i f t f i T S Sr BEKflTR K S FOR THE CHEMICAL INDUSTRY
T
he long, lingering economic downturn that's been putting a damper on the U.S. chemical industry since 1990 was still very much in evidence in 1992. There were signs that the worst was probably over—all major markets for chemicals perked up in 1992, and chemical production itself started growing again after virtually running in place in 1991. But the pickup hasn't reached company bottom lines yet. Nor is it of global proportions, and the heavily trade-dependent chemical industry in the U.S. found that the mild recovery that occurred in the domestic economy wasn't enough to return the industry to the good health it enjoyed during the second half of the 1980s. As the tables and graphs on the following pages of C&EN's annual Facts & Figures report clearly illustrate, the chemical industry's performance for the past three years, though certainly disappointing when measured against the heady conditions of the late 1980s, has held up pretty well for a period of recession. Production never declined, though it essentially stopped growing in 1991, and sales dipped only slightly, falling off less than VA in 1991, a loss that was recovered last year. Just as the industry never tumbled sharply into recession, the overall message of 1992 seems to be that it won't quickly bounce back to economic prosperity, either. Earnings for the group of key chemical companies C&EN tracks dropped 7CA in 1992, which, combined with rising sales, caused profit margins to sag. Profit margins reached their lowest level since 1986, only half of what they were in 1988. The largest companies were in
38
JUNE 28, 1993 C&EN
many cases the ones with the most dis appointing earnings, and in fact, most midsize companies saw their earnings rise last year, though not enough to make u p for the losses at larger firms. Altogether 1992 was the fourth year run ning of declining earnings, profits, and return on stockholders' equity for chem ical makers. Conditions were generally worse
abroad. Particularly troubling for U.S. chemical makers was the continued de pressed market in Western Europe, where the largest chemical producers headquartered there saw their collective earnings drop 24% in 1992. Because vir tually every major U.S. chemical compa ny is also a producer of chemicals in Eu rope, poor markets there took their toll on earnings of these firms as well.
AT A GLANCE
1
PRODUCTION
Output of the U.S. chemical indus try started growing again in 1992, post ing a 3% gain both for the industry as a whole and for the 50 largest volume commodity chemicals. The growth was broad-based, but particularly strong among basic inorganic chemicals, pro duction of which rose 11%. Page 40
2
FINANCES
Chemical companies were generally less profitable last year than in 1991. Though sales edged upward at the 30 major commodity chemicals producers C&EN tracks, they did little more than regain the ground lost in 1991. Earn ings fell for the fourth straight year, and so did profit margins, though they dropped less than in recent years. But specialty chemical makers and drug firms, in many cases, saw sales, earn ings, and profits grow. Page 48
3
EMPLOYMENT
Labor Department statistics show the chemical industry recovered about half of the 10,000 jobs it lost in 1991, with all the increase coming in nonproduction areas. But employment at the largest chemical companies dropped at least 4% in 1992. More than 82,000 R&D sci entists and engineers were working in the chemical industry at the start of 1992, the most ever. Page 64
4
MARKETS
A generally recovering economy was good news for the markets of chemicals. All major end markets
that C&EN tracks did better in 1992 than in 1991, and some key markets were up strongly. Housing starts rose 23% in 1992, textile mill products rose 6%, and crop production posted a 10% gain. But some, including housing, will need more than one good year before their demand for chemicals returns to the size it was in the late 1980s. Page 68
1}
FOREIGN TRADE
After setting new highs for seven straight years, the U.S. trade surplus in chemicals slipped 13% in 1992 as chemical imports rose faster than ex ports. The reason: In a weak global economy, the U.S. economy was less weak than others. Chemical trade was up 6%r worldwide last year, with Switzerland making the greatest per centage gains in both imports and ex ports. Page 70
Κ
FOREIGN CHEMICAL INDUSTRIES
For the chemical industry in most of Europe and in Japan, 1992 was the third year of declining performance. The largest West European chemical producers saw their collective earn ings fall by one fourth, as did Japan's largest companies. In most countries of Eastern Europe, chemical produc tion continued to decline at doubledigit rates. The region as a whole has seen industrial production fall more than 40% since 1989. A notable ex ception is Poland, where chemical output grew 7% last year. Things are brighter in Canada, too, where do mestic chemical sales have nearly ended their three-year slide and chemical exports—particularly to the U.S.—are up decisively. Page 72
JUNK 28, 1993 C&HN 39
1
PRODUCTION BY THE U.S. CHEMICAL INDUSTRY
Chemical production resumed growth in 1992 roduction by the U.S. chemical industry was growing again in 1992. Output of chemicals and allied products rose 3CA, according to data from the Federal Reserve Board. Production of the largest volume chemicals, C&EN's Top 50, also rose 37,. Output for both of these categories in 1991 had been steady with the year before. Overall, 1992 was a year of solid growth for chemicals, with several segments of the industry surpassing their average annual growth for the decade. Basic chemicals, which includes chloralkalies, industrial gases, and other industrial inorganic chemicals, gained 11CA last year, nearly three times its average annual rate of 47 since 1982. Synthetic materials and agricultural chemicals each rose 77, ahead of their respective average annual gains of 47 and 37. Production of industrial organic chemicals fell 27 in 1992, according to the Federal Reserve Board. Production of organic chemicals in C&EN's Top 50, however, rose 37 last year, as it did in 1991. Most large-volume organics posted gains in 1992. Output of methyl tert-bu\y\ ether (MTBE), which rose 137, shot up to nearly 11 billion lb. Production of this oxygéna tedgasoline additive has grown 307 annually since 1982, when it was 824 million lb. Production of isobutylene, an MTBE precursor, increased 327 to 1.3 billion lb, placing this chemical, for the first time, among C&EN's Top 50. Vinyl chloride production climbed 197 in 1992, nearly twice its annual rate for the decade, and propylene output rose 5(Ά. Inorganics production in C&EN's Top 50 moved up 37 last year, reversing 1991's 17 slide. Output of most big-vol ume inorganics increased—for example, sulfuric acid output rose 27, nitrogen 77, and oxygen 97. Output of chlorine gas, on the other hand, fell 27, and that of hydrochloric acid declined 137. Production of aerosols increased 67, thanks largely to 97 increases in aerosol use for both personal products and paints and finishes.
P
40
JUNE 28, lWC&EN
Output picked up in all chemical sectors in 1992 Production, % running annual growth rate3 10
5
0
• • • • •
-5
10
1 1 1 1 1 1 1 1 1 1 1
Inorganics Organics Plastics Fibers Total
1 1 1 1 1 1 1 1 1 1 1
1988
1 1 1 1 1 1 1 1 1 1 1
1989
1 1 1 1 1 1 1 1 1 1 1
1990
11 1 1 1 1 1 1 1 1
1991
1992
a Average running annual growth rates in production of major plastics, inorganic and organic chemicals, and all chemi cals, and in shipments of man-made fibers. Sources: International Trade Commission, Bureau of the Census, Society of the Plastics Industry, Textile Economics Bureau
Basic chemicals production outpaces others Production index3, 1987 = 100 140
1 • • • _J •
All industry Chemicals & allied products Synthetic materials Basic chemicals
λ Γ-
Γ
130
yVà
1 °n
w
,
^fjr^v N,
ν*ψ^^ τ
If
QOΙ ι ι ι ι ι ι ι ι ι ι ι 1988
I I I I I I I I I I I I I I I I 1 M I I II 1989
1990
a Seasonally adjusted. Source: Federal Reserve Board
,
Ψ
•
&
V
1 Ι Ι Ι Ι Ι Ι Μ ΙΙ 1991
Ι Μ Ι Ι Μ Ι Ι ΙΙ 1992
Ι Ι Ι Ι Ι Ι Μ Ι ΙΙ 1993
TOP 50 CHEMICALS: Nearly all post gains as production for group rises 3% Rank
Billions of lb
Rank 1992
Billions of lb
1992
1991
1992
1991*
Sulfuric acid Nitrogen Oxygen Ethylene Ammonia
88.80 58.70 42.38 40.41 35.95
86.70 55.00 39.07 39.96 34.33
26 27 28 29 30
25 28 23 29 30
1991"
1992
1991
Hydrochloric acid p-Xylene Terephthalic acid1 Ethylene oxide Ethylene glycol
5.75 5.66 5.64 5.56 5.12
6.60 5.35 7.64 5.25 4.81
1 2 3 4 5
1 2 4 3 5
6 7 8 9 10
6 7 8 10 9
Limeb Phosphoric acid Sodium hydroxide Propylene Chlorine
34.72 25.36 24.02 22.60 22.28
33.86 24.11 23.43 21.55 22.84
31 32 33 34 35
31 32 33 35 34
Ammonium sulfate Cumene Potash1 Phenolk Acetic acid
4.72 4.57 3.76 3.71 3.60
4.49 4.17 3.86 3.60 3.62
11 12 13 14 15
11 12 13 15 14
Sodium carbonate0 Uread Nitric acid Ethylene dichloride Ammonium nitrate*
20.89 16.84 16.08 15.94 15.33
19.86 16.27 15.85 13.72 15.55
36 37 38 39 40
36 39 37 40 38
Butadiene1 Carbon black Propylene oxide Acrylonitrile Vinyl acetate
3.18 3.02 2.90 2.83 2.66
3.05 2.72 2.80 2.65 2.73
16 17 18 19 20
16 17 18 19 20
Vinyl chloride Benzene Ethylbenzene Carbon dioxide' Methyl ferf-butyl ether
13.23 12.01 10.99 10.91 10.86
11.70 11.49 11.45 10.34 9.57
41 42 43 44 45
44 42 43 41 45
Titanium dioxide Acetone Cyclohexane Aluminum sulfate Sodium silicate
2.53 2.39 2.21 2.18 1.80
2.19 2.35 2.31 2.37 1.74
21 22 23 24 25
21 22 24 26 27
Styrene Methanol Formaldehyde9 Xylene Tolueneh
8.94 8.73 6.98 6.38 6.03
9.01 8.71 6.61 6.32 6.30
1.75 1.39 1.38 1.34 1.29 234.23 421.93 656.16
1.70 1.29 1.28 1.59 0.97 226.97 408.72 635.69
46 Adipic acid 46 47 49 Calcium chloride"1 50 48 Caprolactam 49 47 Sodium sulfate" 50 Isobutylene — TOTAL ORGANICS TOTAL INORGANICS GRAND TOTAL
a Revised, b Except refractory dolomite, c Natural and synthetic \ d 100% basis, β (Driginal solut on. f Liquid and solid only, g 37% by weight, h All grades. 1 Includes both acid and ester without double counting, j K 2 0 basis, k Synthetic only. 1 Rubber grade. m 75% basis, solid and liquid, η High and low purity.
PRODUCTION: Basic chemicals rose 11% in yesur of overall expansion Industrial production indexes, 1987 = 100
% annual change 1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
Total index Manufacturing, tota Nondurable manufacturing Chemicals & products Chemicals & synthetic materials
106.5 106.9 105.4 115.0 115.7
104.1 103.7 103.5 111.3 111.3
106.0 106.1 104.4 111.8 114.5
106.1 106.4 103.7 109.2 112.2
104.4 104.7 102.3 106.0 107.5
100.0 100.0 100.0 100.0 100.0
95.3 94.3 94.9 94.6 93.9
94.4 91.6 91.5 91.4 92.2
92.8 89.3 90.8 91.4 92.8
84.9 80.9 87.0 87.5 88.6
81.9 76.6 82.5 81.8 79.4
Basic chemicals Alkalies & chlorine Inorganic pigments Inorganic chemicals, nee
128.9 105.4 118.2 135.0
115.8 104.2 101.5 120.6
119.0 107.2 109.0 123.8
108.4 107.4 114.0 107.7
104.7 104.9 111.4 103.5
100.0 100.0 100.0 100.0
95.1 92.1 96.2 94.7
96.1 93.6 95.1 97.2
96.9 95.3 89.0 98.0
92.1 87.9 87.3 94.3
86.5 82.1 79.1 89.2
Industrial organic chemicals
113.5
115.8
119.4
117.8
111.6
100.0
95.1
94.1
93.4
89.9
81.0
-2
3
Synthetic materials* Plastics materials Man-made fibers
110.2 108.3 110.1
102.9 101.5 103.3
105.9 106.7 102.8
107.7 106.1 110.5
104.3 104.0 103.5
100.0 100.0 100.0
91.6 88.2 93.7
86.9 84.1 86.6
88.9 81.1 93.3
84.3 74.4 92.3
71.8 64.4 76.4
7 7 7
4 5 4
Chemical products Drugs & medicines Soaps & toiletries Paints
113.5 129.3 105.0 93.8
110.9 120.6 108.4 90.6
108.8 112.6 109.4 97.1
106.3 108.6 107.3 98.9
104.7 104.9 106.4 103.8
100.0 100.0 100.0 100.0
95.9 96.7 96.7 97.5
90.2 88.5 91.3 95.7
89.0 86.9 90.6 91.8
86.6 86.1 91.4 84.6
83.0 82.7 89.2 78.8
2 7 -3 1
3 5 2 2
Agricultural chemicals
124.0
116.2
119.3
115.3
106.5
100.0
88.5
96.1
102.0
87.5
88.8
7
3
Petroleum products
102.0
101.6
103.3
102.3
101.9
100.0
98.9
92.6
92.8
89.6
89.3
0
1
109.7
104.5
107.2
106.0
102.6
100.0
90.8
85.8
83.8
74.3
65.9
Rubber & plastics products a Includes synthetic rubber, na = not available, ι
1991-92
2% 3 2 3 4 11 1 16 12
1982-92
3% 3 3 4 4 4 3 4 4
= not elsewhere classified. Source: Federal Reserve Board
JUNE 28,1993 C&EN 41
1
PRODUCTION BY THE U.S. CHEMICAL INDUSTRY
ORGANIC CHEMICALS: Many of the largest volume organics are up strongly in 1992 Production
MillmnQ nf IK unloQQ
IYIIIIIVJII9 U l IU U I I K 7 9 9
% annualI change
otherwise noted
1992e
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
Acetic acid, synthetic Acetone
3,600 2,394
3,751
3,294
3,159
3,246
2,728
2,897
2,829 1,007
2,303 2,452
1,846 2,182
1,029 1,608
829
1,636
989 1,699
1,788 2,219 716
1,575
1,283
2,146 786 1,318
2,035 663 1,232
2,748 1,694 1,997
996 a 1,569
1,910 2,349 824 1,362
2,619 1,862
2,807
2,329 2,676
2,524
Acrylonitrile
3,615 2,347 2,647
Bisphenol A 1.3- Butadiene
1,215 3,177
1,181 a 3,054
1,000
956 2,546 881 1,109 627
762 2,452
1,264 1,377
2,931 1,155
949 2,340
1-Butanol
1,340 3,169 1,194
716 1,089
Aniline Benzene, m g b c
Caprolactam Carbon tetrachloride Chloroform Cumene Cyclohexane Dioctyl phthalate Ethanol, synthetic Ethanolamines
2,609 1,016 1,631
1,149
1,241 3,121
1,320 1,284
3,088 1,269 1,379
na
315
413
na
na
505 4,284 a
484
588 4,426
4,565 2,205 na 702
2,307
4,311 2,460
270 526
310 546
1,751 1,307
2,273 306 549
727
667
8,369
9,235 162
1,261 761 524
462
422
4,455 2,297 344
4,105 2,276
3,745 2,070 296
562
40,405 15,937
39,955
149 36,467
34,988
608 9,929 152 37,204
13,713
13,849
13,383
13,028
Ethylene glycol Ethylene oxide 2-Ethylhexanol
5,123 5,560 684
4,809
5,070
5,461
5,517
5,248 657
5,355 650
5,031 612
5,953
Formaldehyde, 37%'
6,977
Isobutylene
1,286
6,612 972
6,720 1,212
5,893 1,193
Isopropyl alcohol Maleic anhydride
1,242
1,342 381 8,704
10.860 9
9,570 g
1,456 424 8,344 8,884
1,474
436 8,728
475 8,167 8,227 461
Ethylbenzene Ethyl chloride Ethylene Ethylene dichloride
Methanol, synthetic Methyl /erf-butyl ether
694 10,990 na
658 11,446 a na
Methyl chloride
859
916
772
Methyl ethyl ketone
494
Methyl methacrylate Methylchloroform
837
513 1,102 644
465 1,182
Methylene chloride Perch loroethylene Phenol, synthetic h Phthalic anhydride Propylene' Propylene glycol Styrene Terephthalic acid, dimethyl ester Toluene, m g b k Vinyl acetate Vinyl chloride oXylene
p-Xylene
720 358 243 3,707 898 22,593 na 8,942
5,637 833 2,657
389 239 3,484 a 874 a 21,549 666 9,003 a
7,654 a 873 2,732 11,142
343 574 627 9,346 155 34,951 12,197
529 543 9,020 164 32,859 12,940
5,183 4,785 662
4,771
5,733 1,035
1,389 448 8,142 5,680 597
743 6,280 1,244
5,430 571
557 1,052
643
480
908 1,027
2,353 833 977
1,915 730
646
713
573
275 2,627 1,657
405 3,754 1,994
362
299
3,345
275 649
301 1,060
537
504 7,562
1,656 300 1,077
0% 2 7
1982-92
3% 4 4
11 4
6 5
3 4 -A
10 5
7
6 6
—
—
2,743 1,275 266
7 -4
5 6
—
—
1,023
33
-4
416
5 -A
5 5
793 587
290 31,383
468 7,876 282 28,680
339 24,501
—
—
1
12,101
10,710
11,506
7,619
16
5 7
4,178 5,430
4,823
4,425 5,534
4,309 4,987
7
2
387
6 4
1 8 4
7,386 171 29,847
6,656
536
5,699 541
5,549 1,124
5,606 na
5,815 883
5,465 760
325 4,817 741
1,371 382 7,537
1,301 359 7,205
1,235 394
1,394
1,209
1,380
359 8,186
299 7,982
3,514
1,891
1,376 482
839
373
3,375 605
260 7,555 824
409
366
5,003 410
6 32 -7 14 0 13 -6
6 -1 5 1 30 9
450
482
672
600
537
1,161 783 482
1,100 724 504
1,029 694
943 652
858
543 917
531 844
468 721
675 607 573
585
-8 2
-A
678
586 584 547
595 532
498
566 414
869 467
481
516 473
3,538 940 21,846 754 8,017
3,806 917 20,571
3,562
3,351
3,115
2,841
2,889
2,638
863 16,522
820 14,887
5
6
573 7,888
500 7,622
838 13,959 484
12,535
840 8,984
870 15,559 462
6 2
805 8,337
1,035 19,019 747 8,014
2,023 684
2
999 21,224
—
6,802
400 5,942
—
7,709
-1
4
7,773 861 2,659 10,623
8,426
10,234
6,490
5,912
5,626
892
7,601 967
6,257
806 2,552
611
698 2,112
728 2,024 6,084
4,843 714
-26 -5
2 2
1,876 4,902 802
-3 19 -2
1 11
688
780 1,963 6,875 781
4,264
4,114
3,391
4
5
803 461 372
918
935 a
943
10,135 983
5,656
5,431a
5,200
5,344
13,226
1,156 672
1,859
1991-92
2,561 9,058 971
1,813 8,402 940
1,710 8,439 788
5,601
5,155
5,035
9,463 675
4,779
-A -24 12
1 2 2 -3
1
1
Note: mg = millions of gallons, a Preliminary, b Tar distillers and coke-oven operators not included, c Specification grades, d Rubber grade, e Mono-, di-, and tnethanolamines. f By weight, g C&EN estimate, h Does not include data for coke ovens and gas-retort ovens, i All grades, j Includes both acid and dimethyl ester (DMT), without double counting, k High-purity toluene, includes material used in blending motor fuel, na = not available. Source: International Trade Commission
42 JUNE 28, 1993 C&EN
INORGANIC CHEMICALS: Gases and fertilizer chemicals generally did well Production
Thousands of tons unless otherwise noted
1992e
1990
1991
1989
% annualI change
1987
1988
1986
1985
1984
1983
1982
1991-92
1982-92
0
1,092
1,185
1,227
1,243
1,237
1,227
1,222
1,268
1,129
1,119
1,154
^8%
- 1 %
Ammonia, 1 0 0 % c d
17,975
17,167
17,003
16,468
16,821
16,098
14,487
17,319
16,692
14,072
15,801
5
1
Ammonium nitrate, 100% e
7,667
7,777
7,713
7,871
7,504
6,547
6,091
7,149
7,146
6,240
7,091
-1
1
Ammonium sulfate, 100% f
2,361
2,243
2,519
2,384
2,333
2,189
2,080
2,093
2,067
1,956
1,768
5
3
11,141
11,421
11,809
11,413
11,257
11,078
10,436
10,402
10,700
9,960
9,176
-2
2
2,876
3,301
3,140
3,268
3,228
2,996
2,413
2,807
2,732
2,468
2,450
-13
2
163
152
148
146
177
173
136
121
109
103
88
7
6
na
254
238
204
168
153
152
144
139
117
108
na
na
Aluminum sulfate
Chlorine gas 9 Hydrochloric acid, 100% h Hydrogen, bcf, 100% , J Hydrogen peroxide, 100% k Nitric acid, 100% k
8,041
7,925
7,932
8,349
7,991
7,225
6,734
7,631
7,726
6,768
7,390
1
1
Nitrogen gas, bcf, 100%"
810
759
749
744
722
685
677
665
661
560
483
7
5
Oxygen, bcf, 1 0 0 % "
512
472
462
460
452
405
383
393
375
346
349
9
4
12,679
12,056
12,035
11,737
11,659
10,599
9,578
10,607
11,370
9,767
8,253
5
4
Phosphorus" 1
281
306
346
353
343
344
364
359
386
366
361
-8
-2
Sodium chlorate, 1 0 0 %
556
449
327
290
267
289
267
259
295
323
291
24
7
12,012
11,713
12,030
11,470
10,533
11,553
10,691
10,811
10,914
10,039
9,385
3
2
na
462
497
610°
549
586
617
625
675
669
651
na
na
Sodium silicate
900
870
816
833
812
952
791
692
685
710
664
3
3
Sodium sulfate, 100% q
672
794
786
755
819
799
837
1,203
901
914
864
-15
-2 3
Phosphoric acid, 1 0 0 % P205
Sodium hydroxide, 1 0 0 % Sodium phosphate
Sulfuric acid, 100% r
44,399
43,350
44,337
43,301
42,580
39,256
35,993
39,890
41,802
36,583
33,233
2
Titanium dioxide, 100% s
1,263
1,095
1,077
1,101
1,022
968
931
860
835
760
660
15
7
Urea
8,418
8,134
8,216
8,004
7,914
7,433
6,264
6,975
7,433
6,137
6,470
3
3
Note: bcf - billions of cubic feet, a Preliminary, b Commercial. 17% Al 2 0 3 ; 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 production, 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 derivatives, m Elemental, white (yellow), and red (technical), η Tripolyphosphate (100% Na5P3O10) ο Includes tetrabasic (pyro) phosphate, ρ Soluble silicate glass (water glass), solid and liquid (anhydrous); excludes amounts produced and consumed in making meta-, ortho-, and sesquisilicates. q Anhydrous, high and low purity, and Glauber's salt, r Gross (new and fortified), s Composite and pure, na = not available. Sources: Department of Commerce, Bureau of the Census
MINERALS: Lime, soda ash, and calcium chloride post gains in production in 1992 % annual change 19928
Thousands of tons Bromine, sold or used
6
Calcium chloride, production Lime, production
1991
183 0
6
0
Lithium, consumption ·'
d
1990
187
1989
195
620
d
691
17,779
17,270
d
17,452
2.5
2.9
3.0
821
d
1988
193
180 d
1987 168
1986 155
1985 160
1984
1983
193 d
1982
1991-92
1982-92
185
200
-2%
912
853
32
0
- 1 %
677
658
780
940
1,036
17,152
17,052
15,733
14,474
15,690
15,922
14,867
14,075
3
2
3.0
3.0
2.6
2.6
2.5
3.2
2.2
2.0
-13
2
628
Phosphate rock Production Exports
51,770 4,104
53,016 51,084 5,602
6,876
54,913 50,032 45,144 44,445 8,644
8,920
9,319
8,651
56,035 54,230 46,928 41,241 10,071
12,707
13,239
10,849
-2
2
-27
-4
Potash (K 2 0 equivalent)9 Production
1,879d
1,928
1,888
1,758
1,677
1,391
1,325
1,429
1,724
1,575
1,967
-3
0
Imports
4,685d
4,990
4,590
3,758
4,648
4,490
4,643
5,063
5,323
4,894
4,253
-6
1
Apparent consumption
5,842d
6,186
6,011
4,960
5,803
5,609
5,338
5,893
6,638
6,231
5,647
-6
1
Sodium carbonate, production'
10,412
9,926
10,093
9,915
9,632
8,891
8,438
8,511
8,511
8,467
7,819
5
3
Sulfur, production'
1
11,759
11,928
12,743
12,778
11,845
11,616
12,221
12,797
11,742
10,240
10,788
-1
Recovered elemental
7,769
7,326
7,205
7,176
7,103
6,791
6,411
5,857
5,747
5,462
4,855
-1
5
Frasch
2,557
3,162
4,107
4,286
3,499
3,530
4,457
5,524
4,622
3,530
4,641
-19
-1
Other production Apparent consumption
1,433
1,440
1,431
1,316
1,243
1,296
1,354
1,416
1,372
1,249
1,293
0
1
14,056
14,255
14,392
13,983
14,012
12,481
11,669
13,192
13,976
12,112
11,088
-1
2
a Preliminary data, except those for phosphate rock, b Elemental bromine sold as such or used in preparation of bromine compounds by primary producers, c 75% CaCI2 equivalent, d Estimated, e Sold or used by producers for commercial or captive use. Produced from limestone and dolomite, does not include amount regenerated by paper industry; excludes Puerto Rican production. f Lithium content basis, g Includes muriate and sulfate of potash, potassium magnesium sulfate, and parent salts; excludes other chemical compounds containing potassium, h Calculated from shipments plus imports minus exports, i Natural and synthetic until 1986, natural only in 1987-92. j Sulfur content basis. Sources: Bureau of Mines, Bureau of the Census JUNE 28, 1993 C&EN
43
PLASTICS: Thermosets output resumed growth, thermoplastics continued '90s upswing Production 1992
Millions of lb*
THERMOSETTING RESINS Epoxy b Melamine Phenolic c d Polyester*
1989
% annua1 change
1987
1988
1986
1985
1984
385 192 2,621
406 210 2,502
334
286
180 2,477
158 2,006
1,223 1,210
1,232
1,084
1,199
865 998
1983
1982
497
232 2,924
196 2,658 1,075
499 202
509 222
486 207
433 212
2,946 1,221
2,879
3,066 1,404
2,869 1,367
1,483 5,909
1,496 6,364
1,425
1,382
398 173 2,735 1,271 1,271
6,408
6,588
6,263
5,848
5,631
5,549
1,172 5,247
11,582
11,148 8,337
9,695 8,102
10,397
8,041
7,238
8,903 7,182 5,812
8,889 6,671
8,310
9,599 7,995 6,647
8,413
8,400 7,274
5,139
6,085 4,940
5,689 4,433
4,954
5,021
5,104
5,187 148 2,418
87
2,606
113 2,394
4,470 92
3,838
135 2,351
4,780 126 2,254
4,054
109 2,287
2,196
2,036
99 2,127
668
576
558
569
566
507
465
399
9,989
9,164
9,096
8,478
8,350
7,971
7,256
198 2,413
190 2,115
212 1,879
220 1,630
222 1,652
212 1,394
51,265
48,520
47,047
43,543
44,614
41,485
6,340
THERMOPLASTIC RESINS Polyethylene Low density' 11,996 9,812 High density 9 8,420
Polypropylene
1990
457
1,175 1,552
Urea TOTAL
1991
9,213 8,330
1,319 1,477
1991-92
1982-92
-8% 18 10
5% 4 4
9 5 7
3 5 4
7,503 4,928 3,477
4 7
5 7
1
9
3,570 93 1,889
3,191 91 1,380
2 5 14
5 2 7
396
321
228
16
11
6,772
6,760
6,067
5,326
9
7
195 1,175
190 965
187
186 778
177
899
648
4 14
1 14
37,746
35,202
33,744
31,067
26,949
4,313
Styrene polymers 5,049 114
Polystyrene Styrene-acrylonitrile Acrylonitrile-butadienestyrene and other styrene polymers h Polyamide, nylon type Vinyl resins Polyvinyl chloride and copolymers Other vinyl resins' Thermoplastic polyester
TOTAL
6%
7%
Note: Totals are for those products listed and exclude some small-volume plastics, a Dry-weight basis unless otherwise specified, b Unmodified, c Includes other tar-acid resins, d Gross-weight basis, e Unsaturated; estimate, f Density 0.940 and below, g Density above 0.940. h Includes styrene-butadiene copolymers and other styrene-based polymers, i Includes polyvinyl butyral, polyvinyl formal, and polyvinylidene-chloride. Source: Society of the Plastics Industry
SYNTHETIC RUBBER: Shipments post healthy gains in 1992, reversing previous year's fall Shipments" 1992
Thousands of metric tons
Styrene-butadiene rubber Polybutadiene Ethylene-propylene Nitrile-solid Polychloroprene Other 5 TOTAL
1991
1990
1989
1988
1987
% annua1 change 1986
1985
1984
1983
1982
796
727
791
827
829
847
736
753
888
881
867
463
416
431
427
430
414
384
392
433
391
343
206 74 72
192 71 70
208 69 79
225 72 79
224 75 82
205 72 81
188 64 82
174 58 82
185 65 93
155 56 88
120 50 79
315 1926
298 1774
329 1907
295 1925
355 1995
336 1955
310 1764
289 1748
323 1987
303 1874
268 1727
1991-92
1982-92
9% 11 7 4 3 6 9%
-1% 3 6 4 1 2 1%
a Includes Canada, b Includes butyl styrene-butadiene rubber latex, nitrile latex, polyisoprene, and miscellaneous others. Source: International Institute of Synthetic Rubber Producers
SYNTHETIC FIBERS: Except for acrylic, 1992 was a year of healthy expansion Production
% annual change
1992
1991
1990
1989
1988
1987
1986
1985
1984
NONCELLULOSIC FIBERS 439 Acrylic 3 2554 Nylon b
454
506 2662 1822
543 2740
588 2669 1588
592
2535
2689 1494
616 2514
631 2343
671 2412
1393
Millions of lb
Olefin 0 Polyester CELLULOSIC FIBERS Acetate 0 Rayon
TOTAL
1993 3577
1866 3411
495
9058
1983
1982
1991-92
1982-92
671
624 1927
-3% 1 7
-4% 2
5
1
2
-2
3392
2419 906 3544
3196
997
3195
1639 3594
3681
3541
3305
1249 3341
486
505
580
614
605
619
558
Γ 199 1421
229 401
196 388
8752
8690
9096
9140
8921
8447
8122
8092
8168
7027
723
}
3%
11
3%
a Includes modacrylic. b Excludes aramid since 1982. c Includes olefin yarn and monofilaments and olefin and vinyon staple, tow, and fiberfill. d Includes diacetate and triacetate; excludes production for cigarette filters. Source: Fiber Economics Bureau
44
JUNE 28, 1993 C&EN
1
PRODUCTION BY THE U.S. CHEMICAL INDUSTRY
Plastics
S y η theth ic no ncell ulosic fibers
Chlorofluorocarbons
Billions of lb
Billions of lb
Millions of lb 500 400
CFC22
CFC12 300 200 CFC11^ 100
,
, ,
0 1982 83
1982 83 84 85 86 87 88 89 90 91 92
1982 83 84 85 86 87 88 89 90 91 92
—1 1 1 1 .1 i 84 85 86 87 88 89 90 91 92
PAINTS AND COATINGS: Shipments show recovery in 1992, following one-year decline Shipments Millions of gal
1992"
1991b
Architectural
562
521
na
361
Product 0 Special purpose
1990
% annua1 change
1987
1986
1985
1984
1983
1982
536
527
498
478
457
433
374
364
340
368
352
336
294
280
1989
1988
557
537
346
360
1991-92
1982-92 4%
8%
—
—
184
168
197
179
154
146
135
145
145
130
129
10
4
na
1050
1100
1076
1054
1013
1001
975
938
857
783
—
—
TOTAL
a Calculated from quarterly data, b Preliminary, c For original equipment manufacturers, na = not available. Source: Department of Commerce
AEROSOLS: Production sets record for decade led by growth in personal products Production* Millions of units
% annual change
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1991-92
1982-92
Personal products
990
905
1050
1015
1100
964
952
879
832
747
628
9%
5%
Household products
695
690
680
680
650
640
635
630
603
586
556
1
2
Automotive & industrial products
455
450
415
475
440
379
375
342
337
303
286
1
5
Paints and finishes
380
350
350
350
331
307
297
290
307
300
295
9
3
Insect sprays
200
200
190
197
190
190
193
190
184
180
166
0
2
Food products
190
192
175
175
157
140
136
140
138
132
131
1
4
8
8
8
8
8
22
22
15
16
19
19
0
-3
273
19
Animal products
71
19
15
12
31
80
18
23
15
15
13
2989
2814
2883
2912
2907
2722
2628
2509
2432
2282
2094
Miscellaneous TOTAL
4%
6%
a Includes Puerto Rico. Source: Chemical Specialties Manufacturers Association
CHLOROFLUOROCARBONS: Output of nonhydrogenated CFCs plunged last year Production Millions of lb
1992"
1991
1990
1989
1988
1987
% annual change 1986
1985
1984
1983
1982
1991-92
1982-92
Chlorodifluoromethane (CFC-22)
na
314
306
343
333
275
271
235
254
236
174
—
Dichlorodifluoromethane (CFC-12)
38
157
209
392
414
335
322
302
337
290
258
-76%
-17%
Trichlorofluoromethane (CFC-11)
27
99
135
192
249
198
202
176
185
215
140
-73
-15
All other fluorinated hydrocarbons6
na
239
na
385
379
354
344
306
337
279
na
na
809
na
1312
1374
1162
1139
1019
1113
1020
na
TOTAL
— —
— — —
a Preliminary, b Includes other fluorohalogenated hydrocarbons, na = not available. Source: International Trade Commission JUNE 28, 1993 C&EN
45
1
PRODUCTION BY THE U.S. CHEMICAL INDUSTRY
PESTICIDES: Output dropped 18% in 1991 to its lowest level in decade Production Millions of lb 3
Herbicides Insecticides6 Fungicides0 TOTAL
% annua change
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
608 264 97 969
698 386 96 1180
697 424 111 1232
702 352 110 1164
556 379 105 1040
725 342 113 1180
756 370 109 1235
716 350 123 1189
604 306 106 1017
623 379 111 1113
839 448 143 1430
1990-91
-13% -32 0 -18%
1981-91
-3% -5 -4 -4%
a Includes plant growth regulators, b Includes rodenticides, soil conditioners, and fumigants. c Includes dithiocarbamates. Source: International Trade Commission
Pesticides
Fertilizer consumption
Millions of lb 1600
Millions of tons Potash (KjO)
1200
800 Phosphates (P 2 0 5 ) 1982 83 84 85 86 87 88 89 90 91 92 198182 83 84 85 86 87 88 89 90 91
Note: Years ending June 30.
FERTILIZER CONSUMPTION: All major nutrients showed gains in 1992 crop year (Consumption Nitrogen (N) Phosphates (P 2 0 5 ) Potash (K20) TOTAL
% annual change
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
11,400 4,210 5,045 20,655
11,179 4,151 4,984 20,314
11,076 4,345 5,203 20,624
10,593 4,117 4,838 19,548
10,512 4,129 4,973 19,614
10,210 4,008 4,837 19,055
10,424 4,178 5,053 19,655
11,493 4,658 5,553 21,704
11,092 4,901 5,797 21,790
9,127 4,138 4,831 18,096
10,983 4,814 5,631 21,428
Thousands of tons
1991-92
2% 1 1 1%
1982-92
0% -1 -1 0%
Note: Years ending June 30. Source: Fertilizer Institute
FERTILIZER PRODUCTION: Ammonia dropped to six-year low in generally poor year % annual change Thousands of tons
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
13,484 2,477 2,342 4,323
14,191 2,551 2,199 4,258
14,167 2,579 2,395 4,231
14,192 2,528 2,327 4,253
14,136 2,765 2,260 4,501
13,357 2,472 2,153 4,253
12,565 2,250 2,058 3,564
16,594 3,178 2,343 3,975
16,613 3,365 2,078 4,889
13,361 3,232 1,969 4,112
-5% -3 7 2
14,153 2,342 2,074 44,286 11,369
13,569 2,219 1,914 44,877 10,913
13,860 2,252 1,998 44,311 11,344
13,507 1,991 1,777 47,676 10,962
11,575 1,818 2,032 42,220 10,234
9,537 1,679 2,049 39,330 8,903
7,492 1,416 2,127 36,227 8,085
10,800 1,641 2,570 49,348 9,837
12,358 1,654 2,404 47,465 10,899
10,264 1,423 2,684 40,664 9,182
4 6 8 -1 4
2,337
2,387
2,350
2,316
2,243
1,810
1,715
1,713
2,168
1,928
1991-92
1983-92
NITROGEN PRODUCTS Ammonia Ammonium nitrate Ammonium sulfate Urea
0% -3 2 1
PHOSPHATE PRODUCTS Diammonium phosphate Monoammonium phosphate Concentrated superphosphate Phosphate rock Phosphoric acid (P 2 0 5 ) POTASH PRODUCTS Potassium chloride
Note: Figures are based on Fertilizer Institute surveys and may not represent the entire industry. Source: Fertilizer Institute
46
JUNE 28,1993 C&EN
3 5 3 1 0
THE AMAZING AMINES
/ H
(T>N^ \ Black spheres indicate carbon White spheres indicate hydrogen Blue sphere indicates nitrogen
CH, /
CH 3 penses and cost of sale s. b Chemical operating profit as a perciîntage of sales, c Chemical operating profit as a percentage of identifiable chemical assets, d C hemical sales include significant am ounts of nonchemical pr oducts. e Fiscal year ended Sept. 30. f Fiscal year ended June 30. g Renamed from In spiration Resources, h Fiscal year ended Nov. 30. i Fiscal year ended Aug. 31. j F"iscal year ended Oct. 31 . k Fiscal year ended Feb. 29, 1992. na = not available, nm = not meaningful, def = deficIt.
JUNE 28, 1993 C&EN
51
2
FINANCES OF THE U.S. CHEMICAL INDUSTRY
FINANCIAL ANALYSIS: Most financial measures continued to decline in 1992 Profit margin8
Air Products 3
1992 1991
American Cyanamid
1992 1991
Arco Chemical
1992 1991
Betz Laboratories
Cabot 0
Calgon Carbon
Crompton & Knowles
Dow Chemical
Ethyl
First Mississippi' 1
Freeport-McMoRan
H. B. Fuller
Georgia Gulf
B. F. Goodrich
W. R. Grace
lmcera
h
International Flavors
Lawter International
JUNE 28, 1993 C&EN
27.6% 26.7
33.3% 31.8
Sales per employee*
$222
Dividends as % of net income
33.7%
CAPITAL SPENDING* As% As% of net of plant sales
201
33.7
13.3% 17.3
71.6% 47.5% 49.2
69.3
38.8 38.7
24.4
161 158
37.0 38.0
7.8 7.9
19.3 19.4
10.7
27.0
9.9
97.3 98.7
53.0 52.1
8.5 5.6
6.1 3.7
39.0 39.8
42.9 43.8
36.6 36.9
728 645
94.9 158.9
9.9 16.0
13.2 20.1
2.2 2.4
83.0 74.0
70.5 73.0
21.2 19.8
22.2
170 167
54.8 54.4
10.5 8.8
25.8
4.0
22.5
22.9
4.0
138.5 139.9
56.6 56.4
36.5 66.0
5.0 13.4
33.9
24.8 27.6
1992
4.0
3.4
46.7
288
2.7
2.4
49.3 46.4
46.1
1991
45.8
42.6
280
1992
9.6 18.3
10.0
2.8 10.7
40.2 56.2
33.0 35.2
202
1991
138
22.8 17.1
1992
8.4
11.7
10.2
20.1
34.2
8.0
13.1
35.1
15.8
23.3 18.8
237
1991
252
32.8
1992
2.9
49.7
39.2
51.7
42.6 44.0
309 302
128.9
5.1
1.9 3.4
43.4
1991
73.6
8.5 10.2
1992
9.1 8.3
11.1 10.3
24.8 39.9
19.3
5.0 5.5
472
1991
26.4 33.2
1992
0.8
0.7
43.4
na
1.0
0.9
38.8
15.5 27.3
na
1991
na
na
140.1 111.0
1992
11.3 6.1
4.4
80.5
na
95.7
83.3
na na
na
2.3
na
na
179.9
38.8 50.9
3.8 3.2
5.1 4.5
17.3 24.7
47.4 47.7
71.2 54.2
161 152
18.0 20.2
3.7
1991 1992
5.9
255.1
na na
na na
691
7.3
8.5 11.9
164.9
1991
0 0
1992
0.4
1991
0.2
1992
7.2
17.2
429
760
0.3 0.2
32.7
11.2'
22.1
20.91
7.8' -\8.&
189 171
4.0 3.6
4.1
46.7
3.1
47.0
37.0 41.1'
11.3' 31.8J
15.6 12.0
15.4
4.2
49.0
11.8
13.4
45.5
45.0 37.7
5.9 4.7
3.8 3.0
19.8 20.1
29.4
19.2
1991
30.0
21.5
1992
7.6
17.7
35.0
36.9
1991
5.9
6.9 4.7
23.2
34.3
1992
Net plant as % of gross plant
13.0 12.8
6.1
11.5
1992
2.6% 2.7
Sales as % of assets
5.8
11.6
1992
15.6% 19.3
R&D as % of sales
7.5 7.2
11.6
11.1
2.4
100.2
55.2
29.5
2.5
101.3
59.0
11.8 35.0
2.1
89.2
74.2
2.8
62.0
77.9
13.0
2.0 2.1
147.6 145.9
60.6 90.1
6.8 6.2
74.8
41.0
21.9
76.1
42.5
5.3 6.5
19.0 21.7
2.5 2.7
32.3 32.6
50.6 51.2
6.4
12.1 16.0
0.8 0.8
112.1
8.8
112.6
56.6 63.7
28.2 35.7
na
46.7
68.9
na
44.3
67.0
15.4 14.4
2.2
166.4
3.5
2.0
168.9
56.5 59.0
1.8 3.4
6.7
na
12.8
na
185.8 201.7
64.8
8.1
2.5 2.5
14.3 18.3
59.9
638.6
7.9
16.5
8.5
18.0
3.3 3.1
103.0 108.9
55.5
1337.5
125 130
57.4 55.9
7.2 7.4
23.3 17.5
2.7 2.5
98.6 100.7
51.9 51.1
na
9.5 12.1
4.6 5.4
16.1
58.2
17.6
3.1 3.0
86.4
na
79.3
58.5
186 169
59.9 76.4
5.2
11.1 14.5
2.5 2.9
88.8 84.5
42.1
7.3
179 167
22.9 24.4
8.8
21.7
7.6
19.6
5.3 4.9
83.0
25.3
65.6 66.7
72.6
56.8
45.5
1992
15.7
68.9
59.1 54.4
5.2
17.3 18.4
6.3 6.1
51.7
68.9
266 241
88.9
0
43.3 45.6
4.4
16.6
11.6 11.4
0
1991
83.5
51.4
1992
16.1 17.3
13.0 13.3
3.7
45.1 43.3
27.5 30.0
366 307
65.0 56.5
4.5 5.8
20.6 26.0
2.4
89.4
4.3
2.5
85.8
46.6 46.3
1991
52
31.3% 33.9
4.0
% total assets abroad"
11.3
1991 Hercules
4.1%
% total sales abroad0
1991
1991 Great Lakes Chemical
Debt as % of debt plus equity
1992
1991 1
8.6% 8.5
Return on investment6
Profit margin8
Loctite
Lubrizol
Monsanto
Morton International·
Nalco Chemical
Olin
Petrolite
k
PPG Industries
Quaker Chemical
Quantum Chemical
Rohm & Haas
Sigma-Aldrich
Stepan
Sterling Chemicals
Union Carbide
Witco
9
1
Return on investment6
Debt as % of debt plus equity
% total sales abroad0
% total assets abroadd
Sales per employee*
$165
1992
11.9%
12.9%
3.6%
60.4%
64.2%
1991
13.6
14.7
6.6
60.1
66.4
156
Dividends as % of net income
CAPITAL SPENDING* As% As% of of net sales plant
R&D as % of sales
Sales as % of assets
Net plant as % of gross plant
36.2%
6.6%
28.9%
4.3%
109.1%
57.1%
31.5
6.0
27.8
4.0
106.1
56.0
1992
8.1
8.0
2.8
53.0
39.6
335
44.8
6.2
25.5
5.9
137.0
39.2
1991
8.4
7.4
4.2
53.7
42.3
277
43.1
5.6
21.7
5.4
125.3
39.5
1992
4.8
3.2
32.1
36.1
32.7
230
72.0
7.5
19.5
8.4
85.4
39.5
1991
7.0
5.5
33.9
36.4
34.2
226
41.5
6.7
17.6
8.0
96.1
42.5
1992
7.1
6.5
15.4
27.1
23.6
191
32.2
9.8
24.0
3.0
96.8
58.9
1991
7.3
7.0
18.8
29.4
23.9
187
32.7
8.6
22.6
3.1
99.0
58.8
1992
10.5
9.3
41.8
40.7
31.9
205
47.5
9.5
24.6
3.5
101.8
51.1
1991
10.9
9.1
42.7
38.6
34.2
181
50.4
11.1
27.7
3.8
93.4
51.5
1992
2.3
1.7
39.2
6.5
9.0
176
105.5
7.3
18.5
1.6
117.0
37.5
1991
3.0
2.1
43.8
7.6
10.0
158
72.4
7.8
19.7
1.8
113.1
37.0
1992
5.2
4.3
0
32.8
29.3
159
77.2
5.8
17.1
3.8
131.9
40.4
1991
4.6
3.9
0
32.4
28.5
170
86.1
6.5
19.5
3.5
132.6
41.2
1992
5.7
4.1
23.7
35.8
32.4
180
60.5
4.9
9.5
3.5
102.7
48.3
1991
4.5
3.0
29.8
36.1
34.0
168
71.6
5.8
10.4
3.9
93.7
51.2
1992
5.7
6.6
15.5
44.1
36.8
219
42.1
3.4
13.8
5.2
127.5
53.4
1991
5.6
6.3
5.0
39.8
35.1
186
44.2
4.4
17.3
5.2
122.8
54.7
1992
def
def
123.2
na
na
na
def
4.6
5.5
1.9
75.1
61.8
1991
def
def
108.8
na
na
na
def
6.3
8.1
1.9
79.2
67.3
1992
6.9
4.5
32.9
43.4
32.6
221
41.7
9.2
16.0
6.5
88.9
51.0
1991
5.9
3.9
36.8
50.1
32.8
215
49.1
9.6
18.0
6.6
95.4
48.8
1992
14.6
12.8
3.5
30.1
28.5
152
13.6
4.7
16.4
na
106.3
57.2
1991
13.5
11.4
13.6
28.5
29.3
140
14.2
4.4
13.6
na
98.8
61.5
1992
2.4
2.2
47.6
16.1
13.9
331
40.0
7.9
20.5
2.6
146.7
47.4
1991
3.0
2.9
49.7
14.2
14.2
314
28.7
8.1
21.5
2.8
152.5
48.7
1992
1.1
0.7
77.0
42.6
39.4
351
297.3
3.7
4.6
na
71.7
77.2
1991
6.8
8.6
38.8
45.2
na
571
97.2
6.3
14.9
na
150.3
74.9
1992
2.4
1.6
47.3
27.6
21.2
323
109.2
7.4
11.3
3.2
98.6
55.7
1991
0.9
0.5
34.1
27.6
17.1
292
352.3
8.2
16.0
3.2
71.4
45.1
1992
3.9
3.3
22.0
22.2
37.7
199
60.2
4.2
10.1
1.7
95.4
56.0
1991
4.5
4.7
22.3
21.1
20.9
236
52.6
4.6
15.7
1.7
136.1
47.9
AVERAGE 1992
5.3%
3.9%
36.9%
37.1%
29.3%
$225
62.7%
8.0%
16.5%
4.9%
83.5%
49.5%
AVERAGE 1991
5.4%
4.0%
37.6%
38.6%
30.7%
$216
60.9%
9.3%
19.2%
4.7%
83.2%
49.9%
Note: Net income is from continuing operations, excluding significant extraordinary and nonrecurring items where possible, a Net income as a percentage of sales, b Net income as a percentage of current assets plus gross plant, c Consolidated sales only d Foreign identifiable assets as a percentage of total assets, e Thousands of dollars, f Actual spending on new facilities and purchase of land and new equipment in consolidated businesses, g Fiscal year ended Sept. 30. h Fiscal year ended June 30. i Fiscal year ended Nov. 30. j Excludes Canada, k Fiscal year ended Oct. 31 na = not available, def = deficit.
JUNE 28, 1993 C&EN 53
2
FINANCES OF THE U.S. CHEMICAL INDUSTRY
Chemical capital spending dropped again in 1992 apital spending at major chemi cal companies fell for the sec ond year in a row in 1992. Even though the U.S. economy overall was making its first tentative steps toward recovery, chemical companies refused to commit to many capital projects be fore that recovery was well in hand. Among 25 major chemical companies, capital spending has been cut from an already declining $8.9 billion in 1991 to $7.8 billion in 1992. Spending levels thus dropped 13% in 1992 after falling 15% in 1991. The contraction of the past two years follows three years of large increases, when sales and profits were generally healthier for the group than they were in 1991 and 1992. From 1987 to 1990, chem ical capital spending for these companies grew at an average annual rate of 20%. These gains are enough to more than make up for the declines of the past two years, so that, for the decade since 1982, capital spending for these companies has risen, though the average annual
C
survey. All of the companies in C&EN's survey are what Commerce calls pro ducers of industrial chemicals and syn thetic materials. This group makes up less than half of the companies Com merce considers chemical. Whether drugmakers, in particular, are included in the group of companies being considered makes an enormous difference in the picture for the past two years, since these have been years of high profits and high capital spending for pharmaceutical companies. The 10 major drug firms that C&EN includes in its company results table collectively spent $6.9 billion in capital purchases in 1992, an 8% rise over their spending in 1991, which was, in turn, 22% higher than their spending in 1990. A second survey from the Depart ment of Commerce finds that U.S. chem ical companies modestly increased their capital spending abroad in 1992, as did U.S. manufacturers overall. However, the survey indicates companies are plan ning a roaring increase in 1993. Chemi cal companies, who raised their foreign capital investments nearly 2% in 1992, are planning to boost them 24% in 1993. All manufacturers increased spending abroad 3% in 1992 and plan to increase these levels more than 10% in 1993.
rate—just under 2%—is less than the rate of inflation for the decade. Capital spending as a percentage of sales for these 25 companies also fell in 1992 to 8.3% from 9.4% in 1991. By this measure, too, 1992 was the second year in a row of decrease. However, the val ue was pretty much in line with capital spending by this measure for the decade as a whole: The median value for the de cade since 1982 has been 8.4% of sales. The Department of Commerce's sur vey of the chemical industry, based on a much larger number of companies, por trays a very different picture of capital spending trends. Commerce's data show a 7% increase in chemical industry capi tal expenditures in 1992 to $23 billion. These data project a much smaller gain—less than 1%—for the industry in 1993. A reason for the discrepancy between the two surveys is that the Commerce Department includes manufacturers of chemical products—such as pharmaceu ticals, soaps, toiletries, and paints—in its
INDUSTRY CAPITAL SPENDING: For chemicals, 1993 calls for further growth 1993a
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
$183.35 23.17 5.75 2.43
$173.90 23.01 5.67 2.66
$182.Ρ* 21.52 6.53 2.81
$192.61 20.63 7.78 2.88
$183.80 18.47 7.87 2.64
$165.70 19.25 6.16 2.77
$145.90 16.42 4.69 2.16
$142.69 16.81 3.32 1.93
$153.48 16.44 4.12 1.88
$138.82 15.32 3.54 2.13
$116.20 12.96 3.25 1.74
11.00 32.43 3.50 4.24
10.52 29.54 3.84 3.32
11.50 35.59 3.43 2.89
16.53 34.79 3.48 3.29
15.58 30.08 3.79 4.00
11.23 19.93 3.86 3.59
9.01 17.12 3.52 3.37
8.77 17.92 3.89 3.14
8.59 26.71 3.86 3.40
7.21 25.53 3.11 3.09
5.92 23.14 2.46 2.77
$ Billions
All manufacturing Chemicals Iron & steel Nonferrous metals Paper Petroleum Rubber Stone, clay, glass
a Estimate Source: Department of Commerce
U.S. chemical firms increased capital spending abroad in 1992 and plan further increases $ Billions3
All manufacturing Chemicals & allied products Metals, primary & fabricated Petroleum
$32.4 8.2 1.1 20.0
$29.4 6.6 1.1 19.6
$28.5 6.5 1.1 18.6
$31.1 6.9 1.9 15.9
a By majority-owned affiliates of U.S. companies b Planned. Source: Department of Commerce
54
JUNE 28, 1993 C&EN
$28.6 6.4 1.8 14.5
$22.4 4.9 1.2 13.3
$17.2 3.7 0.8 9.8
$16.4 3.1 0.9 9.6
1985
1984
1983
$14.9 2.7 0.9 13.7
$13.6 2.4 1.0 14.1
$13.6 2.3 0.9 15.9
Chemical capital spending continues to decline both in absolute terms and as a portion of sales Capital spending as % of sales3 12[
$ Billions3 12 r
Ol 1982 83 84 85 86 87 88 89 90 91 92
1982 83 84 85 86 87 88 89 90 91 92
a Worldwide data for 25 major chemical producers. Source: Company data
CHEMICAL CAPITAL SPENDING: Down for second year in a row for major companies 1990
$ Millions
1987
1986
1985
$ 428
$ 506
468
$ 414
$ 387
$ 323
$ 367
$ 392
$ 263
$ 246
$ 347
410 78 13
392 198 11
376 174 16
398 192 13
374 170 7
1608
1908
2,119
1764
1267
268 83 4 995
263 80 4 890
203 184 3 806
200 505 3 781
165 80 2 630
171 152 3 829
2058
2045
2608
2106
1735
1357
1229
1176
166 30 219 447
152 31 243 514
119 41 240 485
151 40 181 418
139 30 143 243
134 13 144 199
90 15 202 348
989 103 13 153 380
888 85 15 115 353
1212
157 34 200 398
Great Lakes Chemical Hercules Loctite Lubrizol Monsanto
69 150 40 96 586
71 214 34 82 591
49 273 29 77 750
40 293 24 65 607
47 251 15 55 590
35 205 17 42 505
18 257 11 41 520
21 234 9 40 645
29 218 10 30 614
20 168 9 25 560
29 174 9 52 673
Nalco Chemical Olin P P G Industries Petrolite Quaker Chemical
131 173 282 18 7
137 177 335 22 8
115 187 567 18 13
86 142 671 19 8
62 147 410 20 5
57 115 499 19 4
64 128 498 25 5
60 154 452 24 6
53 165 315 11 4
41 123 450 9 2
56 129 452 24 2
Quantum Chemical Rohm & Haas Stepan Union Carbidec Witco
109 283 34 359 73
161 265 34 817 74
459 412 38 744 91
589 385 34 785 70
334 338 20 671 72
154 222 26 502 69
102 179 14 524 60
76 159 19 649 76
116 124 12 670 85
71 72 10 761 55
66 126 16 1179 54
$7767 28%
$6056 5%
$5769 -5%
$6043 3%
$5846 18%
$4955 -25%
$6568 5%
ι Air Products American Cyanamid Cabot8 Crompton & Knowles D o w Chemical
Du Pontb Ethyl H. B. Fuller B. F. Goodrich W . R. Grace
TOTAL ANNUAL CHANGE
$
$7794c $8944 $10,523 $9590 -13%c -15% 10% 23%
92 17 144 560
Note: Figures are for worldwide spending on construction, equipment, and land in consolidated businesses. Where possible, acquisition costs and investments in nonconsoi'dated businesses are excluded. Prior years are not restated to reflect company revisions, a Includes acquisitions and investments, b Excludes Conoco, c 1992 data exclude Praxair, spun off June 30, 1992. Source: Company data
JUNE 28,1993 C&EN
55
R&D spending resumes growth in real terms $ Billions3
R&D spending as % of sales3 $ Current
^ ^
^^^rA $ Constant 1982
I I I I I I I I I 1 I 1982 83 84 85 86 87 88 89 90 91 92 1982 83 84 85 86 87 88 89 90 91 92 a R&D spending by 15 major chemical producers. Sources: Company data, Battelle, Columbus
R&D SPENDING: Up strongly for chemicalfirmsin 1992 and for many others as well 1992
$ Millions
1991
1989
1987
1985
1986
1984
1983
CHEMICAL COMPANIES Air Products 8 American Cyanamid
$
85
$
80 492
94
74
71
65
45 62
648
$
44
81
73
76 34 44
72
74
74
39 51
32 33
32 37
615
596
470
370
290
31 36 264
35
31
29
25
30
23
7
41
37 58 12
35 62 12
33 56 12
32
66 12
32 52
30 49
12
175 181
156 159
142
133
13 100
33 45 10 92
74
80 627
70
612
598
61
59
48
38
48 39 12
47 41
45 66 12
199 155 f
183 190
178 191 $ 3,256
$ 3,561 f $ 3,336 2% 7% f
$
92
50
11
61
40
79 52
Nalco Olin
$
40 208 492 39
92 57 74
Morton lnternational c,d,e
57 314
51 251 547 47
119
90
$
278 605 47
125
651
Union Carbide TOTAL ANNUAL CHANGE
72
148
86 62
Petrolite Rohm & Haas
$
873 61
70 71
Monsanto
71
1,136 65
69 150
Hercules International Flavors Lubrizol
$
365 772 59
1,159
W. R. Grace
72
406
73 151
Dow Chemical Ethyl b
$
460
566 1,289
670 50 107
232 507
53 12 124
109 265
$
159 148 275 245 $ 2,848 $ 2,681 $ 2,435 $ 2,253 $ 2,133 $ 1,911 $1745 14% 6% 10% 8% 12% 6% 10% 8%
$
37 185 460 39 64
240 $1617 14%
PHARMACEUTICAL & DIVERSIFIED (:OMPANIE :s Allied-Signal 0 AT&T Bell Labs Bristol-Myers Squibb Du Pont Eastman Kodak Eli Lilly FMC IBM Merck & Co. 3M Pfizer PPG Industries Procter & Gambled Schering-Plough Upjohn TOTAL ANNUAL CHANGE
$
320 3,200 1,083 1,277 1,587
$
381
$
381 2,800 789 1,387
1,329
1,253
767
703 158 4,419 854
605
135 5,001 998 914
863 203 861 522 549
757 220 786 426 491
5%
426 2,900 881 1,428
925 145 5,003 1,112 1,007
$18,657
$
3,100 993 1,298 1,494
$
415 2,660 688
$
400
$
459
295
$ 280
1,900 344 1,097
2000 301
1,156
1,900 412 1,144
966
$ 186 2020 260 879
1,059
976
838
746
710
427
370 149 3,457
341
294
267
121
102 2500 356
105 2050
426 520
3,148 393 454
396
320 349
287 176 400 175 284
255 150 369 164 247
230 127 327 145 218
199 127 286 127 185
$8988
$8070
2,100 474
1,319 1,147
2,250 563 1,223 992
512 144
466 132
865
150 5,201 751 784
4,419 669 721
3,998 566 650
146 3,975 480 586
640 218 693 380 427
531 233 628 327 407
473 232 615 298 380
401 227 549 251 356
336 204 479 212 314
$
343
$
$17,751 $16,321 $16,227 $14,692 $13,024 $12,407 $11,019 $10,116 9% 13% 13% 10% 1% 5% 9% 13%
11%
21%
Note: Prior years are not restated to reflect company revisions, a For fiscal year ending Sept. 30. b Beginning in 1989, excludes Tredegar Industries, spun off in 1989. c Includes all company-financed R&D but excludes contract R&D. d Fiscal year ends June 30. e Data for Morton Thiokol prior to 1985. f Excludes Praxair, spun off June 30, 1992; in 1991, R&D spending for the parts of Union Carbide that became Praxair contributed $33 million to the company's total. Source: Company data
56
JUNE 28, 1993 C&EN
2
FINANCES OF THE U.S. CHEMICAL INDUSTRY
Sales growing for biotechnology firms iotechnology companies with major biopharmaceutical prod ucts on the market saw sales leap in 1992. For example, combined sales of Amgen's two leading products rose 63%, breaking the $1 billion mark. Although sales were up overall, only a handful of companies were profit able. Profits have been kept at bay by costs related to acquisitions, mergers, building company infrastructure, and high R&D spending. The stock market has responded both to the promise of biotechnology compa nies and the problems facing them. After stocks reached an all-time high in early 1992—following the most lucrative fi nancing year in the industry's history— prices have had some severe ups and downs in 1992 and into 1993.
B
Biotechnology stock prices reached peak early in 1992 Stock price index, close 1990 = 100a 280 High Close 260 Low
240
220 200
r+
l·
H^
180 160
-^-t-r-t-
44 rr
140 120 100 80
_L J J I I L I I I I L J I I I I I I L JL· F M A M J J A S O N D J F M A M J J A S O N D J F M A M 1991b 1992 e 1993 e a C&EN Biopharmaceutical stock price index based on share prices of Amgen, Applied Bioscience, Biogen, Centocor, Chiron, Cytogen, Genentech, Genetics Institute, Immunex, Repligen, and Xoma. b Based on Friday close each week. c Based on daily close.
COMPANY RESULTS: Biotechnology leaders show growth over three years NET INCOME Net sales
Net income
R&D spending
R&D as % of sales
Total assets
Net plant and equipment
Stockholders' equity
% of sales
%of «stockholders equity
Sper share
Stock price range, $ per share
Priceearnings ratio
(Money figures in millions of dollars unless otherwise indicated)
Amgen 1992 1991 1990c
$1050.7 645.3 281.4
$357.6a 97.9b 3.9d
$182.3 120.9 72.4
Biogen 1992 1991 1990
$121.7e 56.5e 44.9e
$38.3 7.2 7.7
$60.4 44.3 36.2
Chiron 1992' 1991 1990
$111.6 28.2 14.7
$(95.9)9 (425.2f 4.0'
$142.9 79.4 50.2
Genentech 1992 $391.0 1991 383.3 1990 367.2
$20.8 44.3 (98.0)'
$278.6 221.3 173.1
Genzyme 1992 1991 1990
$180.0 81.1 34.6
$39.5k 11.2' (27.2)m
$39.7 27.2 18.6
Immunex 1992 1991 1990
$51.9 34.2 4.9
$(77.6)n 0.8 (9.9)
$37.1 29.4 23.2
17.4% $1374.3 18.7 865.5 25.7 459.5
$426.0 245.7 150.0
$933.7 531.1 309.1
34.0% 15.2 1.4
38.3% 18.4 1.3
$2.43 0.67 0.30
$77 3/4-50 75 3/4-18 7/8 21 3/16-7 1/2
26.3 70.6 478.1
49.6% 78.4 80.6
$311.2 253.1 158.5
$32.3 28.7 23.6
$284.9 239.0 145.7
31.5% 12.7 17.1
13.4% 3.0 5.3
$1.12 0.15 0.07
$49 3/4-181/4 49-24 1/4 29 3/8-14 3/8
30.4 244.2 312.5
128.0% 281.6 341.5
$712.4 895.3 265.4
$89.6 78.0 24.5
$492.9 524.4 120.3
27.2%
3.3%
$(3.18)g (22.12f 0.24'
$73 3/4-34 3/4 77 1/2-37 1/4 44 3/4-23 1/2
142.2
71.3% $1305.1 1231.0 57.7 47.1 1157.7
$432.5 342.5 300.2
$1007.3 949.7 893.2
5.3% 11.6
2.1% 4.7
$0.18 0.39 (1.05)
$39 1/2-25 7/8 36 1/4-20 3/4 30 7/8-20 1/8
181.6 73.1
22.1% 29.1 53.8
$480.7 390.5 118.1
$87.9 32.1 29.5
$322.9 259.9 96.2
21.9% 13.8
12.2% 4.3
$1.83k 0.50' (1.70)
$66 1/2-32 1/2 58 3/4-23 3/8 28 5/8-121/2
27.0 82.1
71.5% 86.0 473.5
$235.8 254.0 121.1
$97.0 73.1 36.3
$134.0 212.2 106.5
2.3%
0.4%
$(5.21) 0.05 (1.10)
$68-22 1/2 61 1/2-33 1/4 40 1/4-15 1/2
947.5
a Includes $77 million pretax legal award, b Includes $129 million pretax legal assessment, c Figures reflect change in fiscal-year end from March 31 to Dec. 31 that occurred in 1991. d Includes $54.7 million royalty buyout, e Includes royalty income from licensees' sales of several major products, f Includes results of Cetus following Dec. 12, 1991, acquisition, and of Intraoptics following Jan. 8, 1992, acquisition g Includes $40 million write-off of technologies but excludes $6.7 million loss from retirement of debt ($0.22 per share), h Includes $426 million charge for acquiring Cetus but excludes $100,000 gain for operating loss carryforward ($0.01 per share), i Excludes $2.8 million gain for operating loss carryforward ($0.16 per share), j Includes $167.7 million charge related to merger with Hoffmann-La Roche, k Excludes $51 million purchase of R&D, $17 million purchase of option rights, and $1.8 million charge for Vivigen acquisition ($3.24 per share). I Excludes $8.4 million gain for operating loss carryforward ($0.37 per share), m Includes $20.8 million purchase of R&D and $9.1 million repurchase option, η Includes $58.7 million purchase of R&D.
JUNE 28, 1993 C&EN 57
2
FINANCES OF THE U.S. CHEMICAL INDUSTRY
Explanation of column headings in tables of company results Year. Data are for calendar year un less otherwise indicated. Net sales. Gross sales, less dis counts, allowances, and returns; gen erally excludes excise taxes and other operating income or revenues. Net income. Net sales and other in come, less operating costs, nonoperating charges, depreciation, deple tion, interest expense, deferred charg es, minority interest in income, and taxes. Nonrecurring or extraordinary credits and charges have been ex cluded in most cases, and are indicat ed by a footnote. 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 accu
mulated depreciation, amortization, and depletion. Capital expenditures. Total spend ing during the year for new fixed as sets, such as plant, equipment, and land, and for replacement and mod ernization of facilities. Stockholders' equity. Equity at year's end of preferred and common stockholders, including value of capital stock, capital and earned sur plus, and surplus reserves, as well as contingency and miscellaneous reserves for which no definite pur pose is stated. Intangible assets are deducted insofar as possible. Net income (breakdown). Percent of sales: net income divided by net sales. Percent of stockholders' equity: net income divided by stockholders' equity. Dollars per share: net income, less preferred dividends, divided by the number of shares of common stock outstanding. All figures are
adjusted for stock splits, but no ad justment 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 divi dends paid (or declared) on each share of common stock; excludes the value of stock dividends, which are indicated by a footnote. Dividend yield. Dividends per share divided by the average of the high and low prices of the common stock during the calendar year. Stock price range. High-low mar ket prices of common stock during the year, adjusted for stock splits but not for stock dividends. Price-earnings ratio. Average of the high and low prices of the common stock during the year divided by net income per share.
COMPANY RESULTS: Earnings fall for largest chemical firms, others generally profitable Year
Net sales
Net income
Total assets
Net plant and equipment
Capital expenditures
Stockholders' equity
%of sales
NET INCOME %of stockholders' equity
$per share
Divi dend, $ per share
Divi dend yield, % of price
Stock price range, $ per share
Priceearn ings ratio
(Money figures η millions of dollars unless otherwise indicated)
CHEMICALS Air Products 1992 s $3217 1991 a 2931 e 1990 2895 e 1989 2642
$4420 4163 3845 3313
$2745.7 2622.6 2485.1 2217.6
$427.5 506.4 467.5 413.7
$2026 1777 1634 1393
8.4% 8.5 7.9 8.4
13.4% 14.0 14.1 16.0
$2.40 2.22 2.07 2.02
$0.805 0.75 0.69 0.63
1.7% $ 4 9 7 ^ 3 1 % 37-211/2 2.6 2.7 30V^21 1 /2 2.9 24 3 /8-18%
19.4 13.2 12.5 10.7
American Cyanamid 1992 $5268 $395.1 358.8 1991 4986 107.8 b 1990 4570 1989 4825 292.0
$5209 4838 4864 4720
$2119.8 2018.9 1906.0 1757.0
$410.0 392.1 375.5 397.6
$2518 2387 2335 2070
7.5% 7.2 2.4 6.1
15.7% 15.0 4.6 14.1
$4.35 3.85 1.15b 3.12
$1.61 1.46 1.35 1.31
2.7% 2.5 2.2 2.5
$66%-52 1 /8 69-48V2 61 1 /2-^2 60%-45 5 /8
13.6 15.3 5.3 17.0
Arco Chemical 1992 $3098 1991 2837 1990 2830 1989 2663
$197.0 C 188.0 308.0 d 405.0
$3599 3676 3739 2655
$2230.0 2166.0 1768.0 1263.0
$295.0 435.0 539.0 262.0
$1630 1696 1758 1591
6.4% 6.6 10.9 15.5
12.1% 11.1 17.5 25.5
$2.05 c 1.96 3.21 d 4.22
$2.50 2.50 2.50 2.125
6.0% $471/4-361/2 6.4 44V4-33V8 44 1 / 4 -29 3 /4 6.8 6.1 403/e-283/4
20.4 19.7 11.5 8.2
$82.0 75.5 65.5 55.9
$5059 471 421 359
$288.4 254.6 233.5 201.5
$74.3 58.4 57.5 53.0
$293 254 214 173
11.6% 11.3 11.0 10.8
28.0% 29.8 30.6 32.3
$2.71 2.47 2.12 1.76
$1.33 1.20 1.01 0.89
2.3% 2.4 2.7 3.2
$66 1 /4^8 1 /4 62-38% 431/4-303/4 31 1 /8-23 5 / 8
21.1 20.4 17.5 15.5
Borden Chemicals & Plastics $27.1 $467 1992 $402 507 1991 410 51.6 544 45.3 1990 421 550 1989 466 69.5
$335.1 369.2 395.8 417.2
$10.5 18.0 22.1 28.2
$261 293 315 342
6.7% 15.7 10.8 14.9
10.4% 17.6 14.4 20.3
$0.73 e 1.39e 1.22e 1.87e
$1.59 e 1.98e 1.95e 2.45 e
9.0% 17.1 19.0 14.4
$22 7 /8-12% e 14 3 /4-8% e 123/4-73/4e 24-10e
24.1 8.3 8.4 9.1
Betz Laboratories 1992 $707 1991 666 1990 597 1989 517
$271.0 248.9 229.9 222.1
a Fiscal year ends Sept. 30. b From continuing operations; excludes net income from discontinued operations of $245.0 million ($2.56 per share) but includes special net costs of $206.2 million ($2.15 per share) to consolidate product lines, reduce carrying costs, increase environmental remediation costs, and reduce employees, c Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $2.0 million ($0.02 per share), d Excludes net gain from cumulative effect of change in accounting for income taxes of $43.0 million ($0.45 per share), e Per partnership preference unit.
58 JUNE 28, 1993 C&EN
Net sales
Year
Total assets
Net income
Net plant and equipment
Capital expenditures
Stockholders' equity
% of sales
NET INCOME %of stockholders' equity
$per share
Divi dends, $per share
Divi dend yield, % of price
Stock price range, $ per share
Priceearn ings ratio
(Money figures in mill ions of dollars unless otherwise indicated)
Cabot
1992 a 1991 a 1990 a 1989 a
2.6% 3.5 3.3 2.5
$52%-28 1 /8 35 7 /e-23 37V2-25 45-3478
12.6 17.4 11.4
—
$3.18 $1.04 1.04 1.69b 1.04 2.73 c d (0.40) 1.01
8.4% 8.0 7.7 6.9
24.5% 33.2 34.5 34.3
$0.87 e $0.31 0.25 0.73 0.195 0.61 0.145 0.50
1.6% 1.6 2.1 2.5
$23 7 /e-16 20 1 /4-8% 11 1 /2-6%
22.9 21.8 15.0 11.6
$260 250 278 242
4.0%
14.7%
—
15.1 17.8
$1.58 $0.88 (0.29) c 0.88 1.74 0.88 0.82 1.73
3.6% 3.9 4.1 3.0
$281/e-207/8 261/8-181/2 24V2-18 34%-20 1 /8
15.5
—
$1,467 1,365 1,627 1,401
$703.2 670.4 878.7 743.2
$78.1 198.0 174.4 192.3
$406 329 466 472
4.0% 2.7 4.2
Crompton & Knowles 1992 $43.3 e $518 35.9 450 1991 30.0 390 1990 24.5 356 1989
$316 276 252 190
$98.8 80.2 76.7 50.8
$12.8 11.4 16.4 13.4
$177 108 87 71
Dexter 1992 1991 1990 1989
$726 721 697 611
$298.9 299.3 274.1 252.9
$52.0 61.5 43.9 33.1
$1,557 1,482 1,673 1,937
$951 938 908 849
$62.2 39.8 b 71.0 (6.5) c
$38.2 (7.1 )c 42.1 43.0
d
—
4.6 5.1
15.3% 12.1 15.2
7 7 /8-3 3 /4
—
—
12.2 15.9
Dow Chemical $18,971 1992 18,807 1991 19,773 1990 17,600 1989
$276.0' 942.0 1384.0 2487.0
$20,978 20,418 19,764 18,169
$8,801.0 8,775.0 8,249.0 7,642.0
$1595.0 1908.0 2119.0 1764.0
$3,682 5,132 4,539 3,960
1.5% 5.0 7.0 14.1
7.5% 18.4 30.5 62.8
$0.99' 3.46 5.10 9.20
$2.60 2.60 2.60 2.18
4.6% 5.1 4.6 3.4
$62 7 / 8 -51 VA 58-44V8 75%-37 72V4-55V2
57.6 14.8 11.1 6.9
Du Pont 1992 1991 1990 1989
$975.0 9 $38,409 35,596 1403.0 37,332 2310.0 33,829 2480.0
$21,882.0 20,610.0 21,102.0 18,876.0
$4448.0 5065.0 5383.0 4285.0
$11,304 16,218 15,622 14,912
2.6% 3.6 5.8 7.0
8.6% 8.7 14.8 16.6
$1.43 9 $1.74 2.08 1.68 1.62 3.40 1.45 3.53
3.5% 4.1 4.3 4.1
$547/8-431/2 50-32% 42 3 /8-31% 421/8-285/8
34.4 19.9 10.8 10.0
$37,799 38,695 40,047 35,534
Ethyl 1992 1991 1990 1989
$2,975 h $269.4' 206.7 2,575 h 2,514 h 232.2 h 2,432 219.0
$9,070 7,785 6,589 5,507
$829.8 766.7 677.0 579.8
$157.4 166.1 151.8 119.1
$1,267 1,100 947 777
9.1% 8.0 9.2 9.0
21.3% 18.8 24.5 28.3
$2.27' 1.75 1.95 1.83J
$0.06 0.60 0.60 0.51
2.2% 2.2 2.2 2.0
$301/2-233/4 33-22V4 33-20V2 29-21 Ye
11.9 15.8 13.7 13.7
Ferro 1992 1991 1990 1989
$1,098 1,057 1,125 1,084
$58.8 36.5 k 19.4 49.7
$674 668 672 655
$227.6 234.7 255.9 220.0
$44.8 39.0 59.7 49.6
$323 301 292 283
5.4% 3.5 1.7 4.6
18.2% 12.1 6.6 17.6
$1.90 1.16k 0.55 1.53
$0.45 0.43 0.43 0.40
1.6% 2.4 2.7 1.9
$311/2-231/2 25 5 /8-10 1 / 8 191/2-111/2 27V2-15
14.5 15.4 28.1 13.8
$4.2 5.3 4.4 16.5
$448 457 497 472
$277.3 294.6 310.0 280.0
$33.6 47.2 64.6 107.0
$168 168 175 187
0.8% 1.0 0.9 3.8
2.5% 3.2 2.5 8.8
$0.21 0.27 0.22 0.81
$0.30 0.30 0.30 0.285
2.6% 3.0 1.9 1.6
$14 7 /8-8 12%-7 3 /4 19 1 /4-11% 20V2-14V2
54.5 37.3 70.2 21.6
$3,547 3,565 3,101 3,071
$2,276.9 2,253.8 2,204.5 2,290.8
$653.2 878.6 630.4 461.9
$346 388 337 138
11.3% 6.1 17.9 6.0
28.8% 24.9 84.1 85.7
$1.17 $1.25 0.69 m 1.25 1.25 2.35 1.25 0.83
6.1% 6.7 7.4 7.7
$221/2-161/2 211/2-157/8 19-15 19-13V2
17.5 65.7 7.2 19.7
1.1% 1.4 2.4 2.1
$531/4-325/8 38%-18 7 /8 19Ve-133/4 227/e-137/8
16.8 14.3 10.7 16.9
_ — —
$285/e-153/4 243/4-87/e 11-4 7 /e p 59 7 /e-36
12.7 9.6 2.6 6.3
First Mississippi 19921 $525 537 1991' 498 1990' 433 1989'
Freeport-McMoRan 1992 $1,655 $187.8 96.7 m 1,579 1991 283.5 1990 1,581 118.3 1989 1,958 H. B. Fuller 1992" 1991" 1990" 1989"
$934 853 792 753
$35.6 27.7 21.1 15.7
$549 491 468 428
$223.2 207.4 202.3 186.6
$34.4 30.0 31.5 40.9
$242 201 175 159
3.8% 3.2 2.7 2.1
14.7% 13.8 12.1 9.9
$2.55 2.00 1.53 1.09
$0.46 0.41 0.40 0.38
Georgia Gulf 1992 $779 1991 838 932 1990 1,104 1989
$46.3 61.5 95.3 192.0
$419 416 457 456
$221.7 220.6 214.7 209.1
$14.3 28.3 58.1 54.2
$(161)° (358)° (424)° 306
5.9% 7.3 10.2 17.4
— —
$1.18 1.75 3.07 7.58
0 0 0 $1.00
62.8%
2.1%
a Fiscal year ends Sept. 30. b From continuing operations; excludes net income from discontinued operations of $9.5 million ($0.45 per share) and net gain on disposition of discontinued operations of $77.9 million ($3.66 per share), c Net loss, d From continuing operations; includes pretax loss on restructuring of energy group of $71.7 million but excludes net gain from sale of discontinued operations of $24.6 million ($0.95 per share), e Excludes net loss from early extinguishment of debt of $3.0 million ($0.06 per share) and net loss from cumulative effect of changes in accounting for health benefits for retirees of $5.8 million ($0.12 per share), f Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $765.0 million ($2.82 per share), g Excludes net loss from early extinguishment of debt and from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $4.90 billion ($7.28 per share), h Includes insurance business revenues, i Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $14.4 million ($0.12 per share), j From continuing operations; excludes income from spun-off aluminum, plastics, and energy businesses of $11.9 million ($0.10 per share), k Excludes restructuring charge, after taxes, of $31.7 million ($1.11 per share). I Fiscal year ends June 30. m Excludes net loss from changes in accounting for health benefits for retirees of $55.7 million ($0.40 per share), η Fiscal year ends Nov. 30. ο Deficit, ρ After recapitalization on April 27; prior to recapitalization, $455/e-36'/4.
JUNE 28, 1993 C&EN 59
Δ
FINANCES OF THE U.S. CHEMICAL INDUSTRY
Net sales
Year
Net income
Total assets
Net plant and equipment
Capital expenditures
Stockholders' equity
%of sales
NET INCOME %of stockholders' equity
$per share
Divi dend, $per share
Divi dend yield, % of price
Stock price range, $ per share
Priceearn ings ratio
(Money figures in rrtillions of dollars unless otherwise indicated) B. F. Goodrich 1992 $2526 1991 2472 1990 2433 1989 2420
$(9.4)ab (80.6) a 115.8C 171.2 d
$2206 2038 2198 2103
$1215.8 1171.0 1109.3 991.5
$200.2 211.2 243.0 240.4
$583 989 1200 1117
4.8% 7.1
W. R. Grace 1992 $5518 1991 6049 1990 6754 1989 6115
$79.4 e 219.2* 202.8 256.6 9
$5300 $5698 5876 5321
$1707.9 2558.2 2462.1 2220.0
$398.4 447.0 513.7 484.6
$1246 1744 1562 1433
1.4% 3.6 3.0 4.2
Great Lakes Chemical $232.7 1992 $1496 157.5 1991 1308 140.8 1990 1066 122.9 1989 792
$1432 1420 1201 935
$429.8 405.6 363.7 275.9
$69.4 71.2 48.6 40.5
$753 672 538 428
Hercules 1992 $2865 1991 2929 1990 3200 1989 3092
$167.9 94.9 96.0 (96.4) h l
$3228 3467 3700 3653
$1348.3 1476.3 1449.9 1416.5
$150.1 214.5 272.6 292.6
$1746 1918 1942 1897
5.9% 3.2 3.0
9.6% 4.9 4.9
—
—
Imcera Group 1992* $1703 1991' 1634 1990 1425 j 1989 983
$128.8 k 97.2' 58.9 m 110.3 n
$1672 1884 1751 1753
$692.1 630.2 585.8 480.2
$150.4 123.4 85.7 82.2
$846 718 445 670
7.6% 5.9 4.1 11.2
IMC Fertilizer Group $90.9° 1992' $1059 95.8 1991 1 1131 82.6 1990* 1106 j 137.3 1989 1222
$1778 1739 1585 1678
$1266.8 1220.9 1144.1 1144.1
$177.7 168.5 94.3 55.3
$615 699 820 765
International Flavors & Fragrances $1268 $176.6 P 1992 $1126 168.7 1217 1991 1017 156.7 1129 1990 963 969 138.6 1989 870
$286.4 289.6 266.9 236.5
$51.1 54.1 42.9 34.2
$36.6 34.3 28.6 24.4
$7.5 8.9 6.2 3.1
$139.0 120.6 104.0 82.2
$1112 1154 1097 960
$8019 7937 7811 6922
Lawter International $27.0 1992 $168 26.5 1991 153 23.4 1990 150 19.5 1989 136
$187 178 153 134
Loctite 1992 1991 1990 1989
$479 447 458 402 q
Lubrizol 1992 1991 1990 1989
$608 561 555 474
$72.3 71.9 67.4 58.2
$1545 1468 1445 1220
$124.6 123.7 127.1 r 94.0
Monsanto 1992 $7763 1991 8864 1990 8995 1989 8681
$(126.0) a s 296.0' 546.0 U 679.0 V
— —
9.6% 15.3
$(0.69) ab (3.50) a 4.20 c 6.23 d
$2.20 2.20 2.12 2.00
4.5% 5.3 5.5 3.7
6.4% 12.6 13.0 17.9
$0.88 e 2.51 1 2.36 3.01g
$1.40 1.40 1.40 1.40
30.9% 23.4 26.2 28.7
$3.27 2.23 2.00 1.76
— —
— —
$58Ve-395/8 47%-36 47%-29 1 /2 69-38 1 /2
9.2 8.6
3.6% 4.4 5.5 4.4
$45-32 40 3 /4-23% 33%-17 39 1 /8-25 1 / 8
43.8 12.8 10.7 10.7
$0.31 0.27 0.23 0.19
0.5% 0.6 0.9 1.0
$71%-50 1 /4 58-30% 33 7 /8-20% 24-14V 8
18.6 19.8 13.3 10.8
$3.69 2.01 2.04 (2.09) h l
$2.24 2.24 2.24 2.24
4.1% 5.5 6.7 4.9
$633/W4% 50%-31 3 /4 411/2-255/8 521/4-383/8
14.7 20.4 16.5
15.2% 13.5 13.2 16.5
$1.65 k 1.37' 0.84 m 1.40n
$0.38 0.33 0.33 0.33
1.0% 1.2 1.9 2.3
$46 5 /8-31 3 / 8 3678-16 20 3 /4-14 1 / 8 15 3 /4-12%
23.6 19.3 20.8 10.0
8.6% 8.5 7.5 11.2
14.8% 13.7 10.1 17.9
$4.12° 3.85 3.13 5.27
$1.08 1.08 1.08 1.02
2.0% 2.3 3.0 2.5
$68-42% 60-33 393/4-311/8 493/4-321/2
13.4 12.1 11.3 7.8
$977 960 898 765
15.7% 16.6 16.3 15.9
18.1% 17.6 17.4 18.1
$4.59 p 4.41 4.11 3.65
$2.72 2.40 2.16 1.92
2.6% 2.8 3.3 3.0
$1161/4-941/2 1047/8-683/4 75 1 /8-54% 771/2-481/2
23.0 19.7 15.8 17.3
$127 117 105 88
16.1% 17.3 15.6 14.3
21.3% 22.7 22.3 22.2
$0.62 0.61 0.54 0.45
$0.40 0.35 0.29 0.29
3.0% 3.2 3.9 4.1
$14 7 /8-11 7 / 8 13 3 /4-7 7 / 8 81/2-61/2 7 3 /4-6%
21.6 17.7 13.7 15.6
$40.2 33.5 29.4 23.6
$305 279 289 260 p
11.9% 12.8 12.1 12.3
23.7% 25.8 23.3 22.4
$1.99 1.98 1.86 1.62
$0.74 0.68 0.59 0.53
1.6% 1.7 2.3 2.5
$507/e-395/8 5078-28 303/4_20% 25 1 /2-16 3 / 8
22.7 19.7 13.8 12.9
$375.6 380.0 353.6 316.5
$95.8 82.4 77.4 64.7
$804 777 718 663
8.1% 8.4 8.8 7.7
15.5% 15.9 17.7 14.2
$1.81 1.78 1.77r 1.26
$0.81 0.77 0.73 0.69
2.7% 3.0 3.6 3.5
$34 7 /e-24% 29%-22 24V2-16V2 22V2-17
16.4 14.5 11.5 15.7
$3005.0 3362.0 3492.0 3173.0
$586.0 591.0 750.0 607.0
$1939 2364 2664 2259
3.3% 6.1 7.8
$2.20 2.045 1.88 1.65
3.6% 3.4 3.8 3.2
$71 1 /4^9 3 /4 76-46 601/e-383/4 62V8-40V4
26.2 11.7 10.2
15.6% 12.0 13.2 15.5
—
— 12.5% 20.5 30.1
$(101)as 2.33* 4.23 u 5.02 v
—
—
a Net loss b Excludes net loss from cumulative effect of changes in accounting from health benefits for retirees of $286.5 million ($11.21 per share), c From continuing operations; excludes income from discontinued operations of $20.5 million ($0.25 per share), d From continuing operations; excludes net income from discontinued operations of $1.2 million ($0.04 per share), e From continuing operations; excludes net loss from discontinued operations of $183.9 million ($2.05 per share) and net loss from cumulative effect of changes in accounting for health benefits for retirees of $190.0 million ($2.12 per share), f From continuing operations; excludes net loss from discontinued operations of $0.6 million ($0.01 per share), g From continuing operations; excludes net loss from discontinued operations of $3.4 million ($0.04 per share), h Net loss, i Excludes net gain from cumulative effect of accounting changes of $15.0 million ($0.33 per share), j Fiscal year ends June 30. k From continuing operations; excludes net loss from discontinued operations of $1.3 million ($0.02 per share). I From continuing operations; excludes net loss from discontinued operations of $9.0 million ($0.38 per share), m From continuing operations; excludes net gain on sale of fragrance business, after taxes, of $5.2 million ($0.08 per share) and charges from environmental and litigation costs related to previously sold operations of $7.6 million ($0.12 per share), η From continuing operations; excludes net gain from discontinued operations of $6.7 million ($0 10 per share), ο Excludes net loss from cumulative effect of changes in accounting for income taxes of $165.5 million ($4.12 per share), ρ Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $6.1 million ($0.16 per share), q Not adjusted for intangible assets, r From continuing operations; excludes gain, after taxes, on sale of Genentech stock of $62.9 million ($1.79 per share) but includes charge for write-off of inventories and receivables due from a former affiliate of $9.7 million, s From continuing operations; excludes income and gain from sale of Fisher Controls of $578.0 million ($4.68 per share) and net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $658.0 million ($4.38 per share), t Includes net restructuring expense of $325.0 million ($2.54 per share), u Includes net gain on divestitures of $56 million ($0.43 per share), ν Includes net gam on sale of analgesics business of $36 million ($0.27 per share).
60
JUNE 28, 1993 C&EN
Year
Net sales
Net income
Total assets
Net plant and equipment
Capital expenditures
Stockholders' equity
%of sales
NET INCOME %of stockholders' equity
$per share
Divi dend, $per share
Divi dend yield, % of price
Stock price range, $ per share
Priceearn ings ratio
1.6% 2.0 2.3
—
$647/e-513/4 573/8-35% 44%-31 1 /2 417/β-371/2
19.8 16.3 14.2 15.6
18.8 19.2 15.4 14.3
(Money figures in millions of dollars unless otherwise indicated) Morton International $144.5 1992 a $2044 138.3 1991 a 1906 a 129.0 b 1990 1639 a 122.1 c 1989 1407
$1755 1563 1448 1170
$835.2 722.3 646.2 553.4
$200.1 163.6 113.3 131.9
$867 741 642 706
7.1% 7.3 7.9 8.7
16.7% 18.7 20.1 17.3
$2.95 2.85 2.68 b 2.55 c
$0.96 0.94 0.86
Nalco Chemical 1992 $1375 1991 1237 1990 1212 1989 1071
$145.0 134.6 d 131.1 119.9
$1232 1186 992 892
$533.3 493.6 419.3 350.9
$131.0 136.8 114.9 86.4
$458 390 410 397
10.5% 10.9 10.8 11.2
31.7% 34.5 31.9 30.2
$1.90 1.78d 1.71 1.50
$0.84 0.83 0.755 0.68
2.4% 2.4 2.9 3.2
$407/e-303/8 42V4-26V8 30%-22 25-17 1 /4
NL Industries 1992 $894 1991 840 1990 907 1989 1001
$(43.0) e f (24.0) e h 93.5' 170.2'
$1472 1831 1967 1512
$746.0 738.6 577.1 380.5
$85.2 195.1 195.3 83.4
$(146) 9 (58)9 39 137
— —
10.3% 17.0
— —
242.4% 124.0
$0.35 0.60 0.60 0.60
4.1% 4.8 3.5 2.6
$12 7 /e-4 163/4-θ1/2 243/4_gy4 28-18%
12.0 9.1
$1904 1880 1760 1794
$934.0 899.0 829.0 781.0
$173.0 177.0 187.0 142.0
$615 534 609 555
2.3% 2.9 3.2 4.9
8.9% 12.5 13.8 22.3
$2.20 2.20 2.15 1.95
4.8% 5.0 4.8 3.3
$543/4-371/4 54-33V2 605/8-281/8 68 1 /4^9 3 /8
21.2 13.2 10.7 10.2
Quantum Chemical 1992 $2367 $ ( 1 1 8 . 4 ) e m (123.3) e 1991 2532 21.2 1990 2656 114.1° 1989 2671
$3088 3124 3139 2910
$1972.5 1987.2 2020.2 1759.3
$109.4 160.8 458.4 583.3
$(538) 9 (278) 9 (183) 9 (266) 9
— —
0.8% 4.3
— — — —
$0.00 0.00 0.00 n 2.18°
— — — 3.3%
$183/8-115/β 193/4-91/e 313/8-81/8 1071/8-281/2
12.7 14.9
Rohm & Haas 1992 $3063 1991 2763 1990 2824 1989 2661
$174.0° 163.0 207.0 r 176.0 s
$3267 2840 2645 2361
$1768.0 1470.0 1390.0 1148.0
$283.0 265.0 412.0 385.0
$1250 1174 1176 1217
5.7% 5.9 7.3 6.6
13.9% 13.9 17.6 14.5
$2.53 q 2.45 3.10 r 2.65 s
$1.28 1.24 1.22 1.16
2.5% 3.1 4.0 3.4
$59%-42 3 / 4 481/2-323/4 37-24V4 37V2-31
20.2 16.6 9.9 12.9
Sigma-Aldrich 1992 $654 1991 589 1990 529 1989 441
$95.5 79.8 71.2 64.0
$616 597 546 472
$188.3 191.7 192.4 176.4
$30.9 26.1 32.5 51.7
$512 441 368 299
14.6% 13.5 13.5 14.5
18.7% 18.1 19.3 21.4
$1.92 1.60 1.44 1.29
$0.26 0.23 0.205 0.185
0.5% 0.6 0.7 0.7
$591/4-^13/4 53-28 353/e-253/8 293/4-21%
26.3 25.3 21.1 19.9
Stepan 1992 1991 1990 1989
$10.4 l 12.5 14.5 7.8
$297 271 247 215
$167.9 157.1 143.3 122.5
$34.4 33.7 38.4 34.1
$100 91 83 71
2.4% 3.0 3.7 2.3
10.4% 13.8 17.5 11.1
$1.91* 2.30 2.64 1.42
$0.74 0.66 0.58 0.53
2.1% 2.6 2.6 2.2
$453/4-261/4 293/4-21% 27 /4-16% 291/2-173/4
18.8 11.1 8.3 16.6
Sterling Chemicals 1992 u $431 $4.5 V 36.8 1991u 543 1990 u 506 59.1 1989 u 581 103.9
$541 361 352 329
$343.8 230.6 216.0 216.4
$16.0 34.4 19.9 57.6
$28 112 108 110
1.0% 6.8 11.7 17.9
16.1% 32.8 54.6 94.1
$0.08 v 0.67 1.07 1.77
$0.245 0.65 1.00 0.75
$51/8-37/8 71/8-^1/2 8%-5 1 /4 18 3 /4-6 7 / 8
71.9 8.7 6.5 7.2
$119.0 W (116.0) e 308.0 Z 573.0
$4856 6705 8587 8483
$2539.0 2499.0 4325.0 4584.0
$359.0 400.0 744.0 785.0
$1153 x 2118 2227 2320
2.4%
10.3%
4.0 6.6
— 13.8 24.7
$0.76 w (1.06) θ 2.19 z 4.07
$0.875 x 1.00 1.00 1.00
6.3% 5.3 5.1 3.6
$171/8-107/8 22%-15 1 /8 247/8-141/8 331/4-223/4
18.4
—
$53.9 a a 73.5 68.0 35.0
$1562 1129 1136 1121
$721.2 474.8 471.0 417.2
$72.6 74.3 90.8 70.4
$364 556 544 554
3.1% 4.5 4.2 2.2
14.8% 13.2 12.5 6.3
$2.38 a a 3.21 2.95 1.60
$1.84 1.78 1.72 1.61
4.1% 4.9 5.6 4.0
$50%-40 44^28% 397/8-213/4 45 1 /e-34%
19.1 11.4 10.4 24.9
Olin 1992 1991 1990 1989
$2376 2275 2592 2509
$436 414 390 346
Union Carbide 1992 $4872 1991 y 4877 1990 7621 1989 8744 WitCO 1992 1991 1990 1989
$1729 1631 1631 1588
$55.0 k 67.0' 84.0 124.0
$(0.88) θ · < (0.40) e h 1.42' 2.57'
$2.17 k 3.32' 4.03 6.02
$(3.93)em (4.26) e 0.79 4.45°
—
4.2% 11.2 14.4 5.9
1
— —
— —
— 8.9 6.9
a Fiscal year ends June 30. b Excludes extraordinary net gains of $5.8 million ($0.12 per share), c Excludes reorganization and other extraordinary net charges of $25.0 million ($0.52 per share). d From continuing operations; excludes net income from discontinued operations of $3.2 million ($0.04 per share), e Net loss, f Excludes extraordinary net loss from cumulative effect of changes in accounting for health benefits for retirees and other extraordinary items of $43.5 million ($0.62 per share), g Deficit, h Excludes extraordinary net gain of $7.5 million ($0.13 per share). i Excludes extraordinary net loss of $1.1 million ($0.02 per share), j Excludes extraordinary net gain of $2.6 million ($0.04 per share), k Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $46.0 million ($2.11 per share). I Excludes special charge for restructuring of operations of $80 million ($4.24 per share). m Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $169.1 million ($5.68 per share), η Paid 2% stock dividend, ο From continuing operations; excludes net income and net gain on sale of oleochemical business of $133.3 million ($5.31 per share), ρ Plus 1% stock dividend, q Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees of $179.0 million ($2.69 per share), r Includes net gain on sale of surfactant and alkylphenol businesses of $26 million ($0.39 per share), on sale of forest property of $20 million ($0.20 per share), and net loss for write-off of intangible assets in electronic materials business of $187 million ($0.27 per share), s Includes net gain on sale of interest in U.K. subsidiary of $15 million ($0.23 per share), t Excludes net gain from changes in accounting for income taxes and investment tax credits of $5.4 million ($1.02 per share), u Fiscal year ends Sept. 30. ν Excludes net loss from changes in accounting for health benefits for retirees of $10.4 million ($0.19 per share), w From continuing operations; excludes net gain from spin-off of industrial gases business of $67.0 million ($0.51 per share) and net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $361.0 million ($2.73 per share), χ On June 30, stockholders received one share in the newly formed industrial gases company Praxair for every share of Union Carbide stock; the effect of this spin-off was to reduce Union Carbide stockholders' equity by $733.0 million, y Excludes industrial gases business, spun off during 1992. ζ Includes net loss from sale of 50% interest in carbon product business of $86 million ($0.61 per share) and net gain from sale of other businesses of $80 million ($0.57 per share), aa Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $14.7 million ($0.59 per share).
JUNE 28, 1993 C&EN 6 l
2
FINANCES OF THE U.S. CHEMICAL INDUSTRY
Net income
Net sales
Year
Total assets
Net plant and equipment
Capital expenditures
Stockholders' equity
% of sales
NET INCOME %of stockholders' equity
Sper share
Divi dends, Sper share
Divi dend yield, % of price
Stock price range, $ per share
Priceearn ings ratio
(Money figures in millions of dollars unless otherwise indicated) PHARM) VCEUTICAI LS Abbott L aboratorie s $7,852 $1239.1 1992 1088.7 a 6,877 1991 965.8 6,159 1990 859.8 5,380 1989
$6,941 6,255 5,563 4,852
$3099.2 2662.1 2375.8 2090.2
$1007.2 770.6 641.4 573.1
$3348 3203 2834 2726
15.8% 15.8 15.7 16.0
37.0% 34.0 34.1 31.5
$1.47 1.28a 1.11 0.96
$0.60 0.50 0.42 0.35
2.0% 1.8 2.2 2.4
$341/8-261/8 343/4-19% 23 1 /4-15% 17 1 /2-11 1 / 2
20.5 21.3 17.5 15.1
American Home Products $7,874 $1150.7 b 1992 7,079 1375.3 1991 1990 6,775 1230.6 C 6,747 1102.2 1989
$6,433 5,684 5,354 5,114
$1777.8 1476.8 1437.4 1481.7
$428.1 227.9 247.7 250.7
$2854 3046 2392 1403
14.6% 19.4 18.2 16.3
40.3% 45.2 51.4 78.6
$3.66° 4.36 3.92 c 3.54
$2.66 2.375 2.15 1.95
3.6% 3.6 4.3 4.1
$8474-637» 86 1 /4^7 1 / 8 55-44 5472-407s
20.2 15.3 12.6 13.4
Bristol-Myers Squibb 1992 $11,727 $1603.0 d 2056.0 11,159 1991 1748.0 10,300 1990 747.0 e 9,189 1989
$10,651 9,246 9,023 8,273
$3141.0 2936.0 2631.0 2350.0
$647.0 633.0 526.0 562.0
$5867 5625 5226 4860
13.7% 18.4 17.0 8.1
27.3% 36.6 33.4 15.4
$3.09 d 3.95 3.33 1.43e
$2.76 2.40 2.12 2.00
3.7% 3.2 3.6 3.9
$90 1 /β-60 89 3 /8-61 Ve 68-5072 58-44
24.3 19.1 17.8 35.7
Johnson & Johnson 1992 $13,753 $1625.0' 12,447 1461.0 1991 11,232 1143.0 9 1990 9,757 1082.0 1989
$11,168 9,775 9,506 7,919
$4115.0 3667.0 3247.0 2846.0
$1103.0 987.0 830.0 750.0
$4455 4888 4900 4148
11.8% 11.7 10.2 11.1
36.5% 29.9 23.3 26.1
$2.46 f 4.39 3.43 9 3.25
$0.89 1.54 1.31 1.12
1.7% 1.7 2.1 2.2
$58 3 / 4 -43 116 1 /4-65% 74V8-51 Ve 5972-41V6
20.7 20.7 18.3 15.5
Eli Lilly 1992 1991 1990 1989
$6,167 5,726 5,192 4,176
$827.6 h 1314.7 1127.3 939.5
$8213 7,873 6,674 5,394
$4072.1 3782.5 2936.7 2114.6
$912.9 1,142.4 1,007.3 554.5
$4440 4540 2998 3303
13.4% 23.0 21.7 22.5
18.6% 29.0 37.6 28.4
$2.81 h 4.50 3.90 3.20
$2.20 2.00 1.64 1.35
3.0% 2.6 2.2 2.4
$87 3 / 4 -57 3 /4 8478-69 89 3 /4-59% 6872-427e
25.8 17.1 19.1 17.3
Merck 1992 1991 1990 1989
$9,663 8,603 7,671 6,550
$2446.6' 2121.7 1781.2 1495.4
$10,933 9,349 7,873 6,593
$4271.1 3504.5 2721.7 2292.5
$1,066.6 1,041.5 670.8 433.0
$4849 4767 3677 3357
25.3% 24.7 23.3 22.8
50.5% 44.5 48.4 44.5
$2.12 1.83 1.52 1.26
$0.92 0.77 0.64 0.55
1.9% 1.9 2.4 2.4
$567β-407 2 555/e-273/8 30%-22 3 /8 267/e-183/4
22.9 22.7 17.3 18.1
Pfizer 1992 1991 1990 1989
$7,230 6,950 6,406 5,671
$1093.5· 917.1 k 801.2 681.1
$9,222 9,251 8,553 7,895
$2305.1 2381.0 2109.8 1784.1
$674.2 593.8 547.5 456.5
$4350 4643 4593 4106
15.1% 13.2 12.5 12.0
25.1% 19.8 17.4 16.6
$3.25' 2.71 k 2.38 2.02
$1.48 1.32 1.20 1.10
1.9% 2.1 3.5 3.4
$87-6578 8678-36% 4078-2774 3778-27
23.4 22.7 14.3 16.1
Schering-Plough 1992 $4,056 1991 3,616 1990 3,323 3,158 1989
$720.4 645.6 565.1 471.3
$3,967 3,822 3,937 3,440
$1748.5 1490.4 1284.4 1210.7
$403.2 339.4 242.9 186.1
$1407 1155 1915 1782
17.8% 17.9 17.0 14.9
51.2% 55.9 29.5 26.4
$3.60 3.01 2.50 2.09
$1.50 1.27 1.065 0.875
2.5% 2.4 2.4 2.5
$7078-4978 6778-40% 5074-37 43-27%
16.7 17.9 17.6 16.9
Upjohn 1992 1991 1990 1989
$3,639 3,402 3,021 2,725
$547.2' 537.4 458.1m 323.6 n
$4,605 4,147 3,668 3,232
$1670.4 1540.7 1421.6 1275.1
$295.4 258.1 246.8 242.3
$2016 2005 1780 1736
15.0% 15.8 15.2 11.9
27.1% 26.8 25.7 18.6
$3.04' 2.96 2.48 m 1.74n
$1.42 1.26 1.04 0.94
3.8% 3.0 2.7 2.7
$4578-29% 4974-3474 4478-33 427e-275/8
12.4 14.2 15.7 21.8
Warner-Lambert 1992 $5,598 1991 5,059 4,687 1990 1989 4,196
$643.7 452.8° 484.9 412.7
$3,921 3,444 3,100 2,720
$1507.1 1350.0 1301.4 1132.5
$334.3 326.0 239.9 218.5
$1372 1013 1241 990
11.5% 9.0 10.3 9.8
46.9% 44.7 39.1 41.7
$4.78 4.16° 3.61 3.05
$2.04 1.76 1.52 1.28
3.0% 2.4 2.5 2.6
$7974-5878 8274-6174 7078-4978 5978-3774
14.4 17.3 16.6 15.8
a Excludes extraordinary net gain on sale of investment in Amgen of $128.2 million ($0.15 per share), b Excludes net loss from cumulative effect of changes in accounting for income taxes and a charge for research acquired from Genetics Institute of $310.1 million (0.99 per share), c Includes gain on sale of household products and depilatory businesses, before taxes, of $999.5 million. d From continuing operations; excludes net gain on sale of Drackett of $605.0 million ($1.17 per share) and net loss from cumulative effect of changes in accounting for health benefits for retirees of $246.0 million ($0.47 per share), e Includes charges and expenses for integrating operations of Bristol-Myers Co. and Squibb Corp., after taxes, of $693 million ($1.32 per share), f Excludes net loss from cumulative effect of changes in accounting for health and other benefits for retirees and for income taxes of $595.0 million ($0.90 per share), g Includes charge for damage to operations in Latin America of $125 million ($0.38 per share), h Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $118.9 million ($0.40 per share), i Excludes net loss from cumulative effect of changes in accounting for health and other benefits for retirees and for income taxes of $462.4 million ($0.40 per share), j Excludes net loss from cumulative effect of changes in accounting for hearth benefits for retirees and for income taxes of $282.6 million ($0.84 per share), k Excludes special charge for projected payments in connection with potential future Shiley C/C heart valve fractures of $195 million ($0.58 per share). I Excludes net loss from cumulative effect of changes in accounting for health benefits for retirees and for income taxes of $223.0 million ($1.26 per share), m From continuing operations; excludes loss on discontinued operations and their disposal of $2.4 million ($0.01 per share) but includes partial pension settlement net gain of $37.8 million, η From continuing operations; includes restructuring and other nonrecurring charges of $57.3 million but excludes net loss of discontinued operations and their disposal of $147.6 million ($0.79 per share), ο Excludes nonrecurring net charges for restructuring of $418.0 million ($3.11 per share) and for cumulative effect of accounting change of $106.0 million ($0.79 per share).
62
JUNE 28, 1993 C&EN
Gain Hands-on Experience in M S ! Enroll today in this intensive short course offered by the American Chemical Society—
Mass Spectrometry Principles and Practice Michigan State University . East Lansing, M l Two 1 9 9 3 Sessions! In Just 3 - 1 / 2 Days, You'll Learn: • How to Interpret Mass Spectral Data. • Which Compounds are Amendable to Various MS Techniques. • How to Introduce Samples, Collect Data by Scanning, and Process Data with a Data System. • How to Search on MSD and ITD Data Systems and on Terminals Connected to the Chemical Information Service in Washington, D.C. • How to Tune a Mass Spectrometer, Maintain it, Introduce Samples, Collect Data by Scanning, and Process Data with a Data System. • How to Operate a Variety of Benchtop GC/ MS Spectrometers: Each will be Equipped with an Integrated Data System. • AND MUCH, MUCH MORE!
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~l
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&
Name Title Organization Address City, State, Zip .
L
.J
3
EMPLOYMENT IN THE U.S.CHEMICAL INDUSTRY
Cloudy picture for chemical employment mployment data send mixed signals about the chem ical industry in 1992. According to the latest figures from the Department of Labor, overall chemical em ployment averaged 1.08 million workers in 1992. That's about 1% higher than average employment in 1991 and about 1% less than in 1990, the peak employment year of the most recent business cycle. But major chemical compa nies report 1992 employment down at least 4%. Adding to the complexity, the Labor Department recently revised its figures for chemical industry employment upward for the second half of 1991 and all of 1992, a revision that ac counts for all of the 1992 employment increase. According to the revised data, employment in all manufacturing industries fell 2% in 1992. Monthly data show the pickup in chemical employment took place in the second half of 1991 and the first few months of 1992. Since then, the number of workers has been drifting slowly downward. Production workers, who make up about half of all work ers in the chemicals and allied products industry, saw their numbers shrink 2% in 1992, according to the Labor Depart ment. The same decrease was seen in the production work force for all manufacturing industries. A look at employment trends for some of the largest chemi cal companies shows employment down 9% for the group. That's a decrease of 32,700 employees in 1992. That figure is somewhat misleading, however, since it counts as a loss 20,000 people who became employees of Praxair, rather than Union Carbide, when Praxair was formed from part of Carbide in mid-1992. Even if those people are added back in, however, to tal employment in 21 large companies declined 4% in 1992. A survey conducted by the National Science Foundation every January of scientists and engineers working in indus-
E
Employment in chemical industry eased downward for most of 1992 Millions of employees3 1.101|
1.09
AÊL
W κ
1.08
_J
λ ^
r^v
1
1.061
! 1.001
I I I I I I I I I I I
1989
1990
ι 1991
ι ιιιιιιιιι ι . . • 1992 1993
I
a Seasonally adjusted employment in U.S. chemicals and allied products industry; April and May 1993 figures are preliminary. Source: Department of Labor
trial R&D saw employment of this group rise in the chemi cal industry to 82,000 at the beginning of 1992. That's a 4% increase over what was already the largest number ever employed in the chemical industry. As has been the case for the past several years, the increase occurred in the parts of the industry that sell directly to consumers, particularly drug firms. Employment of R&D scientists and engineers at industrial chemical firms declined nearly 6% to 21,400. Nor was the picture so rosy for all industry, where employment of scientists and engineers in R&D fell to 683,700 in early 1992, a 3% decline.
INDUSTRIAL EMPLOYMENT: Growth in drug company jobs in 1992 boosted chemicals overall % annua change 1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
18,040
18,406
19,076
19,391
19,314
18,999
18,947
19,248
19,372
18,432
1,083
1,076
1,086
1,074
1,057
1,025
1,021
1,044
1,049
1,043
Industrial inorganic chemicals
136
129
138
135
133
131
135
143
143
Plastics materials & synthetics
173
178
180
182
177
168
168
172
178
Drugs
256
247
237
232
228
215
208
206
206
Soap, cleaners & toilet goods
154
155
159
160
159
152
146
148
146
58
58
62
62
63
63
63
63
154
155
155
150
146
148
154
58
57
56
54
52
51
54
Thousands
All manufacturing Chemicals & allied products
Paints & allied products Industrial organic chemicals Agricultural chemicals
1991-92
1982-92
18,780
-2%
0%
1,075
1
0
151
161
5
-1
177
185
-2
-1
201
199
4
3
142
144
-1
1
62
60
60
0
0
160
162
163
171
-1
-1
59
61
61
65
2
-1
93
97
100
99
100
97
93
94
92
89
91
-4
0
Petroleum & coal products
159
160
157
156
160
164
169
179
189
196
201
-1
-2
Rubber & miscellaneous plastics products
872
862
888
888
866
842
823
818
813
743
729
1
2
Miscellaneous chemical products
Note: Average annual domestic employment. Source: Department of Labor
64
JUNE 28, 1993 C&EN
PRODUCTION WORKERS: Most chemical areas decline in past three years % annual change Thousands8
1992
1991
12,241
All manufacturing
1990
1989
1987
1988
1986
1985
1984
1983
1982
1991-92
12,434 12,947 13,230 13,193 12,952 12,864 13,084 13,280 12,528 12,742
1982-92
-2%
0%
567
580
600
603
596
575
568
578
583
579
599
-2
Industrial inorganic chemicals
61
64
70
70
69
67
69
72
73
77
86
4
3
Plastics materials & synthetics
104
110
116
119
116
111
113
114
117
115
119
5
1
Drugs
112
109
105
102
101
99
96
95
96
98
98
3
1
Soap, cleaners & toilet goods
93
95
98
101
102
97
93
93
93
89
90
-1
0
Paints & allied products
30
30
31
32
31
31
30
31
30
29
29
2
1
Industrial organic chemicals
76
81
86
88
86
83
81
82
82
84
86
6
1
Agricultural chemicals
35
34
34
34
33
32
33
37
38
37
40
1
1
Miscellaneous chemical products
55
58
59
59
58
55
53
54
54
51
51
-A
Petroleum & coal products
104
103
103
102
104
107
106
109
111
118
120
1
Rubber & miscellaneous plastics products
678
663
689
694
675
654
639
632
633
574
558
2
Chemicals & allied products
-1
1 -1 2
a Average annual domestic employment. Source : Department of Labor
EMPLOYMENT OF WOMEN: Chemical industry catches up with all manufacturing 1991 Thousands8
All manufacturing Chemicals & allied products Industrial inorganic chemicals Plastics materials & synthetics Drugs Soap, cleaners & toilet goods Paints & allied products Industrial organic chemicals Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastics products
6084.0 326.6 26.9 41.3 110.4 69.9 11.7 30.7 9.8 25.9 26.3 299.7
WORKWEEK: Getting longer for chemical workers and others in manufacturing Hours8
1981 %of total
Thousands8
30% 30 21
%of total
6341.0 285.0
23 45 45 20 20 18 26 17 35
24.3 43.0 85.5 60.1 12.3 27.7 10.6 21.4 30.9 265.3
All manufacturing Chemicals & allied products
31% 26 15 22
Industrial inorganic chemicals Plastics materials & synthetics Drugs Soap, cleaners & toilet goods Paints & allied products
43 41
40.7
40.8
42.9 43.6 42.6 42.5 40.9
42.6 42.9 42.5 41.8 40.8
41.8 45.6 44.4
41.9 45.2 44.1 42.4
43.8 42.5 41.3 41.6 45.6 44.5 42.6 43.8 41.7
Industrial organic chemicals Agricultural chemicals Miscellaneous chemical products Petroleum & coal products Rubber & miscellaneous plastics products
20 16 15 23 14 34
41.0 43.1 43.5
42.3 44.1 41.1
44.6 41.1
a For production workers in domestic employment. Source: Department of Labor
a Average annual domestic employment. Source: Department of Labor
EMPLOYMENT OF SCIENTISTS, ENGINEERS: Up for chemical industry, down elsewhere Thousands8
1982
683.7
704.1
730.9
720.2
708.6
695.8
671.0
622.5
584.1
540.9
509.8
82.2
78.8
78.9
77.6
75.8
75.2
75.8
71.1
69.8
67.3
61.6
Drugs & medicines
36.9
34.2
33.5
34.0
33.0
32.6
31.8
30.8
30.8 b
28.2
25.6
Industrial chemicals
21.4 b
22.7 b
23.0 b
23.1b
22.5 b
22.4 b
24.9
23.5
25.6
26.6
25.9
Other chemicals
23.9
21.9
22.4
20.5
20.3
20.2
19.1
16.7
13.4
12.1
10.1
9.7
10.0
10.2
10.3
9.5
9.9
10.4
13.5
13.3
14.7
15.6
Total, all industry Chemicals & allied products
Petroleum refining & extraction
a Full-time equivalent number of R&D scientists and engineers in industry, as of January of each year, b Partly estimated. Source: National Science Foundation
JUNE 28, 1993 C&EN
65
3
EMPLOYMENT IN THE U.S. CHEMICAL INDUSn
CHEMICAL EMPLOYMENT: Declines for third straight year at major companies 1991
Air Products American Cyanamid Betz Laboratories
14.5 32.8 4.2 5.4
1990
14.6 31.6
1988
14.0 32.0 3.7 6.0
2.2
4.0 5.3 2.0
Dow Chemical Ethyl H. B. Fuller B. F. Goodrich
61.4
62.2
6.3 5.8 13.4
6.0 5.6 14.4
62.1 5.7 5.6 14.7
W. R. Grace
44.1
46.6
Hercules Imcera Group International Flavors Lubrizol
15.4
Monsanto
33.8
Cabot Crompton & Knowles
Nalco Chemical Olin PPG Industries Rohm & Haas
Stepan Union Carbide TOTAL EMPLOYEES ANNUAL CHANGE SALES PER EMPLOYEE ($ thousands, current) SALES PER EMPLOYEE ($ thousands, constant 1982b
9.5 4.2 4.6
6.7 13.5 32.3 13.8
1.3 15.1a
14.1 35.4 3.4
13.3 35.5
62.1
12.1
1986
1985
1983
16.6 34.5
18.7 36.4 2.5 7.7
53.2
3.1 5.2
34.3 2.0 5.1
1.6
1.3
2.6 6.6 1.3
55.5 10.4
51.3 10.5 4.5
5.5 1.7
1.8
1987
5.2
53.1 10.0 4.6
49.0
5.5 5.5 11.9 46.4
12.3 45.7
12.0 39.4
11.9 41.4
17.3 9.8 4.2
19.9 9.6 4.2
23.3 6.9 4.2
22.7 6.9 4.2
23.2 12.9 4.1
5.3 39.3
5.2 41.1
5.3 42.2
4.8 45.6
4.8 49.7
25.1 13.9 3.8 4.8 51.7
17.7 38.2 2.5 7.5 2.3
2.3 7.2 2.4
54.5
56.6
13.0 4.1
26.2
49.8 11.0 4.3 28.8
29.4
116.9
102.6
95.5
14.0 4.0 30.0 82.2
25.4 8.7 3.7
26.3 9.0 3.7
24.2 8.4 3.7
24.5 8.4
5.2
4.2
4.2
56.1
50.8
48.8
4.3 52.2
5.1
4.8 17.8 37.7
4.6 18.2
2.3
10.5 4.4
6.8 14.4 33.7
5.9 15.2
5.5 15.4
5.4 16.4
5.1 14.1
4.9 13.2
35.1
12.9
12.9
35.5 13.0
36.3 12.4
36.8 12.0
36.5 12.1
1.3 36.7
1.3
1.2
1.0
0.9
46.0
44.0
1.0 43.1
0.9
38.8
50.3
91.5
14.9 37.5 11.8
383.8 340.3a 374.0 -1.6% -9.0% a - 2 . 6 % $206.1 $220.7 $205.6
380.7 398.4 539.6 390.0 387.5 -4.4% -26.2% 1.8% 0.6% 1.8% $163.8 $ 138.6 $108.7 $193.6 $186.7
$175.3
$157.4
$167.2
$166.7
$160.6
$154.0
$ 135.1
1982
16.7 38.7
$104.8
11.9
37.0 11.4
0.9 98.4
99.5
0.9
530.2
524.7 -0.2% 1.0% $111.0 116.4
$113.1
$110.7
18.9 40.2 2.2 7.5 2.3
3.6
4.6 17.5 37.0 11.5
0.9 103.2 525.6 -6.6% $108.9 $108.9
Note: Data are not restated for acquisitions, divestitures, or similar developments, a Excludes 20,000 former Union Carbide employees who became employees of Praxair when that company was spun off in June 1992. b Based on producer price index for chemicals and allied products. Source: Company data
WAGES: Chemical workers average $3.00 per hour more than other manufacturing workers Hourly earnings8
Weekly earnings8
1992
1991
1990
1989
1992
1991
1990
1989
$11.45
$11.18
$10.84
$10.47
$469.45
$455.03
$442.27
$429.27
14.45
14.07
13.54
13.09
622.80
603.60
576.80
555.02
Industrial inorganic chemicals
15.67
15.16
14.67
14.19
681.65
660.98
629.34
605.91
Plastics materials & synthetics
15.34
14.81
14.02
13.44
671.89
630.91
595.85
579.26
Drugs
14.04
13.54
12.87
12.51
596.70
575.45
537.97
521.67
Soap, cleaners & toilet goods
12.04
12.05
11.76
11.28
497.25
492.85
479.81
452.33
Paints & allied products
12.65
12.57
12.01
11.66
526.24
525.43
503.22
484.39
15.97
15.65
785.69
754.22
721.84
697.99
All manufacturing Chemicals & allied products
Industrial organic chemicals
17.23
16.54
Agricultural chemicals
14.69
14.18
13.58
12.79
653.71
629.59
598.88
555.09
Miscellaneous chemical products
13.06
12.61
12.30
11.92
556.36
533.40
521.52
505.41
Petroleum & coal products
17.87
17.02
16.23
15.41
782.71
750.58
723.86
682.66
Rubber & miscellaneous plastics products
10.37
10.10
9.79
9.47
432.43
415.11
402.37
392.06
a For production workers in domestic employment. Source: Department of Labor
66
JUNE 28, 1993 C&EN
3
EMPLOYMENT IN THE U.S. CHEMICAL INDUSTRY
"
Rising output and fewer production workers spur productivity increase Rising chemical production and fewer aggregate hours worked by the people who produce those chemicals made for a substantial increase in productivity for the chemicals and allied products industry last year. The increase was enough to offset a rise in average hourly earnings, producing the first decline in labor costs per unit of product since 1986. Productivity is measured as output per aggregate weekly hour of production. Unit labor costs are the cost of labor (wages) per unit of output. Productivity for chemicals and allied products grew 6.4% in 1992, a big improvement over the 2.0% gain the year before and the largest annual increase for the industry since 1983. Production of chemicals and allied products rose more than 3% in 1992. And, although the chemical workweek was slightly longer, the number of production workers declined, driving down the government's index of aggregate weekly hours of production almost 3%. At the same time, wages in the chemical industry rose just slightly more than 3%. That increase, combined with the larger one in productivity, re-
increased in 1992 . . .
• · · and unit labor costs finally fell
% annual change 101
% annual change 151
-5
-5
Chemical productivity
1982 83 84 85 86 87 88 89 90 91 92
1982 83 84 85 86 87 88 89 90 91
92
Sources: Federal Reserve Board, Department of Labor, C&EN estimates
suited in a 3.1% drop in unit labor costs for the industry in 1992. In 1991, unit labor costs increased 1.5% over the previous year. In contrast, productivity for all manufacturing industries grew more mod-
estly in 1992, increasing 2.9%. This follows annual growth of 2.2% in 1991. And unit labor costs for all manufacturing, although declining, decreased less than 1% in 1992, following a 2.2% gain in 1991.
PRODUCTIVITY: Chemicals and all manufacturing saw gains in 1992 1987
1990
Indexes, 1987 = 100
CHEMICALS & ALLIED PR(DDUCTS_ Production 115.0 Workhours 99.9 Productivity8 115.1 Hourly production wages 116.8 Unit labor costs'3 101.5
1985
1984
1982
111.3 102.9 108.2 113.3 104.7
111.8 105.4 106.1 109.5 103.2
109.2 103.8 102.1 102.2 100.2
106.0 103.8 102.1 102.3 100.2
100.0 100.0 100.0 100.0 100.0
94.6 97.8 96.7 96.7 100.0
91.4 99.4 92.0 93.6 101.7
91.4 100.3 91.1 89.8 98.6
87.5 99.2 88.2 85.7 97.2
81.8 100.5 81.4 80.6 99.0
103.9 95.3 109.0 112.8 103.5
106.1 99.4 106.7 109.3 101.3
106.4 102.2 104.1 106.1 101.2
104.7 102.9 101.7 102.9 101.2
100.0 100.0 100.0 100.0 100.0
94.3 98.5 95.7 98.3 102.7
91.6 99.7 91.9 95.9 104.3
89.3 101.5 88.0 92.8 105.4
80.9 94.4 85.7 89.3 104.2
76.6 93.1 82.8 86.0 103.9
ALL MANUFACTURING
Production Workhours Productivity* Hourly production wages Unit labor costs b
106.9 95.2 112.3 115.5 102.8
Note: Data for 1988 and subsequent years have been revised; earlier years have not. 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 per unit of output, calculated by dividing indexes for wages by indexes for output per workhour. Sources: Federal Reserve Board, Department of Labor, C&EN estimates
JUNE 28,1993 C&EN 67
4
MARKETS FOR THE U.S. CHEMICAL INDUSTRY
Chemical markets pick up Construction of new one-family M | ? γ ith gross domestic product ^ ^ t / up 5C7( last year from 1991, or homes increased 23%, and nearly as f T 2 % in real terms, U.S. consum many were built last year as in 1986, the ers opened their purses a fraction wider, peak year for the decade. The total num pressing a postrecessionary economy ber of housing starts, which includes forward. Spending for personal con multifamily dwellings, rose slightly sumption also was up 5c/( in 1992, or less—197i. Single-family homes, which made up an increasingly larger share of about 2c/( more than the inflation rate. The uptrend benefited chemical man housing starts throughout the decade, ufacturers. As the graphs on these two accounted for 867r of all new housing pages show, key markets for nearly all starts in 1992, up from 617, in 1982. chemicals and allied products picked up Construction of multifamily housing, noticeably last year. For example, hous which has fallen steadily since 1985 as ing construction, a major market for vacancy rates remained high, was un plastics, synthetic fibers, and coatings, changed last year from 1991, and just 257 of its 1985 level. reversed a five-year downtrend.
Factory sales of U.S.-made trucks and buses rose 207 last year to their highest level in the past 10 years. Even the passenger car market, which has faced tough competition in recent years from foreign-made vehicles, posted a 57 gain in 1992, its first in five years. Textile mill products, steel, plastics products, and apparel all showed pos trecessionary upticks. Last year also was a good year for farmers. Crops, which include grains, hay and forage, sugar crops, cotton, to bacco, and oil crops, recorded a 107 rise in output. Crop production struck its highest note of the decade.
Housing starts
Motor vehicles
Millions
Factory sales, millions of units
Production index, 1987 = 100
2.0
8
120
1.5
,0
Total
r^
