First-quarter results up, but moderately - C&EN Global Enterprise

Apr 12, 1976 - ... the first quarter were weaknesses in some polymers and in most fertilizers. Federal Reserve System production figures confirm ... V...
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The Chemical World This Week

Centennial celebration goes off well Pride and dignity were the watchwords as chemists gathered in New York City last week to celebrate the 100th anniversary of the founding of the American Chemical Society. Among the dignitaries taking part in a series of brilliantly conceived and impeccably conducted special events marking the occasion were members of Congress, other high federal government officials, the mayor of New York City, representatives of more than 100 foreign and domestic scientific societies, and 17 past presidents of ACS. The entire, successful effort was the culmination of several years of work by the society's Centennial Coordinating Committee, which is chaired by Dr. Bradford R. Stanerson, a member of the ACS Board of Directors. By midweek, registration at the meeting, which also included one of the most ambitious technical programs ever attempted by the society, was approaching 9000. It was headed for a seven-year high for an ACS national meeting. The major anniversary events included the official opening of ACS's new traveling exhibit at Union Carbide headquarters on Park Avenue, introduction and first day sales of the new U.S. Post Office stamp honoring chemistry, a time capsule ceremony, a ceremonial session, and a special centennial banquet. Principal speaker at the centennial banquet, which was held on April 6, 100 years to the day after the founding meeting, was Sen. Edward M. Kennedy (D.-Mass.). He said a lot of things scientists like to hear, especially from the most influential man in Congress concerning science affairs. The affair attracted a jampacked crowd of more than 2000. The senator decried the relative decline in recent years in the proportion of the nation's resources being devoted to science and he called for a reversal of this trend. He said that "America must regain and keep its pre-eminence in science. This must be a paramount national goal." Being more specific, he said that "first, we have to recognize science as a national resource—of knowledge, people, and facilities—that must be continually replenished and used to the fullest." The second thing he called for is continuity of funding in federal R&D. "Science is not a spigot that can be turned on and off at will. Scientists cannot be stored on a shelf 6

C&EN April 12, 1976

Dr. Pauling's task was to probe what can be expected of chemistry in the next 100 years. He pointed to biochemistry and molecular biology as areas in which the greatest progress will occur. On a broader level, Pauling believes that "the goal we should strive to reach during the third century of the U.S. is that of constructing a country in which every person has the possibility of leading a good life." In trying to achieve this, "the principle of the minimization of suffering" should be applied. However, he is not optimistic in the shorter term, predicting that within 25 to 50 years "there will occur the greatest catastrophe in the history of the world." But he expects the human race to survive. And by 2076 it may have solved its problems. D Pauling: minimization of suffering

and dusted off whenever they are needed." His third suggestion is a reshaping of the nation's legal, fiscal, and regulatory structure so that it fosters technical innovation in industry. And his fourth point was a call for an effort to encourage widespread public understanding and support for science. To do this "we must foster wider public participation in policy making and increase civic responsibility by scientists." As a key step in achieving some of these goals, the Senator revealed that Senate and House conferees had reached virtual agreement on legislation creating a White House science adviser to the President, and that President Ford already has given assurances that he will accept the bill. Kennedy also explained that the newest Office of Technology Assessment program involves a continuing assessment of national R&D policies and priorities—an effort he expects to be "complementary to the new White House science office." Principal speaker at the ceremonial session on the afternoon of April 5—another well-attended affair—was Nobel Laureate Linus Pauling. At this ceremony capped and gowned representatives of 37 foreign and international scientific organizations and of 78 domestic societies moved in solemn procession to present greetings to ACS. In most cases these took the form of scrolls, works of art, and the like.

First-quarter results up, but moderately Like the closing months of 1975, the opening quarter of 1976 continued to confirm a broad recovery for the U.S. chemical industry. The upswing, which began at the end-product side of the industry a year ago, now is concentrated in basic or buildingblock chemicals. Geographically, the recovery has spread from the most populous markets in the U.S. to the Gulf Coast and to overseas operations, especially Europe. Even so, the first-quarter pace in U.S. chemicals was notable in its moderation. This is no all-out boom, at least yet. First-quarter sales and earnings may have been up somewhat from the fourth quarter but not by much. Gains did well to match the seasonal pickup that usually occurs from the end of one year to the beginning of the next in chemicals. Two good reasons for overall moderation in the first quarter were weaknesses in some polymers and in most fertilizers. Federal Reserve System production figures confirm widespread company reports of a slowdown in production of some fibers and plastics this winter. The product in worst shape here is polyester filament, the dominant double-knit fabric material. Filament apparently is suffering at the hands of a natural-look revival in clothing. Of course, chemical sales and earnings in the first quarter were

Output of chemicals is up, except for synthetics PRODUCTION

SEPT.

DEC.

JAN.

FEB.

INDEX3

1974 b

1975

1976

1976

Chemicals 158.3 and allied products Basic 142.7 chemicals Synthetics 230.0

156.1

156.5

158.0

130.3

136.6

c

226.1

223.5

c

a 1967 = 100. b Prerecession peak, c Not available at press time. Source: Federal Reserve System

much higher overall than in the first quarter of 1975. But the first quarter a year ago was near the bottom of the recession for most chemical com­ panies. So it is no surprise that a number of chemical companies have in the past few weeks put out favorable yearto-year sales and earnings forecasts for the first quarter. For example, Akzona told stockholders at its an­ nual meeting that the first quarter was solidly in the black compared to a loss a year ago. Dart Industries noted to security analysts in Louis­ ville that chemicals and plastics op­ erations showed good improvement the first two months of this year over January and February of 1975. Dex­ ter Corp. told security analysts in New York City that first-quarter sales would be a record for any quarter. Ferro indicated to the same group that year-to-year first-quarter gains would be about 5% for sales and 45% for earnings. Richardson Co. said at its annual meeting that sales were running 15% ahead of last year and that earnings would be about 33 cents to 37 cents per share compared to a loss of 13 cents a year ago. Chemical and plas­ tics operations have made big strides from a year ago at General Tire & Rubber and at Vulcan Materials. Earlier upbeat forecasts for the first quarter have come from Dow Chem­ ical and Hercules. D

Chloroform banned from drug, other uses A chain reaction of moves by gov­ ernment, industry, and public inter­ est groups has been set off by Na­ tional Cancer Institute findings that chloroform is carcinogenic in mice and rats (C&EN, March 22, page 7). Last week, the Food & Drug Admin­ istration moved as expected to pro­ hibit further use of chloroform in drug, cosmetic, and food packaging products. FDA's proposed ban was slated for publication in the April 9 Federal Register and will become effective in

90 days, on July 8. A principal target is use as a flavoring agent in cough medicines. Chloroform also must be removed from toothache remedies, liniments, toothpaste, and mouth­ washes. And residues will no longer be allowed in food-contact packaging adhesives and polycarbonate resins. The FDA decision was made after weighing the risks and benefits of continued use. FDA commissioner Alexander Schmidt notes that there is no direct evidence that chloroform induces cancer in man and there is generally exposure of humans for only a short time and to only a small frac­ tion of the doses used over a lifetime on rodents by NCI. On the other hand, the animal findings are strong evidence that there may be a risk for humans, he says, and there are no clear benefits for chloroform use (safe alternative ingredients are available). However, FDA considers the risk to the public "so minimal" that it will not recall or seize products on the shelf, nor issue a warning to the public not to use products already pur­ chased—as urged in a court suit by the consumer activist Health Re­ search Group (HRG). And FDA notes that many producers are already ending chloroform use. For example, Colgate-Palmolive Co. is discon­ tinuing use of chloroform in its Ultra Brite toothpaste. Dr. Sidney Wolfe of HRG de­ nounces what he considers FDA's slow and inadequate response and calls its failure to end immediately all chloroform use in drugs and cosmet­ ics "completely irresponsible." HRG probably soon will seek summary court judgment to force further FDA action. The group also is preparing a possible petition for lower chloroform occupational exposure limits. Meanwhile, the Environmental Protection Agency is stepping up ef­ forts to reduce chloroform levels in drinking water, where it is produced mainly during use of chlorine for water purification. Two possibilities under study: chlorinating later in the process, after removal of humic acid compounds and other organics; using chlorine dioxide, ozone, or other al­ ternatives to chlorine. EPA has not yet prescribed limits for chloroform and other organics in drinking water because of inadequate information, but will try to shape an interim standard this year. The agency also is awaiting recommen­ dations due in December from the National Academy of Sciences. And over the agency's head hangs a suit filed last December by the Environ­ mental Defense Fund, seeking to force adoption of limits for chloro­ form and other organics in drinking water. ο

U.S. energy use down again in 1975 U.S. energy consumption was down again last year for the second year in a row. The drop was due largely to reduced energy consumption by in­ dustry, according to a preliminary report from the Interior Depart­ ment's Bureau of Mines. Other factors contributing to the decline, says BuMines, included higher fuel prices that discourage consumption, energy conservation activities, and a relatively mild winter that reduced demand for heating. Overall, demand for heat, light, and all forms of power in 1975 dropped to 71.1 quadrillion Btu's, off 2.5% from the 72.9 quadrillion Btu's consumed in 1974, and about 5% less than the 1973 record of 74.8 quadrillion—the first two-year decline since 1945-46, BuMines says. Reduced economic activity brought about by the recession doubtless ac­ counted for much of the 6% decline in industry energy use that BuMines reports. Combined with a 2% drop in consumption by households and the commercial sector, this drop easily offset slight gains in energy use posted by electric utilities and by transportation, up 0.6% and 0.5%, respectively. Electric utilities became the largest energy consumer last year, surpassing industry for the first time since BuMines began keeping records by consumer type in 1947. Although total demand for energy decreased, use of some sources of en­ ergy actually increased. Use of nu­ clear power, for example, surged 37.5% in 1975, whereas consumption of bituminous coal and lignite gained a more modest 1.7%. On the other hand, consumption of anthracite coal and natural gas declined 7.8% and 7.2%, respectively. Use of petroleum products also declined 1.9%, and consumption of hydroelectric power dropped 4%. Petroleum (including natural gas liquids), however, continued to be the U.S.'s largest energy source, supply­ ing 46% of the nation's energy needs, up 0.2% from 1974. Net crude oil im­ ports were up 15.1% from 1974 to an estimated 1.46 billion bbl despite a 26.7% drop in 1975—to 640 million bbl—in net petroleum product im­ ports. Coal and nuclear power continued to supply increasingly more of U.S. energy needs in 1975. Bituminous coal and lignite supplied 18.6% of the energy total for 1975—up slightly from 18% in the previous year; nu­ clear power provided 2.3% of the na­ tion's energy, compared with 1.7% in 1974. D April 12, 1976 C&EN

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