys indicate this trend will continue. Of the re-

CURRENT STATUS Industrial chemists are the most likely to work full time UNEMPLOYED, SEEKING P0STD0CS EMPLOYMENT

EMPLOYED FULL PART TIME TIME All chemists

94.6%

2.5%

1.4%

1.5%

BY CURRENT/MOST RECENT EMPLOYMENT Industry 96.4% 1.8% 0.1% Academia 91.5 3.4 4.3 Government 92.4 4.7 1.8 Self-employed 93.2 1.7 0.0

1.7%

0.8 1.1 5.1

BY CURRENT/MOST RECENT JOB FUNCTION R&D 94.3% 1.4% 3.4% R&D management 97.7 0.5 0.0 General management 97.9 1.0 0.0 Teaching 93.9 4.9 0.4 Marketing 95.3 2.7 0.0 Production 96.0 1.1 0.0

0.9%

1.8 1.1 0.8 2.9 2.9

NOTE: Data as of March 1. SOURCE: 2001 ACS survey of the salaries and employment status of its domestic members

STATUS TRENDS Percentage of chemists without full-time jobs has dropped sharply since 1995 EMPLOYMENT STATUS With full-timelob Without full-time job Employed part time Postdoc or fellowship Unemployed

1991 94.0%

1992 93.4%

1993 92.8%

1994 91.9%

1995 91.1%

1996 91.5%

1997 93.5%

1998 92.9%

1999 92.9%

2000 92.9%

2001 94.6%

6.0 1.8 2.6 1.6

6.6 2.2 2.4 1.9

7.2 2.2 3.0 2.0

8.1 2.5 2.9 2.7

8.9 2.7 3.6 2.6

8.5 2.7 2.8 3.0

6.5 2.1 2.3 2.0

7.1 2.5 2.3 2.3

7.1 2.7 2.1 2.3

7.1 3.0 2.1 2.0

5.4 2.5 1.4 1.5

NOTES: Data are as of March 1 of each year. Population excludes chemists unemployed but not seeking employment. SOURCE: ACS annual surveys of the salaries and employment status of its domestic members

though the industry needed fewer production workers, it did need more whitecollar workers as it hired expert software staff to push e-commerce initiatives, beefed up sales staff in some cases to help

move inventory, and took on research staff to develop new products. Over the past decade, average annual industry employment peaked at 1.084 million in 1992 and fell with only three

interruptions since, according to the Labor Department. In 1997, employment rose 2,000 to 1.036 million; it rose by 7,000 in 1998; and employment went up a third time, by 3,000, in 2000.

WOMEN

WORKWEEK

Job share rose in most categories over the decade

Drugs, soaps, and miscellaneous products bucked trend and increased

2001 %0F %0F THOUSANDS TOTAL THOUSANDS TOTAL 1991

All manufacturing 6,067.0 327.4 Chemicals & allied products 27.6 Industrial inorganic chemicals 30.8 Industrial organic chemicals 41.3 Plastic materials & synthetics 111.1 Drugs 69.3 Soaps, cleaners & toilet goods 11.8 Paints & allied products 9.8 Agricultural chemicals Miscellaneous chemical products 25.5 26.6 Petroleum & coal products Rubber & miscellaneous 299.2 plastic products

33.0% 30.4 21.4 19.9 23.2 45.0 44.7 20.3 17.2 26.2 16.6 34.7

31.4% 33.6 17.2 24.2 24.7 45.8 46.2 21.4 9.3 19.0 22.6 25.7 21.7 17.1

5,562.0 346.9 16.5 28.6 36.8 151.3 71.2 10.5

318.3 33.4


68

C & E N / J U N E 2 4 , 2002

HOURS

All manufacturing Chemicals & allied products

Industrial inorganic chemicals Industrial organic chemicals Plastic materials & synthetics Drugs Soaps, cleaners & toilet goods Paints & allied products Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastic products

1998 41.7 43.2 44.9 44.7 43.4 42.1 41.3 42.6 45.3 43.2 43.6

1999

2000

2001

41.7 43.0 41.6 45.0 43.0 42.7 41.4 43.0 44.9 43.8 42.4

41.6 42.5 41.4 44.7 42.3 43.0 40.2 42.6 43.1 43.5 42.4

40.7 42.3 40.1 44.3 41.9 43.5 40.6 39.5 41.8 44.3 42.8

41.7

41.7

41.4

40.7

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


SALARIES

EMPLOYERS

Industry chemists as a group enjoy substantial salary advantage

Pharmaceutical concerns account for growing share of chemical workforce

$ THOUSANDS

% OF CHEMISTS WITH FULL-TIME JOBS

BACHELOR'S MASTER'S PH.D.

$65.0 $82.2 68.0 90.2 50.0 63.0 65.0 84.8

All chemists $55.0 Industry 56.1 Academia 39.0 Government/other 53.8

NOTE: Median base annual salary of chemists em ployed fuUtime as of March 1. 2001. SOURCE: 2001 ACS survey of the salary and employment status of its domestic members

SALARY & EMPLOYMENT SURVEYS1 2001 1990 1995 2000

STARTING SALARY SURVEY 2001b

All manufacturing Chemical & related Pharmaceutical & related Other manufacturing

52.7% 22.7 12.3 17.7

54.1% 20.2 18.8 15.1

55.4% 17.9 21.4 16.1

54.6% 17.7 21.6 15.3

47.3% 8.5 27.0 11.8

Other nonacademic Government Self-employed Utilities/hospitals/not for profit Analytical/research services and other nonmanufacturing

24.4 8.9 2.8 4.0

21.2 8.1 1.1 2.7

20.3 7.5 1.5 2.3

20.6 8.0 1.2 1.4

29.8 7.4 0.8 4.4

spondents to the 2001 member survey, 30.1% of those up to 39 years old, com 8.7 9.3 9.1 10.0 17.2 pared with only 17.2% of those 40 or older, had jobs in the drug and related fields. And 24.8 22.9 24.3 24.7 22.9 Academia of the 2000-01 chemistry graduates with University/four-year college 18.4 19.3 18.6 19.0 11.8 full-time jobs who responded to ACS's start Medical/professional school 1.7 2.2 2.2 3.9 2.1 ing salary survey last fall, 27.0% had jobs in 1.6 1.8 1.8 1.9 0.6 Two-year school the pharmaceutical area and only 8.5% Elementary/secondary 1.2 1.5, 1.7 1.7 5.4 Other 1.2 were employed by chemical producers. — — — — Indications are that the percentage of a All working chemists, b 2000-01 graduates. SOURCE: ACS annual surveys chemists working for analytical laborato ries, contract research organizations, and professional service Employment of chemists by government has been trending concerns is on the rise. But the increase cannot be quantified downward slightly and today stands at 8.0%. Most of the slippage precisely. This is due to changes in the survey questionnaire as it has been among those with federal government jobs—down to has sought ever more detailed data on this area. However, it can 5.0% in 2001 from 6.1% in 1990. be pointed out that while 12.5% of the under-40 members re sponding to the 2001 survey held such jobs, only 6.6% of those 40 and older did so. Also, U.6% of graduates responding to the ACS SURVEYS IN C&EN 2000-01 starting salary survey were employed in the same area. A summary of the starting salary survey of the 2001 graduates was reported in the March 18, 2002, issue. The 2002 survey of Academia continues to account for about 25% of the chemical all ACS members in the domestic workforce will be summa workforce, with 19% in universities or colleges and close to 2% rized in the Aug. 5 issue. each working for medical or professional schools, two-year insti tutions, and elementary and high schools.

Average annual employment of pro duction workers peaked in 1998, but also slipped over the decade. However, the decade-long rate of decline was not as great as that for total industry employment. The industry employed 14,000 fewer produc tion workers in 2001 than it did in 1991

PRODUCTION WORKERS Totals slipped even more in 2001 Thousands of employees 590 ^tss^^lasa^ * ^ \ Λ

580 570

EMPLOYMENT

560

Long downward trend in chemical jobs continued

550

1998

/N

1.03 1.02

\y

A^ \

1999

\ \

1 1 1 1 1 1 1 1 1 1 1

1998

1999

2000

2001

NOTE: Seasonally adjusted employment in U.S. chemicals and allied products industry. SOURCE: Department of Labor

Millions of employees 1.05 1.04

I I I I I I M i l l 1 1 I I I 1 I I I Μ1 1Ι Ι Ι Ι Ι Ι Ι Μ 1 I I I I I I I I I

2000

2001

NOTE: Seasonally adjusted employment in U.S. chemicals and allied products industry. SOURCE: Department of Labor


for an average annual decline in employ ment of 0.2%. The average length of the workweek for chemical workers fell steadily from 43.2 hours in 1998 to 42.3 hours in 2001. How ever, pay raises resulted in a 6.5% increase in weekly earnings of production workers from $738.29 to $786.36. Industry employment of women in

creased over the decade both in absolute numbers and as a percentage of all work ers. Women made up 327,400, or 30.4%, of total chemical industry employment in 1991, and they accounted for 346,900, or 33.6%, in 2001. Combined employment at 20 major chemical companies rose 4.3% in 2001. However, the numbers are somewhat mis leading. Dow Chemical acquired Union Carbide in 2001 and former Carbide em ployees were added to Dow^s total. Car bide ho longer appears in the table. If Car bide's employees were counted in 2000 and compared with industry employment data in 2001, employment totals would be unchanged. Over the decade, sales per employee have increased to an average of $350,700 from $221,600. Adjusting for four companies that did not exist in 1991, the number of employees working for 16 major chemical companies has declined at an average an nual rate of 33%. When Dow is also ex cluded, the annual decline becomes 3.9%. C & E N / J U N E 2 4 , 2002

69

EMPLOYMENT

PRODUCTIVITY After big increase in 2000, growth for chemical industry slowed; unit labor costs rose

L

AST YEAR, T H E CHEMICAL I N -

dustry saw a 1.8% year-to-year rise in productivity to an index of 1237, down from 4 . 6 % growth in 2000. Last year's in crease also trails the 79% productivity rise for all manufacturing in 2001. Chemical productivity increased last year because companies cut workers and the hours they worked faster than the 0.7% de cline in production. The number of pro duction workers last year averaged 566,000, down 1.9% from the year before, while the average workweek declined 0.5% to 42.3 hours. These two figures together yielded an index of aggregate hours of production of 979, down 2.5%. The aggregate workhours index is divided into the production index to determine productivity Chemical companies last year saw a slight rise in unit labor costs—the index for productivity divided into that for av erage weekly wages —which ideally fall, or, if they increase, trail productivity growth. Last year, unit labor costs for the chemical industry rose 0.6% on a 2.4% increase in hourly wages. Unit labor costs for all man

ufacturing, by comparison, declined 4.3%. Despite the poor economy productivi ty rose in most chemical sectors, but in three commodity sectors—basic inorgan ic chemicals, basic organic chemicals, and synthetic materials—it declined. Produc tivity for inorganics fell 1.1%, and synthetic materials had a 3.2% decline. Unit labor costs for inorganics and synthetics were up 3.7% and 5.0%, respectively

The worst case, however, was that for organic chemicals, where productivity dropped 11.4% and unit labor costs rose 13.4%. Probably the main reason for the big decline is that commodity organic plants such as ethylene crackers are so au tomated that they are much less labor in tensive than, for example, a paint plant. Thus, producers cannot cut workers in re sponse to downturns in demand and pro duction as readily as they can in more la bor-intensive sectors of the industry Paint plants actually led productivity gains with a 13.4% rise in output per hour and a 6.0% decline in unit labor costs. Pro ducers cut plant workers by 7.1% and the workweek by 7.3 % as production fell 3.9 %.

METRICS For chemicals and allied products, output per hour, unit labor costs rose % annual change 8

Output per hour

% annual change 4

, \

M

Lj

Li

MM

i i l rJ^;CI Π 1991 92 93 94 95 96 97 98 99 00 01

1991 92 93 94 95 96 97 98 99

SOURCES: Federal Reserve Board, Bureau of Labor Statistics, C&EN estimates

INDEXES Productivity rose for most chemical product sectors last year... PRODUCTIVITY3, 1992 = 100 All manufacturing Chemicals & allied products Industrial inorganic chemicals Industrial organic chemicals Plastic materials & synthetics Drugs Soaps, cleaners & toilet goods Paints & allied products Agricultural chemicals

ANNUAL

1991 95.8 94.7 93.5 93.8 89.9 96.3 99.0 100.4 98.3

1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1993 102.2 99.9 99.1 95.7 98.9 97.9 102.5 104.1 107.7

1994 104.4 101.6 95.4 99.6 103.3 98.5 104.7 110.4 108.5

1995 109.3 103.4 98.9 98.2 106.2 95.8 112.4 112.4 110.5

1996 115.2 107.0 97.9 100.8 105.0 105.8 115.2 118.7 112.1

1997 121.8 114.5 100.3 113.1 112.5 114.7 121.3 118.1 117.2

1998 129.5 114.1 99.5 104.4 118.7 116.4 116.2 119.7 116.3

1999 137.1 116.2 120.2 114.6 120.9 112.3 109.4 114.7 110.8

2000 145.4 121.6 138.3 120.1 120.9 114.4 116.8 114.5 115.5

2001 156.8 123.7 136.8 106.4 117.0 122.7 117.6 129.8 120.1

CHANGE 2000-01 7.9% 1.8 -1.1 -11.4 -3.2 7.3 0.7 13.4 4.0

but unit labor costs declined in only the drug and paint segments UNIT LABOR C0STSb, 1992 = 100 All manufacturing Chemicals & allied products Industrial inorganic chemicals Industrial organic chemicals Plastic materials & synthetics Drugs Soaps, cleaners & toilet goods Paints & allied products Agricultural chemicals

ANNUAL

1991 101.9 102.1 102.4 101.9 107.0 99.3 101.0 98.0 97.6

1992 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

1993 100.2 102.2 105.0 106.8 100.1 106.2 100.4 96.3 94.6

1994 100.8 102.6 111.6 105.6 97.0 106.3 100.7 92.7 95.4

1995 98.7 104.1 111.5 112.5 98.6 112.1 94.4 91.7 96.0

1996 96.8 104.2 116.7 112.5 104.7 105.8 93.5 89.9 97.3

1997 94.3 99.7 117.6 101.6 100.6 101.3 90.9 94.0 95.7

1998 90.9 103.2 121.6 113.6 97.6 103.8 99.3 95.1 99.9

1999 88.4 103.4 99.0 105.2 98.5 108.9 112.9 101.7 109.3

2000 86.3 102.9 88.9 105.0 101:9 111.4 113.2 104.4 109.4

2001 82.6 103.5 92.2 119.1 107.0 106.2 116.0 98.1 110.6

CHANGE 2000-01 -4.3% 0.6 3.7 13.4 5.0 -4.7 2.4 -6.0 1.1

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

70

C & E N / J U N E 2 4 , 2002


Hfewhat you know andïtro you know Quality Jobs, Quality Chemists. Networking is a great way to find a job in any field. But in the world of chemistry, it's not the only way. If you ask colleagues how they got their current job, the answer will often be the C&EN Classifieds. How do we know? A recent survey of chemistry professionals conducted by an independent research firm revealed that nearly 6 out of every 10 found their current job and/or knew someone who did through the C&EN Classifieds. Still not convinced? Well what if we told you that nearly 60,000 chemistry professionals read the C&EN Classifieds each week* (in print and/or online) or that the C&EN Classifieds Online is the most used online chemistry job source* or that over 84% say they would recommend the C&EN Classifieds to colleagues as a top source for finding a new job*. Of course, you may still want to network. Let C&EN and the C&EN Classifieds provide you with key information — marketplace shifts, salary trends, and the latest technologies — to make you more knowledgeable and prepared. The key to success when searching for a new job is what you know and who you know. With C&EN and the C&EN Classifieds we've got you covered both ways. •I^C1**^

*Source: 2001 Classifieds Survey, Areola Research.

Find your new job today!

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ICHEMICALI II & Engineering News I The Newsmagazine of the Chemical World

INTERNATIONAL

INTERNATIONAL: TRADE SURPLUS SHRANK AGAIN

FOREIGN TRADE U.S. chemical balance dwindled $ Billions Exports^

Imports grew, exports fell, and the chemical trade surplus hit lowest level in decades

T

HE U.S. CHEMICAL INDUSTRY S

once-vaunted trade surplus continued to shrink last year. Imports of chemicals rose in 2 0 0 1 , as they have each year since the beginning of the 1990s. At the same time, chemical exports shrank for only the second time since 1990. The result was a 61% drop in the chemical trade surplus to $3.5 billion, the lowest in decades. Imports grew by 7.1% last year, with gains coming from every trading partner or region except Japan. Import growth from the European Union was particularly strong: Due in large part to a relatively weak euro versus a strong dollar, EU chemical makers boosted chemical sales to the U.S. by $3.4 billion in 2001. U.S. exports, on the other hand, fell 0.3%. Exports to the EU were up, despite the currency disadvantage, but exports dropped to most other important trading partners, including Canada, Latin America, Japan, and the rest of Asia. Export declines were most severe in organic chemicals, plastics, and fertilizers— businesses in which 200 l's expensive natural gas, both as feedstock and energy source, took its toll. The total value of the U.S. export decline in organics, plastics, and fertilizers was $2.6 billion, and the trade deficit in these fields widened from $1.4 billion to $5.1 billion.

Imports

Anew C&EN analysis of trade balances in the major production categories shows that the U.S. has healthy trade surpluses in every field except organics, inorganics, and medicinals. However, at $12.7 billion last year, the deficit in organic chemicals overshadowed the surpluses. The trade deficit in medicinals and pharmaceuticals masks significantly growing trade in both directions: Pharmaceutical exports last year were up 175%, and imports jumped a whopping 26.7%. Ireland, where many U.S. drug companies have set

Trade Balance 199192 93 94 95 96 97 98 99 00 01 SOURCES: Department of Commerce

up manufacturing plants, was for the second year in a row the largest source of US. chemical imports after Canada. Whether the trade surplus shrinkage is due to the strong dollar or high feedstock costs, executives at the large U.S.-based chemical companies don't seem overly concerned. Speaking to reporters at the American Chemistry Council's (ACC) general meeting in White Sulphur Springs, WVa., earlier this month, chief executives from ExxonMobil Chemical, Rohm and Haas, and Reilly Industries noted that many companies have operations across the globe. The ability to shift production from region to region at least partially insulates them from currency and feedstock fluctuations. However, this strategy is not likely to be appreciated by workers at U.S. chemical plants squeezed by lower exports and heightened import competition. And judging from early 2002 data, they won't be finding relief soon: Through the first three months ofthe year, U.S. chemical trade was in the red, and ACC economists predict that it may stay this way all year, resulting in the industry's first trade deficit since the early part of the last century

U.S. CHEMICAL TRADE BALANCE, BY PRODUCT Trade balance was pulled down by deficits in organic chemicals, medicinals $ MILLIONS Organic chemicals Plastics in primary form Medicinals & pharmaceuticals Inorganic chemicals Plastics in nonprimary form Perfume, toilet & cleaning materials Dyeing, tanning & coloring materials Fertilizers Other TOTAL

1999 2001 1997 1998 2000 $-86 $-3,119 $-6,106 $-9,632 $-12,680 6,330 7,220 7,439 7,189 6,476 -507 -1,224 -2,295 -1,572 -3,203 -463 292 -472 -276 -582 1,529 2,114 1,983 1,715 1,834

1991 $2,771 5,607 1,553 803 931

1992 $1,627 4,931 1,545 819 1,030

1993 $1,797 4,704 1,615 525 1,189

1994 $2,027 5,163 1,413 -37 1,388

1995 $3,070 6,425 1,010 -74 1,516

1996 $192 6,539 254 -205 1,699

944

919

1,238

1,541

1,634

1,995

2,343

1,995

1,863

2,005

2,278

232 2,061 3,897

241 1,420 3,740

313 661 4,522

455 1,403 4,332

541 1,834 4,463

606 1,676 5,305

869 1,696 6,560

1,058 1,714 6,132

1,055 1,618 6,261

1,529 796 6,944

1,399 357 6,857

$18,799 $16,272 $16,564 $17,685 $20,419 $18,061 $20,501 $14,590

$9,783

$8,910

$3,451


72

C&EN / JUNE 24, 2002


U.S. TOTAL TRADE Chemical industry was not alone in export declines $ BILLIONS Machinery & transport equipment Miscellaneous manufactures Chemicals Manufactured goods classified by material Food & live animals

u.s. EXPORTS 2000 1999 $369.1 $412.2 81.6 93.2 72.0 82.5 72.0 62.2 38.2 40.3

1998 $358.2 79.7 69.3 61.8 38.3 26.3 10.1 7.8 2.8 26.3

Crude materials, inedible (except fuels) Mineral fuels & lubricants Beverages & tobacco Animal & vegetable oils, fats & waxes Other

1998 $423.9 163.0 54.6 112.1 33.4

29.0 13.3 6.8 1.4 29.6

28.1 12.9 5.6 1.4 29.2

21.1 57.6 7.8 1.5 38.8

$780.4

$731.0

$913.9

24.2 9.9 6.8 1.9 26.7

$680.5 a

TOTAL

2001 $375.1 88.5 82.3 66.7 41.2

$692.6 a

U.S. IMPORTS 2000 1999 $553.2 $479.9 200.9 176.7 62.2 73.6 117.0 134.0 36.8 35.1

2001 $499.9 198.1 78.9 123.1 37.2

21.7 75.2 8.6 1.4 47.0

22.4 135.5 9.3 1.4 51.8

20.2 122.9 9.7 1.2 50.8

$1,024.8

$1,216.9

$1,142.0

a Includes re-exported imports that are not included in individual categories. SOURCE: Department of Commerce

U.S. CHEMICAL TRADE Commerce with Europe and Middle East grew, but fell with Japan $ MILLIONS European Union Canada Latin America Japan China-Vietnam Rest of Asia Australia Middle East Africa Eastern Europe Other TOTAL

1998 EXPORTS IMPORTS $26,348 $19,039 13,668 9,468 14,970 3,211 6,077 5,547 2,037 1,442

EXPORTS $19,175 14,825 14,494 5,794 2,166

1999 IMPORTS $31,737 10,012 3,557 6,536 1,675

EXPORTS $22,304 16,151 17,378 6,547 2,397

2000 IMPORTS $37,576 11,579 4,380 7,220 1,810

2001 EXPORTS IMPORTS $23,346 $40,976 15,857 12,001 17,319 4,461 6,510 6,679 2,280 2,066

8,606 1,775 1,109 705 432 1,382

2,833 264 1,232 267 1,076 2,403

9,976 1,686 1,134 621 310 1,808

3,069 358 1,198 237 1,190 2,306

11,476 1,773 1,249 724 535 2,008

3,862 358 1,746 312 2,179 2,611

10,368 1.750 1,591 776 687 1,838

4,274 442 2,009 400 2,712 2,850

$69,270

$54,621

$71,989

$62,206

$82,542

$73,633

$82,322

$78,870

CHANGE, 2000-01 EXPORTS IMPORTS 4.7% 9.0% -1.8 3.6 -0.3 1.8 -0.6 -7.5 -4.9 14.1 -9.7 -1.3 27.4 7.2 28.4 -8.5 -0.3%

10.7 23.5 15.1 28.2 24.5 9.2 7.1%


U.S. CHEMICAL TRADE, BYPRODUCT Foreign trade jumped in pharmaceuticals, but slipped in plastics, colorants 1998 EXPORTS IMPORTS $ MILLIONS $18,300 $15,181 Organic chemicals 11,560 5,084 Plastics in primary form 10,885 Medicinats & pharmaceuticals 9,661 5,118 4,842 Inorganic chemicals 3,480 5,314 Plastics in nonprimary form Perfume, toilet & cleaning materials Dyeing, tanning & coloring materials Fertilizers Other i -".. Λ ,

FACTS & FIGURES FOR THE CHEMICAL INDUSTRY - C&EN Global

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