some 40 societies. Among those societies that turned down endorsement of the guidelines were the American Chemical Society, Society of Automotive Engineers, American Institute of Architects, American Institute of Mining and Metallurgical Engineers, and American Institute of Aeronautics and Astronautics. ACS declined to endorse the intersociety guidelines because they were not as strong in some ways as the ACS Guidelines for Employers. At the meeting of the ACS Board of Directors in Dallas last month, the Board voted on recommendation of the ACS Committee on Public, Professional, and Member Relations to endorse the recommendation of the Council Committee on Professional Relations that the intersociety guidelines "not be endorsed until they have been suitably modified to incorporate the stronger features of those guidelines and the ACS Guidelines for Employers" (C&EN, April 23, page 2). Dr. Leibson rejects the idea that the intersociety guidelines are weak. He says that ACS is taking a militant position in its one-way document (the ACS guidelines). He claims that the intersociety guidelines (or "unity guidelines" as he calls them) represent the best consensus that could be developed among so many societies and organizations. The ACS guidelines, he says, are not guidelines but rather are a set of minimum standards the employer must observe. Dr. Leibson believes the employer-employee relationship should be two-way. The intersociety guidelines present a conflict for some employed professionals. Chemical engineers, in particular, face a conflict since many of them belong to the American Institute of Chemical Engineers and the American Chemical Society. Asked how the chemical engineer who is a member of both organizations might resolve this conflict of which set of guidelines to adhere to, Dr. Leibson said that each person must make a choice, but that one set of guidelines (ACS) has the backing of only about 100,000 professionals, whereas the intersociety guidelines have the support of more than 500,000 professionals. Dr. Slowter says that the guidelines will be under continuous review. He also feels that many more societies and organizations will ultimately endorse them, including ACS.
Siverd: improvement will continue
continue. At the same time, numerous companies have been able to disclose increased dividends, to describe plans for new plants in the face of a sudden capacity squeeze, and even suggest that rewon affluence has breathed new life into a major recession casualty, research and development. The bulls for the year were led by the company with the biggest ongoing dollar gain, Du Pont. Having posted a whopping first-quarter sales jump of 19%, or just under $200 million, over firstquarter 1972, Du Pont sees daylight ahead. "The outlook for the remainder of 1973 suggests that this will almost certainly be a record year for Du Pont," says chairman Charles B. McCoy. "The longer term can be equally promising, and we approach the future with real enthusiasm." Business is strong across the board, he continues, with capacity operation in many major lines because of combined strength in Du Pont's big markets—textiles, automobiles, housing, appliances, and foreign sales. "We see no reason why this recovery should not extend well into 1974," he says. The present challenge, indeed, "is to respond effectively to the special problems that are inherent in a strong economy rather than the faltering economy of recent years." Of particular note among these problems, to Mr. McCoy, is the potentially troublesome cost-push in materials, energy, transportation, taxes, and other nonlabor costs. Joining Du Pont in the bulls' corner is Stauffer Chemical. After a record first quarter, company vice chairman Roger W. Gunder told shareholders, "Since late last year, I have been estimating that 1973 earnings will surpass last year's figures by a minimum of 10%. The fast start, coupled with prospects for continued growth, has now encouraged me to revise that forecast to an increase of at least 20%." Similar optimism comes from AmeriChemical company officials have ob- can Cyanamid and Diamond Shamviously enjoyed talking with stock- rock. In Portland, Me/, Cyanamid chairholders this year. After a first quarter man Clifford D. Siverd gave evidence in which both sales and profits overshot that his company has snapped out of its most forecasts, they have had the happy former earnings plateau. "We have task at annual meetings of explaining every expectation that the improvement just how big their boom actually is. shown in the first quarter [a 22% earnTheir only disagreement has concerned ings hike] will continue." In Clevenot whether sales and earnings will in- land, Diamond Shamrock president crease but at what rate the advance will C. A. Cash said that the company's up-
Good news abounds at annual meetings
Sneath: undercapacity problem
turn in chemicals should ride through the year on strong demand, firm prices, high operating rates, and efficient new plants. Two other companies in the 20% club for earnings growth are Olin and Monsanto. However, both advise some caution for the rest of the year. Olin president James F. Towey notes that his company's expected earnings gain of at least 20% this year assumes that "this superheated economy may let off some steam later in the year." In St. Louis, Monsanto chairman Charles H. Sommer said that the company will enjoy gains this year of at least 6% in sales and 27% in earnings. He warns, though, that Monsanto's 55% earnings jump in the first quarter cannot be annualized, since agricultural chemical sales, a big earnings factor, are concentrated in the first period. In New York City, Union Carbide president William S. Sneath told stockholders that the second quarter is continuing the torrid pace of the first three months, when sales jumped 20% and profits 30%. He adds that although some slowdown is expected later in the year, it should be moderate. Although the outlook beyond 1973 is less clear, he believes that Carbide is in a good position. In an astonishing turnaround from the situation just a year ago, unforeseen demand has outpaced current construction programs at Carbide. In fact, Mr. Sneath says, during the next several years undercapacity may well become the company's most serious problem. Other problems striking companies are their own prices and suppliers' prices as well as growing shortages of raw materials and energy. Du Pont's Mr. McCoy says the company's selling price index was still down 1.5% in the first quarter this year from first-quarter 1972. However, this is not as great a slippage as a 3.3% drop for all of 1972. At Monsanto, Mr. Sommer says that selling prices actually helped earnings for the second straight quarter. Diamond Shamrock chairman James A. Hughes feels Phase III price controls will allow some recouping of cost increases, provided competition allows price hikes. Materials and energy scarcity provided painful asides at many annual meetings. Amid an otherwise improving picture, Celanese president John W. Brooks remarked in New York City, "Short-term future growth in some May 14, 1973 C&EN
7
SUPER CATALOG
product lines may be somewhat limited by a tightening of raw material supplies." Any crunch from materials has not arrived yet, however. For the moment, meanwhile, chemical firms are happily passing along fruits of their higher cash flow. Dividend increases came to stockholders at Air Products (an effective doubling), Allied Chemical, Dow, Ethyl Corp., Great Lakes Chemical (the first dividend at all since 1937), Hercules, Mallinckrodt, Nalco, National Starch, Rohm and Haas, Stauffer, Union Carbide, and Virginia Chemical, among others. Air Products, Dow, Hercules, Mallinckrodt, and Nalco all presented stockholders with 2-for-l stock splits. Another welcome traditional aftereffect of good earnings, a boost for research and development, is beginning to surface. Rohm and Haas president Vincent L. Gregory, Jr., says that R&D productivity will be important in sustaining the company's goal of at least an 11% increase per year in earnings per share. The specific new products goal is rising from 10% to 15% of sales in the next few years. This acceleration, Mr. Gregory says, "is the main reason we have decided to double our research effort over the next five years." INTERNATIONAL
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in 12 sections: Acetylenic Chemicals and Derivatives, Acid Chlorides and Acid Fluorides, Amines and Derivatives, Alkyl Bromides, Catalysts and Catalyst Supports, Chloroformâtes, Fluorine Chemicals, Isocyanates, Ketones, Oximes, Phenoxyethanols and Phenylthioethanols, and Miscellaneous Chemical Intermediates. It's 168 pages of usefulness to the organic chemist. To get your idea book, simply fill in the coupon or call (717) 467-2981 and ask for it.
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